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Opposition to Constitutional Limitations on Tax Rates

CONTINUING RESPONSIBILITY:

Opposition to Constitutional Limitations on Tax Rates

In the midst of expanded demands for spending by the Government, some groups are working hard for a Federal Constitutional Amendment to abolish the income tax, In the last five years these groups have concentrated on a "package" proposal. Briefly it would (1) repeal the 16th (Income Tax) Amendment, (2) ban government engagement in any business, professional, financial, etc. enterprise except as specified in the Constitution, and (3) provide that federal and state constitutions and laws would not be subject to any foreign or domestic agreement which would abrogate these terms.

Pressure for decreasing the tax bite in the upper brackets is not new. Often the pressure has been aimed toward freezing into law a "ceiling" (most often mentioned-25%). Through the years many resolutions have been dropped into the Congressional hopper but seldom have they had support. In the last 10 years only one short Committee hearing was held on proposals to change the 16th Amendment. So ardent supporters of this "ceiling" are turning to a plan to push State Legislatures into passing resolutions asking Congress to call a Constitutional Convention to repeal the income tax. In order to have such a meeting called two-thirds of the states would have to so petition Congress. In the past 20 years about 30 states have passed resolutions asking for such a convention, but it would be hard to say how many of these are still in force as many are differently worded and many have been rescinded at later dates.

From its very beginning the League has studied taxes. This interest springs from the desire to see adequate revenue for government services deemed necessary. Study has led the League to the position of "support for a system of progressive taxation based on ability to pay." There has been no change in this consensus since State Leagues have been authorized to oppose moves by their legislatures toward tax-limitation in the federal Constitution. Though a National matter, since Congress has not considered this legislation seriously, the League has acted only on the State level, in those states where the pressure was on. Each of us should be alert for such proposals here.

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