Monday, March 2, 2009

A Brief Note on Taxes

My question is, is the taxation of income even Legal? Can anyone show me the law where it says we have to pay income tax?

The 16th amendment, besides never being ratified, was not about income tax. According to W.H. Taft, the president who signed the bill into law (and later became a Supreme Court Judge himself,): the 16th amendment was an excise tax on the government itself, and nothing more.The Supreme Court concurred in its majority opinion:

“It was not the purpose or effect of that amendment [16th amendment] to bring any new subject within the taxing power.” [Bowers v. Kerbaugh-Empire Co., 271 U.S. 170; 46 S.Ct. 449 (1926)]

In other words, whatever the taxing power the federal government had before the 16th amendment didn’t change after the 16th amendment according to the Supreme Court.

Also, in the case of Pollock v. Farmer’s Loan and Trust Company (157 U.S., 429) was held by the Supreme Court to be a direct tax, and therefore not within the power of the Federal Government to Impose unless apportioned among the several States according to population.

Of course the income tax today remains a direct unapportioned tax and therfore unconstituional.

It is clear that the intent of the 16th amendment was to allow the government to tax only its own employees and not private citizens. There is however a provision in the amendment to tax American citizens and corporations oversees, for being given US protection, in countries that have a tax treaty with the United States.

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