Take a look at SB 414 introduced yesterday into the North Carolina Legislature by Senators Edwards, Sanderson, Burgin, Alexander & Johnson. See my analysis below. I expect the 5 Senators have no idea what SB 414 actually does. I expect they are relying on what they have been told it will do.
The attached lays out what it really does. Spread the word and get this evil piece of work killed.
It is ironic that the Left [posturing as “conservatives”] has managed to get Republican State Legislators to push for legislation which will terminate our Republic. Not only SB 414, but with the Resolutions asking Congress to call an Article V Convention.
Joanna Martin”Publius Huldah”
Scheme for pre-ratification of massive New Taxes Amendment to US Constitution
Introduced into North Carolina as SB 414
Do you remember the public discussions which went on for years about the proposed equal rights amendment to our federal Constitution? That’s how it’s supposed to be before an amendment is ratified:
The People get an opportunity to hear the arguments, discuss it among themselves and their state legislators, and reject amendments which are bad. What if someone found a way to circumvent this pesky public discussion, and get an amendment ratified before The People found about it? And even before the state legislators who ratified it found out what
they had done? And what if this amendment delegated massive new taxing powers to Congress?
Such a scheme has been developed by Compact for America (CFA). They present their already prepared compact legislation to state legislators as a “balanced budget amendment”; and urge them to get it passed by their state legislature. And on March 31, 2021, this scheme was filed in North Carolina as SB 414 by Senators Charles Edwards, Norman Sanderson, Jim Burgin, Ted Alexander and Todd Johnson.
The provisions which authorize Congress to impose the new taxes, and which provide for pre-ratification of the new taxes amendment, are buried in 10 pages of single-spaced excruciatingly convoluted and boring writing. Rare is the legislator who has the time to wade through the verbiage and figure out what it says.
Once three fourths of the States have passed CFA’s compact legislation, the new taxes amendment is thereby ratified for the Country. So that’s how an amendment to our Constitution which delegates massive new taxing powers to Congress can be ratified before The People know what has been done to them; and before the state legislators who did it find out what they have done to the American People. This scheme was passed several years ago by state legislatures in Alaska, Georgia, Mississippi, North Dakota, and Arizona.
Let’s look at the relevant particulars of the compact legislation using the North Carolina Bill as the example. SB 414 does nothing to control federal spending or “balance the budget” Article II (7) Section 1 of the compact [page 2, lines 25-28 of the pdf edition] allows Congress to spend as much as they take from us in taxes or add to the national debt! But that’s what Congress has been doing!
Article II (7) Sections 2 & 3 [page 2, lines 30-46] permit Congress to raise the debt whenever 26 States agree. Who believes States won’t agree to raise the debt so they can get more federal funds? Article II (7) Section 4 [page 2, lines 48 et seq.] is a joke: Who believes Congress will impeach a President for refusing to “impound” an appropriation made by Congress? SB 414 is an actually a grant of MASSIVE new taxing powers to Congress. The true purpose of the compact legislation is hidden behind such promises as, “cutting federal spending”, “balancing the budget”, and “scaring Congress”. The true purpose of the Compact is to delegate to Congress MASSIVE NEW TAXING POWERS. Specifically, it authorizes Congress to impose a
national sales tax and a national value added tax (VAT).
This is where the grant to Congress of the new taxing powers is set forth:
Article II (7) Section 5 [page 3, lines 8-14] permits Congress, by a 2/3 vote of each House, to impose a new or increased “general revenue tax”.
Article II (7) Section 6 [page 3, lines 16-28] defines “general revenue tax” as “any income tax, sales tax, or value-added tax levied by the government of the United States…”
There it is! All Congress needs to impose a national sales tax and/or a national VAT tax (in addition to the income tax) is a 2/3 vote in each House! Section 5 also permits Congress, by a simple majority of each House, to impose a “new end user sales tax” which would replace the federal income tax. But nothing requires Congress to impose a “new end user sales tax” to replace the income tax.
It will be up to Congress to decide whether to impose a new national sales tax and/or VAT tax on top of the existing income tax (if they get 2/3 vote of each House); or whether to impose a new end user sales tax to replace the income tax (if they get a simple majority in each House).
So! SB 414 is not about “balancing the budget”, “scaring Congress”, or “reducing federal spending”. It’s about giving Congress massive new taxing powers!
A value-added tax is a “turbo-charged national sales tax on goods and services that is applied at each stage of production, not merely on retail transactions” and raises a “gusher of revenue for spendthrift governments worldwide.” When State Legislatures pass compact legislation such as SB 414, they are actually ratifying for their State the new Amendment to the US Constitution which grants the massive new taxing powers to Congress.
If the North Carolina Legislature passes SB 414, it would be RIGHT THEN AND THERE RATIFYING THE AMENDMENT. I’ll show you:
SB 414 says in Article IV (g) (5) of the Compact [page 6, lines 10-15]:
“When any Article of this Compact prospectively ratifying the Balanced Budget Amendment is effective in any Member State, notice of the same shall be given together with a statement declaring such ratification and further requesting cooperation in ensuring that the official record confirms and reflects the effective corresponding amendment to the Constitution of the United States…”
SB 414 says in Article IX of the Compact [page 9, lines 33 – 40]:
“Each Member State, by and through its respective Legislature, hereby adopts and ratifies the Balanced Budget Amendment.”
There it is: If the North Carolina Legislature passes SB 414, it is thereby ratifying the amendment to the US Constitution which delegates the massive new taxing powers to Congress. When 38 States have passed legislation like SB 414 – and when Congress approves it,1 our Constitution is thereby AMENDED and Congress would then have constitutional authority to impose a new national sales tax and a national VAT tax – even while keeping and increasing the income tax.
The provisions of the compact which deal with a convention – Articles V [sic, should be VI] through VII [sic, should be VIII] – are a smokescreen which obscures from state legislators the fact that when they pass legislation like SB 414, they are actually ratifying for their State the amendment to our federal Constitution.
The convention provided for in the compact is a formality – a free trip at taxpayers’ expense.
What’s the Solution?
Don’t feed the beast by giving it massive new taxing powers. The solution is to downsize the federal government to its enumerated powers. Our Constitution already limits federal spending to the enumerated powers – learn what those powers are, and enforce the Constitution we already have. And use your heads! You who believe that a BBA [whether CFA’s version or another version] will force Congress to reduce spending, know this: a BBA is a mandate for Congress to increase taxes, among other horrors.
1. Pursuant to Article I, §10, last clause, US Constitution, CFA’s compact is not effective unless Congress approves it. Will Congress approve a compact which delegates massive new taxing powers to them?
Prepared by Joanna Martin, J.D., at [email protected]
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