Cracking The Code
www.losthorizons.com...
"It is to be noted that, by the language of the Act, it is not
salaries, wages, or compensation for personal services that are
to be included in gross income. That which is to be included is
gains, profits, and
income derived from salaries, wages, or
compensation for personal services."
The United States Supreme Court, Lucas v. Earl, 281 U.S. 111
(1930)
"Constitutionally the only thing that can be taxed by
Congress is "income. "And the tax actually imposed by
Congress has been on net income as distinct from gross
income. The tax is not, never has been, and could not
constitutionally be upon "gross receipts"... " Anderson
Oldsmobile, Inc. vs Hofferbert, 102 F Supp 902 (1952)
"The general term "income" is not defined in the
Internal Revenue Code'VS v Ballard, 535 F2d 400, 404
(1976)
Sec. 3401. - Definitions
(a) Wages
For purposes of this chapter, the term "wages" means
all remuneration (other than fees paid to a public
official) for services performed by an employee for his
employer,...
c) Employee
For purposes of this chapter, the term
"employee" includes an officer, employee, or
elected official of the United States, a State, or
any political subdivision thereof, or the District of
Columbia, or any agency or instrumentality of
any one or more of the foregoing. The term
"employee " also includes an officer of a
corporation. [A "United States Corporation", defined in
Sec. 207 of the Public Salary Tax Act as, "a corporate
agency or instrumentality, is one (a) a majority of the
stock of which is owned by or on behalf of the United
States, or (b) the power to appoint or select a majority
of the board of directors of which is exercisabie by or on
behalf of the United States," However, we are
instructed by the IRS in Pub. 15A that such officers are
only to be considered "employees" if they are paid as a
consequence of their positions.]
(d) Employer
For purposes of this chapter, the term "employer"
means the person for whom an individual performs or
performed any service, of whatever nature, as the
employee of such person...
So, actually, withholding only applies to the pay of federal
government workers, exactly as it always has (plus "State"
government workers, since 1939, and those of the District of
Columbia since 1921).
[edit on 29-8-2008 by reeferman]