-Caveat Lector-
http://www.deoxy.org/fz/deception.htm
Deceptive IRS Code Words
"Income," "Person," "Taxpayer," "Shall," and "Must."
Learn to Decipher the Internal Revenue Code and IRS Publications
The Internal Revenue Code (IRC) is a masterpiece of deception designed to
mislead Citizens into believing that individuals are subject to federal
income tax. The Code was written by attorneys for the Internal Revenue
Service (IRS), and contains a series of directory statutes using the word
"shall", with provisions that are requirements for corporations, but not for
individuals. Even members of Congress are generally unaware of the deceptive
legal meanings of certain terms that are consistently used in the IRC. These
terms have legal definitions for use in the IRC that are very different from
the general understanding of the meaning of the words.
Lack of knowledge of these legal definitions causes misunderstanding by
uninformed Citizens who are confused as to the correct interpretation of
both the IRC and the true meaning of the tricky wording in IRS instructional
publications and news articles. However, when you understand the legal
definitions of these terms, the deception is easily recognized and the
limited application of the Code becomes clear. This understanding will help
you to see that filing income tax forms and paying income taxes must be
voluntary acts for most Americans because the United States Constitution
forbids the federal government to impose any tax directly upon individuals.
INCOME
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Most people mistakenly believe all moneys they receive, such as wages,
salaries, and tips, are "income". However, for years, IRS publication #525,
entitled "Taxable and Nontaxable Income", has acknowledged that wages and
salaries are not "income". Publication #525 states: "Wages and salaries are
the main source of income for most people." In the court decision of Graves
vs People of the State of New York ex rel O'Keefe, 59 S.Ct. 595 (1939), the
United States Supreme Court ruled that a source of income is not income, and
the source is not subject to income tax. In that decision, the Court stated:
"A tax on income is not economically or legally a tax on its source."
However, wages, salaries, commissions, and tips (sources) are considered to
be "income" for an individual when he lists them as "income" on an IRS tax
return form. When he signs the tax form under penalty of perjury, he has
made a voluntary oath that his wages, salary, commissions, and tips listed
on the return are "income" and that he is subject to the tax.
In the still standing decision of Brushaber vs Union Pacific Railroad
Company, 240 U.S. 1, the United States Supreme Court ruled that the federal
income tax is an excise tax under the Sixteenth Amendment (the income tax
amendment). The Court explained that the income tax cannot be imposed as a
direct tax (a tax on individuals or on property) because the United States
Constitution still requires that all direct taxes must be apportioned among
the States. "Apportioned" means that a direct tax is laid upon the State
governments in proportion to each State's population. The Court ruled that
income tax can be constitutional only as an indirect (excise) tax -- that
is, a tax on profits earned by corporations or privileges granted by
government. In other words, said the Supreme Court, in order for there to be
"income", there must be profits or gains received in the exercise of a
privilege granted by government. As an example, a lawyer is granted the
government privilege of being an officer of the government court when he
represents clients in litigation.
At law, labor is property. In fact, the Supreme Court has identified labor
as man's most precious property. Therefore, the exchange of one's labor for
wages or salary (which are also property) is considered by law to be an
exchange of properties of equal value in which there is no gain or profit.
Such a property exchange of equal value cannot be taxed because there is no
profit or gain. Also, one who works in an ordinary occupation is not a
recipient of any privilege granted by government, because he is merely
exercising his constitutionally guaranteed right to work and earn an living.
Courts have repeatedly ruled that no tax may be placed upon the exercise of
rights. Their reasoning was sensible. If the exercise of rights could be
taxed, government could destroy them by excessive rates of taxation.
Items that the law includes in "income" are described in Code sections
listed under the title of "Items Specifically Included in Gross Income",
which covers Sections 71 through 86. Nowhere in these sections and nowhere
else in the Code is there any mention of wages, salaries, commissions, or
tips as being "income". For example, to deceive and intimidate waitresses
into declaring their tips to be income is a double fraud. First, tips are
gifts, not wages. According to the IRC, gifts are not subject to income tax.
In fact, even if tips were
