Leave it to the states
Cry Wolf Quotes
[A federal income tax would be an invitation to D.C.] to invade its territory, to oust its jurisdiction and to establish a Federal dominion [in Virginia]. A hand from Washington will be stretched out and placed upon every man’s business. The eye of the Federal inspector will be in every man’s counting house.
Unwise because it is an unnecessary extension of Federal power and would seem to be a step toward the deprecation of State sovereignty. I am one who still believes in the American system of Government the States have important functions and that State sovereignty is a fundamental and inherent principal of the American democracy.
As we devise legislation of this kind, my observation through the years has been that we tend to work at the Federal end of the chain. We will put the money in the Federal end, and it’s almost always on the assumption that the party at the very other end gets his full cost. If there ever was a circumstance under which you wanted the various parties and participants to share, this is the circumstance. I would again come back to fostering and leaving opportunities open for encouraging initiatives on the part of the insurance underwriters, providers, and communities to share in the cost of this problem. Don’t make it so easy. Don’t just give 100 percent Federal money. Somebody has got to start giving on the chain.
Unfortunately, the measure is in some respects ill-considered. It’s constitutionality is by no means certain: if the Federal Government may compel the states to adopt unemployment insurance under the guise of a tax, why may it not similarly compel them to adopt any other sort of legislation

