So, do we have to pay an income tax?

Question

I just watched this video about how there is no law stating that we have to pay an income tax. What does that really mean? We all know that if we don't pay taxes, we go to jail. Netters, what is your opinion on this?

Answer 1

Before the Internet, there was an old saying. "Don't believe everything you read." This especially applies to Internet videos and many websites.

First, there is a law concerning income taxes. It is codified in Title 26 of the U.S. Code. This is known as "prima facie" law or evidence of the actual or "positive" laws passed by Congress. You can read Title 26 at http://www.law.cornell.edu/uscode/uscode26/usc_sup_01_26.html
It is very long, boring, and confusing. If you have complicated tax issues, it is best to take them to a tax professional. If you are an average person, either go to a tax prep service or use tax prep software.

The actual acts passed by Congress can be found in the U.S. Statutes at Large. The basic structure of our tax laws today can be found start with the Internal Revenue Act of 1954. This can be found in Vol. 68A on page 3 of the U.S. Statutes at Large. To the best of my knowledge, the U.S. Statutes are not available online. However, they can be found in Federal Depository Libraries. There are probably several in your state. http://www.gpoaccess.gov/libraries.html

The power of Congress to lay and collect taxes is found in the Constitution. Specifically, Article 1, Section 8 and the 16th amendment. You can read the Constitution at http://www.senate.gov/civics/constitution_item/constitution.htm

The video, "America: Freedom to Fascism" is full of conspiracy theory nonsense. For example, there is a law concerning taxes as I pointed out earlier. The Federal Reserve Act was not passed in secret. In fact, Congress stayed late that year, much like they did this year. From the Congressional Record, 298 members of the House voted FOR the Federal Reserve Act, while 60 voted against. 358 votes out of 435 total members. That is excellent attendance. While attendance in the Senate wasn't as good, it was still more than enough to properly hold the vote. The Federal Reserve is setup in accordance to LAW. Specifically, Title 12 U.S.C. Chapter 3. http://www.law.cornell.edu/uscode/html/uscode12/usc_sup_01_12_10_3.html
The Federal Reserve is governed by the Board of Governors which are all appointed by a President and confirmed by the Senate. The Federal Reserve reports to Congress every year. Part of that report includes the INDEPENDENT AUDITS of the Federal Reserve. You can view the reports to Congress at http://www.federalreserve.gov/boarddocs/rptcongress/
Audits can be found at http://www.federalreserve.gov/boarddocs/rptcongress/annual06/pdf/audits.pdf

Income taxes do not go to the Federal Reserve. The Federal Reserve only holds about $800 billion in U.S. Government debt. In 2006, the amount of interest paid to the Federal Reserve on that debt was about $36.5 billion. (See the audits linked above). However, what most people do not know is that the Federal Reserve is REQUIRED BY LAW to return excess earnings to the U.S. Treasury. In 2006, the Federal Reserve returned $29.1 billion to the U.S. Treasury. (See the audits linked above). In 2006, the total amount of interest paid on the U.S. debt was $405 billion. In 2006, individual income taxes collected were $1.04 trillion. BTW, the entire budget of the U.S. Government equates to MUCH, MUCH more than $400 billion. In 2007, the budget for the Department of Defense was $439.3 billion alone. http://www.gpoaccess.gov/usbudget/fy07/browse.html

I also suggest you go to http://evans-legal.com/dan/tpfaq.html Most tax protestor arguments are thoroughly debunked. BTW, Gaylon "Whitey" Harrell has NEVER won a federal income tax case. His single "victory" was concerning Illinois income taxes. Also, an acquittal of criminal charges does not negate a person's liability to pay the taxes. For example, Vernice Kuglin was acquitted of "willful failure to file" charges but ended up paying more than $520,000 in taxes, penalties and fees on the $960,000 in income she had during those years.

Income taxes do not apply only to corporate income. See the tax protestor faq linked to above.

Answer 2

I have to disagree with you even though I do pay a lot of income taxes. Your right to vote should not be eliminated because of your economic status. If you disagree with the current tax system let it be known by voting for candidates who share you belief that the tax system is wrong and needs to be fixed. Also contact your congressman and senator and let them know your view. I do not mind paying my taxes. I do not mind paying more if I earn more. What I do mind is people who want to demonize me for my success. A flat tax or a national sales tax would be a much better system than the current tax code. To start it would be a simple code instead of the thousands of pages in the current code. Second it would close the loopholes in the current system that allow some rich to avoid paying taxes. Third and most important it would mean every one would have some skin in the game. Finally if we all had to pay an equal % in taxes how many people who currently do not pay taxes would not agree with the idea of higher taxes

Answer 3

There is the law, including the Constitution which clearly gives Congess the Power to raise revenue:
All bills for raising Revenue shall originate in the House of Representatives. then for clarification:
Amendment 16 - Status of Income Tax Clarified. Ratified 2/3/1913.

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.

Answer 4

Simple question, do you really want to go to jail?
No? File your taxes.

The there-is-no-law argument is ludicrous. You can go to irs.gov and type in tax arguments and read why and also ready how many people have lost in court.

Every time you hear about a tax protester "winning" it really isn't a win. They still owe their taxes, but due to the delays, now owe 2 or 3 times as much from penalties and interest. Paying that off means living a crappy life style outside of jail. All they won was the criminal "tax evasion" charge to avoid a crappy lifestyle in jail. And to win that they had to convince 12 jurors that they were so stupid they actually believed all this crap.

Keep in mind the 12 jurors are people who *do* pay their taxes so this is rare.

Answer 5

Anyone who promotes this type of trash is out of their minds. Title 26 of the United States Code is the law that Congress made and the IRS enforces it. People who actually do not pay their taxes only find themselves facing: fines, interest, penalties, seizures of property, tax liens on their homes, and possible jail time.

Answer 6

THINGS I DIDN'T KNOW UNTIL I SAW THEM ON THE INTERNET:

Nobody ever really landed on the moon - it was a giant hoax. What you saw on TV was filmed in Utah.

Elvis is still alive, and performing marriage ceremonies in Las Vegas.

It is unconstitutional for the government to tax your wages (income tax), and most of what we think of as income isn't really income anyway.

Excuse me now....I just won 2 million pounds in the online UK lottery when my email was randomly selected, and I have to go answer the email.....

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Answer 7

What it really means is that that movie -- was it "Zeitgeist" or "Freedom to Fascism?" -- has some minimal value as a satirical comedy. It's no less fantasy than "Wizard of Oz" so if you're looking for honest information, keep looking, it's not contained in either of those flights of fancy.

Answer 8

You can believe whatever nutty ideas you want but if you don't go along with the program that has been in effect since 1913 you are going to be disappointed..

Answer 9

This has been taken to court many times, and rejected many times...you have to pay income tax...