Note:  These questions were not asked during the hearing due to time constraints.

Research Hint:  For the definitive discussion of this complex but compelling topic, please visit Larkin Rose’s website at

Subtitle A income taxes under the Internal Revenue Code are indirect excise taxes as ruled by the Supreme Court.

Indirect excise taxes are taxes on privileges and are triggered by the happening of a taxable privileged activity or event, such as the sale of a commodity.  If you don't want to pay an excise tax, then don't do the activity that is taxed.  This is the essence of why excise taxes are considered to be voluntary taxes.

"income" as defined by the U.S. Supreme Court means only corporate profit.

Taxable income means gross income minus deductions.

Before one can earn gross income, one must earn "income", which is corporate profit.

 The 16th Amendment (purportedly) gives the government to tax income “from whatever source derived.”  The IRS would have us believe that this means that income that comes from ANY source, whatever, wherever, whenever, is subject to the income tax.

In fact this is simply not true.  The IRS regulations under Section 861 of the Internal Revenue Code regulations contain a list of “specific sources” that are considered to be gross income.  Anything else not in the list of specific sources is not considered to be gross income and is therefore not subject to the income tax under Subtitle A of the Internal Revenue Code.

Specific sources subject to tax under the Sixteenth Amendment derive from "operative sections" of the code, which are statutes that identify specific activities and sources that trigger the excise tax known as the income tax.

The easiest way to frame the taxable sources subject is this:  There are many types of monies earned (wages, salaries, dividends, rents, capital gains, etc.).  But for any of these earnings are to be taxed, they must first come from a “taxable source” – i.e. a “source” or taxable activity that the IRS has legal jurisdiction to impose an excise tax on.

In tax code parlance, we cannot have "taxable income" until we have "gross income", and we can't have "gross income" until we have "income", which means corporate profit.

The evidence will show that decades old versions of the tax code made it quite clear which types of earnings were exempt from classification as “gross income”.  As the years progress, this language has been systemically removed from the code and the regulations to increase the likelihood that readers will not consider that some income is automatically exempt via the Constitution, regardless of what is listed in the regulations.

In fact, in numerous places in the tax code the plain language of the regulations point specifically to Section 861 to determine if income is taxable or not.  The IRS contends in its publications that this Section does not apply to income earned in the U.S. but simultaneously will not directly answer the straightforward question about whether 861 is the Section to determine taxable income or not.

The IRS refuses to directly address this issue and even has the Courts now fining People for daring to ask what the written law means.  Regardless of what the IRS says – this issue has NEVER been directly adjudicated in U.S. District Court.  All legal cites the IRS gives are Tax Court cases, which as we have seen have no general applicability to the public and by law, cannot even cited by the IRS as precedent.

In short, the regulations under IRS section 861 plainly reveal that monies earned by most ordinary Americans are not taxable, because they do not come from a specific taxable source.

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