The annual House Budget could leave out items formerly approved. Fourth, the statute made the businesses subject to inspection by officers of the Secretary of Labor, positions not traditionally charged with the enforcement and collection of taxes. On the other hand, where Congress had levied a heavy tax upon liquor dealers who operated in violation of state law, the Court held that this tax was unenforceable after the repeal of the Eighteenth Amendment, because the National Government had no power to impose an additional penalty for infractions of state law.33 FootnoteUnited States v. Constantine, 296 U.S. 287 (1935). [133], The argument that wages, tips and other compensation received for the performance of personal services are not taxable income, the argument that such items are offset by an equivalent deduction, the argument that a person has a "basis" in his or her labor equal to the fair market value of the wages received, and variations of these arguments, have been officially identified as legally frivolous federal tax return positions for purposes of the $5,000 frivolous tax return penalty imposed under Internal Revenue Code section 6702(a). Some tax protesters cite a case called Conner v. United States,[111] with a quotation that "Congress has taxed income, not compensation" for the argument that wages are not taxable. This is a variation of the 'wages are not income' theme, which has been rejected repeatedly by this court." 316 (1819), in curbing the power of the states to tax operations or instrumentalities of the Federal Government. Neither Senate or Presidential acceptance is necessary as on other billsthe people have spoken. It is important to note,during this 44 year span, Congress balanced its budget with the lowest amount of debt our nation has ever had. In other words, the founders intended to fund the Federal government through indirect taxes unless a national emergency required them to collect taxes directly. [53] The U.S. Supreme Court ruled in James v. United States that the receipt of money obtained through embezzlement is taxable as income to the wrongdoer, even though the wrongdoer is required to return the money to its owner. The court replied: Additionally, the Court will correct any misunderstanding Plaintiff has concerning the text of the Thirteenth Amendment to the United States Constitution. 1994). The Supreme Court's 1895 Pollock ruling did not strike down the principle of income taxation. Members of the Senate should drop their resistance accepting the authority of their sister law making branch lest they play a dominate role in the loss of it by their ignorance of the Constitution. Why do the House of Representatives alone have this power? Coppage was a criminal case involving a defendant convicted, under a Kansas statute, of firing an employee for refusing to resign as a member of a labor union. (CCH) 9552 (10th Cir. When the national government exceeds it authority to spend the nation's money, it is unconstitutional spending and therefore illegal. 68 T.C.M. George H.W. a closely divided Court declined to regard it as a tax upon the municipality, though it might operate incidentally to reduce the bequest by the amount of the tax. 11 FootnoteSnyder v. Bettman, 190 U.S. 249, 254 (1903). United States (1904), an excise tax was challenged as a taking because its motivation was the elimination of the taxed product. Memo 2002-167, CCH Dec. 54,805(M) (2002). 322 (1873), Pollock v. Farmers' Loan & Trust Co., 157 U.S. 429 (1895), South Carolina v. Baker, 485 U.S. 505 (1988), McCulloch v. Maryland, 17 U.S. (4 Wheat.) Last month Egypt reportedly received 16 F-16 fighter jets together with some 400 tanks; their likely target Israel, our supposed friend. The people of this State shall not be taxed or made subject to the payment of any impost or duty without the consent of themselves or their representatives in the General Assembly, freely given. 760 F.2d 1003, 85-1 U.S. Tax Cas. Addressing this subject James Madison observed, This power over the purse may, in fact, be regarded as the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining a redress of every grievance, and for carrying into effect every just and salutary measure. The U.S. Constitution mandates that the House of Representatives cannot only refuse, but they alone can propose the supplies requisite for the support of government. This power alone he added, can overcome all the overgrown prerogatives of the other branches of the government. thus obviating any necessity to develop the meaning of excessive fines in relation to ability to pay. We should have a separate bill disconnected from the budget, specifically intended to raise revenue. 84 T.C.M. "The touchstone of the constitutional inquiry under the Excessive Fines Clause is the principle of proportionality: The amount of the forfeiture must bear some relationship to the gravity of the offense that it is designed to punish." 