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Five reasons you don't owe income tax, dammit! The most heartfelt beliefs of the "tax honesty" movement.


Here are some of the core arguments against the legality of the income tax one finds in the tax honesty movement. Devotees probably would regard them as oversimplifications. This is certainly not an all-inclusive list.

1) The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  declares in various documents that the income tax is "voluntary." And in Flora v. U.S. (1960), the Supreme Court announced, "Our system of taxation is based upon voluntary assessment and payment."

2) In Brushaber v. Union Pacific (1916), the Supreme Court declared that "the conclusion that the 16th Amendment provides for a hitherto unknown power of taxation" is "erroneous," and thus the 16th Amendment did not give Congress any taxing powers it did not already have. Hence, an unapportioned direct tax such as the income tax still cannot be legal. (Most mainstream readings of this extremely hard-to-follow decision say the Court meant Congress always had the power to levy an income tax, and that it was merely the question whether it should have to be apportioned ap·por·tion  
tr.v. ap·por·tioned, ap·por·tion·ing, ap·por·tions
To divide and assign according to a plan; allot: "The tendency persists to apportion blame as suits the circumstances" 
 that was at issue.)

3) Income, for the purposes of the tax code, should not be understood in any "common sense" way but only as defined by the Supreme Court. The Supreme Court, in Merchant's Loan and Trust Company v. Smietanka (1921), defined it as having the same meaning as in the Corporation Excise Tax Excise Tax

1. An indirect tax charged on the sale of a particular good.

2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS.

Notes:
1.
 of 1909--and as Irwin Schiff Irwin A. Schiff (b. 1928) is a prominent member of the United States group which refers to itself as the tax honesty movement, and which has been referred to by the Internal Revenue Service and other government agencies as the tax protester movement.  has written, "nothing that was received by private persons was taxable as 'income' under that Act." Income is defined as "gain derived ... from labor" in a previous Supreme Court decision, Stratton's Independence v. Howbert (1913).

4) Title 26 of the U.S. Code A multivolume publication of the text of statutes enacted by Congress.

Until 1926, the positive law for federal legislation was published in one volume of the Revised Statutes of 1875, and then in each sub-sequent volume of the statutes at large.
, in which tax-related statutes are found, is inherently "void for vagueness void for vagueness adj. referring to a statute defining a crime which is so vague that a reasonable person of at least average intelligence could not determine what elements constitute the crime. " because it lacks precise definitions of such terms as state, United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , employee, and person. Again, "common sense" definitions aren't good enough. (Many tax honesty types interpret the use of the word includes in the tax code as properly meaning, "is limited to.")

5) According to the tax-honesty reading of U.S. Code 26, Section 861, only income from foreigners or from overseas activity appears to actually be subject to the income tax.
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Author:Doherty, Brian
Publication:Reason
Date:May 1, 2004
Words:352
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