jose r
Lv 7
jose r asked in Politics & GovernmentLaw & Ethics · 1 decade ago

I had asked about the U.S. Income Tax System ; however i never got the answer?

I was given examples about people going to jail, so on, and so forth. I guess what i am asking for is point me to the law/enactment/or where it is written in writing that says that it is legal for the U.S. to tax an american in their income tax (legally).

8 Answers

  • 1 decade ago
    Favorite Answer

    American Citizen's, living and working in the 50 states have no liability to pay federal income taxes and no liability to pay state income taxes, since the Constitution of the United States of America clearly does not allow for a DIRECT, UNAPPORTIONED TAX on Citizen's property or on the fruit of their labors. The recent case in Illinois, United States v. Robert Lawrence highlighted the fraudulent 1040, which does not contain a valid OMB number. The govt asked for the case to be dismissed, because Lawrence's atty intended to expose the fraud and the government was smart enough to realize that this would also expose the Constitutional tort existent because the income tax is a direct unapportioned tax..

    The 16th Amendment does not change Constitutional taxation, because it is limited to the word “income”, which is not redefined in this amendment. Here the term “income” means that on which an excise tax can be levied. “Income” does not refer to earnings for work. This was confirmed by at least 8 Supreme Court rulings, and has never been overturned. The 16th Amendment does not repeal the Constitution’s principles of taxation.

    The 16th Amendment granted Congress no new powers of taxation. This amendment is a statement about excise taxes, and certainly does not allow for a new direct tax on earnings for work.

    Income is not specifically defined in the IRS Manuals nor is it defined in the IRS Code. Congress did not define it. Income has always been defined by the Courts as to exclude wages.


    Congress has had power to lay and collect income taxes from the time of the adoption of the Constitution, (Brushaber v. Union Pacific R.R. Co., [N.Y. 1916] 36 S.Ct. 236, 240 US 1). This power was subject to the requirement that direct taxes be apportioned among the several states according to population (Pollock v. Farmers Loan and Trust Co., [N.Y. 1895] 125 S.Ct. 673, 157 US 429). The adoption of the Sixteenth Amendment to the Constitution (effective Feb. 25, 1913) giving Congress power to:

    "Lay and collect taxes on income, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration"

    Evens v. Gore, [Ky 1920] 40 S.Ct. 550, 253 U.S. 245,

    Kasey v. C.I.R., [C.A. 91972] 457 F2d 369,

    Cert. denied 93 S.Ct. 197, 409 U.S. 869

    It did not limit or expand the power of Congress to tax under the constitutional provisions authorizing Congress to lay and collect taxes but instead merely provided for taxation of income without apportionment (Brushaber v. Union Pacific R.R. Co., [N.Y. 1916] 36 S.Ct. 236, 240 U.S. 1, 60 L.Ed. 493; Simmons v. U.S., [CA Md 1962] 308 F2d 160).

    The Brushaber court ruled that the 16th Amendment separated the source (capital) from the income (profit) permitting the collection of an indirect (excise) tax on income, but leaving the source (wages, salary, compensation, fees for service, first time commissions and capital) untouched and free of tax. If these things were to be taxed, it could only be construed as a direct tax, unquestionably in violation of the Constitution, making the entire tax in income void.

    There still remains the question as to what is constitutionally allowable as "income" which can be taxed, as Congress is not constitutionally free to define "income" in any way it chooses (Simpson v. U.S., [D.C. Iowa 1976] 423 F.Supp. 720, reversed on other grounds, Prescott v. Commissioner of Internal Revenue, [C.A.] 561 F2d 1287). Further, the labels used do not determine the extent of the taxing power (Simmons v. U.S., [C.A. Md. 1962] 308 F2d 160; Richardson v. U.S., [C.A. Mich. 1961] 294 F2d 593, cert. denied 82 S.Ct. 640, 360 U.S. 802, 7 L.Ed.2d. 549).

    To reiterate; the tax authorized under the original U.S. Constitution has not changed except as to separate the source of "income" from the income itself permitting the collection of an indirect (excise) tax on income by leaving the source (wages, salaries, fees for service, and first time commissions) free of tax (Brushaber, supra.) despite how some politicians interpret the 16th Amendment.


