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Financial Planning / Tax Strategies


Subject:  Re: FairTax Date:  9/27/2012  5:24 PM
Author:  Bob78164 Number:  116692 of 127613

inparadise writes:

Because IIRC it is the 16th Amendment that allows the federal govt to tax income, but does not include the right to tax sales. The Federal gov't is limited as to what it is allowed to tax.

I reply:

The 16th Amendment was necessary to permit an income tax because the Supreme Court held that it was a "direct" tax. I don't think sales taxes are direct taxes -- those are capitation taxes or property taxes. --Bob
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