Tuesday, February 20, 2007

Citizens of the Several States Are Not Generally Liable for the Federal Income Tax

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Why the Citizens of the Several States Are Not Generally Liable for the Federal Income Tax

The book that explains why the Federal income tax is constitutional, why millions of citizens of the United States are liable for, or subject to, the income tax, and why most Citizens of the several States are not liable for the Federal income tax. I found a 1920s Federal court case, which, after I had thought about it for several months, finally allowed me to make sense out of parts of the tax code. The case points out that Congress has the ability to lay and collect taxes with a constitutional authority other than article 1, section 8, clause 1. That information allowed me to finally understand the Federal income tax. Until you learn the information in this book, you will never, never, never understand the Federal income tax.

The FEDERAL INCOME TAX

Is it unconstitutional and a grand fraud upon the American people?

Or

Is it constitutional with most Americans being liable for it?

A large number of patriotic Americans, who have studied the Federal income tax for years, maintain that it is unconstitutional and nobody owes it.

On the other hand, the Government, with the support of the courts, maintains that it is constitutional and that all citizens of the United States are liable for the Federal income tax. As a result, many income tax protesting Americans have been sent to jail after having been found guilty of Federal income tax related offenses.

Where does the truth lay?

What many have not considered is, maybe the truth is to be found somewhere in between those two positions. Perhaps the Federal income tax is constitutional. Perhaps most citizens of the United States are liable for the income tax. Maybe numerous Citizens of the several States are also liable for the tax. Perhaps at the same time though, a good many Citizens of the several States are not liable for the Federal income tax. They are not taxpayers. They are in fact nontaxpayers. To understand why they are nontaxpayers one has understand the following:

From Black's Law Dictionary 6th ed., the following information is
found:

Fourteenth Amendment. "The Fourteenth Amendment of the Constitution of the United States, ratified in 1868, creates or at least recognizes for the first time a citizenship of the United States, as distinct from that of the states;..."

Prior to the 14th amendment, one could not be a citizen of the United States without first being a Citizen of one of the several States. Since the 14th amendment, millions of persons have been made citizens of the United States without having ever set foot in one of the several States. Several sections of the U.S. Code can be found where the natives of some of the insular possessions of the United States have been made citizens of the United States by legislative fiat. Prior to the 14th amendment, these persons might have been made nationals, but not citizens, of the United States.

While the insular possessions (e.g., Guam, Puerto Rico, Northern Marianas Islands, Virgin Islands, etc.) of the United States have their individual governments, they are still under Congress' legislative jurisdiction. (Legislative jurisdiction is the power to make and enforce laws within a given area.) In addition to these insular possessions, the United States owns better than 20 percent of the land mass of the continental United States, most of Alaska, and areas in Hawaii over which Congress exercises legislative jurisdiction. There are millions of persons who operate businesses and work within these areas. There are millions of citizens of the United States who maintain their domiciles or legal residences throughout these areas. The constitutional clause at article 4, section 3, clause 2 makes Congress the supreme legislative body over its territory and other property. Congress, empowered by that clause to make all necessary rules and regulations for its territory, acts in the capacity of a state legislature, as well as a national legislature. When making laws for the several States, Congress is limited by the terms of the Constitution but, when making laws for its territory and other property, Congress can pass any law that the Constitution does not forbid.

Let us consider the foregoing facts: 1. Congress is the supreme legislative body over territory which includes a number of insular possessions, Washington, D.C., better than 20 percent of the land mass of the continental United States, a large percentage of Alaska, and part of Hawaii. 2. Congress can make laws for these areas just as a state legislature can make laws for areas under its jurisdiction. 3. The 14th amendment allowed Congress, while acting in the capacity of a state legislature, to have millions of citizens of the United States who are not also Citizens of the several States. They live within the United States' various territory and other property and they are subject to the United States' legislative jurisdiction. 4. There are numerous businesses and persons who work within territory under Congress' jurisdiction.

