A recent report shows that 47 percent of U.S. households pay no federal income taxes. The Tax Policy Center found that the percent of non-paying households had risen from 38 percent in 2007 to 47 percent this year.
Another interesting factoid is that households making more than $366,400 paid about 73 percent of the income taxes collected by the federal government.
This is not the image often presented in Washington when legislators complain about tax fairness for the middle class. White House adviser Paul Volcker appeared to call for higher taxes yesterday to deal with the rising deficit and Obama officials have been suggesting that the wealthy should face higher taxes to establish tax equity.
For the full story, click here.
Article 1 Section 9:
No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken.
Pollock v. Farmers Loan and Trust:
Facts of the Case:
The Constitution gave the states the power to impose direct taxation. The federal government could impose direct taxes as well, but only if those taxes were apportioned among the states in proportion to their representation in Congress. In this case the Court examined a national income tax passed by Congress in 1894. This case was decided together with Hyde v. Continental Trust Company of the City of New York.
Question:
Was the income tax a direct tax in violation of the Constitution (Article I, Section 9)?
Conclusion:
Yes. The Court held that the act violated the Constitution since it imposed taxes on personal income derived from real estate investments and personal property such as stocks and bonds; this was a direct taxation scheme, not apportioned properly among the states. The decision was negated by the adoption of the Sixteenth Amendment in 1913.
So BVM if you dont like taxes start a grass roots movement to amend the Constitution to abolish the 16th amendment.
As this is a legal blog, and because I am a lawyer, I want to post the following Justice Department Release in full.
I do not want ANYONE out there to think that there is any endorsement by Turley, me, or any responsible poster here of the tax defier folly posted by BVM and DFTT:
QUOTE
Department of Justice
FOR IMMEDIATE RELEASE
Monday, September 8, 2008
http://WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888
Tax Defier Irwin Schiff Sentenced to 11 Additional Months in Prison for Criminal Contempt
WASHINGTON – A federal district court in Las Vegas has sentenced tax defier Irwin Schiff to 11 months in prison for criminal contempt, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Judge Kent J. Dawson reinstated 15 criminal contempt convictions imposed during Schiff’s 2005 trial for promotion of tax defier schemes. The 11 month sentence is to be served consecutively to the 151 month sentence previously imposed for Schiff’s conspiracy and tax convictions.
In October 2005, Schiff was convicted of conspiring to defraud the United States, aiding and assisting in the preparation of false income tax returns, filing his own false tax returns, and evading the payment of millions of dollars in back taxes owed. Additionally, Judge Dawson convicted Schiff of 15 counts of criminal contempt relative to Schiff’s unruly behavior during the trial.
According to the indictment and the evidence introduced at trial, beginning in 1995, Schiff aided thousands of taxpayers in the filing of false federal income tax returns with the IRS that reported zero taxable income despite the taxpayers earning reportable income. Schiff owned and operated Freedom Books, a business that sold books, tapes and informational packages encouraging customers not to pay income tax. According to a government witness who testified at trial, between 1997 and 2002, Freedom Books sold more than $4.2 million of these products.
The evidence presented at trial also proved that Schiff evaded the payment of more than $2 million in taxes he owed the IRS between 1979 and 1985. Schiff concealed income he earned from Freedom Books, in part, by using offshore bank accounts and conducting financial transactions through secret “warehouse” banking services. The evidence also showed that Schiff used debit cards issued by offshore banks to obtain funds he transferred offshore, that he opened bank accounts using multiple tax identification numbers and that he concealed his wealth by hiding his assets through the use of nominees.
The October 2005 conviction marked the third time Schiff was convicted for committing federal tax offenses. Prior to this conviction, Schiff has spent more than four years in jail for his tax crimes. Also, in June 2003, a federal district court barred Schiff and two associates from selling their tax scheme, which the court held falsely claims that paying federal income tax is voluntary. The order bars Schiff and his associates from advertising or selling Schiff’s “zero-income tax return” plan; preparing tax returns for others; and assisting others to violate the tax law, including by “selling services, books or other materials that provide direction about how to fill out fraudulent or false tax forms.” In August 2004, the Ninth Circuit affirmed the June 2003 preliminary injunction order.
