•THE STATUTES, UNDER THE ACTUAL LEGISLATION
OF THE UNDERWOOD –SIMMONS
TARIFF ACT ENACTED IN 1913, LAY AN
INCOME TAX:
•1. ON FOREIGN ACTIVITY IN THE
FIFTY STATES,
•2. ON ALL ACTIVITY IN THE TERRITORIES & POSSESSIONS (Where the federal
government MAY
TAX DIRECTLY as the
Sovereign because the CONSTITUTION
does not apply), and
•3. ON A CITIZEN’S ACTIVITY
IN A FOREIGN COUNTRY UNDER A TAX TREATY (Sec. 61, 1918)