Considering the above, suppose Congress, acting in its capacity as a state legislature over its territory, desired to lay and collect taxes on incomes only within areas under its legislative jurisdiction. What constitutional authority would Congress use for laying and collecting a tax intended just for those areas under its legislative jurisdiction? What few Americans realize is that article 4, section 3, clause 2 of the Constitution provides full authority for Congress to lay and collect taxes within areas subject to Congress' legislative jurisdiction. (See note following.) Congress does not rely on article 1, section 8, clause 1 for any tax that is applicable just within these areas.

From a Federal court case:

[1] The power of Congress, in the imposition of taxes and providing for the collection thereof in the possessions of the United States, is not restricted by constitutional provision (section 8, article 1), which may limit its general power of taxation as to uniformity and apportionment when legislating for the mainland or United States proper, for it acts in the premises under the authority of clause 2, section 3, article 4, of the Constitution, which clothes Congress with power to make all needful rules and regulations respecting the territory or other property belonging to the United States.

Note: TDO 150-01 delegates authority to the Commissioner for the administration of taxes in territories and insular possessions, and other authorized areas. No other delegation order can be found authorizing the Commissioner to administer the Federal income tax within the several States.

Why the 16th amendment was necessary: Consider that the IRS always points out that the 16th amendment authorized the Federal income tax. The legislatures of the several States have the ability to lay and collect direct taxes in areas under their legislative jurisdictions but, prior to the 16th amendment, Congress was forbidden by the language of article 1, section 9, clause 4 of the Constitution from doing so, as that clause forbade Congress from laying any other direct tax unless it was apportioned.

Who then is liable for a tax on their incomes? The millions of citizens of the United States who maintain their domiciles or legal residences within areas under United States' jurisdiction. These citizens of the United States, who are subject to its jurisdiction
(see 26 CFR 1.1-1(c)), are not Citizens of any of the several States
and they are liable for the Federal income tax regardless of where they earn their incomes, i.e., wherever they are resident. There are also millions of persons who earn incomes within areas under Federal jurisdiction or from business operations within such areas. These persons are considered resident within the United States. There are millions of persons who work for and/or receive income from the Federal Government. These persons would also be liable for the Federal income tax. There are millions of Citizens of the several States who are part of these latter categories. They make themselves liable for the Federal income tax as a result of their actions.

What Americans have to realize is that Congress' authority for the Federal income tax is not article 1, section 8, clause 1. The income tax is not a national tax. Congress' authority for the tax is derived from article 4, section 3, clause 2, Congress' plenary powers over those areas subject to Congress' legislative jurisdiction. The income tax is akin to a state income tax. The state just happens to be the United States and its territory is made up of 1000s of disconnected properties spread throughout the several States as well as a number of insular possessions over which Congress is the supreme legislative body.

As pointed out above, article 4, section 3, clause 2 delegates to Congress plenary authority over its territory and other property. Congress is sovereign over its territory. Congress can pass any law within its territory that the Constitution does not forbid. Barring constitutional limitations and prohibitions, you can't tell a sovereign government, e.g., the United States, that it can not lay and collect taxes within areas under its authority. That's the reason courts tell tax protesters their arguments are political questions. You will also learn why those who violate the tax laws are tried under the admiralty jurisdiction of the U.S. courts. Inasmuch as the Federal income tax is pursuant to article 4, section 3, clause 2, there are proper arguments to make having to do with citizenship, legislative jurisdiction, and other statements which deny liability for the income tax.

If you have any questions, please contact me.
tim@nontaxpayer.net

The book also includes a 1945 Government memorandum Administrative History of the Bureau of Internal Revenue. (This memorandum will be on CD as PDF file after present printed copies are exhausted.)

The Price of the book is $35.00.
Shipping (USPS First Class) and handling are $4.00 per book. Price subject to change.

To order the book send:

Postal Money Order in the correct amount;

Include self-addressed, self-adhesive address label.
Be sure your address is correct on the label.

Send to:
Timothy McCrory
c/o 1124 SW Blvd.
Blackwell, Oklahoma 74631

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