37 In United States v. The taxpayer still owns the same asset (i.e., the same interest in the corporation) he owned prior to the stock dividend. 12/9/2022. The U.S. Supreme Court ruled that the trial court should not have thrown out the lawsuit, but should have heard Mr. Truax's case. In 1903 a succession tax upon a bequest to a municipality for public purposes was upheld on the ground that the tax was payable out of the estate before distribution to the legatee. The power of eminent domain is created by the constitution; Understanding. Glosbe The Court has held the clause inapplicable to civil jury awards of punitive damages in cases between private parties, when the government neither has prosecuted the action nor has any right to receive a share of the damages awarded. 4 FootnoteBrowning-Ferris Industries v. Kelco Disposal, Inc., 492 U.S. 257 (1989). Memo 2002-211, CCH Dec. 54,851(M) (2002). The taxes levied to pay for illegal spending are an abuse of power and therefore illegal as well. The quotation does not appear in the text of the Supreme Court decision. National Tax Law. In the case, Mr. Earl was arguing that because he and his wife, in the year 1901, had made a legally valid assignment agreement (for state law purposes) to have his then-current and after-acquired income (which was earned solely by him) be treated as the income of both him and his wife as joint tenants with right of survivorship, the assignment agreement should also determine the federal income tax effect of the income he earned (i.e., only half the income should be taxed to him). The validity of the Louisiana franchise tax was upheld by the U.S. Supreme Court in this case. [8] Legal commentator Daniel B. Evans describes: Every time a court finds a defendant guilty, the court has deprived the defendant of life or liberty, and every time a court rules in favor of a plaintiff or defendant, the court has deprived either the plaintiff or the defendant of some property. . 738 F.2d 975, 84-2 U.S. Tax Cas. You are in charge in this matter, not they. And the charge that taxes are excessive is simply an admission that this compulsory intervention is not worth the cost. O'Keefe, 306 U.S. 466 (1939), Helvering v. Gerhardt, 304 U.S. 405, 414 n.4 (1938), Veazie Bank v. Fenno, 75 U.S. (8 Wall.) [1]American Founding Principles,Who is General Welfare?, October 15, 2012. Bush: "Read my lips: no new taxes." George Sutherland: "The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether to avoid them, by means . As long as such separate authority is available to Congress, the imposition of a tax as a penalty for such regulation is valid.32 FootnoteSunshine Anthracite Coal Co. v. Adkins, 310 U.S. 381, 393 (1940). 1986). [citation omitted] All individuals, natural or unnatural, must pay federal income tax on their wages, regardless of whether they received any "privileges" from the government. (CCH) 13, T.C. decided in 1922, the Court, which had previously rejected a federal prohibition of child labor laws as being outside of the Commerce Clause,36 FootnoteHammer v. Dagenhart, 247 U.S. 251 (1918). Presently we are unable to pay our bills to the tune of between 3 to 4 billion dollars a day. natural rights, so called, are as much subject to taxation as rights of less importance. See, for example, the decision of the United States Court of Appeals for the Ninth Circuit in United States v. Buras,[124] in which the taxpayer's theory that wages were not taxable because (1) "only profit or gain, such as that from the sale of a capital asset, constituted income subject to federal tax" and (2) "[w]ages could not constitute gain or profit because wages merely represent an equivalent exchange for one's labor" was rejected. "[34] Similarly, in 2008 the United States Court of Appeals for the Tenth Circuit rejected a taxpayer's argument that gains of an individual's labor could be taxed only if the gains were received from a "federal venue". Doc Preview. Texas is a free and independent State, subject only to the Constitution of the United States, and the maintenance of our free institutions and the perpetuity of the Union depend upon the preservation of the right of local self-government, unimpaired to all the States. In Flint v. Stone Tracy Co., the U.S. Supreme Court ruled that the corporation tax act of 1909 did not violate the constitutional requirement that revenue measures originate in the U.S. House of Representatives. Collector v. Day was decided in 1871 while the country was still in the throes of Reconstruction. Just this week Secretary of State John Kerry gave the Palestinians some $500 million not to attack Israel. Unlike the child labor taxation scheme, the tax level under the ACA is established based on traditional tax variables such as taxable income, number of dependents and joint filing status; there is no requirement of a knowing violation; and the tax is collected by the Internal Revenue Service. The greatest concerns of the