What is my money?
All money falls into one of two categores:
Income or Principal :
Do you know the difference?
“When the people of the country granted to Congress the right to levy a tax on incomes, that right was granted with reference to the legal meaning and interpretation of the word “income” as it was then or as it might thereafter be defined or understood in legal procedure. If we could call anything income that we pleased, we could obliterate all the distinction between income and principal. ”
– 1913 Congressional Record, Vol L, Part 4
We love capitalism but…WHERE IS THE CAPITAL?
Capital:
The fruit of one’s labor
and the source of all income
“Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”
– Abraham Lincoln, First Annual Message, Dec 1861
Are all financial gains Income?
Can you distinguish the
“gain derived from capital”
from the capital itself?
“The government, although basing its argument upon the definition as quoted, placed chief emphasis upon the word “gain,” which was extended to include a variety of meanings; while the significance of the next three words was either overlooked or misconceived. ‘Derived from capital’; ‘the gain derived from capital,’ etc. Here we have the essential matter. “
– US Supreme Court, Eisner v. Macomber (1920)
How property is protected from Federal tax.
What is a direct tax?
Why does it matter?
How does it protect my property?
“The question, what is a direct tax, is one exclusively in American jurisprudence.”
– US Supreme Court, Springer v. United States (1880)
What is taxed? How? And why?
“Wages”
Who’s on first?
And other word games
The IRS plays word games to trick Americans into paying an income tax on thier capital.
“The Treasury Department cannot, by interpretative regulations, make income of that which is not income within the meaning of the revenue acts of Congress, nor can Congress, without apportionment, tax as income that which is not income within the meaning of the Sixteenth Amendment.”
– Eighth Circuit, Helvering v. Edison Bros. Stores (1943)
What do we call money that is “not income”?
