Article 1, Section 2 of the Constitution directs that a census be taken every ten years to get an exact count of all citizens for the purpose of apportioning representatives and direct taxes (back in the days before the progressive income tax) among the states. The census is supposed to be a headcount. Period.
The 2000 Census showed how far the "headcount" has strayed from its mandate. Then, many people were treated to the indignity of the outrageously nosy "long form", which contained page after page of intrusive questions -- 53 in all -- on subjects the federal government has no constitutional business collecting data on, as this excerpt from a CNN report illustrates:
Among the long-form questions drawing ire is question 17, which asks about the respondent's physical, mental or emotional conditions. And question 39 asks whether the respondent has complete plumbing facilities: hot and cold water? A flush toilet? A bathtub or shower?
Now, according to U.S. Rep. Ron Paul (R-TX), the Census Bureau is sending out the equivalent of the long form every year. Those unfortunate enough to receive what is now called the "American Community Survey" face the prospect of thousands of dollars in fines ($1000 per question) if they decline to participate.
Rep. Paul tried to strip funding for the survey but, like most of his constitutionalist initiatives, his attempt went nowhere. Political Washington is comfortable with the way things are now; no sense letting something like the Constitution get in the way.
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