by madpaddler » Mon 28 Apr 2008, 16:54:48
$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('madpaddler', 'A')lthough the average American doesn't know it, they repeatedly declare themselves liable for state and federal income tax.
Whenever a person who is in control of paying you money asks for an "identifying number" (e.g. SSN, TIN, EIN, ITIN; see 26 CFR 301.6109-1(a) for definitions) what that person is really doing is asking you to declare that the money he is about to pay you is subject to federal and state taxing jurisdiction. Because there is no law that allows a third party to determine your tax status, the person who will be paying you is asking a reasonable question (especially if they are a taxpayer). Of course the problem is that the practical application of the process has been perverted into a "demand" as opposed to a "request". This is particularly odd in light of the fact that the Secretary of the Treasury, in his own tax regulations, states that the requester may only request the number.
I posted the statute above. It says income is taxable based on nothing more than the fact that it is income. Do you have some rebuttal?
On that point, Ron Paul is simply wrong.
Yes, sorry it is long:
Most Americans today feel that the IRC applies to everyone. No matter how many Americans believe it to be true it is still factually and legally inaccurate. The IRC only applies to "taxpayers". This is a pivotal point. Let's see what the federal courts have said on this issue:
"The revenue laws are a code or system in regulation of tax assessment and collection. They relate to taxpayers, and not to nontaxpayers. The latter are without their scope. No procedure is prescribed for nontaxpayers, and no attempt is made to annul any of their rights and remedies in due course of law. With them [nontaxpayers] Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws". [emphasis added]
Economy Plumbing and Heating Co. v. United States, 470 F. 2d 585 (1972)
As you can see, the IRC does not apply to everyone. Of course we really haven't resolved anything because most Americans also believe themselves to be "taxpayers". Why do they believe that? Because they've been told that they are. And not just told by this person or that, but told by everyone! Geez…everyone can't be wrong - can they? To the chagrin of Americans who have taken the time to actually read the law, they find out that, "yes", everyone who said he or she is a taxpayer was wrong.
What is the general definition of "taxpayer" provided in the IRC?
26 USC §7701(a)(14) - The term ''taxpayer'' means any person subject to any internal revenue tax. [emphasis added]
So…how do you know if you're "subject to" an internal revenue tax? Ordinarily the first step would be to ask an expert, but as we've already covered, today's "experts" are little more than mouthpieces for the IRS. Asking them would not be terribly useful if you're looking for factual and objective answers. The second way would be to read the law for yourself; but where to start? Unfortunately, the best place to start is with a basic concept that you'll not find stated in any tax law book anywhere.
The first concept that you need to learn about tax law (and law in general) is "context, context, context". This is not the only legal principle you may need to know, but is certainly the preeminent one.
All laws, and the specific words within the laws, must be seen in the context of the subject being addressed and considered within the context of jurisdictional limitations of the government.
The context of the subject should always be considered; e.g. a law dealing with medical care requirements should not be presumed to apply to a human being if the statute you're reading is contained within the Agriculture Code.
Concerning jurisdictional limits; the government may write a law that applies properly to one party, but exceeds its authority when applied to you. A prime example of this is the annual tax that many counties levy upon the personal property of businesses. Such laws are written for corporations and certain other "legal fictions", but do not apply to real live Citizens. Real live Citizens have a Constitutional right to own property and cannot be taxed on the exercise of a Constitutionally secured right except through certain very narrow methods that are not currently being used in this country.
How do we then apply these newly acquired principles (i.e. "contextual setting" and "jurisdictional limits") to income tax? First we must take stock of the following jurisdictional fact:
The IRC only applies to money or other forms of property that are within the lawful reach of federal and state taxing authority.
Read that again. Read it as many times as it takes for that reality to embed itself in your mind. Now, let's turn it over and look at it from the opposite view.
The federal and state governments cannot tax anything that lies beyond their lawful taxing authority.
O.K., we've got that; so how do we now determine what is within the government's authority, and what is not? Fortunately, the question is not too hard to answer.
The federal Constitution only recognizes two categories of taxation. One is a direct tax and the other is an indirect tax. [See the US Constitution, Article I, Section 2, Clause 2; Article I, Section 9, Clause 4; Article I, Section 8, Clause 1.] As far as American law is concerned, these are the only two classes of taxation. For us, they are the equivalent of the northern and southern hemisphere - together they are the whole ball of wax.
Here's a solid definition of "direct tax" from the US Supreme Court:
"Direct taxes bear upon persons, upon possessions, and enjoyment of rights"
Knowlton v. Moore, 178 US 41
Virtually all taxes in this country are indirect taxes and not direct taxes. While many people will tell you that the test for determining if a tax is indirect is that it can be passed along to another person (such as sales tax), we feel that the more useful and accurate test is if you can choose to avoid the "taxable activity", and thus avoid the tax altogether. If one cannot avoid a tax without sacrificing the ordinary affairs of life, the tax is not indirect, but is direct. [See the section on Sales Tax within this site for common misconception concerning that tax.]
Without going into the complete legal history of taxation and its Constitutional limits (which can be viewed within this site at Constitutional Issues of Taxation), suffice it to say that the only direct tax that may currently exist in this country is the tax allegedly authorized by the 16th Amendment. We say, "may currently exist", because the federal courts are in conflict as to whether the 16th Amendment authorized a special direct tax, or simply reinforced a pre-existing government power concerning an indirect tax. However, we need not get sidetracked with that issue because the 16th Amendment has no bearing on the ordinary compensation of the average American. Taxes under the 16th Amendment only deal with corporate dividends and other forms of distribution of corporate profit derived from capitol investment.
This is clearly expressed in various court rulings, such as;
"The sixteenth [amendment] does not justify the taxation of persons or things (their property) previously immune . . .it does not extend taxing power to new or excepted citizens…it is intended only to remove all occasions from any apportionment of income taxes among the states. It does not authorize a tax on a salary." [emphasis added]
Evans v. Gore, 253 US 245 (1920)
As for a law requiring the filing of a 1040, see 26USC61(a):
"When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations."
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Requiring and demanding are virtually the same. You think you must do or else, correct? The actual wording is "request" the number. You have the ability to deny the request as your salary for labor is not "income" Interest, dividends and money made via corp activity is a "taxable" item. A salary is earned from labor and does not include any gains as the term income requires.
Ron Paul is not wrong.