masses have always been excessive taxation and unpopular wars because the first took their hard earned money and the second potentially their lives. Saying your occupation is "assassin" or "professional killer" could, and therefore the 5th Amendment could be invoked as to that question; saying you made $635,000 last year does not provide evidence of anything criminal and thus it could not. [129] See also Burnett v. Commissioner (taxpayer's argument that wages represent an equal exchange of property and, therefore, are not taxable income was rejected). Americans lost their control through the 16th Amendment when the public allowed the Federal government to circumvent constitutional restrictions that naturally bounded their revenue expansion power and kept their spending habits within reason. Defendants' motion to dismiss based on Clause 17 is denied.[57]. . (CCH) 9388 (1st Cir. At the time the Eighth Amendment was adopted, the Court noted, the word 'fine' was understood to mean a payment to a sovereign as punishment for some offense. at 33032. It is widely believed that the U.S. Supreme Court in 1895 declared income taxation in itself unconstitutional, making the Amendment necessary if the feds were to grab part of our paychecks. "[96] The case did not involve compensation for labor or services. In an early case, it held that it had no appellate jurisdiction to revise the sentence of an inferior court, even though the excessiveness of the fines was apparent on the face of the record.1 FootnoteEx parte Watkins, 32 U.S. (7 Pet.) 2005) (, The 0.125% harbor maintenance tax on the value of commercial cargo involved in a taxed port use under, 755 F.2d 517, 85-1 U.S. Tax Cas. You have only 2 choices here: Similarly, the general proposition that every man has the right to his own labor does not necessarily lead to the conclusion that the government cannot tax the "common right" of labor. (CCH) 9261 (5th Cir. also rejected a tax on companies using such labor. It is past time for Americans to hold the national government accountable for their abuse of power. The majority of the powers delegated to Congress are listed in Article I Section 8. [99] Instead, it is an almost direct quotation from page 17 of the taxpayer's brief filed in the case. A person not trained in analysis of legal materials would not necessarily know that this verbiage, like any headnote or syllabus, is not part of the Court's opinion, perhaps leading to the confusion about the source of the quotation. Indian Motorcycle v. United States, 283 U.S. 570 (1931). . Browning-Ferris Industries v. Kelco Disposal, Inc., Amendment VIII. Massachusetts v. United States, 435 U.S. 444 (1978). Excessive taxation. Paragraph VII. A far-reaching extension of private immunity was granted in Pollock v. Farmers' Loan & Trust Co., 157 U.S. 429 (1895), where interest received by a private investor on state or municipal bonds was held to be exempt from federal taxation. The Court in Merchants' Loan was specifically interpreting a 1916 statute imposing income taxes on individuals and estates (among other kinds of entities), and not the 1909 corporate tax statute. Additionally, there is virtually no hope of even balancing our budget on a yearly basis, much less having a surplus to pay down the debt. This is not a basis for an exemption from federal income tax. The State legislatures would then decide how best to raise the revenue in their State. Tax protester Sixteenth Amendment arguments, Seventeenth Amendment to the United States Constitution, Anticipatory Assignment of Income Doctrine, United States Court of Appeals for the Third Circuit, United States Court of Appeals for the Fifth Circuit, United States Court of Appeals for the Sixth Circuit, United States Court of Appeals for the Seventh Circuit, United States Court of Appeals for the Eighth Circuit, United States Court of Appeals for the Eleventh Circuit, United States Court of Appeals for the Ninth Circuit, Tax protester history in the United States, The Truth About Frivolous Tax Arguments: 1. Several tax protesters assert that the Congress has no constitutional power to tax labor or income from labor,[4] citing a variety of court cases. The taxes levied to pay for illegal spending are an abuse of power and therefore illegal as well. Commissioner. Butchers' Union Co. was a case involving interpretation of the Louisiana Constitution and certain ordinances of the city of New Orleans. Constitution which was submitted to the people, and was ratified by them, on the first Friday in March, in the year of our Lord one thousand eight hundred and thirty-five, and, . It is not necessary to uphold the validity of the tax imposed by the United States that the tax itself bear an accurate label, It could well be argued that the tax involved here [an income tax] is an "excise tax" based upon the receipt of money by the taxpayer. Justices Jackson and Douglas noted partial agreement with this conclusion. This language is not from the Court's opinion in Lucas v. Docket # 18494-95, 71 T.C.M. 517, 2004-2 U.S. Tax Cas. [51], Regarding the taxability of income in connection with events or activities not involving a government privilege or franchise, the United States Supreme Court stated in United States v. Sullivan that gains from illegal traffic in liquor are subject to the Federal income tax. So the claim that a tax deprives someone of "property" or a "right" is pretty much meaningless. 