Bills of Congress by U.S. Congress

H.J.Res.14 - Proposing an amendment to the Constitution of the United States to repeal the sixteenth article of amendment. (119th Congress)

Summary

H.J.Res.14 proposes a constitutional amendment to repeal the Sixteenth Amendment, which grants Congress the power to levy and collect income taxes. The resolution stipulates that Congress would only have the power to tax incomes during declared wars. The amendment would take effect two years after ratification, and the Secretary of the Treasury would be required to submit a report to Congress with recommendations for implementing legislation.

Expected Effects

If ratified, this amendment would eliminate the federal government's ability to collect income taxes, except during times of war. This would necessitate a significant restructuring of the federal budget and potentially shift the tax burden to other sources. The report from the Secretary of the Treasury would be crucial in determining how to manage this transition.

Potential Benefits

  • Potentially increased individual financial freedom by eliminating income tax.
  • Could stimulate economic activity as individuals and businesses retain more of their earnings.
  • May lead to a more transparent and accountable federal government due to reliance on alternative funding sources.
  • Could foster innovation in tax policy at the state level.
  • Might reduce the complexity and burden of tax compliance for individuals and businesses.

Potential Disadvantages

  • Significant reduction in federal revenue, potentially impacting essential government services.
  • Could lead to increased national debt if alternative revenue sources are insufficient.
  • May disproportionately benefit high-income earners, exacerbating income inequality.
  • Potential for economic instability if the transition is not managed effectively.
  • Risk of underfunding critical programs like Social Security and Medicare.

Constitutional Alignment

The proposal to repeal the Sixteenth Amendment is a constitutional process in itself, aligning with Article V of the Constitution, which outlines the amendment process. Article V allows for amendments to be proposed by Congress with a two-thirds vote in both the House and Senate, and ratified by three-fourths of the state legislatures. The proposed amendment directly addresses the scope of Congressional power as defined in Article I, Section 8, which grants Congress the power to lay and collect taxes.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).