The Right to Impose Taxes

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We will certainly soon be facing more taxation, regardless of how it is spun to us in the press. With the recent, and upcoming, attempts to “rescue” the economy, whatever that means, our national debt is now so large that the National Debt clock ran out of digits to display it.

Does government have a right, (or stated in terms of our founding documents, did a Creator give government the right) to impose taxes? William Pitt thought not.

Taxation is no part of the governing or legislative power. The taxes are a voluntary gift and grant of the Commons alone. - - William Pitt, Earl of Chatham, in Parliament 1766

However our founders realized that our new government would need to collect taxes. Their definition limited the use of those taxes to common defense and general welfare of the nation.

U. S. Constitution, Section 8 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.

Amendment 16 - Status of Income Tax Clarified. Ratified 2/3/1913. 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.

I am not a lawyer, but a quick glance through FindLaw seems to indicate that “general welfare” is usually interpreted to mean for the good of the people as a whole, rather than for the good of sub-groups within the population.

So I suggest we citizens who are being asked to provide this “gift” to the government ask ourselves some questions and think about some issues when the inevitable specter of taxation arises.

The new president campaigned on the issue of taxing the wealthy more in order to give tax breaks or credits to lower income citizens. It is difficult to see how taxation for the purpose of wealth redistribution fits within the definition of “for the good of the people as a whole." Nevertheless, this action will need to be considered in terms of our long standing acceptance of progressive tax rates (wealthy pay a higher percentage), and whether or not the new administration shows any effort to simplify the tax code.

The hardest thing in the world to understand is the income tax. -- Albert Einstein

Is it in the interest of the population as a whole to keep some banking centers afloat, and allow others to go bankrupt?

Is it in the interest of the population as a whole to financially rescue credit card operations like American Express?

Is it in the interest of the population as a whole to financially rescue auto makers, who are supposedly competing in an open and free market?

The list goes on. I do not wish to imply what your conclusion should be, but I urge you to at least ask yourself similar questions.