This bill proposes a constitutional amendment to repeal the 16th Amendment, thus removing Congress's authority to levy income taxes, except in times of war, with implementation details to be reported by the Secretary of the Treasury.
Warren Davidson
Representative
OH-8
This bill proposes a constitutional amendment to repeal the 16th Amendment, which would eliminate the federal income tax, except during times of war. The repeal would take effect two years after the amendment's ratification. The Secretary of the Treasury would be required to submit a report to Congress with recommendations for implementing legislation within 180 days of ratification.
Constitutional Amendment Proposed to End Federal Income Tax: Full Repeal Planned Two Years Post-Ratification
This proposed constitutional amendment aims to repeal the 16th Amendment, effectively eliminating the federal government's power to collect income taxes, except when the United States is in a declared state of war. If ratified, the change wouldn't take effect for two years, giving some breathing room for a transition. Within 180 days of ratification, the Secretary of the Treasury is required to submit a report to Congress with recommendations for implementing legislation.
Shaking Up the Tax System
The core change here is massive: no more federal income tax, except during declared wars. This impacts every single person and business currently paying income taxes. For example, a software engineer in Austin or a construction worker in Boise would no longer see federal income tax withheld from their paychecks. Businesses, from local restaurants to major corporations, wouldn't owe federal income tax on their profits.
Real-World Ripple Effects
This repeal could mean significantly more money in the pockets of individuals, particularly high-income earners. However, it also raises the question of how essential government services, currently funded by income tax revenue, would be sustained. Think Social Security, Medicare, national defense, and infrastructure projects. The bill doesn't specify alternative funding sources, leaving that up to future legislation. This could lead to states needing to increase their taxes, or to an increase in sales or property taxes. The bill mandates a report from the Secretary of the Treasury within 180 days of ratification with recommendations for new legislation, but the details of that are, for now, a question mark.
Potential Challenges and Long-Term Implications
Transitioning to a system without federal income tax presents significant challenges. It could force a complete overhaul of the federal budget and potentially lead to cuts in government programs. It could also shift the tax burden, possibly increasing taxes on things like purchases or property. The bill's two-year delay before taking effect is intended to provide time for adjustments, but the scale of the change is hard to overstate. The long-term effects would depend heavily on the specific legislation Congress enacts to replace the lost income tax revenue, as recommended by the Treasury Secretary's report.