If you've been reading my past articles, you may have noticed that I'm not one to focus on superficialities regarding our economic state of affairs.  I'm someone who attacks a problem at the core.  This month, I'm attacking taxes, yes, taxes.  Before you roll your eyes and tear up the entire newsletter right now, let me get this out.

I've heard lots of rhetoric in the last two years about taxes in that they are unconstitutional.  Could this really be true?  I was skeptical at first.  But, luckily, I have enough distrust of government at the Federal level that I decided to pursue this.  During his presidential campaign, I heard Ron Paul speak of Social Security, and his belief that young persons should be allowed to opt out of this bankrupt system (Notice how I loaded that sentence with a claim that I'll address next month).  That sounded quite appealing to me.  After all, I don't invest anything in a 401k (heresy, you say!), because I understand the tremendous pitfalls of that system, so why am I forced to invest in another system in which I do not believe I will every see any benefit from, let alone my initial investment?  Herein lays the biggest problem I have with direct taxes at a Federal level; their insistence that they know better what to do with my hard earned money than I do.  Before I let this article just turn in to a rant, let me address my point, taxes and Constitutionality.

Exhibit #1: Article 1, Section 8 of the US Constitution, Powers of Congress; "The Congress shall have the power to lay and collect Taxes, Duties, Imposts and Excises, to pay the debts and to provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States."

You might think this is the end of the argument.  Yep, we should pay our taxes and shut up, no doubt about it.  But wait, this leaves too many questions unanswered.  Let's dig a little deeper.

Exhibit #2: Article 1, Section 9 of the US Constitution, Limits on Congress; "No capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken."

So if it is not direct (meaning, taxes laid directly to the people from the Federal government), then how do they get it?  Well, the way I (and many others) translate this is that the Federal government collects the taxes from the state, and that those taxes are apportioned from each state in the same manner as the Electoral College.  This represents the true nature of the Federal government.  It is not the know-all, be-all, end-all answer in government.  What this means is that the Federal government is subservient to the states, not the other way around!  We are the United States of America, not States under the power and duress of the will of the Federal Government.  But, this opens up a host of other issues such as unconstitutionality of Presidential Executive Orders, and States re-declaring sovereignty, so I'll digress.  What you should be thinking now is "okay, taxes are Constitutional, but we should not be taxed directly by the IRS (the way the Federal gov't collects direct taxes)."  So why are we?  Well, conveniently, my exhibit #2 is "clarified" by amendment 16. 

Exhibit #3: Amendment 16 to the US Constitution, Status of Income Tax Clarified. Ratified 2/3/1913; "The Congress shall have the 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."

Doesn't that sound like a slap in the face?  Big Brother knows best, so don't ask questions and nobody gets hurt.  If you'll pardon me, does this not sound tyrannical in its very nature?  I thought the Boston Tea Party was representative of disdain for taxation without representation or enumeration.  Let me ask you something.  Do big bank bailouts represent your needs, wants and desires?  What I mean to say is, are your elected representatives really acting in a manner that is representative of your wishes whilst they sit in Congress?  Congressional approval ratings are at all-time lows, so I would bet not.  Look, I've got no problem with taxes in their basic nature.  But we've got to get back to a true Constitutional sense of what they are.  To "pay the debts and to provide for the common Defense and general Welfare of the United States."  I love our country, and what made it great, but I take great issue with the direction we've been heading.  We are straying much too far from what made it great in the first place.  I am confident that you know better what to do with your money than does Congress or the President.  Do you really like the idea that you work roughly 3 to 4 months of the year just to satisfy your tax burden?  Have you noticed that a great deal of the people being appointed to the President's cabinet have been "outed" for not paying taxes?  At first glance you might think that reprehensible.  But truthfully, it is not.  They know something that most of us have never questioned; they know that a Federal direct income tax is not constitutional.  This is not uncharted territory, remember, liquor was abolished in amendment 18, and that was later repealed in amendment 21.  We can repeal amendment 16 if we feel strongly enough about it.  I feel obligated to point out, that the IRS is a government arm that can seize your property and liberty without due process of law.  Innocent until proven guilty?

I've not been given a great deal of feedback on these articles unless I pry.  What do you want to know about?