The Founding Fathers' concept of taxation and the 16th Amendment

Somebody sent me yet another semi-humorous/ supposedly-factual explanation of (Federal) taxation. The problem is that virtually everyone alive today has lived under the influence of the 16th Amendment [1]:

The Congress shall have power to lay and collect taxes on incomes,
from whatever source derived, without apportionment among the
several States, and without regard to any census or enumeration.

This is both a license to steal and a tool for tyranny.

We have forgotten the solution designed by the Founding Fathers:

1. Apportioned taxation (and representation) based upon a census:

Article I, Section 2 of the United States Constitution [2]:

Representatives and direct Taxes shall be apportioned among the
several States which may be included within this Union, according
to their respective Numbers, which shall be determined by adding to
the whole Number of free Persons, including those bound to Service
for a Term of Years, and excluding Indians not taxed, three fifths
of all other Persons.

Article I, Section 9 of the United States Constitution [2]:

No Capitation, or other direct, Tax shall be laid, unless in
Proportion to the Census or enumeration herein before directed to
be taken.

2. Taxation on immigration and "importation of persons" (slavery?) (expired):

Article I, Section 9 of the United States Constitution [2]:

The Migration or Importation of such Persons as any of the States
now existing shall think proper to admit, shall not be prohibited
by the Congress prior to the Year one thousand eight hundred and
eight, but a Tax or duty may be imposed on such Importation, not
exceeding ten dollars for each Person.

3. Tariffs on goods imported into the United States:

Article I, Section 8 of the United States Constitution [2]:

The Congress shall have Power To lay and collect Taxes, Duties,
Imposts and Excises, to pay the Debts and provide for the common
Defence and general Welfare of the United States; but all Duties,
Imposts and Excises shall be uniform throughout the United States;

Article I, Section 9 of the United States Constitution [2]:

No Tax or Duty shall be laid on Articles exported from any State.

The original solution embodies several key concepts:

1. Taxation in direct proportion to representation. Phrased another way, NO taxation without representation.

2. No export taxes. This helps our economy.

3. Import taxes, but with a built-in self-regulating mechanism that ties the fate of the government to the fate of the economy. If the Federal government taxes too little, they go broke and the economy suffers because of cheap foreign imports. If the Federal government taxes too much, they go broke (because imports stop) and the economy suffers because of lack of goods that cannot be produced domestically. But if the import taxes are just right, revenues are maximized and the economy flourishes. Everyone has a stake in finding the proper amount of import taxes. The solution is both simple and brilliant.

The 16th amendment is a root cause of both our tax problems and our international trade problems. It needs to be repealed.

David

References:

[1] http://www.archives.gov/exhibits/charters/constitution_amendments_11-27....

[2] http://www.archives.gov/exhibits/charters/constitution_transcript.html