(originally launched into cyberspace on 02/13/2003)
Dear List Subscriber,
Since this update list keeps growing, every now and then I'll do a sort of
overview of the 861 evidence. I'll try to approach it a slightly different
way each time, since different people "get it" more easily when it is
explained different ways. So here is an overview, along with reading
material backing up each point:
1) Section 61 of the Internal Revenue Code (Title 26 of the USC) generally
defines "gross income" to mean "all income from whatever source derived,"
and it lists various "items" of income that can be taxable, such as
compensation (wages), interest, rents, dividends, business income, etc.
Section 63 generally defines "taxable income" to mean "gross income" minus
(Those broadly-worded GENERAL definitions are the reason why most tax
professionals and IRS employees falsely conclude that the income of most
Americans is taxable.)
2) Section 861 says which income counts as income from WITHIN the U.S., and
Section 862 says which income counts as income from "without" (outside of)
the U.S. These sections of the statutes do NOT by themselves show what is
actually taxable, or what is exempt. (People often get confused if they
look up Section 861 itself thinking it will say their income isn't taxable,
because the statute itself does NOT say that.) http://www.taxableincome.net/debate/otherside/assert7.html
3) Section 861(b) of the statutes, and Section 1.861-8 of the regulations,
say how to determine your "taxable income from sources within the United
States." And those sections do NOT show the domestic income of the average
American to be taxable. http://www.taxableincome.net/debate/otherside/paynoattn.html
Therefore, the domestic income of the average American is NOT taxable.
I hate doing these summaries, because there are always a few zillion
citations I want to include, but if I do the thing becomes huge. So that
was a super-short summary, but the complete explanation is here: http://www.taxableincome.net/report/index.html
Or, if you don't mind coughing up $20 for an easier, more understandable
presentation of the evidence, you can get a copy of the video "Theft By
Deception" from here: http://www.theft-by-deception.com
There is another, independent way to prove the limited nature of the tax,
which deals with the fact that the "items" of income (compensation,
interest, etc.) are NOT always taxable, but are sometimes EXEMPT for federal
income tax purposes. (See 26 CFR §§ 1.861-8(a)(3), 1.861-8(b)(1).) The
regulations then give a list of what is NOT exempt (i.e. what IS taxable).
That list can be seen by going to the page below, clicking on 1.861-8T, and
looking about 2/3rds of the way down the page. http://www.access.gpo.gov/nara/cfr/waisidx_02/26cfr1v9_02.html
Is YOUR income listed as being non-exempt (taxable)? Curious, huh?