Final answer:
The central government's proposal to raise revenue under the Articles of Confederation by taxing imports failed because it required unanimous support from the states, which was not achieved due to the deep-rooted fear of a strong central government. The lack of a direct taxation power left the national government underfunded and unable to meet its financial obligations.
Step-by-step explanation:
Why the Idea to Raise Revenue Under the Articles of Confederation Failed
The central government's proposal to raise revenue under the Articles of Confederation (AOC) by imposing taxes failed due to several key reasons. One of the biggest issues was that the national government had no direct taxation power. To prevent any perception of "taxation without representation," the AOC allowed only state governments to levy taxes. Attempts by the Confederation Congress to raise funds through an imposed 5 percent tax on imports was futile when it could not secure unanimous support from the states, with Rhode Island notably rejecting the proposal. This situation underscored the limitations of the AOC and highlighted the reluctance of states to surrender financial autonomy to a central authority, as well as the American suspicion of a powerful national government born out of resistance to British parliamentary reforms.
The inability to raise funds left the national government impotent in fulfilling its financial obligations, including paying off debts from the Revolutionary War, compensating loyalists for their property losses, and protecting American shipping interests against foreign threats such as the Barbary pirates. The individual states often failed to contribute the requested funds to the national coffers, resulting in a severely underfunded government ill-equipped to address both domestic and foreign affairs efficiently.