8374, seeks to make doing business in the Philippines easier for Filipinos and foreigners alike by . Third, the tax had a scienter requirement, so that the employer had to know that the child was below a specified age in order to incur taxation. Hamilton explained indirect taxation was a check and balance to keep the Federal government operating within its means. The "tax" in this case was, in effect, a license fee imposed on door to door sales people under a city ordinance. (CCH) 50,289 (6th Cir. 1987 Constitution. The Stratton case involved income taxation of a corporation, not of individuals. It certainly is not a tax on property and it certainly is not a capitation tax; therefore, it need not be apportioned. [78] Tax protesters who have lost every case using Merchants' Loan for the theory that only "corporate profits" could be taxable are citing a case where the U.S. Supreme Court ruled that the income of a non-corporate taxpayer is taxable. [4] These kinds of arguments have been ruled without merit. . It never received the same wide application as did McCulloch v. Maryland, 17 U.S. (4 Wheat.) There would be nothing to reconcileObamacare is merely defunded. Many of these amendments encompass the rights we hold dear today. The Court stated: ". Direct taxes must be levied by the rule of apportionment and indirect taxes by the rule of uniformity. 1954). [25] Sixteenth Amendment ratification arguments have been rejected in every court case where they have been raised and have been identified as legally frivolous.[6]. They are wrong; it does not. The Supreme Court has restored to Congress the power to tax most of the subject matter which had previously been withdrawn from its reach by judicial decision. For instance, Congress may tax an activity, such as the business of accepting wagers,42 FootnoteUnited States v. Kahriger, 345 U.S. 22 (1953). Constitution of Virginia. All the Republican controlled House has to do to stop irresponsible spending is to not originate the bill to cover the expenses. Hence only the House Budget really matters. the law: the first amendment to the united states constitution provides that "congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of Some protesters argue that imposition of income taxes violates the First Amendment freedom of speech because. All courts shall be open, and every person for an injury done him in his lands, goods, person or reputation shall have remedy by due course of law. The insurance company was not paying "wages". [123], Another tax protester argument is that income from labor should not be taxable because any amount the worker receives in exchange for his or her labor is received in an exchange of "equal value," although an exchange in any true "arm's length" fair market value transaction is, essentially by definition, an exchange of equal value. England claimed that the war was fought to protect their American colonies, therefore Parliament had the right to tax the colonies. Indirect taxes were the primary method, because as Hamilton explained they are self leveling. See also Reading v. Commissioner (taxpayer's argument that gain from labor of self-employed individual cannot be determined until the "cost of doing labor" has been subtracted from the amount received was rejected; validity of 26U.S.C. 744 F.2d 71, 84-2 U.S. Tax Cas. at 334. Neither the U.S. Supreme Court nor any other federal court has ruled that an income tax imposed under the Internal Revenue Code of 1986 is unconstitutional. This is a sharp contrast to Americas current situation in which the debt is the largest it has ever been, in real terms and per capita, in our nations history. Excessive Bail and Fines, and Cruel and Unusual Punishment, Excessive Bail and Excessive Fines Charges, Excessive Fine Prohibition: Doctrine and Practice. The US Supreme Court on Wednesday ruled 9-0 that the Constitution's ban on excessive fines, written into the Eighth Amendment, applies to the states as well a . the compensation of trustees appointed to manage a street railway taken over and operated by a state,20 FootnoteHelvering v. Powers, 293 U.S. 214 (1934). Overriding the veto is not likely. [Constitution of 1859; Amendment proposed by S.J.R. Memo 2003-61, CCH Dec. 55,068(M) (2003). [30] Under the Supreme Court ruling in Cheek v. United States,[31] a defendant in a tax evasion prosecution who has made arguments that the federal income tax laws are unconstitutional may have the arguments