WWW Opinion Times

Friday, June 03, 2005

Quote of the Day: Fair Tax in the Federalist

Alexander Hamiltion has some interesting advice in Federalist 21 for those who support the Fair Tax (of which I am one).

"It is a singular advantage of taxes on articles of consumption that they contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without defeating the end purposed -- that is, an extension of the revenue. . . . If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them."
The fact is that the United States was originally funded by consumption taxes. Not until the passage of the 16th Amendment was the government allowed to collect taxes on incomes. And it's time we went back to the old standard (including repeal of the 16th Amendment).

Alexander Hamilton had it right. I don't think I could have argued better for a return to the fair tax. But, then, I do not posses the genius of Alexander Hamilton.

FOR FURTHER READING: Check out this article from NewsMax.com