The ONLY wages Taxed By Law in Subtitle A
While it is true that the federal Courts (both the lower and the higher appeals levels) have held that wages are taxable to the U.S. government, it is not true that the provisions of the statutes of the United States Code actually make the wages of American citizens subject to the Subtitle A federal personal income tax, and of course, it is not legally up to the courts to extend the federal taxing power beyond the legitimate reach and extent that is actually established in the statutes for the federal government to exercise.
First, I am talking here, about the application of the federal personal income tax laws enacted within Subtitle A of the United States Code (U.S.C.) that originated in 1913. Of course, I am also referring to the statutes as they are actually written in the law in Subtitle A of the U.S.C., and I am NOT talking about the Subtitle C employment tax laws that were enacted 31 years later in 1944, in order to implement the new social security withholding provisions that apply to everyones wages, but which also require voluntary participation in the social security program or permission from the citizen in the form of an Allowance Certificate (a completed W-4), that then allows for withholding from his wages under the Subtitle C provisions (even where not required by law).
Now, Subtitle A of Title 26 is limited to only the contents of Chapters 1 through 6 of Title 26 of the U.S.C. So, what we want to specifically identify is where in Chapters 1 through 6 of Title 26, someones wages are specifically made taxable to the federal government, and then we very carefully want to take note of who those persons actually are, whose wages are made the subject of the tax!
The fist place to look for the mention of wages of course has to be in Sections 1 and 61, of Chapter 1, where the federal personal income tax is imposed (in § 1), and where the source items subject to the tax are identified and listed in statute (in § 61).
An examination of Section 1 quickly shows that the tax imposed in Section 1, on the taxable income of the defined groups of people is not actually specifically imposed on anyones wages in this statute, which are not mentioned, but is imposed at the rate specified in the statutes tables (omitted). But we plainly and clearly see that the actual word wages is not actually used anywhere in the imposing statute in any form.
(a) Married individuals filing joint returns and surviving spouses
There is hereby imposed on the taxable income of
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:
. . .
(b) Heads of households
There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table:
. . .
(c) Unmarried individuals (other than surviving spouses and heads
of households) There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table:
. . .
An examination of Section 61 also quickly shows that the source items listed in the law as being made subject to the federal personal income tax, also do not include any reference to the term or word wages under the provisions of that Section.
(a) General definition
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
For items specifically included in gross income, see
part II (sec. 71 and following). For items specifically excluded from gross
income, see part
Neither the specific word wages, nor any form if it, actually appears anywhere in this statute or Section 1, imposing the tax.
While one may be tempted to argue that wages arguably could be construed as compensation for services under number (1) in this statute, the statute does not actually say that wages are to be included, and wages are legally distinctly unique and different from compensation for services. To prove that point I would simply ask can a corporation earn wages? On the other hand, can a corporation have taxable income in the form of compensation for services? So, you see there is a real, meaningful difference.
So, exactly where in Subtitle A, as opposed to Subtitle C, are the wages of any person made taxable to the federal government, and more specifically, where are anyones wages actually made subject by law to the federal personal income tax imposed in Section 1?
Well, how about Title 26 U.S.C. Section 1441, subsection (b), which is from Chapter 3 of Title 26, which places it squarely within the confines of the statutes of Subtitle A, which we already noted contains only Chapters 1 through 6 of Title 26.
Title 26 U.S.C. Section 1441(b) plainly and clearly states:
(b) Income items
The items of income referred to in subsection (a) are interest , dividends, rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable annual or periodical gains, profits, and income, (emphasis added)
Ah-HAH! We have certainly found here, in this statutory provision of Chapter 3 (in Subtitle A), the word wages, havent we? The wages referenced here, are in fact the elusive and obscured taxable wages that we have been trying to find in Subtitle A of Title 26, as they are actually specified, and truly exist in the Statutes.
Of course to understand exactly whose wages are actually made taxable, and under what circumstances any wages are actually made subject to the federal personal income tax under this statute, we need a little more information about the statute, dont we, because the statute says the items of income referred to in subsection (a) . So what does subsection (a) of Section 1441 specifically say :
(a) General rule
Except as otherwise provided in subsection (c), all persons, in whatever capacity acting (including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of the United States) having the control, receipt, custody, disposal, or payment of any of the items of income specified in subsection (b) (to the extent that any of such items constitutes gross income from sources within the United States), of any nonresident alien individual or of any foreign partnership shall (except as otherwise provided in regulations prescribed by the Secretary under section 874) deduct and withhold from such items a tax equal to 30 percent thereof, except that in the case of any item of income specified in the second sentence of subsection (b), the tax shall be equal to 14 percent of such item. (emphasis added)
subsection plainly and clearly says that the items of income specified in subsection
(b) (to the extent that any of
such items constitutes gross income from sources within the United States),
specifically wages, MUST BELONG TO A nonresident alien individual or of any
plainly and clearly makes the wages of any nonresident alien individual
or of any foreign partnership subject to the withholding of the
Subtitle A federal personal income tax.
of the AMERICAN CITIZENS
So exactly where in the statutes are the wages of any American citizen made subject to the Subtitle A federal personal income tax? Can anyone tell me?
You see, in
1913, Section 61 (listing the sources) did
not exist in the
Canadian Tax treaty was published in
Title 26, U.S.C. Section 61 is shown in the law still today, in the implementing tables (as the original Section 22a), as being published in the law as being applicable ONLY under Part 519, but NOT under Part 1, where the federal personal income tax is actually imposed (under § 1). There is no other published implementation of either Section 22 or Section 61, that can be shown to be applicable to U.S. Citizens (Americans), that would legitimately take the legal reach of the Code section beyond those earnings (of the U.S. citizen) MADE IN Canada.
So, an honest
examination of the history of Section 61 quickly and easily recognizes that it
has no legitimate published application to any
Perhaps this is why the original federal personal income tax laws were all enacted under legislation known as the Underwood-Simmons Tariff Act. Because a tariff taxes foreign economic activity, not domestic, because by definition, a tariff cannot reach the domestic earnings of any American citizen.
So, if there is anyone in the Internal Revenue Service, or the U.S. Treasury or Justice Departments, any lawyer, attorney, judge or Supreme Court Justice, active or retired, who can identify for me, either:
1. where in the Subtitle A statutes there exists any statute that makes ANY persons wages subject to the federal personal income tax, other than those of the non-resident alien foreign person identified in Section 1441(a);
2. where in the Subtitle A statutes there exists any statute that authorizes the federal personal income tax to be collected at the source by withholding money as tax from the wages of any American citizen (as opposed to again, the foreign persons identified in Section 1441(a));
Gentlemen, PLEASE IDENTIFY where that/those
Subtitle A statutes are for me
SO, WILL SOMEONE
PLEASE TELL ME WHERE wages
20 YEARS LATER,
(Because it isnt there ! - Go ahead, ask your tax attorney or accountant to show it to you !)