turned against him (or her). As was pointed out in Magnano Co. v. Hamilton, 292 U.S. 40, 47 (1934): 'From the beginning of our government, the courts have sustained taxes although imposed with the collateral intent of effecting ulterior ends which, considered apart, were beyond the constitutional power of the lawmakers to realize by legislation directly addressed to their accomplishment. The Court based this conclusion on a review of the history and purposes of the Excessive Fines Clause. (CCH) 2530, T.C. [3] This means that indirect taxes had to be the same throughout the nation, such that a tax on a product in one State had to be the same as the tax on an identical product in another State. (CCH) 50,935 (D. Mass. [8], Fifth Amendment due process arguments by tax protesters were rejected by the United States Court of Appeals for the Third Circuit in Kahn v. United States,[9] by the United States Court of Appeals for the Fifth Circuit in Anderson v. United States,[10] by the United States Court of Appeals for the Seventh Circuit in Cameron v. Internal Revenue Serv.,[11] by the United States Court of Appeals for the Eighth Circuit in Baskin v. United States,[12] by the United States Court of Appeals for the Ninth Circuit in Jolly v. United States,[13] and by the United States Court of Appeals for the Tenth Circuit in Martinez v. Internal Revenue Serv. No person shall be twice put in jeopardy of punishment for the same offense. The corporation is an artificial entity which owes its existence and charter powers to the state; but the individual's rights to live and own property are natural rights for the enjoyment of which an excise cannot be imposed. Your email address will not be published. The insurance company was reimbursing the homeowner for the costs of renting a place to stay after the home burned down under the terms of the insurance policy. The argument seems to be that because "the individual's rights to live and own property" are arguably rights against which "an excise cannot be imposed," the federal income tax on income from labor should therefore be unconstitutional. 1980). 1990). Sec. (CCH) 9208 (7th Cir. Required fields are marked *. 214 F.2d 925, 54-2 U.S. Tax Cas. So much of article three of the amendments of the constitution of the commonwealth as is contained in the following words: "and who shall have paid, by himself, or his parent, master, or guardian, any state or county tax, which shall, within two years next preceding such election, have been assessed upon him, in any town or district of this . I'll stick with the pro-life, pro-liberty, pro-Constitution, pro-rule of law, pro-economy MAGA agenda These arguments include claims that the word "income" as used in the Sixteenth Amendment cannot be interpreted as applying to wages; that wages are not income because labor is exchanged for them; that taxing wages violates individuals' right to property; that an income tax on wages is illegal as a direct tax on the source of income,[84] and several others. The Court in the Stratton case did not rule any corporate or individual income tax as unconstitutional. The specific ruling of Collector v. Day7 Footnote78 U.S. (11 Wall.) [54], The argument that a person's income is not taxed when the person rejects or renounces United States citizenship because the person claims to be a citizen exclusively of a state, and variations of this argument, have been officially identified as legally frivolous federal tax return positions for purposes of the $5,000 frivolous tax return penalty imposed under Internal Revenue Code section 6702(a). The courts have rejected this theory, ruling that "Congress has taxed compensation for services, without any regard for whether that compensation is derived from government-licensed or specially protected activities, and this has been construed to cover earnings from labor. The case was sent back to the trial court so that a trial could take place. Excessive bail shall not be required, nor excessive fines imposed. This false choice is a creature of Powers' tax protester ideology, not the laws of this Republic. Any other interpretation would undermine, even destroy, the peoples right of approval of taxationthe right not to be excessively taxed. 84-2 U.S. Tax Cas. It would have nothing to do with funding the government. (CCH) 9661 (7th Cir. Not only this, but it is directly opposed to provisions of the Act and to regulations of the U.S. Treasury Department, which either prescribed or permits that compensations for personal services not be taxed as an entirety and not be returned by the individual performing the services. Commissioner. Loresha Wilson, "Local attorney acquitted on Federal income tax charges," July 13, 2007. ' 31 FootnoteUnited States v. Sanchez, 340 U.S. 42, 45 (1950). The spending goes on and on with Democrats, according to the news, responsible for most of it. In Boggs v. Commissioner, a penalty of $8,000 was imposed by the United States Court of Appeals for the Sixth Circuit on the taxpayers for filing a frivolous appeal using the argument that a portion of a wage amount was not taxable as a return on "human capital. Justice Brandeis once contended in dissent that the denial of second-class mailing privileges to a newspaper on the basis of its past conduct, because it imposed additional mailing costs which grew day by day, amounted to an unlimited fine that was an unusual and unprecedented punishment proscribed by the Eighth Amendment.2 FootnoteMilwaukee Pub. 752 F.2d 1301, 85-1 U.S. Tax Cas. . 