In the Utopian thinking of many of our citizens the ideal situation would be where our Federal Government could solve the various economic, environmental, social and other problems that exist in our society. They say allowing the levying of taxes as required to alleviate these problems could do this. As it should be apparent to all, it just hasn't happened that way. The nature of Government has demonstrated to us over the years that in the process of this redistribution of income it tends to divert it to the benefit of it's own personal and parochial desires.

In our original Constitution under Article I, Section 9 there appears the statement, "NO CAPITATION OR OTHER DIRECT, TAX SHALL BE LAID, UNLESS IN PROPORTION TO THE CENSUS OR ENUMERATION HEREIN BEFORE DIRECTED TO BE TAKEN". This, of course, was intended by the founders of our union to prevent the Federal Government from taking taxes from one State for the benefit of another State or, more importantly, from gaining the power to extort from any State or entity what it desired by using this taxation power to exert leverage on it.

However, the Constitution does allow for Amendments and the bureaucrats in Washington found a way to subvert the judicious intentions of our founding fathers. In 1894 the Congress had passed an Income Tax law but subsequently the Supreme Court ruled it violated the Constitution and it was overturned. Not to be daunted, in 1913, the 16th Amendment to the Constitution was introduced by the Congress and, unfortunately, ratified by three fourths of the legislatures of the States.

This Amendment states, "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". One may suspect that the smaller states legislatures where looking for the redistribution of the income from the larger states for their own and their respective state's benefit. It is apparent they did not realize federal government misuse of taxes collected would greatly diminish this distributed income by the time it reached them.

Thus, with the "power of the purse" now within their grasp, the Federal Government demonstrated that which had concerned our forefathers. Now individual members of government, especially the Congress, were able to leverage the deliverance of funds to various special interest groups in return for campaign contributions and other favors.

It should be apparent that virtually all of our economic and social problems, as they exist today, are a byproduct of the mismanagement by the Federal Government. This provided by the power that was given to them under the 16th Amendment. Foremost, the mismanagement resulted in the massive budget deficit that now exists. It has contributed to the need for both parents in a family to gain employment in order to support their family. Without adult supervision many children have become delinquents. Teen-age pregnancies and the drug problem surely have benefited from this situation.

Since it is unlikely that the 16th Amendment will ever be repealed, some consideration should be give to what can be done to counter the effects created by it. Some possibilities do exist.

One such approach would be to eliminate the IRS and income tax through legislation and replace it with a national sales or value added tax. If properly managed, a sales tax rate could be set that would maximize collectable tax revenue. The theory being that the price set for any commodity effects the number sold so that profit is maximized by establishing an optimum price to realize maximum net return. Arguments that this would increase the cost of living for those with lower income could be countered by provisions to provide relief for those in our society whose wages fall below a level determined to require government aid. In addition, an increased growth of our economy caused by the investment dollars left in the private sector would provide an increasing amount of jobs for all.

Another approach is supported by Milton Friedman, nobel laureate in economics, and described in detail by Alvin Rabushka and Robert Hall, of Stanford University's Hoover Institution, in their book The Flat Tax. Although this approach still leaves remnants of the income tax bureaucracy and possibilities of the rebirth of legislative tinkering, it would immensely simplify the reporting of income and hopefully eliminate onerous double taxation on interest, dividends an capital gains that now exists. The use of a relatively high exemption related to family size provides tax relief for those on the lower end of the income scale or a "negative income tax" proposed by Friedman could also be considered.

Legislative abuse which now is enhanced by the fact that those Congressmen that continue in office term after term after term rise to points of power wherein they virtually control the operation of the house of which they are a member. Limiting their power by virtue of limiting their time in office could help by providing new Congressmen the ability to effect corrective legislation. To effect this, an amendment to the Constitution would probably have to be enacted.

Unfortunately, the greatest obstacle to reversing the effects of the 16th Amendment is the lack of factual knowledge on the subject by taxpayers. The media, who appears to be biased toward the continuation of the status quo, has not shown the ability to properly inform its audience on this subject. Our schools, especially at the high school level, are dreadfully wanting in covering this subject matter in a proper economics format. The subject matter is not stressed or taught to teachers prior to or after they receive their credentials. Thus, we have an electorate, which is somewhat lacking in the ability to truly form credible opinions.

It is hoped that there are enough tax payers who have taken the time to investigate the history of our income tax system to pass what they have learned onto others. Those enjoying the largesse that comes with power will not give it up without a fight. It should be apparent that a thoroughly informed public is a prerequisite to effecting the necessary income tax reforms desired.