A Federal SALES Tax,
OR VAT (value added tax),
IN THE FIFTY STATES !
The interstate commerce clause of the U.S. Constitution has long been perceived (and recognized) as a complete bar to the taxation of retail sales in the fifty states by the federal government. The interstate commerce clause allows the taxation (by the federal government) of the first sale at the whole-sale level after interstate transport occurs, but effectively forbids the taxation of general retail sales by the federal government!
of course, gives the federal government lawful powers to lay and collect taxes
Under Article 1, Section 8, Clause 1 the federal government is given the authority to tax indirectly, by impost, duty, and excise. The excise taxing authority includes the power to tax “income” derived from excise taxable activities (see Stanton V. Baltic Mining Co.).
Under Article 1, Section 8, Clauses 3 and
4, the federal government is given complete authority over all foreign affairs
and foreign persons in
Imposts are taxes laid on foreign goods being imported into the
are taxes laid on goods manufactured in the
These sections of the Constitution grant
all legal powers to the federal government over all foreign affairs, including
international foreign agreements with other nations (treaties), and over
foreign persons in the
However, under the U.S. Constitution, each of the governments of the fifty states retains the sovereign power and lawful jurisdiction over its own people, lands, and activities, under their own Constitutions, and each State’s legislature alone enacts law for the People of that State regarding affairs and matters occurring exclusively within that State’s lands and territory.
Additionally, Article 1, Section 8, Clause 3 of the Constitution gives the federal government jurisdiction and authority over foreign commerce and over all interstate commerce between the states, but not occurring within a single State, thus establishing the complete jurisdictional authority of the federal government, which is an authority around the states and between the states, but not over the land of the fifty states. This is why the Supreme Court has rejected the federal government’s attempts to exercise police powers inside the fifty states that could not be reasonably related to interstate commerce, as recently as 1998 in the U.S. v Lopez decision.
Under the U.S. Constitution, the federal
government does not possess the
territorial jurisdiction necessary to tax retail sales in the fifty
states. That authority, jurisdiction,
and power belong exclusively to the legislatures (governments) of the States
themselves. Under the Interstate Commerce clause of the
course these federal excise taxes, imposed and laid on interstate commerce, CAN
ONLY BE IMPOSED
is because ONLY the State legislatures ALONE may tax
the retail sales that occur within a particular State, NOT THE FEDERAL GOVERNMENT. Sales taxes have long been recognized under
the U.S. Constitution and its system of limited powers, under a clearly
delineated separation of powers, as being the exclusive prerogative of ONLY the territorial sovereign, i.e. the STATE
legislatures and governments,
NOT CONGRESS, except where Congress is the territorial sovereign. The power to lay and impose a Sales tax is
the exclusive power of the territorial sovereign, and is not a power
legitimately possessed by the federal government in any of the lands of the
fifty states. The only places where a
federal sales tax can be constitutionally imposed, is in
A federal sales tax cannot be constitutionally imposed in any of the fifty states because the federal government does not possess the territorial jurisdiction necessary to tax retail sales inside the fifty states.
Finally, a federal VAT (value added tax) is nothing but a federal sales tax in a thinly veiled
disguise, imposed in a “tiered” manner on all levels of
sales operations, i.e.: wholesale, distribution, and retail. However, just as outlined above for the
federal sales tax, a federal VAT is also
UNconstitutional under the separation of limited, territorially based powers,
as commanded by the Constitution of the
Therefore, all these idiotic politicians talking about a national sales tax, or a flat tax, to replace or LAY ON TOP OF the federal income tax, only demonstrate that they are unfit for constitutional congressional (or State) office, because they are not aware of or don’t understand the constitutional limitations imposed on the authority of the federal government to tax the property or activities of We the People, OR to tax retail activity occurring inside the territory of the fifty states.
government may, under the authority of
the interstate commerce clause, ONLY tax the first sale at the wholesale level after
interstate transport. Under the
As a proposed
federal retail sales tax of 22.5% on all sales activity within the fifty states of the United States, the proposed “FAIR TAX” (to replace
the income, estate, and employment tax withholding and collection laws) IS ALSO PLAINLY
It should be entirely unacceptable to the American People to exchange one (operationally) UNconstitutional system of taxation for another (legislatively) UNconstitutional system, rather than make a return to a truly Constitutional system that is honestly based on a true understanding of the limited powers of the federal government that are granted to tax indirectly, BUT NEVER DIRECTLY, even after the addition of the 16th Amendment to the Constitution.
MORE ON THE LIMITED FEDERAL JURISDICTION