    The Brushaber court referred to an earlier case, Pollock v. Farmers Loan and Trust Co., 158 U.S. 601 [1895] which declared the Income Tax Act of 1894 unconstitutional, as it's effect would have been to leave the burden of the tax to be born by professions, trades, employments, or vocations; and in that way, what was intended as a tax on capital would remain, in substance, a tax on occupations and labor. This result, the court held, could NOT have been contemplated by Congress.

    Since the general term: "income" is not defined in the Internal Revenue Code, (U.S. v. Ballard, [1976] 535 F2d 400) and the U.S. Supreme Court has ruled the Congress may not, by any definition it may adopt, conclude the matter, since it cannot by legislation alter the Constitution, from which alone it derives it's power to legislate, and within whose limitations alone, that power can be lawfully exercised (Eisner v. Macomber, [1920] 252 U.S. 1889).

    Since the Rules contained in the I.R.S. Manual, even if codified in the Code of Federal Regulations, do not have the force and effect of law (U.S. v. Horne, [C.A. Me. 1983] 714 F2d 206) and the power to promulgate regulations does not include the power to broaden or narrow the meaning of statutory provisions beyond what Congress intended (Abbot, Procter & Paine v. U.S., [1965] 344 F2d 333, 170 Cl.Ct. 408) and regulations cannot do what Congress itself is without power to do; they must conform to the Constitution (C.I.R. v. Van Vorst, [C.C.A. 1932] 59 F2d 677).

    Since the ultimate Appellate Court is the U.S. Supreme Court, we must look to that Court for a definite answer on the question of conformance and affirmation that Wages are not classified as income which can be taxed.

    The Court has recognized that:

    "... It becomes essential to distinguish between what is, and what is not `income' ..."

    Eisner v. Macomber, [1920] 252 U.S. 189

    and determined that:

    "... `income' as used in the statute should be given a meaning so as not to include everything that comes in, the true function of the words `gains' and `profits' is to limit the meaning of the word `income'"

    (So. Pacific v. Lowe, 238 F. 847);

    (U.S. Dist. Ct. S.D. N.Y. 1917);

    (247 U.S. 30 [1918])

    The Court determined that:

    "... the definition of income approved by the Court is:

    `The gain derived from capital, from labor, or from both combined, provided it be understood to include profits gained through sale or conversion of capital assets.'"

    Eisner, supra.

    "Income within the meaning of the 16th Amendment and the Revenue Act means, gain ... and in such connection gain means profit ... proceeding from property severed from capital, however invested or employed and coming in, received or drawn by the taxpayer for his separate use, benefit and disposal"

    Staples v. U.S., 21 F.Supp. 737,

    (U.S. Dist. Ct. EDPA, 1937)

    In the case of Lucas v. Earl, [1930] 281 U.S. 111, the U.S. Supreme Court stated unambiguously that:

    "The claim that salaries, wages and compensation for personal services are to be taxed as an entirety and therefore must be returned by the individual who has performed the services which produced the gain is without support either in the language of the Act or in the decisions of the courts construing it. Not only this, but it is directly opposed to provisions of the Act and to regulations of the U.S. Treasury Dept. which either prescribe or permit that compensation for personal services be not taxed as an entirety and be not returned by the individual performing the services. It is to be noted that by the language of the Act it is not salaries, wages or compensation for personal services that are to be included in gross income. That which is to be included is gains, profits and income DERIVED from salaries, wages or compensation for personal service." [Emphasis added]

    The Court ruled similarly in Goodrich v. Edwards, [1921] 255 U.S. 527 and in 1969, the Court ruled in Conner v. U.S., 303 F.Supp. 1187, that:

    "Whatever may constitute income, therefore must have the essential feature of gain to the recipient. This was true when the 16th Amendment became effective, it was true at the time of Eisner v. Macomber, supra, it was true under sect. 22(a) of the Internal Revenue Code of 1938, and it is likewise true under sect. 61(a) of the I.R.S. Code of 1954. If there is not gain, there is not income .... Congress has taxed INCOME and not compensation."

    "... one does not derive income by rendering services and charging for them."

    Edwards v. Keith, [1916] 231 F. 111

    Even at the state level, we find courts following the lead of the U.S. Supreme Court:

    "There is a clear distinction between profit and wages or compensation for labor. Compensation for labor cannot be regarded as profit within the meaning of the law."

