Yeah, it should be fun.
the fucking Fed. hrumph hrumph
1. 1861 - Income tax first appears in American law as an income DUTY (see The Income Duty of 1861), and a Federal Employee Agreement (see The Federal Employment Tax) I’m sure you are aware that duties are imposed on goods leaving the country and not on domestic productivity, and as such, this tax did not affect U.S. citizens domestic earnings, ONLY foreigners and Federal officers and employees. The Federal Judges become the first "tax protesters" by refusing to submit to the tax for 70 years until 1932.
2. 1898 - In Pollock v. Farmers Loan & Trust Co. (1898)) the Supreme Court strikes down an Act of Congress that attempted to expand the application of the income tax and impose it on the interest and dividends from funds on deposit at U.S. banks, ruling that the tax was UNCONSTITUTIONAL because it was a direct tax without apportionment, as required by Article 1 for all direct taxes (Referenced Sections of the Constitution).
3. 1913 - The 16th Amendment is passed and allegedly ratified by 3/4ths of the States, although to this day, the Federal government still will not produce or release for examination the ratification documents supposedly received from the states.
4. 1916 - The Brushaber v. Union Pacific R.R. Co. (1916) decision rules that the 16th amendment IS constitutional because it is NOT a direct tax, but rather, is an INDIRECT tax that is part of a tariff act, which does not have to be apportioned because tariffs are one form of an impost, which must be uniform, but do not have to be apportioned. The Court further refers the reader to Flint v. Stone Tracy Co. (1911) for the definition of what an excise tax is, thus laying the groundwork for the Alcohol, Tobacco & Firearms income taxes of Subtitle E (Title 26). This ruling means that the 16th Amendment has no legal effect except to permanently entrench the income tax in the indirect category of taxation as either an impost, or an excise. In Flint vs. Stone Tracy the Court ruled that excise taxes are:
"taxes on the manufacture, consumption and sale of commodities within the country,
on licenses to pursue certain occupations,
and on corporate privileges."
Given this fact, how would income tax be applied to income of citizens NOT derived from these three defined excise taxable activities ? Treasury Decision 2313 was issued by the commissioner of the IRS as a result of this Supreme Court decision. It clearly states that non-resident aliens are liable for the tax, and that the income of those nonresident aliens is to be reported on Form 1040. It does NOT say "citizens" or "all persons" because it was properly understood that citizens are not subject to the tax unless they are engaging in PRIVILEGED activities. Citizens have a RIGHT TO WORK, and our rights cannot be taxed. In fact, this Treasury Decision explicitly references an exemption (for citizens, at Sec. 6654. Failure to Pay Estimated Tax, Exceptions), as paragraph C, that nonresident aliens cannot claim.
5. 1916 - Stanton v. Baltic Mining Co. (1916) the Court rules that the 16th Amendment "CONFERS NO NEW POWERS OF TAXATION" upon Congress. It does not create a new authority to tax citizens directly without apportionment (because it is an indirect tax), according to the Supreme Court itself. So if it was unconstitutional to tax the interest and dividends (of citizens) before the 16th (according to Pollock), and no new powers to tax are created by the 16th, how can the income tax be constitutionally imposed today on those sources when Pollock has never been overturned or reversed ?
6. 1918 - The 75 year Canadian Tax treaty is signed and Section 213 (Section 22(a) in the 1939 Code - now Section 61) are added to the United States Code, defining the sources of taxable income from the Canadian sources subject to the income tax under the new tax treaty. Income earned in a foreign country under a tax treaty is taxable income, and therefore, is subject to the income tax.
7. 1918 - 1935 The income tax is properly collected, not from all U.S. citizens, but only from those who derive income from the territories or from privileged or licensed activities, as determined by the Supreme Court in Brushaber, The income tax is also properly collected from foreigners earning money in the U.S., from any source, per the instructions issued in Treasury Decision 2313.
1935 - Social Security begins (Subtitle C - Employment taxes). Foreigners are required,
citizens may volunteer to participate but are not required to do so by law. Those who voluntarily take a number and provide it to an employer, voluntarily subject their wages to tax. This begins the withholding of tax at the source from U.S. citizens, but not for income tax purposes (under Subtitle A), just for Social Security (Subtitle C) purposes. The W-4 (or its predecessor) provides a legal authority for the withholding of employment tax from the citizen by the EMPLOYER. The use of W-4s by citizens originates under Sec. 3402. Income Tax Collected at Source, subsection (p) - Voluntary Withholding Agreements. This Form becomes the legal basis and ONLY legal authority in the U.S. Code under which the withholding of tax from U.S. citizens is authorized. Social security taxes are now withheld from wages, which are covered (under social security) earnings.
1939 - Involvement in World War II begins and there is sudenly lots of new money for the government (and debt for the People), provided by the very same bankers who just 2 years earlier supposedly did not have a penny to loan to farmers and businesses for peace, but suddenly had unlimited billions for a war the America people did not even want to be in.
1942 - The Victory tax is imposed and it is withheld from citizens’ wages. (This tax was probably unconstitutionally direct but no one challenged it.)
1944 - Present. The victory tax is repealed and the authority to withhold tax from citizens expires with it, but the withholding of tax continues after the passage of the Current Tax Payment Act, and Form W-4 is modified to include a voluntary request to "claim a number of deductions". This of course relates to income tax, not Social Security (or employment taxes under Subtitle C). The W-4 is now a voluntary withholding agreement that covers BOTH Employment taxes AND Income taxes, which are withheld at the voluntary request of the citizen on the W-4. However, under the law, only foreign persons and certain federal employees are required to make a "return of income" to the Treasury as a result of their "employment". Additionally, the law provides that the W-2 is to be accepted by the IRS as a SUBSTITUTE FORM 1040 (see Form W-2 Can Substitute For A Form 1040 !!).
It should be carefully noted that Employers are authorized BY statute to withhold employment taxes under Subtitle C (26 USC 3402) from those who participate in Social Security and have provided a number, but are authorized BY REQUEST (on the W-4 under 26 USC 3402(p)) to withhold Subtitle A INCOME tax from citizens. The statutory authority to withhold income tax is granted to Withholding Agents under Subtitle A, not employers. The definition of a "withholding agent" is provided in Sec. 7701. Withholding Agent & Definitions, where the agent is authorized to deduct and withhold from foreigners, and only foreigners, exactly as the tax was authorized and collected for the first 16 years (1916-1932) of its existence as part of a tariff act.
The last paragraph accurately reflects the legal reality of today’s situation. While you are correct that the tax laws are imposed as "liabilities" NOT filing requirements, the only code sections that exist in the U.S.C. that actually specify or establish liability for tax are Sec. 1461. Liability for Withheld Tax and Sec. 3403. Liability for Tax. If you believe that there is another code section that establishes liability for the income tax, Please cite it now.
If you believe that Sec. 1. Tax Imposed establishes LIABILITY, you need to read it more closely. It imposes a tax on "taxable income", but does not mention liability. If Section 1 creates liability, who is liable ? Where does it say that ? The truth is that 26 CFR 602.101 - The Form Required reveals the true extent of any liability that may be imposed under Section 1 as being limited to a liability for "taxable income", earned in foreign countries under foreign tax treaties.
QUESTION: Where are the laws regarding income tax contained in the U.S. Code ?
QUESTION: How many Chapters are there in that Subtitle ?
QUESTION: Where in those 6 chapters do you find the withholding of income tax from American citizens ?
Please respond with a cite of the specific code section that you claim establishes this authority.
The Eisner vs Montgomery Case defines "income" as
gains or profits that are made from some activity.
