Myth: The government may ignore the wisdom of the Founding Fathers and tax the American people to death
Truth: The taxation powers of the federal government, like the federal government itself, were meant to be very limited by the U.S. Constitution. For the first 100+ years of governance under the Constitution, most federal revenue came from tariffs. The ratification of the 16th Amendment in 1913 opened the door to direct taxation of individuals and businesses.
The United States Constitution on Taxation
Article I Section 2 Paragraph 3:
“…direct Taxes shall be apportioned among the several states…according to their respective Numbers…”
Article I Section 8 Paragraph 1 :
“The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and 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;
Article I Section 9 Paragraph 4:
“No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein directed to be taken.”
The 16th Amendment (30 words that changed the course of our history):
“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.”
