Essay Introduction

In this brief but provocative piece, John Unkel offers a radical solution to the perennial problem of federal overreach. Written in 1950 as a penciled note left on a colleague's desk, Unkel's "wandering thoughts" propose reversing the flow of taxation: instead of the federal government taxing citizens and issuing grants to states, he suggests states should collect taxes and issue grants to the federal government. This inversion of the current power structure aims to restore "home government," place a check on federal spending by state legislatures, and dismantle the centralized "welfare state." His citing of Lenin regarding direct federal taxation serves as a stark warning about the centralizing nature of the income tax.

Some Wandering Thoughts

by John Unkel

MAYBE the whole idea is impossible, but what do you think of my wandering thoughts?

We all complain that the federal government is encroaching upon the authority of state and local governments and the rights of individuals. It takes unto itself more and more of the functions historically exercised by states and localities. Under the old way, "home government" was a blessing for the nation as a whole.

My thoughts went far off the beaten paths. Why should we not forbid the federal government to collect taxes? Let state and local governments collect all taxes, if needed. Then reverse the present trend by giving state grants to the federal government to cover the expenses involved for its then limited services. Why federal "grants" to states and localities when the residents of the various states and localities furnish this money in the first place, and have to pay for the administration and handling of these funds which, if they come back at all, look awfully sick after deductions for services rendered by the federal government?

Then the federal government would have to submit its budgets to state legislatures where they could be scrutinized before acceptance. The people would thus have a broader picture of the cost of government. The centralization of power and even the "ism" of the "welfare state" would be well on the way to elimination. Taxes, I am sure, could be cut to a fraction under such a change, putting the "bureaucrats" in Washington under the "dole" from the states. That would be the kind of "social security" we could stand. The power of the individual state and local governments, and through them the power of the individual voters, could be re-established.

In 1916, Lenin advised Swiss workers that direct federal taxation would be an instrument through which Switzerland could be socialized. The same for the United States.

About the Author

John Unkel is employed on the maintenance staff of the Foundation for Economic Education. "Some Wandering Thoughts," first published in 1950, was left as a penciled note on the desk of another staff member.

Attribution

Unkel, John. "Some Wandering Thoughts." In Essays on Liberty, Vol. 1, 63-64. Irvington-on-Hudson, NY: The Foundation for Economic Education, Inc., 1952.