posted on Jul, 10 2009 @ 12:54 PM
If I have a gold coin and I exchange it with a merchant for a new suit of equal value, have I made an income?
The value of my coin was evenly exchanged for the value of the new suit.
Now, if I exchange my labor for a gold coin of equal value, have I made an income?
If you say no, then how could my acceptance of a gold coin be considered income?
If you say yes, then how could the exchange of the suit for a gold coin not be considered income?
Capital gains taxes:
If I LEND my gold coin to a widget maker who then in turn is able to produce something of value which he exchanges for 3 gold coins with someone else,
then gives me 2 gold coins in return to pay me back with interest, have I made an income?
I started with one gold coin, now I have two gold coins, and I didn't lift a finger or waste any of my own precious labor in the process.
I exchange a gold coin for a suit of equal value.
However now the merchant expects me to add a silver coin as sales tax ABOVE the value of the suit.
I exchange my labor for a gold coin of equal value.
However now I must work an additional amount to earn the silver coin required as tax for the suit that's really only worth a gold coin.
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general
Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
No capitation, or other direct (income or sales tax), Tax shall be laid, unless in Proportion to the Census or Enumeration herein before
directed to be taken
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.
[edit on 10-7-2009 by mnemeth1]