Amendment to Share Federal Expenses According to Population (18 April 1783)

The document, the Amendment to Share Federal Expenses According to Population, enacted by the Continental Congress on 18 April 1783, amends the Articles of Confederation to change how federal expenses are apportioned among the states. It shifts from a system based on land value to one based on population, replacing Article 8. The new formula counts all white and other free citizens, indentured servants, and three-fifths of enslaved persons (excluding untaxed Indians), with population updates required every three years.

Impetus

The amendment arose from the impracticality of the original land-value-based system, which was difficult to implement due to the complexity and disputes over assessing land values. As the Revolutionary War concluded, Congress needed a simpler, more equitable method to distribute financial burdens, especially war debts, prompting the shift to a population-based approach.

Origins

The proposal stemmed from debates over fairly sharing war costs and governance expenses under the Articles of Confederation. The land-value system’s challenges, such as inconsistent valuations, led to discussions influenced by earlier ideas on taxation and representation, laying groundwork for concepts later seen in the U.S. Constitution.

Process

Adoption required unanimous approval from state delegates in Congress, followed by ratification by each state legislature, as mandated by the Articles of Confederation. This rigorous process underscored state sovereignty, but also made implementation difficult, as any single state could veto the amendment.

Implications

• Financial: The population-based system aimed to streamline revenue collection and ensure predictable contributions from states.
• Political: It introduced the “three-fifths” clause, partially counting enslaved persons for taxation, a concept later reused for representation in the Constitution.
• Social: The amendment entrenched slavery in national policy, reflecting its moral and political complexities.
• Constitutional: By exposing weaknesses in the Articles, it contributed to calls for a stronger federal framework.

This amendment highlights the early United States’ efforts to navigate fairness, practicality, and regional differences in its financial and governance systems.