WHY MOST AMERICANS DO NOT OWE FEDERAL INCOME TAXES – PART 1 OF 2 - PowerPoint PPT Presentation

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WHY MOST AMERICANS DO NOT OWE FEDERAL INCOME TAXES – PART 1 OF 2

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The “income” tax is and always has been an excise on gains from certain federally-connected activities in which most Americans do not engage at all. In fact the tax code is only applicable to a very select few, because as noted above, the territorial restrictions of the US Congress prevent that. – PowerPoint PPT presentation

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Title: WHY MOST AMERICANS DO NOT OWE FEDERAL INCOME TAXES – PART 1 OF 2


1
WHY MOST AMERICANS DO NOT OWE FEDERAL INCOME
TAXES PART 1 OF 2
2
  • The income tax is and always has been an excise
    on gains from certain federally-connected
    activities in which most Americans do not engage
    at all. In fact the tax code is only applicable
    to a very select few, because as noted above, the
    territorial restrictions of the US Congress
    prevent that.
  • Congress could have easily provided wording in
    the tax code stating All Americans are required
    to pay the federal income tax irrespective of
    where or what type you work you perform.
  • No such language like this exists in the tax code
    and for good reason U.S. laws are enforceable
    only in D.C. and other U.S. territories and the
    federal income tax is NOT applicable to all
    American people..

3
  • This is no secret and the U.S. Supreme Court has
    upheld this principle over and over again.
  • The Supreme Court has repeatedly ruled
    legislation of Congress, unless a contrary
    intent appears, is meant to apply only within the
    territorial jurisdiction of the United States
  • They also ruled that while the federal tax may
    have a uniform application across the country,
    the language of the code determines its ultimate
    applicability.

4
  • In dealing with the meaning and application of an
    act of Congress enacted under the Constitution
    to tax income, in the absence of language
    evidencing a different purpose, should be
    interpreted so as to give a uniform application
    to a nationwide scheme of taxation. Lyeth v. Hoey
    (1938)
  • Therefore, a look at and understanding of the
    language of certain key terms and phrases used
    in the code is in order to determine its
    authoritative limitations.

5
  • With that in mind lets examine the several terms
    in the tax code
  • 26 U.S. Code 3401 Definitions
  • (a) Wages For purposes of this chapter, the
    term wages means all remuneration for services
    performed by an employee for his employer
  • The definition of employee is just a little
    farther down in section 3401, to wit
  • (c) Employee For purposes of this chapter, the
    term employee includes an officer, employee, or
    elected official of the United States,

6
  • 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.
  • (26) Trade or business The term trade or
    business includes the performance of the
    functions of a public office.
  • Because the common meanings of words are not used
    in the tax code, to properly comprehend the tax
    code one must have a firm understanding of how
    the Supreme Court interprets the language in a
    statute

7
  • It is axiomatic that the statutory definition of
    the term excludes unstated meanings of that
    term. Of course, statutory definitions of terms
    used therein prevail over colloquial meanings.
  • Even the Treasury Department has helpfully
    expressed this in its regulatory language,
    currently found in 27 CFR 26.11 and 27 CFR 72.11
    and previously was published in 26 CFR 170.59, to
    wit Meanings of Terms the terms includes and
    including do not exclude things not enumerated
    which are in the same general class.
  • What does this all mean?

8
  • I will go into this further in my next
    newsletter
  • In the mean time if you want to learn more about
    how to lawfully reduce your tax bill to the
    lowest amount allowable by law, then go to this
    website https//weexitthematrix.wordpress.com/

9
  • End Taxes 4 Ever is a team of tax experts in Ohio
    serving clients across the nation to ensure they
    are only paying the amount of taxes owed and
    guide them in how to not pay income tax and
    remain in full compliance with both State and
    Federal income tax laws. Our tax experts have
    discovered that nearly all Americans are not just
    overpaying on income taxes, but in the vast
    majority of cases they lawfully required to very
    little if anything at all. We give tax planning
    strategies for high income earners and help them
    get the biggest tax refund that the law allows.
    Contact us now by visiting our website -
    https//endtaxes4ever.com/.
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