The only change the Democratic Federalists are demanding is that the Federal Government no longer be allowed to tax the population directly. Instead, the States will each pay their pro-rata share of the Federal budget.

Perhaps the Congress will determine that nothing else should change. However, we note that with the change in how the Federal Government is funded, there are many activities that would be better carried out by the States.

For example, why would the States collect tax revenue to give to the Federal Government just so the Federal Government could turn around and hand it back to the States in order to build highways? There would be no need for the federal government to act as a middle-man, and no need for the States to pay the federal government to do the things the States are capable of performing.

And so we suggest the following policy changes. But please note that these are merely suggestions. As our movement grows, we may need to revisit these ideas, roll some back and add others. Your comments are welcomed and appreciated.

Welfare

We believe that once the proposed Amendment is passed that we should end Medicaid and all Federal Welfare Programs. There is little benefit in the Federal Government taxing people in order to give money to the States for these programs when the States can raise the revenues themselves. This will also allow the States to develop the welfare and health policies that best suit their respective populations. As we will say time and time again, what works for New York may not be what is needed in Kansas.

Healthcare

Affordable Care Act

Repeal the Affordable Care Act. While we think that, under the existing system, the Affordable Care Act was a necessary improvement, once the proposed Amendment is passed, we believe it is far more important for decisions and policies regarding Healthcare to be left up to the States. States should be free to find the Healthcare system that works best for them. Some States might implement a ‘Romney-care’ style system like Massachusetts, and others might find a free market system works better. Insurance regulation is a State issue, and unless some aspect of Healthcare affects commerce among the States or civil rights, the Federal Government probably shouldn’t be involved.

Medicare

As a nation, we have decided to provide certain safety nets for our citizens. One of those in Medicare. We considered whether or not it would make sense to distribute responsibility for this important program back to the States. It is our opinion that it does not – people move regularly throughout their lives and where they pay taxes as workers may not be where they spend their retirement years. A good example is Florida – many people move there specifically to retire. Because of this, we believe that Medicare must remain a Federal responsibility. However, Medicare should be removed from Health & Human Services and placed in an independent agency similar to the Social Security Administration.

Excise Taxes

Only fees directly related to Federal programs would remain. For example, those fees (currently labelled as excise taxes) related to air travel would remain and be used to fund the FAA. Federal excise taxes on tobacco, fuel, etc. would end.

General Expenditures

No Federal Expenditures except those that benefit all of the people proportionally. Expenditures on Defense and the Weather Service benefit all American equally, while Federal the funding of bridges to nowhere only benefit a specific sub-group, and should therefore be discouraged. If a State feels that there should be a bridge built to nowhere, they would, of course, be free to build one.

Deficit

Because the annual budget would be paid directly by the States, and because of the significant cuts in Federal spending, generally there should be no need to run a deficit. Under this system, deficit spending would require a separate explicit act of Congress to authorize.