8. Such arguments have been ruled without merit under contemporary jurisprudence. For example, in the case of Lovell v. United States the United States Court of Appeals for the Seventh Circuit stated: Plaintiffs argue first that they are exempt from federal taxation because they are "natural individuals" who have not "requested, obtained or exercised any, privilege from an agency of government." Looking to form and not to substance, in disregard of the mandate of Brown v. Maryland,10 Footnote25 U.S. (12 Wheat.) Proper ratification of the Sixteenth Amendment is disputed by tax protesters who argue that the quoted text of the Amendment differed from the text proposed by Congress, or that Ohio was not a State during ratification. Available translations. the Court upheld as an exercise of the taxing authority a requirement under the Patient Protection and Affordable Care Act (ACA)38 FootnotePub. Sec. See, for example: Cameron v. Internal Revenue Serv.,[70] Stoewer v. Commissioner,[71] Reinhart v. United States,[72] Fink v. Commissioner;[73] Flathers v. Commissioner;[74] Schroeder v. Commissioner;[75] Sherwood v. Commissioner;[76] Ho v. Commissioner;[77] and Zook v. Times, Sunday Times When the national government exceeds it authority to spend the nations money, it is unconstitutional spending and therefore illegal. 1. Memo. Since the budget bill is seen today as raising revenue we are probably stuck with the practice until some real constitutionalist get into office. He has taught history and political science from this perspective for over 25 years at Taft College. Nigro v. United States, 276 U.S. 332 (1928). However, Redfield v. Fisher is an Oregon Supreme Court case, not a federal case. Whatever difficulty there may be about a precise and scientific definition of 'income,' it imports, as used here, something entirely distinct from principal or capital either as a subject of taxation or as a measure of the tax; conveying rather the idea of gain or increase arising from corporate activities. This was the argument raised unsuccessfully by Joseph T. Tornichio in the case of Tornichio v. United States[67] and by Joram Perl in Perl v. United States (also unsuccessfully). ), See, for example, the arguments in the online document ". [41], The argument that an individual who received Form W-2 wages or other compensation is not subject to federal income tax because the individual has "neither requested, obtained, nor exercised any privilege from an agency of government" was ruled frivolous by the United States Court of Appeals for the First Circuit in Sullivan v. United States[42] and again in Kelly v. United States. Congress has broad discretion in methods of taxation, and may, under the Necessary and Proper Clause, regulate business within a state in order to tax it more effectively. 773 F.2d 126, 85-2 U.S. Tax Cas. Another tax protester argument centers upon the pending and inoperative Titles of Nobility Amendment. international law, tax law, bankruptcy law, family law, administrative law, constitution, legal procedure, law enforcement, political economy, and . They, in a word, hold the purse (The Federalist, No. Neither the United States Supreme Court nor any other federal court has ever ruled that under the Internal Revenue Code the term "income" means only the income of a corporation for federal income tax purposes. at 328. The holding of Evans v. Gore4 Footnote253 U.S. 245 (1920). Mr. Truax appealed and the case eventually ended up in the U.S. Supreme Court. (CCH) 9814 (8th Cir. By the terms of the Constitution, the power of Congress to levy taxes is subject to but one exception and two qualifications. This case began in the United States District Court for the Southern District of New York. 739 F.2d 265, 84-2 U.S. Tax Cas. [43] See also United States v. Buras (argument that the taxpayer can be subject to an excise tax only if he benefits from a "privilege extended by a government agency" was rejected). Answer (1 of 5): The federal Constitution specifically states that the federal government is only allowed to do those things the several States delegated to it and that the several States can do anything EXCEPT those few things the federal Constitution states they can not. "[116] See also: Related tax protester arguments with respect to wages paid by "employers" to "employees" are (1) that only federal officers, federal employees, elected officials, or corporate officers are "employees" for purposes of federal income tax, (2) that the inclusion of the United States government within the definition of the term "employer" operates to exclude all other employers from the definition, and (3) that with respect to compensation, the tax is imposed only on compensation paid to federal government employees. 