Articles Of Confederation Taxes Quotes

Article VIII All charges of war, and all other expenses that shall be incurred for the common defense or general welfare, and allowed by the United States in Congress assembled, shall be defrayed out of a common treasury, which shall be supplied by the several States in proportion to the value of all land within each State, granted or surveyed for any person, as such land and the buildings and improvements thereon shall be estimated according to such mode as the United States in Congress assembled, shall from time to time direct and appoint. The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several States within the time agreed upon by the United States in Congress assembled.

Hamilton continued to stew about the Articles of Confederation, which had been ratified belatedly by the last state on February 27, 1781. Hamilton thought this loose framework a prescription for rigor mortis. There was no federal judiciary, no guiding executive, no national taxing power, and no direct power over people as individuals, only as citizens of the states. In Congress, each state had one vote, and nine of the thirteen states had to concur to take significant actions. The Articles of Confederation promised little more than a fragile alliance of thirteen miniature republics.

The issue of whether Chrysler’s tax breaks were unfair to competing businesses and individuals is how the Articles of Confederation come into play. Under the first American government, from 1781 to 1788, the states regulated commerce. They used this power to enact tariffs to protect their own businesses. Anyone trying to import, say, furniture into New York from Connecticut faced a heavy tariff by New York, and Connecticut retaliated with its own tariffs. This economic warfare was destroying the whole experiment in self-governance. Efforts to find a solution transformed into the Constitutional Convention. The Constitution grants Congress the power to regulate commerce “among the several states.” Implied, but not explicitly stated, is the power of the federal government to block protectionist tariffs and similar devices that discriminate.

For example, under the Articles of Confederation, the national government could not tax people directly, as we do today, but must ask for money from the states, which could raise it however they wanted.

Many things beyond the absence of Laurens troubled Hamilton that summer, especially the shortsighted failure of the states to grant mandatory taxing power to Congress in the Articles of Confederation, which had been approved as the new nation’s governing charter on November 15, 1777, and submitted to the states for ratification.

While marking time in Princeton in July, Hamilton drafted a resolution that again called for a convention to revise the Articles of Confederation. This prescient document encapsulated many features of the 1787 Constitution: a federal government with powers separated among legislative, executive, and judicial branches, and a Congress with the power to levy taxes and raise an army.