Conclusion What did the rules say?   "The tax imposed is upon taxable income" [26 CFR Sec. 1-1] (found once in entire CFR) And according to... "the rules... for determining taxable income" [26 CFR Sec. 863-1(c)] (found once in entire CFR)     ...most U.S. Citizens do not have any "taxable income."   Why are "the rules" located millions of words apart from the imposing tax rule? Who's responsible for this?

We are being dumped-on. But, the Constitution says "We the people... ordain"

"how to determine tax"
"the tax imposed is upon taxable income"
"the sources of income for purposes of the income tax"
"the rules contained in this section apply in determining taxable income of the taxpayer"
"prescribing" and "excluded income"
"prescribing" and "excluded" and "taxable income"
"prescribing" and "exempt" and "taxable income"
"Income that is not considered tax exempt"
"the following rules shall apply to... income that is exempt"
"sections of the Code which require the determination of taxable income"
"how to determine taxable income"
"how to determine taxable income of a taxpayer"
"determining taxable income of the taxpayer"
"taxable income from sources within the United States shall consist of"
"determine the sources of income for purposes of the income tax"
"the rules... for determining taxable income"
"the rules... for determining taxable income from sources within the United States"
"the rules... determining taxable income of the taxpayer from specific sources"
"determining taxable income from specific sources"
"determine the source of income"
"determine the sources of income"
"determination of sources of income"
"gross income from a specific source"
"gross income means only"
"specific sources"

These are the regulations where they can be found: 26 CFR1.861-1, 1.861-8, 1.863-1(c), 1.863-3

REGULATIONS? All sources are indeed taxable, for someone, and all of us are liable TO the income tax... However, for U.S. citizens...to see exactly what we are liable FOR, we must see...

From one-side of his mouth (the tax regulations), only foreign earned income is taxable. From the other-side comes easier instructions for The Unconcerned.

26CFR1.861-8, showing "how to determine tax" and the "sources" of taxable income apply only to those U.S. citizens with foreign earned income, and to nonresident alien individuals and some corporations. It is paragraph (f)(1) of this section [26CFR1.861-8(f)(1)] that gives us the list of taxable income 'sources' under the operative sections. These are all sources most U.S. citizens are not involved with.

Sec. 1.861-8(a) also showing...
...for the specific sources and activities under other sections of the Code, which are taxable, the rules contained in this section apply in determining taxable income of the taxpayer. If we follow this to 26CFR1.861-8(f)(1), we can see exactly what sources of income are taxable within the United States. Again, these are all sources most U.S. citizens are not involved with.

861-8T(d)(2)(iii) is the only list of "Income that is not considered tax exempt", or stated more plainly, "Income That Is Taxable." Since it is the only list, it must include ANY ITEM of income that is taxable.

We may assume Sec. 1.861-8 does not apply to us, since we may have no foreign source income, and we "shouldn't be looking under Section 861 titled "SOURCE RULES AND OTHER GENERAL RULES RELATING TO FOREIGN INCOME". But, as shown in 26 USC Sec 7806(b), Construction of title, ... the individual titles of sections, i.e. descriptive matter relating to the contents, or table of contents, and cross references, outlines, etc. are only tools for the location of a subject. The laws (and rules) are only found on the inside of their labeled sections. Obviously, they should have left the title as it was before 1988, which was "DETERMINATION OF SOURCES OF INCOME".

And, Sec. 861, having the only occurrence of the term "determining taxable income from specific sources" in the entire CFR, also explains for 861 (within US), and 862 (without US), and 863 (partly within and without), that ...each... applies independently.

26CFR1.861-8(f)(3)(ii)
Relationship of sections 861, 862, 863(a), and 863(b). Sections 861, 862, 863(a), and 863(b) are the four provisions applicable in determining taxable income from specific sources. Each of these four provisions applies independently.

26CFR1.863-1(c)
(c) Determination of taxable income. The taxpayer's taxable income from sources within or without the United States will be determined under the rules of Secs. 1.861-8 through 1.861-14T for determining taxable income from sources within the United States.

- If "The tax imposed is upon taxable income", why is the rule "Gross income...from whatever source... unless excluded " being used instead of "the rules... for determining taxable income?" Gross is gross, and taxable is taxable, correct? Look again... even it says, "unless excluded." What can be excluded according to "the rules?"

- If the Income tax is imposed upon taxable income, why is Regulation 861-8 not used for doing exactly what it, and only it, says?

- Why does 26CFR1.863-1 (c) exist? And are there any other rules more specific than these?

- Everyone is required to determine taxable income. Why would only some taxpayers need these "rules... for determining taxable income" while others would not? Are there different "rules" for others? If so, where are they? Certainly not in Title 26. Use your computer to confirm it. According to Cross References in Sec. 61, these are the rules for everyone; obviously, since they are written only once.

- Why aren't Tax Pro's using "the rules... for determining taxable income", which are actually written for us? The occasional response is "that only applies to foreigners", or "only if you make money inside and outside the U.S.", but nowhere does it say that. It's first rule even states that it's scope is the "taxable income of the taxpayer... under other sections of the Code." The law itself, USC Sec. 7806(b), shows that the individual titles of sections, i.e. descriptive matter relating to the contents, or table of contents, and cross references, outlines, etc. are only tools for the location of a subject. The laws (and rules) are only found on the inside of these labeled sections. Written very clearly, "the rules" say they apply for "the taxpayer's taxable income".

"The few who can understand the system will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class, while on the other hand, the great body of the people, mentally incapable of comprehending the tremendous advantages that capital derives from the system, will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests". -- John Sherman, "protege of the Rothschild banking family, in a letter sent in 1863 to New York Bankers, Morton, and Gould, in support of the then proposed National Banking Act Good times are coming to an end, Sherman.

Is there even a single citation, which overrules, or negates the use of 26CFR1.861-8 and 863-1(c)?

Is there even ONE rule more specific? ...If so, not according to a computer. See the Analysis.

If we follow the regulations, the reasonable conclusion is that only income from sources outside the United States is taxable income for a U.S. citizen.

Slaves to the Tax State