A federalincometax on wageshas consistentlybeenupheldby SupremeCourt.65Ifthe incometax was not imposedtiallya tax uponthepropertyitselfand aupon the incomesof citizensof the directtax in needof apportionment.TheUnited Statesbefore theSixteenth SupremeCourtthrew outthe entire in-AmendmentlbecausetheSupreme cometax lawon the basishatCongressCourtruleditunconstitutionalloand, as couldnotpossiblyhave foreseenheen-the SupremeCourt says, theSixteenthtire burden ofthe incometax beingborneAmendmentdid notchange theunited bywagestheelementofthe tax theCourtStatesConstitution, evidentlytheir in-deemed obe constitutional).corne isstill notsubject to the incomeIn 1915,theSupremeCourt ruled intax."(JohnB. Kotmair,Save-a-PatriotStanton v. BalticMiningCo. that the 16th
Fellowship,Aprit 25,1995)
Amendment"conferredno newoower ofThisstatementdeceptivelyrefersto the taxation...."It isinterestingthat income1895SupremeCourtcase,ollockv.Farm-taxprotestersoften citethe Balticcase,ersLoanand TrustCompany, nwhich an whichupheld the mpositionof the federal1894ncome tax lawwas ruledunconsti- incometaxupon individuals.Thatsametutionalbecauset leviedan unapportioneddecisionwenton to say thatalthough ittax on incomederivedfrom rentsand conferredno newpoweroftaxation, theproperty,and to apost-16thAmendment16th Amendment"simplyprohibitedtheSupremeCourt decision.The U.S.Consti-previousandplenarypowerof incometutionrequireshat"Nocapitation,or other taxation possessedy Congressrom thedirect, axshall be aidunless nproportionbeginningfrom beingtaken outofthe cat-to the censusor enumerationhereinbeforeegory of indirecttaxationto which it in-directedto be taken,"and that all indirectherentlybelonged."taxes"shallbeuniform throughoutthe Inother words,accordingo this rulingUnited States." nthepre-16thAmend-the l6thAmendmentchangedhowthein-ment Pollockcase,he HighCourt ruled cometax wouldbe laid ratherthanthatncomeaxesonlaborandwageswere whethert couldbe laid(whichthe entireindirectatd not inneed of apportionmentSupremeCourt has alwaysagreedwas al-according ocongressional epresentation,ready withinthepowerof Congress).Thebut that when thetax was derivedfrom 16thAmendment,the SupremeCourt hasproperty-relatedncome, likestock divi-consistentlyruled, simplylifted thecon-dends and land rents,the taxwas essen- stitutionalrequirementthatincome taxes26would haveto beapportionedbecausesomeof the proceedsof the taxwouldcomefrom property,and movedthe entiretax intothe categoryof indirecttaxesforconstitutional purposes.TheSupremeCourtunanimouslyruled in Brushaberv.Union PacificRailroadCompany1916):"Itis clearon the faceof thistext[the16thAmendmentlthat itdoes notpurporttoconfer powerto levy incometaxes nage-neric senseanauthorityalreadypos-sessed ndneverquestioned..but that thewholepurposeof theAmendmentwastorelieveall incometaxeswhen imposedfromapportionmentfroma considerationofthe sourcewhence the incomewas de-rived."Individualswho citesuchSupremeCourt caseso claim thatthe incometax isunconstitutionaldespitehe 16th Amend-mentdo so undereither obstinateand in-vincibleignoranceor intentionaldeceit."Wagesor compensation forlaborisnottaxable[underanincometax]."(MediaBypass,April 1996)Wages havealways beenconsideredtaxable income.The firstfederal incometax, leviedin 1862,called forthe tax"uponthe annualgains,profitsor incomeof every personresidingin theUnitedStates,whether derivedfrom any kindofproperty,rents, interest,dividends,sala-ries,or from anyprofession,trade,em-ployment,orvocation carriedon in theUnitedStates or elsewhere,or fromanyothersourcewhatever." Thattax wasunanimouslyupheldby the SupremeCourt inSpringer v.United States1880).As alreadynoted,when the SupremeCourtoverturned the incometax lawof1894because he taxwas unapportioned,the Courtruled that only unapportionedtaxes eviedagainst ncomederived fromrentsand dividendswere unconstitutional,while taxes on incomederived fromlaborwere indirecttaxes and thereforeconsti-tutional.The entirestatutewasvoided be-cause, the HighCourt ruled inPollockv.FarmersnanandTrustCo.,strikingonlyincometaxes derived from property"wouldleavethe burden of thetax to beborne by professions,trades,employ-ments, or vocations;and in thatway whatwas intendedas a tax on capitalwould re-mainin substancea tax on occupationsand labor.We cannot believethat suchwas theintention ofCongress."The currentU.S. Code(Title26,Sec-tion61) defines thegrossncomesubjectto U.S. incometaxation as"allincomeTHENEWAMERICANFEBRUARY7, 1997
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