    Oliver v. Halstead, [1955]

    196 Va. 992, 86 S.E.2d 858


    "Reasonable compensation for labor or services rendered in not profit."

    Lauderdale Cemetery Assoc. v. Matthews,

    345 Pa. 239, 47 A.2d. 277, 280 [1946]

    Since the above cases are the undisputable law with respect to what is or is not income, we find the word "income" does not mean all monies that come into the possession of an individual, but profit or gain FROM the money one takes in, such as interest, stock dividends, profit from an employee's labors, but not from an individual's wages, which are compensation for his labor. This means that the average person in America, who has no large investments or riches upon which he receives interest, dividends, etc., in excess of the amounts listed above (1992) but merely works for wages, has income insufficient in amount to be required to file a tax return.


  • 1 decade ago

    The 16th amendment albeit; unlawfully ratified .Did NOT grant the federal government any new taxing powers. The Federal income tax is applicable to Federal corporatons. The rule of apportionment applies to the several States as such and under existing law no State citizen is required to file a tax return nor pay a so called Income tax (the word "income " is not defined in U.S. code Title 26.

    Source(s): Brushaber VS Erie Railroad The National Constitution U.S. Code Title 26
  • 1 decade ago

    The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

    16th Amendment to the Constitution

    Although there are those that disagree with the legality of it, that is it in writing.

  • c.s.
    Lv 4
    1 decade ago

    This is the basis for taxes and income taxes (too bad I can't highlight the specific words for you):

    The National Archives transcript of the Constitution has the following:

    Article. I.

    Section. 1.

    All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.

    Section. 2.

    The House of Representatives shall be composed of Members chosen every second Year by the People of the several States, and the Electors in each State shall have the Qualifications requisite for Electors of the most numerous Branch of the State Legislature.

    No Person shall be a Representative who shall not have attained to the Age of twenty five Years, and been seven Years a Citizen of the United States, and who shall not, when elected, be an Inhabitant of that State in which he shall be chosen.

    Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons. The actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States, and within every subsequent Term of ten Years, in such Manner as they shall by Law direct. The Number of Representatives shall not exceed one for every thirty Thousand, but each State shall have at Least one Representative; and until such enumeration shall be made, the State of New Hampshire shall be entitled to chuse three, Massachusetts eight, Rhode-Island and Providence Plantations one, Connecticut five, New-York six, New Jersey four, Pennsylvania eight, Delaware one, Maryland six, Virginia ten, North Carolina five, South Carolina five, and Georgia three.

    You will note in the above the language "Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union". This gives the Federal government the right to levy taxes. It does not state any specific form for those taxes.

    The 16th amendment to the constitution is:


    Passed by Congress July 2, 1909. Ratified February 3, 1913.

    Note: Article I, section 9, of the Constitution was modified by amendment 16.

    The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

    Which gives the Federal government the explicit right to collect income taxes.

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  • Anonymous
    1 decade ago

    The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration- 16th amendment to the constitution

  • Anonymous
    1 decade ago

    "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." 16th Amendment

    It says that Congress has the power to levy income taxes and collect them. Is the language in this Amendment really that unclear or difficult to understand?

  • 1 decade ago

    And there are numerous cases recognizing the legality of the tax system. As a former worker in federal court, I saw dozens of tax protestors arrested, charged, and convicted of tax fraud. All of these courts and all of these decisions are not wrong -- the income tax system, however odeous, is still legal and constitutional.

    Here are some talking points:,,id=...

  • cosco
    Lv 4
    4 years ago

    Trickle down economics is a lie. The final tax decrease for the prosperous (Bush-era) observed wages flatline for huge-unfold individuals. there replace into no further value created, purely a banking bubble. We taxed the hell out of the prosperous interior the 40's/50s/60s - that they had a lots bigger bracket pre-Reagan - or maybe conservatives evaluate the golden age of the yank economy. The present day earnings tax grew to alter right into a necessity after the commercial revolution. Inherited possession made it conceivable to hoard huge quantities of money, and created unreasonable obstacles fror the clever and hardworking to advance. Ever heard of the 'robberbarons'? there replace into terrible poverty. not sturdy situations. valuable, capitalist, better international places with much less present day earnings taxes than us: - The United Arab Emirates - Kuwait - Quatar - Chile i'm suffering to think of of extra. in case you could need to undertake any of their platforms, do enable me know.

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