A Discussion Regarding Taxation on Private Sector Earnings

Taken from a college student’s paper regarding taxation. Author wishes to remain anonymous. I know that the subject of taxes is confusing and somewhat boring but I urge you to read through this and think about it. All sources are listed at the bottom if you want to see the sources used. Enjoy and thank you to the author of this paper.

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Even though those whom disagree often site the sixteenth amendment as the law allowing the Congress to tax private sector labor as income, the taxation imposed on the pay of private sector workers is improper because Article 1 Section IX of the United States Constitution prohibits Direct taxation without apportionment, and numerous Supreme Court decisions espouse that trading labor for money is a natural right.

Taxes are a necessary evil. In order for Governments to function, they require a revenue stream – the debts of the government need to be paid, the members of the armed forces need to be paid, and the normal day to day operations of the Government need to be paid. The Constitution of the United States gives Congress the power to generate a revenue stream through the laying and collecting of taxes; this power is given in Article 1 Sec 8 Cl. 2, which states:

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;” 

Then, in Article 1 Sec 9 Cl 4; “No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.” And in Clause 5 “No Tax or Duty shall be laid on Articles exported from any State.” The Founding Fathers, understanding the need of the Federal Government to have a positive inflow of

What Income Taxes Really Are

There IS an Income Tax . . .

HOWEVER

“Everything” you earn
IS NOT
“Taxable Income”

Did YOU earn your money by:

WORKING FOR…

DOING BUSINESS WITH…

INVESTING IN…

THE FEDERAL GOVERNMENT ?

If not, then those earnings
ARE NOT “taxable income”

WWW.LOSTHORIZONS.COM

TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter B > PART I > § 63. Taxable income defined

(a) In general: Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction).

That’s not very helpful, what exactly IS “income” since THAT is what you are taxing…

US Supreme Court, US v. Ballard, 535 f2d 400, 404 (1976) “The general term ‘income’ is not defined in the Internal Revenue Code”

What does the Dictionary say “income” is?

in·come: The monetary payment received for goods or services, or from other sources, such as rents or investments.

OK, “income” is all that I earn from my work and investments…just what I thought…

US Supreme Court, Southern Pacific v. Lowe 247 U.S. 330 (1918): “We must reject the broad contention submitted in behalf of the government that all receipts, everything that comes in, are income…”

WHAT !?…….”income” is NOT “all” money that I receive !? What does the Constitution say about a DIRECT TAX upon my earnings?

US Constitution, Article 1 Section 9: “No capitation, or other direct, Tax shall be laid, unless in proportion to the Census or Enumeration herein before directed to be taken”

In response to the above Constitutional reference, your accountant or the IRS will probably refer to the 16th Amendment, commonly known as the “Income tax”. To which the Supreme Court would reply…

US Supreme Court, Stanton v. Baltic Mining Co. 240 U.S. 103 (1916): The provisions of the Sixteenth Amendment conferred no new power of taxation…

Additionally… Howard M. Zaritsky, Legislative Attorney, American Law Division of the Library of Congress Report No. 80-19A,“Some Constitutional Questions Regarding The Federal Income Tax Laws”:

Page CRS-5 (1979): “The Supreme Court, in a decision written by Chief Justice White [the Brushaber ruling], first noted that the Sixteenth Amendment did not authorize any new type of tax, nor did it repeal or revoke the tax clauses of Article I of the Constitution, quoted above. Direct taxes were, notwithstanding the advent of the Sixteenth Amendment, still subject to the rule of apportionment and indirect taxes were still subject to the rule of uniformity.”F. Morse Hubbard, Treasury Department Legislative draftsman. March, 27 1943 Page 2580.

The income tax is, therefore, is not a tax on income as such. It is an excise tax with respect to certain activities and privileges which is measured by reference to the income they produce. The income is not the subject of the tax: it is the basis for determining the amount of the tax.

The “PRIVILEGE” you must participate in to earn “taxable income” is working for, doing business with, or investing in businesses majority-owned by the Federal Government or “Federal Instrumentalities”. If you make your money having nothing to do with the Federal Government, then your earnings are not “taxable income”.

WWW.LOSTHORIZONS.COM

(original)

Mandatory Volunteerism = Free Slave: HR 1388

Interesting. I thought that America was the “Land of the Free,” but it appears that I was wrong. On 18 March 2009 the House of Representatives voted on HR 1388 – the Generations Invigorating Volunteerism and Education Act or the GIVE Act with a vote of 321 to 105. (See how your representatives voted here).

Now let me make one thing clear. I am all for people volunteering their time to the community. I have long said that if everyone quit being so selfish that we would be better off. It is our neighbors that make life good, not the government. Even in my life, I can remember having neighbors who looked out for my siblings and me. And that is the way it should be;  the government should not look after people. But, I digress. I like volunteer work, but mandatory volunteer work. Um, no….

With this new bill it is possible that any able bodied person will have to volunteer their time to some sort of service of which the government will determine. This is interesting because as I remember it, we have the Thirteenth Amendment, which reads:

Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime where of the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.
Section 2. Congress shall have the power to enforce this article by appropriate legislation.

What part of “involuntary servitude” does not make sense here fellas? Hell, they even have a “Senior Corps” built into this plan for people over 55!

Let’s also look at amendment 12 to this bill, which reads:

Amendment to prohibit organizations from attempting to influence legislation; organize or engage in protests, petitions, boycotts, or strikes; and assist, promote, or deter union organizing. Proposed: Mar 18, 2009. Accepted: Mar 18, 2009.