2019. Some protesters have argued that because the Sixteenth Amendment does not contain the words "repeal" or "repealed", the Amendment is ineffective to change the law. That excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted. Passed July 2, 1909, and ratified February 3, 1913, the Sixteenth Amendment states that: To my knowledge no other people in history have had control over their taxes. 593 F. Supp. Adopted February 15, 1876: Excessive bail shall not be required, nor excessive fines imposed, nor cruel or unusual punishment inflicted. After the French and Indian War, Great Britain had accumulated a large amount of debt which needed to be paid. A group of people who were Jehovah's Witnesses went from door to door distributing literature in the town. (CCH) 9343 (1st Cir. However, Congress's authority to regulate using the taxing power reaches only existing subjects. 45 FootnoteLicense Tax Cases, 72 U.S. (5 Wall.) Bevans. (CCH) 220, T.C. The courts have uniformly rejected the "federal zone" argument that congressional authority to impose an income tax is limited to the District of Columbia, forts, magazines, arsenals, or dockyards, etc. Cl. Proposed as an amendment to the Constitution by the 11th Congress in 1810, it would, if ratified by the required number of states, strip United States citizenship from any citizen who accepted a title of nobility from a foreign government. Indeed, the requirement for apportionment is pretty strictly limited to taxes on real and personal property and capitation taxes. The above verbiage is immediately followed in the text of the case by this sentence: As was said in Stratton's Independence v. Howbert, 231 U.S. 399, 415, 34 S. Sup. It makes life more meager, and falls hardest upon the poor. 10-MC-6-SLC, U.S. Distr. From a broad perspective the Constitution only authorizes two types of taxation: indirect and direct. The court rejected the taxpayer's arguments, and ordered that "he be imprisoned for 30 days as punishment" for criminal contempt in failing to obey court orders or subpoenas.[28]. For years the Supreme Court had little to say about excessive fines. The Court distinguished this from civil forfeiture, which, as an in rem proceeding against property, would generally not function as a punishment of the criminal defendant. The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. Such arguments, even if based on honestly held beliefs, may constitute evidence that helps the prosecutor prove willfulness, one of the elements of tax evasion. which were ostensibly designed to prevent fraud in the collection of the tax. He could not draw a conjurer's circle around the whole matter by his own declaration that to write any word upon the government blank would bring him into danger of the law.[5]. [131], In dicta in Cheek v. United States, the United States Supreme Court specifically labeled defendant John Cheek's arguments about the constitutionality of the tax law arguments Cheek had raised in various prior court cases as "frivolous. [50], In the case of Steward Machine Company v. Davis, the Supreme Court rejected the argument that "the relation of employment is one so essential to the pursuit of happiness that it may not be burdened with a tax," and upheld the validity of the Social Security tax. Ct. 136: 'Income may be defined as the gain derived from capital, from labor, or from both combined. Each member and officer of the legislature before entering upon his duties shall take an oath or affirmation to support the Constitution of the United States, the constitution of this state, and to discharge faithfully the duties of his office to the best of his judgment and ability. They are void because they interfere with the liberty of the individual to pursue a lawful trade or employment. On December 20, 2001, she filed a written claim for refund. First, the Court noted that the law in question set forth a specific and detailed regulatory scheme including the ages, industry, and number of hours allowed establishing when employment of underage youth would incur taxation. The case is also notable for the fact that it involved a retroactively imposed tax. (CCH) 2210, T.C. A strike was allegedly ordered by a local union with respect to certain union members employed at the restaurant. The first direct taxes were levied under the Federalist Party to pay for the Quasi War with France in the late 1790s, but repealed by Jefferson in 1802. Second, the protection is against all governments in this country,. 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