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What if Fedgov taxed only the states -- instead of people and businesses

Posted on 8/29/24 at 8:36 am
Posted by gizmoflak
Member since May 2007
11856 posts
Posted on 8/29/24 at 8:36 am
Let's say the federal government collected all tax revenue solely from the states. Each state would be taxed based on aggregate personal and business income, population, number of congressional reps, and other factors determined to be relevant.

The states, in turn, would tax their residents and businesses any way they see fit in order to settle their federal tax bill. In essence, there would be 50 entities in "competition" with each other, and Americans would have much more of a choice when it comes to the amount of taxes they pay versus the amount of governmental services they receive.

The IRS would be handling 50 tax accounts, instead of hundreds of millions. The states would have much more power and autonomy than they do now.

I've never heard any politician or anyone of prominence proposing this idea.... maybe it's too stupid or outlandish? But I would argue it's more in-line with the original intent of the Constitution.

Posted by JiminyCricket
Member since Jun 2017
6589 posts
Posted on 8/29/24 at 8:40 am to
Anyway you slice it, it's retarded for people to have to pay taxes in any format when the feds print cash out of thin air anyway.
This post was edited on 8/29/24 at 8:41 am
Posted by Swamp Angel
West Georgia Chicken Farm Territory
Member since Jul 2004
10203 posts
Posted on 8/29/24 at 9:04 am to
By creating the federal income tax which taxed citizens directly, the federal government did and end-around the states and essentially turned the states into subservient political provinces. Prior to the federal income tax, people considered themselves citizens of their respective states as much as they considered themselves to be American. The implementation of the federal income tax upon individual citizens has done much to change that mindset and to have citizens looking to the federal government as the fountain of all blessings.
Posted by Tantal
Member since Sep 2012
19821 posts
Posted on 8/29/24 at 9:35 am to
I think this would be a great idea. Make states compete for citizens in the marketplace. Sure, geography and climate would be factors, but tax policy would weigh heavily too. It would prevent liberal states from saddling a very small percentage of their population with the lion's share of the taxation for fear of them leaving. Also, no hiding up in DC all year from the consequences of their voting records for our representatives. Make them live in their districts and get out amongst their voters to justify the levels of taxation on a daily basis.
Posted by Jack Ruby
Member since Apr 2014
27322 posts
Posted on 8/29/24 at 10:39 am to
State taxes would just rise exponentially. They'll always get their theft, one way or another.
Posted by Tantal
Member since Sep 2012
19821 posts
Posted on 8/29/24 at 10:49 am to
quote:

State taxes would just rise exponentially.

Of course, but that's not the point. The Federal government would still be funded, but the states would determine how to collect their state's share of the Federal tax liability. The states would have no choice but to not penalize success too heavily like the FedGov does now. If a state wants the top 10% of residents to pay 90% of the taxes, then they'd better be prepared to lose those residents to a state that won't treat them as a tax slave.
Posted by BigJim
Baton Rouge
Member since Jan 2010
15086 posts
Posted on 8/29/24 at 10:53 am to
An interesting idea!

But in any system, we have to have some controls over unchecked borrowing.
Posted by Bass Tiger
Member since Oct 2014
55769 posts
Posted on 8/29/24 at 10:59 am to
The states should only be sending the necessary taxes to the federal government to fund the military for protecting the nation, some taxes for huge national infrastructure projects and some other miscellaneous shite we could discuss but to send trillions of dollars to the federal government so they can then strong arm states to comply to their BS is BS!
Posted by Tantal
Member since Sep 2012
19821 posts
Posted on 8/29/24 at 11:01 am to
quote:

But in any system, we have to have some controls over unchecked borrowing.

Simple. Balanced budget amendment. The only exception would be for war funding against a foreign adversary after a declaration of war by Congress. No "War on Drugs" or "War on Poverty" bullshite. Only armed military conflicts.
Posted by beulahland
Little D'arbonne
Member since Jan 2013
4077 posts
Posted on 8/29/24 at 11:03 am to
Fool!

Taxation is theft.
Posted by rob0710
LA
Member since Oct 2004
1290 posts
Posted on 8/29/24 at 11:34 am to
quote:

Everyone should be refusing to pay taxes or vote. That’d be a start. Stop acknowledging the fed as legitimate. Eventually we should have a mass refusal to work which would bring the country down in a week


Not going to happen. People have too much debt and bills to pay.
Posted by YouKnowImRight
Parts Unknown
Member since Oct 2023
2957 posts
Posted on 8/29/24 at 11:34 am to
quote:

Simple. Balanced budget amendment. The only exception would be for war funding against a foreign adversary after a declaration of war by Congress. No "War on Drugs" or "War on Poverty" bullshite. Only armed military conflicts.


I'd love to see it, but we're quickly approaching mandated spending being larger than total revenue collected. You only have two ways to balance it: massive punitive tax increases or serious entitlement reform.

ETA:

In 2023:

$3.8 trillion in mandatory spending + $660 billion in interest = around $4.46 Trillion spent before anything discretionary.

2023 Tax Receipts: $4.44 trillion
This post was edited on 8/29/24 at 11:37 am
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