“Under the National Tax Defier Initiative, the Tax Division has committed to vigorously investigate, prosecute and convict those who engage in illegal tax defier conduct anywhere in this nation,” said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division.
“Taxpayers have the right to contest their tax liability; they do not have the right to violate the law,” said IRS Criminal Investigation Chief Eileen Mayer. “Mr. Schiff, like all citizens, must abide by the laws that govern all of us.”
Assistant Attorney General Hochman thanked the Tax Division trial attorneys who prosecuted the case, as well as IRS Criminal Investigation special agents whose assistance was essential to the successful investigation and prosecution of the case.
More information about the Justice Department’s efforts to stop tax fraud promoters and preparers through civil and criminal actions is available at http://www.usdoj.gov/tax.
UNQUOTE
Note that Schiffty was convicted of “evading the payment of millions of dollars in back taxes owed.”
BVM and DFTT can reach him, c/o Terre Haute Federal Correctional Institution, until 2016.
Everyone, BVM and DFTT are just talking. If they actually acted on this nonsense, they would be blogging from prison, by means of crayon on wrapping paper handed to their relatives on visitor’s day.
“If you…examined [The 16th Amendment] carefully, you would find that a sufficient number of states never ratified that amendment.”
~U.S. District Court Judge James C. Fox 2003
They can only put you in jail for failure to file not failure to pay.
Don’t feed the Trolls 1, April 10, 2010 at 1:47 pm
Lets say the year before you had a job making 10 mil and you filed the following year and are now broke, have no property, and no job.
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You’ll want to consult Willie Nelson on that one.
And your filing shows you owe 1 mil in taxes and they demand payment.
…kinda helps when you know the definition of the word “Income”.
Lets say the year before you had a job making 10 mil and you filed the following year and are now broke, have no property, and no job.
….see how I did that? Kinda cool huh?
…asking a question and answering a question at the same time and all…
Don’t feed the Trolls 1, April 10, 2010 at 1:43 pm
Hey Brainiac what if you have no property and no cash then what.
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Brainiac? …aw shucks…lil ole me?
Well here, let me turn on my brainiac machine and provide you with an answer.
You’re asking what you do about Income tax if you have no Income.
Gee…that’s a tough one.
Another link to “America Freedom to Fascism”
Watch this video with the Constitutional lawyers, tax experts and former IRS agents:
http://video.google.com/videoplay?docid=5355374476580235299#
and no job.
Don’t feed the Me 1, April 10, 2010 at 1:38 pm
The Constitution of the Untied States says Congress has the authority to COLLECT Income tax.
and failure to pay will result in seizure, not jail.
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Prove it.
Point to the section of the Constitution that states that.
Hey Brainiac what if you have no property and no cash then what.
Again, for the reading challenged Tin Foil Hat wearers.
The 16th Amendment to the Constitution clearly states;
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The Congress shall have power to LAY AND COLLECT TAXES ON INCOMES
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So yes. You do have to pay. The filing theory is another Tin Foil hat theory that I’m not even sure where it comes from.
It says right in the Constitution that Congress can not only “Lay” taxes, but they can COLLECT them too.
End of story.
The Constitution of the Untied States says Congress has the authority to COLLECT Income tax.
and failure to pay will result in seizure, not jail.
Don’t feed the Trolls 1, April 10, 2010 at 1:33 pm
This is the correct answer
It is only against the law to not file. To not pay, I have to agree with you. But like assholes somethings you have to accept.
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Wrong Don’t Feed Yourself.
The Constitution of the Untied States says Congress has the authority to COLLECT Income tax.
The filing nonsense is just one more Tin Foil hat theory.
This is goneville
You can refuse to pay once you file and not go to jail. They can take everything you own afterward but can not put you in jail for failure to pay.
This is the correct answer
It is only against the law to not file. To not pay, I have to agree with you. But like assholes somethings you have to accept.
Wesley snipes was convicted of failure to file. That’s it.