You need to grab a cup of coffee and start reading...
Don't believe the first thing you come across. There's no way hundreds of millions of Americans have been duped for so long, and you've just stumbled across the answer we've all been waiting to hear. It's noble, but unfounded.
There's a lot to consider. Chew on this (which is from that link above):
The question of whether an individual income tax was a "direct tax" within the meaning of the Constitution did not arise until the Union enacted an income tax during the Civil War. The Supreme Court followed the opinions from the Hylton decision and ruled unanimously that an income tax was an "excise," and not a "direct tax," and did not need to be apportioned among the states. Springer v. United States, 102 U.S. 586 (1880).
Hylton and Springer were limited (or "distinguished") in 1894, when the Supreme Court decided to re-examine the question of whether an income tax was a "direct tax." In the first Pollock decision, a narrow majority of the court (5 of the 9 justices) began with the premise that a tax on the income from property is the same as a tax on the value of the property itself, a premise completely inconsistent with every other Supreme Court decision before or since (and was repudiated by the Supreme Court in New York v. Graves, 300 U.S. 308 (1937)). The Court then concluded that a tax on rents received from real property was a "direct tax" and unconstitutional unless apportioned. Pollock v. Farmers' Loan and Trust Co., 157 U.S. 429 (1894). On rehearing, the same five justices decided that a tax on dividends, interest, and other income from personal property (property other than land) was also a "direct tax" and so unconstitutional unless apportioned. Pollock v. Farmers Bank and Trust Co., 158 U.S. 601 (1895)
The Pollock court was very clear that it was only a tax on the incomes from property that was a "direct tax," and other forms of income could be taxed without apportionment. This was confirmed by the court in Brushaber v. Union Pacific R.R. Co., 240 U.S. 1 (1916). (See below for a more detailed discussion of the taxation of the income from labor.)
After the Pollock decisions, and before the ratification of the 16th Amendment, the Supreme Court also held that a corporate income tax was constitutional if it was based on the income from the manufacture and sale of goods, even though real and personal property were used to manufacture the goods. Flint v. Stone Tracy Co., 220 U.S. 107 (1911)
Because of the Pollock decisions, Congress was limited in its ability to impose a tax on incomes, because it was necessary to determine the source of the income. Wages, salaries, and other earned incomes could be taxed, and income from manufacturing and other business activities could be taxed, but rents, interest, dividends, and other incomes from property could not be taxed without apportionment (a very awkward process). The 16th Amendment was therefore proposed by Congress, and ratified by the states, so that Congress could tax incomes "from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
· 1 decade ago