Posted by
wang777 on Saturday, August 01, 2009 11:20:06 PM
The tax honesty movement (THM) is not a person or a single organization. The THM is a belief or way of thinking based upon freedom and accountability. The term "The Tax Honesty Movement" was coined in the mid 1990's, by an unknown author, to describe this growing segment of our society. There are some who have studied tax law, the Constitution, and Supreme Court tax cases, and have come to the conclusion that not everyone is subject to individual income tax. But more to the point is that they desire our government to answer the questions posed to them to show where the law makes the ordinary citizen liable for that tax and where in the Constitution they derive that power. This belief is founded upon the fact that Americans, as the rightful and just sovereigns of this nation, demand an open transparent government that is answerable to them, their creator, "We the People". In particular - honesty by the government on issues relating to taxation of the American people.There are some who may be shocked to learn that the income tax, which is applied to people's wages, is a rather recent occurrence in American history. For the first 150 years of our nation there was no income tax. In fact, the first few times the government tried to enact such a scheme, the Supreme Court found it unconstitutional (1850-1913). If it was unconstitutional then, why is it constitutional now?In the late 1800's and early 1900's, there were a number of corporate tax cases which ruled what was and what was not "income." In general the government can only tax via two methods - either directly or indirectly. Article 1, Section 9, of the Constitution says a direct tax is a tax that is levied directly upon a person or property, and therefore, it must be apportioned among the states based on the states population. (A primary reason we have a national census.) An indirect tax is levied upon a privilege or an action, such as a corporation, or a sales tax on certain products or business.Congress passed the Income Tax Act of 1894 which taxed rental income from real estate. In 1895, the Supreme Court ruled the act unconstitutional, as it was a direct tax and must be apportioned.In 1913 Congress passed the Sixteenth Amendment which authorized taxation of incomes without apportionment. To which incomes did this relate? As with all things in the legal world, context is everything; in the 1943 case of Halvering V. Edison Bros. Stores, the court stated that neither the Treasury Department nor Congress could "tax as income that which is not income within the meaning of the 16th Amendment."
What then is 16th Amendment income? In Corn V Fort, the court ruled "The individual, unlike the corporation, cannot be taxed for the privilege of existing", and "the individuals Right to live and own property are natural rights for the enjoyment of which an excise cannot be imposed." In Stratton's Independence, LTD V. Howbert, 1913, the Supreme Court stated that the 1909 corporate Tax Act "was an excise tax upon the conduct of business in a corporate capacity... measuring however, the amount of tax by the income of the corporation." Also, in the 1921 case of Merchants' Loan & Trust Co. V Smietanka the court stated, the word income must be given the same meaning in ALL income tax legislation as was given in the Corporate Tax Act of 1909. This being the case all "income" tax is based on "corporate" income. Within the 1909 Corporation Tax Law (Chap. 6, 36 stat. 11), it states that the income tax was levied "with respect to the carrying on or doing business by such a corporation..." It is therefore settled that 16th Amendment income must deal with corporate income. As wages are a person's property, and the right to work and own property cannot be taxed without apportionment, the direct tax against individual wages is unconstitutional.