Income Tax is an INDIRECT tax. It is NOT a direct tax as others here have suggested. 2 US Supreme Court Cases in 1916 settled this very question. They are:

BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)

AND

STANTON v. BALTIC MINING CO, 240 U.S. 103 (1916)

The Court said specifically in the Stanton case the following:

" it manifestly disregards the fact that by the previous ruling it was settled that the provisions of the 16th Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirecttaxation to which it inherently belonged, "

And as a side note, most tax professionals do NOT read the law to determine who is liable for the tax. Most tax professionals read IRS publications and just ASSUME anyone who makes money now owes an Income Tax.

IRS Publications are sort of like "New Letters" put out by the IRS to the tax industry, including mostly ALL CPA's and Tax "Professionals". The IRS has a manual available on their website which any one can go read. Here's what THEIR OWN manual says about their own publications:

4.10.7.2.8 (01-01-2006)

IRS Publications

"IRS Publications explain the law in plain language for taxpayers and their advisors. They typically highlight changes in the law, provide examples illustrating Service positions, and include worksheets. Publications are nonbinding on the Service and do not necessarily cover all positions for a given issue. While a good source of general information, publications should not be cited to sustain a position."

The IRS has plainly stated in their OWN manual that Publications are NOT to be cited to sustain positions about the LAW even though that is what all tax professionals do anyway. This is because IRS publications and pamphlets are NOT the law. The IRS has already vindicated themselves from people who WRONGLY use publications like law.

So hopefully this has gotten you on the proper path to actually understanding what the "Income Tax" actually is and especially what it ISN'T!

Term1/26

What large muscle located in the chest area assists in respiration

Definition1/26

The thoracic diaphragm.

Term1/26

What was the most prominent musical style of the Classical period

Definition1/26

homophony

Term1/26

Who were the first dancers of the ballet

Definition1/26

The Aristocracy

Term1/26

The 401K and 403B plans are part of which type of benefit

Definition1/26

retirement

Term1/26

The total current that flows through a circuit is the same as the current that flows through each individual resistor connected in series

Definition1/26

True

Term1/26

What is the current running through resistor four

Definition1/26

I'm having some trouble focusing in on the schematic of the circuit.

Term1/26

What is the equivalent resistance through the entire circuit

Definition1/26

30 ohms

Term1/26

What is the voltage drop running through the parallel potion of the circuit

Definition1/26

A: There is no voltage drop running through in a parallel circuit but rather the voltage drop across each branch of a parallel circuit is the same

Term1/26

Which of these statements is true about the middle coloines

Definition1/26

They had a large variety of farm products

Term1/26

How can the federal government affect fiscal policy

Definition1/26

Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:

* Increase or decrease income taxes on personal and corporate income;

* Increase or decrease gasoline taxes;

* Increase or decrease tariffs;

* Increase or decrease capital gains taxes ( part of income taxation );

* Increase or decrease social security payments;

* increase or decrease certain Medicare prices (costs )

* increase or decrease Federal employment policies;

* increase or decrease social spending in terms of food stamps as an example; and

* Increase or maintain current levels of the national debt ceiling.

Term1/26

Which of these statements is correct about th nile river

Definition1/26

Which of these statements is correct about the nile river

Term1/26

Which of these is a gentle dance performed in many of the Greek tragedy plays an ethos shofar or emmeleia

Definition1/26

Emmeleia.

Term1/26

What has the author Albert Bowron written

Definition1/26

Albert Bowron has written:

'A review of the services and facilities of the Estevan Public Library with recommendations for development' -- subject(s): Estevan Public Library, Library surveys, Public libraries

'The usable library'

'Recommendations for the development of the library services to and within the divisions of the C.N.I.B' -- subject(s): Blind, Canadian National Institute for the Blind, Libraries and people with disabilities, Libraries and the blind, People with disabilities, Services for

'Public library service in Whitby' -- subject(s): Library surveys, Public libraries, Whitby Public Library

'The public library of St. Thomas, Ontario' -- subject(s): Library surveys, Public libraries, St. Thomas, Ont, St. Thomas, Ont. Public Library

'A feasibility study of the Fergus Public Library' -- subject(s): Fergus Public Library, Library surveys, Public libraries

'An audit of the library of the Alcoholism and Drug Addiction Research Foundation, Toronto, Canada' -- subject(s): Addiction Research Foundation of Ontario, Addiction Research Foundation of Ontario. Library

'Coordination of public library service and secondary school library service in Mississauga' -- subject(s): Administration, High school libraries, Libraries and students, Library cooperation

'A review of and development plan for public library service in the town of East Gwillimbury, Ontario' -- subject(s): Library surveys, Public libraries

'A development plan and facility study for the Westmount Public Library, City of Westmount, Quebec, Canada' -- subject(s): Library buildings, Library planning, Public libraries, Westmount Public Library

'A study of library service in Leamington' -- subject(s): Leamington Public Library, Library surveys, Public libraries

'Public library service in Whitby, Ontario, phase 2' -- subject(s): Public libraries, Whitby Public Library

'A study of the services and facilities of the Public Library of Collingwood, Ontario' -- subject(s): Collingwood Public Library, Library surveys, Public libraries

'The development of public library service in the Town of Whitchurch-Stouffville' -- subject(s): Libraries, Public libraries

'A review of the Weyburn Public Library with a development plan for the future' -- subject(s): Public libraries, Weyburn Public Library (Sask.)

'A review of and development plan for public library service in the town of Markham, Ontario, phase II' -- subject(s): Library surveys, Public libraries

'Public library service in the town of Caledon, Ontario, and its future development' -- subject(s): Library surveys, Public libraries

'The future of public library service in Greater Victoria and the Capital Regional District' -- subject(s): Libraries

'The branch services of the Ottawa Public Library and their development' -- subject(s): Branch libraries, Ottawa Public Library

Term1/26

What is the voltage drop running through resistor one

Definition1/26

What is the voltage drop running through resistor one

Term1/26

Click on the definition that best describes this term. Props.

Definition1/26

Stage properties

Term1/26

What of these is not a part of the musical culture of Greece

Definition1/26

shofar

Term1/26

Are Individuals are taxed on the amount of their income after deductions and exemptions are subtracted from gross income.

Definition1/26

The tax comes out with other things in the gross income. In some cases like with a IRA or tax shelter they come out first and then the taxes. In this way the tax is lower because it brings down the gross income.

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Cards in this guide (26)