Sec. #11: Tightening the "Easy Access" the U S Gov. has to Obtain Money
The Importance of Having a Correct, Competitive, "Controlled Access" Structure to Obtaining Money to Force Units of Government to a Maximum Level of Fiscal Responsibility.
Bridges are a good example of having a correct structure to achieve a desired end, in this case transportation.
The Golden Gate bridge in California joins the cities of San Francisco and Oakland.
The Mackinaw Bridge joins the two peninsulas of the State of Michigan.
Numerous bridges join Manhattan Island in New York City with surrounding jurisdictions.
The normal working of competitive free markets result in a structure where at least several suppliers seek to sell products to consumers. Further, competitive free markets force the most efficient use of money and resources by suppliers seeking to get consumers as customers by offering the best quality products at the best prices.
Government is a different "animal." Governments, by their very nature, are monopolistic organizations. They hold the "police power of the state" to legally extract money, through taxation, from people residing within their borders.
Assume, a "competitive structure" for delivering government services can be developed. Wouldn't it seem reasonable that the new "corps" of competing units of government, like their private business counterparts, would start looking for new, better, less expensive ways to deliver their services?
The structure of the CST is designed to help "sort out" what level of government, national/federal, state or local, should provide what service(s) by creating this competitive structure.
Why is this true?
With the CST, the senior-most level of government in the USA, the U S Government, will have no power to tax, other than Tariffs However, by constitutional amendment, the U S Government will be able to mandate that it be paid by the 50+ States. The money will come from the 50+ American States, not 150 million or so individuals and businesses.
Under the CST, the U S Government ("the Feds") will have no power to lay and collect Taxes, Imposts and Excises. Currently, Article I, Section 8, Paragraph 1 (I-8-1) of the Constitution authorizes Congress to lay and collecting of these three. Along with currently authorized borrowing, in I-8-2, the Feds have monopoly control over their own financing.
There will be a new to the 21st Century method to raise money for the Feds. Under the new system, the yearly National/Federal Budget will be divided among the States by a formula fair to all. Each State legislative body will be responsible to raise the money to pay its ratable share.
The changes to this new system will be done by amendment(s) to the Constitution. This new method is a 21st Century update to Article 8 of the Articles of Confederation (the A of C), the Constitution's predecessor.
One constitutional amendment will mandate the States to pay their ratable shares of the National/Federal Budget.
The "competitive pressure" will come the from States. The States will have the "purse strings" controlling money going into the Feds coffers. Taxing 150+ million Americans and American businesses directly will permanently end.
The Feds, each year, will send an "invoice" to each State for its ratable share. If the Budget is full of 'waste, fraud, and abuse" and "bloat," the state government officials and residents will "hit the ceiling" at the ensuing high dollar invoices.
Because the States will have "purse string" control over the Feds, they will have considerable power to keep National/Federal spending "tight."
Please keep the comments in this section in mind as you read through the other sections of this website.
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To a certain extent, local governments face such competition already, if they're seeking new businesses and residents to move in.
Most Americans live in counties where they can select among local jurisdictions in which to reside. To a degree, the same applies to selecting among states of the USA in which to live.
Very few American citizens would ever want to leave America. However, all Americans would like to see "competitive pressure" applied to the U S Government to maximize the efficient use of tax and borrowed dollars it receives.
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The structure of the CST is a structure in which the U S Government will continually face competitive pressures.
Why is this true?
Because under the CST, the U S Government ("the Feds") will have no power to lay and collect Taxes, Imposts and Excises. Currently, Article I, Section 8, Paragraph 1 (I-8-1) authorizes Congress to lay and collecting of these three. Along with currently authorized borrowing, in I-8-2, the Feds have monopoly control over their own financing.
There will be a new to the 21st Century method to raise money for the Feds. Under the new system, the yearly National/Federal Budget will be divided among the States by a formula fair to all. Each State legislative body will be responsible to raise the money to pay its ratable share. This will be done by amendments to the Constitution
One of the constitutional amendments will mandate the States to pay their ratable shares of the National/Federal Budget.
The "competitive pressure" will come the from States. The States will have the "purse strings" controlling the Feds.
The Feds, each year, will send an "invoice" to each State for its ratable share. If the Budget is full of waste, fraud, abuse and "bloat," the state government officials will "hit the ceiling" at the ensuing high dollar invoices.
The States will be like "junkyard dogs" watching Congress to insure that the yearly Budget is "tight."
Because the States will have "purse string" control over the Feds, they will have considerable power to keep National/Federal spending tight.
Please keep the comments in this section in mind as you read through the other sections of this website.
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In Federalist Paper 45, paragraph nine, James Madison writes that the powers of the then proposed government under the Constitution were to be "few and defined.' The powers to remain with the 13 States, and eventually more, would be "numerous and indefinite."
Now, in 2019, is the U S Government a jurisdiction reflecting Madison's few and defined? Are the limitations of the 10th and 9th Amendments scrupulously followed? A resounding NO to Madison, the 10th and the 9th.
Why is this so? The monopoly control the U S Government has over its own financing creates a structure where shameful misuse of taxation, borrowing and the "supreme law of the Land" feature of the Constitution has created, in flying colors, today's National/Federal money-munching monstrosity.
Unless and until this self-funding monopoly is broken, Americans, and America, will loose. The $22+ trillion National Debt is unarguable evidence of serious damage awaiting if present trends are not reversed, and soon.
Please keep the comments made in this section in mind as you read through this website. This website presents three correcting proposals. History and warnings of the dangers of the Feds being granted taxing power are among the sections in the website.
Under the CST, the U S Government, by constitutional amendment, will no longer have the power to lay and collect Taxes, Imposts and Excises, as presently authorized in Article I, Section 8, Paragraph 1 (I-8-1) of the Constitution. (Borrowing, presently authorized by I-8-2, will also be greatly constrained).
The new to the 21st Century funding system for the U S Government will be an update to Article 8 of the Articles of Confederation (the A of C), the Constitution's predecssor.
Article 8 divided the "common expenses" of operating the "Union" government established by the 13 original States
among them by an agree upon formula.
