1913, Taxes on Incomes

The Amendments:

• "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment... and without... any census"
  - Art. 16 (16th Amendment)

Notice, that incomes is plural. So, which incomes? Whose incomes? Specifically, who, what, and where?

STARTING WITH A SIMPLE PICTURE

	"TAXES ON INCOMES... WHATEVER SOURCE" -- 16TH AMENDMENT

2. After writing the 16th Amendment, Congress made laws to implement it. But the law and the regulations only prescribe...

"The tax imposed is upon taxable income"
- 26 CFR Sec. 1.1-1

Notice, the tax is only imposed on taxable income - whatever the source. Not all incomes are taxable. So now the picture looks like this...

Because, we are told "income from whatever source...unless excluded" (in Sec. 61), then the specific items of income, and specific sources of income still need to be prescribed (declared) in order for a computation of tax to occur, because some items may be "excluded".

What is excluded income?

What is taxable income?

3. The Parent Code, found in the first Article of the Constitution requires:

• Taxes shall be apportioned
• There can be No Capitation unless in Proportion to a census

*Notice, the concept is repeated twice.

If these laws were followed, each taxpayer would pay their own fair share, regardless of their total income, or how much a taxpayer works, or how smart they are, or according to their estate and ability, or any other fortunate circumstances. Like a cab ride through downtown, everyone pays the same fare.

In the Constitution, each taxpayer is paying an equal fraction, the fair share distributed according to a census, not according to someone's income generating abilities.

4. This is how the Income Tax is currently implemented, but it is unlawful, according to the code. Here, a greater percentage is taken from those with larger incomes.

*About code: If something is not written in the Code, it cannot occur.

Here is an assumption that is difficult to escape...

- Most of us, 96% of whom don't know anything about coding or programming - including judges and tax professionals, will assume that all items are taxable. Even after we've seen the rules, and we've become well aware that this is not true (because of "excluded income", "deductions," etc), it's still tough to remember this. And, because there are so many vague statements throughout the Code, like "taxes on incomes," and "whatever source," we tend to convince ourselves that income tax is imposed upon all income.

"Incomes" is just a term, a subject, and very broad in scope. But, the Code instructions for this subject say, it is only "upon taxable income" [CFR Sec. 1]. Other sections also provide rules for "excluded income", "eliminated income" and "other deductions" [CFR Sec. 861-8], and even state clearly, that "more common items (of income) are... excluded... enitrely" [CFR Sec. 61(b)]. They show that taxing all incomes, is out of scope, and actually against the law; against the code.

If something is not written in the code, it cannot occur. Just like if the programmers at Microsoft forgot to include the code needed to print, then you could never print anything.

5. The Income Tax Code - As it is actually encoded

# # # # # # # # # # # # # # # # # # # # #

#include <Constitution, Amendments, USC, CFR>

   TaxableIncome = whatisTaxed();

  whatisTaxed()
  {

• "direct Taxes shall be apportioned" [Art. 1]
• "No Capitation...unless in Proportion" [Art. 1]

• "taxes on incomes...whatever source ...without apportionment...and...any census" [16TH Amendment]

• "The tax imposed is upon taxable income" [CFR Sec. 1]

• "the term 'taxable income' means gross income minus... deductions" [USC Sec. 63]

• "gross income means all income from whatever source...unless excluded" [CFR Sec. 61]

• "more common items ...are ...excluded ...entirely ... To the extent that another section (...is more) specific...such other provision shall apply notwithstanding section 61" [CFR Sec. 61]
  
  [i.e. In spite of how the Sec. 61 emphasizes 'whatever source', more common items are "excluded" entirely.]
  
  GET TAX(specific sources);

• "determining taxable income of the taxpayer from specific sources" [CFR Sec. 861-8]


• "the rules [of Sec. 861] for determining taxable income"
  [CFR Sec. 863]


• "the sources of income for purposes of the income tax... See Secs. 1.861-8 and 1.863-1." [CFR Sec. 861-1]


• "how to determine taxable income" [CFR Sec. 861-8]


• "This section provides specific guidance for... deductions" [CFR Sec. 861-8]


• "gross income may include excluded income" [CFR Sec. 861-8]

• "The following items are not...excluded"
  [CFR Sec. 861-8T(d)(2)(iii)]
  
  *Finally, Sec. 861-8T(d)(2)(iii) is the paragraph that prescribes (codifies) the list of what is taxed.

return whatisTaxed;

}

COMPILER: 0 ERRORS, 1 WARNINGS

* WARNING:
FOLLOWING THE CODE IN THE US TAX CODE MAY RESULT IN LARGE FINES, LOSS OF PROPERTY, JAIL TIME, AN UNDESIRABLE REPUTATION, AND WILL LIKELY INCLUDE DOING "THE WALK OF SHAME" IN SOME FORM OR ANOTHER.

[Here we have shown only our main focus - What is Taxed. There is still more code available for examination - if we include such subjects as "allocating" or "allocation" of; "gross income", "deductions", "exempt income", "eliminated income", etc. And, even more, if we include Who is Taxed.]

SEC. 861-8T(d)(2)(iii) =

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