Hello? First Amendment? Please notice that this Amendment was ACCEPTED!

Moving on Section 1710 reads:

STUDY TO EVALUATE THE EFFECTIVENESS OF A CENTRALIZED ELECTRONIC CITIZENSHIP VERIFICATION SYSTEM.
(a) Study- The Corporation for National and Community Service shall conduct a study to determine the effectiveness of a centralized electronic citizenship verification system which would allow the Corporation to share employment eligibility information with the Department of Education in order to reduce administrative burden and lower costs for member programs. This study shall identify–

A WHAT? A centralized electronic citizenship verification system? Is this the National ID? Or the RFID chip? Or what? C’mon now…

Scaaaaaaaaaaaaaarrrrrrryyyyyyyyyyyy….. On the bright side, thank you to Congressman Flake for voting Nay on this monstrosity!

Where Is Our Republic?

“The United States shall guarantee to every State in this Union a Republican Form of Government…”

- United States Constitution Article 4 Section 4 Clause 1.

Our Founding Fathers agreed to a Republican form of Government for this young upstart nation vice a Democracy for many reasons, among which, as James Madison said “A pure democracy is unwieldy, dangerous in its passion, and subject to mob rule thereby lending itself to instability and violence. Democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have, in general, been as short in their lives as they have been violent in their deaths.”

In a Republic, the majority may never have complete control over the minority. The rights of the minority are protected by the checks and balances built into the Republics by-laws. One of the checks and balances our Constitution provides was in how or country was represented at the Federal level. The members of the House of Representatives were elected by the people of the respective districts, the Senators were appointed by the legislatures of each of the several States. One chamber was for the people and one chamber for the States and the President was elected by a majority vote of the electors of the several States. This ensured that the rights, needs and desires of the PEOPLE and the STATES were represented at the Federal level.

Since the Seventeenth Amendment was adopted to the Constitution, the voice of the States has been taken away. The Checks and balances put into place by our founding fathers have been removed and our form of governance has been whittled away to an unwieldy Democracy. The people vote for our President, the people vote for our Representatives and the people vote for the Senators. Fifty-one percent of the country now has complete control over the other 49 percent. Look back at the history of our nation, prior to the adopting of the 17th Amendment things were pretty smooth, the People and the States had to agree in order for legislation to pass both houses. Now the People have to agree with the People, which ever side has 51 percent will usually win. I am well aware of the Senate 60 vote filibuster issue, but I contend it is merely a matter of time before Harry Reid tries to change that. The House has already all but eliminated any input from the minority party, I don’t expect the Senate to be far behind.

In order to reacquire the promise of Article 4 Section 4 Clause 1 of the Constitution, this American believes the road starts with repealing the 17th Amendment.

Written by: DJ

Return the Power to the States!

Face it, the Federal Government is running amok. It is time to return the power to the States.

(Daily Paul original here)(Arizona House of Representatives, bill HCR2024 here)

REFERENCE TITLE: Sovereignty; Tenth Amendment. | HCR 2024

Introduced by

Representatives Burges, Ash, Biggs, Boone, Gowan, Mason, Montenegro, Pancrazi, Seel, Williams: Barto, Campbell CL, Court, Crandall, Crump, Driggs, Fleming, Goodale, Hendrix, Kavanagh, Lesko, McComish, McGuire, Miranda B, Murphy, Nichols, Pratt, Quelland, Stevens, Tobin, Weiers JP, Senator Harper

Whereas, the Tenth Amendment to the Constitution of the United States reads as follows: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people”; and

The 16th Amendment

Interesting. So according to all the law schools such as Cornell University, the “Sixteenth Amendment to the U.S. Constitution was ratified. It empowered Congress to tax “incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration,” and that “Not everyone, however, must file a return. The requirements for filing are found in 26 U.S.C. § 6011″

§ 6011 states that “(b) Identification of taxpayer: The Secretary is authorized to require such information with respect to persons subject to the taxes imposed by chapter 21 or chapter 24 as is necessary or helpful in securing proper identification of such persons.”

So hang with me, this is going to blow you face off…

So Chapter 24 says this of what constitutes a “wage.”
(a) Wages: For purposes of this chapter, the term “wages” means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include remuneration paid

And later on, “employee” is defined as.
(c) Employee: For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term “employee” also includes an officer of a corporation.

Wait…. WHOA! Hold the train! An employee is an officer, employee or elected official of the United States, a State, or any political subdivision, then I am an employee? Well, if that is how the IRS defines an employee, then I am not am employee! Are you? And if we look at who earns wages, subsection (a) states that only employees earn a wage. So, if I am not employee and do not earn a wage… why do I have money listed on my W2 under “wages.” Something here is wrong, very wrong!

So in a nut shell, not only are we not employees, or wage earners… we are not tax payers… And to prove my point, check out these fine Americans that stood up against the IRS and said, “I’m not going to pay taxes because, by the law, I do not owe taxes.” And they won, and they got all their money back. (And just to let you know, chapter 21 is the same thing, but for FICA taxes).

So the question now is… what are you going to do about this nugget of knowledge? Sit back and continue to pay taxes out of fear even though you know you don’t have to – or – stand up against a tyrannical government that has been stealing your money for years and years, even if it means that they might throw you in prison over it (which BTW, there is no law either that says that you must pay taxes…. or even file! Not that the government hasn’t enforced these imaginary laws).

To learn more, buy Cracking the Code: The Fascinating Truth About Taxation in America.