Future Amendment – Fiscal Discipline

I believe I have been very clear about what I think of the 16th Amendment. For anyone who wasn’t sure – I think it should go the way of the 18th Amendment and be repealed. Not long ago I found a group that feels the same way and is pushing for the 28th amendment to do just that. Their website does not give their proposed amendment a prominent a place as it deserves so I will copy their proposal here.

Section 1. The 16th Amendment to the Constitution of the United States is hereby repealed.

Section 2. Congress may collect no revenue by any means other than a flat individual income tax not to exceed 15% of an individual’s earnings, a flat corporate tax not to exceed 10% of net revenues, and actual user fees for services. All citizens and businesses shall be taxed at the same rate, and no exceptions, exemptions or credits will be allowed.

Section 3.

A. Any budget passed by the Congress must be funded by actual revenues collected through taxes as described in Section 2. Except in time of War as defined below, no deficit spending, borrowing on future funds, borrowing from other entities or other mechanism to meet budget requirements will be allowed.

B. For purposes of this section, “War” shall be defined as hostilities declared by the President of the United States in his Constitutional role as Commander-in-Chief, and duly authorized by the Congress under the terms of the “War Powers Act” of 1973. Any funds borrowed shall be used exclusively for executing that War and shall be re-paid entirely no later than 15 years from the end of the War.

Section 4. All agencies, programs, entitlements and other devices that will be excised by budgetary requirements will be returned to the responsibility of the individual States. No federal regulations or legislation will dictate how the States fund or execute such devices.

Section 5. The Congress may not make State eligibility for redistribution of revenue contingent on compliance with regulations or legislation that has the effect of a nationally uniform standard.

Section 6. Those areas of federal responsibility prescribed by the original Constitution will have budgetary priority. No bill will be passed that funds any other concern without first meeting the budgetary requirements of these areas. No funding will be included in the budget for a concern that is the responsibility of and reserved to the States.

Section 7. Article I, Section 8, Clause 3 of the United States Constitution is hereby amended to read as follows: “To regulate commerce with foreign nations and with the Indian tribes”

This proposed amendment solves a number of problems that currently  plague our approach to government spending. The first two sections remove the sixteenth amendment and replace it with an income tax that is limited to 15% on individual incomes and 10% of corporate profits with no deductions or credits. I’m sure the intent of those rates is to be somewhat close to budget neutral. Although I would like to see budget reductions I think a constitutional limit on income tax rates is a positive step.

The third section stipulates that we not engage in deficit spending except in time of war. Section 3(B) defines war – although I appreciate the mandate that war debts be repaid within 15 years of the end of the war I see two problems with this section: first and most importantly, the President is not authorized to declare war (their definition of war should require that war be defined as conflicts that have been declared by Congress); second, requiring funds to be repaid within a set time after the end of a war would be a disincentive to acknowledge the completion of the conflict (it would be far better to require deficit war spending to be repaid within a set time after the beginning of the war – that would encourage the ending of conflicts both to hold down costs, and to allow for the repayment in a timely manner rather than delaying the date when repayment was required by keeping the “war” open).

Sections 4 and 5 help to restore state sovereignty in the use of their funds consistent with the 10th amendment. In Section 6 I would strike the word “original” as it may be necessary at some time to fund something through the government that was not included in the original Constitution.

Section 7 narrows the much abused commerce clause so that the government no longer has any excuse to regulate what I choose to pay my neighbor for mowing my lawn simply because he purchased gasoline that had been shipped across state lines.

Overall I think this a good proposal to remind people inside and outside government that Congress was not intended to babysit every aspect of society and commerce in the nation. It’s sad that such a reaffirmation would have to be written into the Constitution – but evidence suggests that it does need to be reaffirmed legally in that document.