This is a proposed amendment to the Constitution.
1. The Sixteenth Amendment is hereby repealed.
2. Direct taxation of the people is prohibited; taxes shall be levied only upon the several States in proportion to their enumerated populations, or as a percentage of the commerce conducted therein.
3. Mechanisms of taxation within the United States shall be limited to taxes on transactions and other activities of commerce only, and shall not exceed an aggregate of twenty-five percent for all applicable levels of government and jurisdictions.
4. Commerce is defined as the exchange or buying and selling of goods, commodities, property, or services, including labor, but does not include any testamentary transaction.
5. Statutory contributions to a government retirement or disability trust fund shall not be considered a direct tax, and no one who has made such a contribution shall be denied benefits of the fund in proportion to his contributions, nor prohibited from voluntarily making additional contributions for his benefit or that of a designee; nor shall the fund be used for any other public purpose, or included in the accounting for the general budget.
6. No tax, penalty, or fine may be imposed for failure to engage in any form of commerce, nor any act of commerce made compulsory, but the States may impose fines where such failure shall be proven to have caused actual and direct loss or harm; nor shall production of any thing for personal consumption be considered commerce.
7. This article shall be inoperative unless it shall have been ratified as an amendment by the several States, as provided in the Constitution.
