•So, before the 16thAmendment,
under the Pollock decision
in 1896, the income
taxon citizens is deemed a direct tax that is not constitutional.•After the 16thAmendment the
Court says the income tax is an indirect tax that is
constitutional as a tariff
that is collected at the source by
withholding tax from
payments made to subject persons, who it turns out, are all foreign ! (And
therefore, properly subjected to a tariff!)