Under the Constitution, taxation of the states by the national government was based on

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The Constitution mandated that taxes would be apportioned among the states based on population. This was outlined in Article 1, Section 2 of the Constitution which stated that "Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers..." Population was considered a fair way to divide the burden of taxation among the states because it was often seen as a reflection of a state's wealth and resources.

Under the Constitution, Taxation of the States by the National