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		The United States Constitution strictly forbids a direct unapportioned tax on the wages and salaries of American citizens.The United States Supreme Court has consistently ruled that the Income Tax is a tax on profits and gains, not on labor and wages. (youtube.com)
		55 points posted 1 month ago by EdgerErnst

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	EdgerErnst 18 points 1 month ago "Income is realized gain." Schuster v. Helvering, 121 F 2d 643. "The word profit, as ordinarily used, means the gain made upon any business or investment-a different thing altogether from mere compensation for labor. There is a clear distinction between profit and wages or compensation for labor. Compensation for labor cannot be regarded as profit within the meaning of the law." Oliver v. Halstead, 196 Va. 992. "Reasonable compensation for labor or services rendered is not profit." Laurendale Cemetary Assoc. v. Matthews, 245 Pa. 239. "The general term 'income' is not defined in the Internal Revenue Code." US v. Ballard, 535 F. 2d 400 (1976) "...it becomes essential to distinguish between what is, and what is not 'income'...Congress may not, by any definition it may adopt, conclude the matter, since it cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone, that power can be lawfully exercised." Eisner V. Macomber, 252 US 189 (1920) "...'income,' as used in the statute should be given so as not to include everything that comes in. The true function of the words 'gains' and 'profits' is to limit the meaning of the word 'income'." So. Pacific v. Lowe, 2389 F. 847 (US Dist Ct. S.D. N.Y., 1917); 247 US 330 (1918) "Income within the meaning of the Sixteenth Amendment and the Revenue Act, means 'gain'... and in such connection 'Gain' means profit...proceeding from property, severed from capital, however invested or employed, and coming in, received, or drawn by the taxpayer, for his separate use, benefit and disposal." Staples v. US, 21 F. Supp 737 (US Dist. Ct. ED PA, 1937) "...the definition of 'income' approved by this court is: The gain derived from capital, from [not by] labor, or from both combined, provided it be understood to include profits gained through sale or conversion of capital assets." Eisner v. Macomber, 252 US 189 (1920) They define the IRS income tax in Title 26 of the US code in Section 1: "there is hereby imposed on the taxable income of every... individual, a tax..." This is clearly a direct tax, even if we knew what they were taxing, in direct violation of the Constitution. This is confirmed by the courts: "such a tax would be by nature a capitation rather than excise tax." Peck & Co. v. Lowe, 247 US 165 (1918) "Our tax system is based upon VOLUNTARY assessment and payment, not upon distraint." - U.S. Supreme Court in Flora v. U.S. (1959) ["Voluntary" means "acting or done without any present legal obligation to do the thing done" Webster's Third World International Dictionary] "Statutes levying taxes should be construed, in case of doubt, against the government and in favor of the citizen." Miller v. Gearing 258 F. 225 "The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, OR ALTOGETHER AVOID THEM, by means which the law permits, cannot be doubted." Gregory vs. Helvering 293 U.S. 465 "The explanations and examples in this publication reflect the official INTERPRETATION by the IRS of tax laws enacted by Congress and...Court decisions...The publication covers some subjects on which CERTAIN COURTS HAVE TAKEN POSITIONS MORE FAVORABLE TO TAXPAYERS THAN THE OFFICIAL POSITION OF THE SERVICE. Until these interpretations are resolved by higher court decisions, or otherwise [like when there is no higher court, in the case of a Supreme Court decision!--FF], the publication will continue to present the viewpoint of the Service." IRS, Publication 17 "One does not derive taxable income by rendering services and charging for them. IRS cannot enlarge the scope of the statute." Edwards v. Keith, 231 F 110,113 "An income tax is neither a property tax nor a tax on occupations of common right, but is an excise tax...The legislature may declare as 'privileged' and tax as such for state revenue, those pursuits not matters of common right, but it has no power to declare as a 'privilege' and tax for revenue purposes, occupations that are of common right." Sims v. Ahrens, 271 SW 720 (1925) "Decided cases have made the distinction between wages and income and have refused to equate the two." Central Illinois Publishing Service v. U.S., 435 U.S. 31, p.90 "Income, as used in the statute should be given the meaning so as NOT to include everything that comes in. The TRUE function of the words 'gains' and 'profits' is to LIMIT the meaning of the word 'income'." So.Pacific v. Lowe, 238 F. 847 "...the provisions of the Sixteenth Amendment conferred no new power of taxation but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the catagory of indirect taxation to which it inherently belonged and being placed in the category of direct taxation..." Stanton v. Baltic Mining Co., 240 U.S. 103. "A tax laid upon the happening of an event, as distinguished from its tangible fruits, is an indirect tax..." Tyler v. U.S. 281 U.S. 497 "The conclusion reached in the Pollock Case did not in any degree involve holding that income taxes generically and necessarily came within the class of direct taxes on property, but on the contrary recognized the fact that taxation on income was in its nature an excise entitled to be enforced as such..." Brushaber v. Union Pacific R.R. Co., 240 U.S. 1 "Excises are taxes laid...upon licenses to pursue certain occupations, and upon corporation privileges...The tax under consideration may be described as an excise upon the particular privilege of doing business in a corporate capacity. The requirement to pay such taxes involves the exercise of privileges." Flint v. Stone Tracy Co., 220 U.S. 107. "The individual, unlike the corporation, cannot be taxed for the mere privilege of existing. The corporation is an artificial entity which owes its existence and charter powers to the state; but the individuals' rights to live and own property are natural rights for the enjoyment of which an EXCISE cannot be imposed." Redfield v. Fisher, 292 P. 813. "The right to labor and to its protection from unlawful interference is a constitutional as well as a common-law right. Every man has a natural right to the fruits of his own industry." 48 Am Jur 2d, section 2, page 80.
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