Changes

The distinction between "direct" and "indirect" taxes is important because the original U.S.Constitution, in Art. I, Section 9, Clause 4, limits "direct" taxes to the federal government to what can be apportioned among the population.  This prevents the federal government from taxing wealthy areas or people more than poor areas or people.  If a tax is "indirect", then it is not limited by this provision, which enables the federal government to tax business activity without limitation.  But with respect to individual income, the Sixteenth Amendment gives the federal government unlimited power to impose taxes in any way it chooses.

The distinction between "direct" and "indirect" taxes is important because the original U.S.Constitution, in Art. I, Section 9, Clause 4, limits "direct" taxes to the federal government to what can be apportioned among the population.  This prevents the federal government from taxing wealthy areas or people more than poor areas or people.  If a tax is "indirect", then it is not limited by this provision, which enables the federal government to tax business activity without limitation.  But with respect to individual income, the Sixteenth Amendment gives the federal government unlimited power to impose taxes in any way it chooses.

The lawsuits against ObamaCare have reopened this issue because ObamaCare imposes a tax based on whether someone purchases health insurance.  It is not an income tax, so it should not be authorized by the Sixteenth Amendment.  It is not an excise tax, because it applies when there is no activity (declining to purchase government-approved insurance).  Is it a "direct" tax?  If so, then it would not be allowed unless it is apportioned by population, such that wealthy people pay no more than poor people.  Lawsuits are pending to challenge ObamaCare based on what kind of tax it imposes, and the federal courts will be deciding this issue in the next year or so.

The lawsuits against ObamaCare have reopened this issue because ObamaCare imposes a penalty (under Congress's taxation power) on non-exempt people who fail to purchase adequate health insurance.  It is not an income tax, so it should not be authorized by the Sixteenth Amendment.  It is not an excise tax, because it applies when there is no activity (declining to purchase government-approved insurance).  Is it a "direct" tax?  If so, then it would not be allowed unless it is apportioned by population, such that wealthy people pay no more than poor people.  However, Article I, Section 8, Clause 1 states "The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises." Lawsuits are pending to challenge ObamaCare based on what kind of tax it imposes, and the federal courts will be deciding this issue in the next year or so.

'''II. Race.'''

'''II. Race.'''