This plan has the safeguards the Founders envisioned when they established a Federation of sovereign States. The States would be careful of the type taxes they imposed, lest they lose their industries and their taxpayers to some of the other competing states. If you are a Free-Market. Prior to 1913 the Supreme Court had ruled A federal income tax unconstitutional each time Congress attempted to impose such a tax. The following plan would, I believe, be Constitutional after repeal of the Sixteenth Amendment.
Large states pay a larger share than the small states.
It would be up to the states to adopt taxes that would best suit their needs. They could have a flat income tax , progressive income tax, sales tax, manufacturers tax, or a combination these or of the many others that the minds of tax collectors can devise. The States would be careful of the type taxes they imposed, lest they lose their industries and their taxpayers to some of the other competing states. Net is a service of The Henry Hazlitt Foundation , in conjunction with supporting members and partner organizations like Reason.