The Bill of Federalism

Article [of Amendment 6] — [No Federal Income Tax]

Proposed Text

The sixteenth article of amendment to the Constitution of the United States is hereby repealed, and Congress shall have no power to lay and collect taxes upon personal incomes, consumption or expenditures, but nothing in the Constitution shall be construed to deny Congress the power to lay and collect an excise or sales tax that is uniform throughout the United States. This article shall be effective five years from the date of its ratification.

Professor Barnett's Commentary

The sixth proposed amendment ends the power of Congress to enact a personal income tax, or to allow circumvention of this restriction by means of a consumption or expenditure tax. Lest the prohibition on a consumption tax raises any doubt, the provision makes clear that Congress retains the power to impose an “excise” or sales tax that is “uniform” throughout the United States. Sometimes called a “fair tax,” a national sales tax would be paid by all persons residing in the United States, whether legally or illegally, without the need for intrusive reporting of their activities. As people buy and consume more, they would pay more taxes, but all their savings and investments would appreciate free of tax. To give Congress ample time to fashion an alternative revenue system, the implementation of this amendment is delayed for five years. Of course, Congress may end the income tax sooner if it so chooses.

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