MikeC
Closed Account
Pollock vs Farmers Loan Trust Co is a case that "tax protestors" of various ilks like to quote to prove that some or all taxes are illegal.
A 2nd related issue they like to bring up in this regard is the 16th amendment which they claim is illegal because it was not properly ratified.
Pollock is a fairly simple case - the Wilson-Gorman Tariff Act of 1894 made provision for taxation of income from various sources - including rent, interest and dividends. These 3 were held to be direct taxes, and therefore had to be apportioned in accordance with population - Article I, Section 9 Clause 4 of the constitution states:
now comes the 16th amendment - one of the shortest amendments:
As a result of Amendment 16 direct taxes can now be levied without need for them to be in proportion to populations. Again it's actually quite simple......unless you are a tax protestor!
A bunch of people have tried to show that the 16th Amendment is not legal, was not properly ratified, etc, but that argument is so hackneyed that it is now considered a frivolous argument by the US courts, and the wiki page on Tax Protester arguments about the 16th does a better job of pointing it out than I can.
The 16th Amendment makes no change to what taxes are levied, nor to whether the US can levy taxes in the first place - which power comes from Article I, Section 8, Clause 1 of the Constitution:
The Rational Wiki page on Tax Protestors has scathing and possibly amusing (depending on your soh!) commentary about arguments including the 16th Amendment one
A 2nd related issue they like to bring up in this regard is the 16th amendment which they claim is illegal because it was not properly ratified.
Pollock is a fairly simple case - the Wilson-Gorman Tariff Act of 1894 made provision for taxation of income from various sources - including rent, interest and dividends. These 3 were held to be direct taxes, and therefore had to be apportioned in accordance with population - Article I, Section 9 Clause 4 of the constitution states:
This means that direct taxes can only be levied in proportion to population - the Wilson-Gorman Tarrif Act had tried to tax these 3 types of income as indirect taxes without apportionment, but the court said they were direct taxes, and so they were ruled unconstitutional because they were not apportioned - pretty simple really. The ruling did NOT say that income taxes were illegal!No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.
now comes the 16th amendment - one of the shortest amendments:
This removes the requirement to apportion taxes as required by Article 1, Section 9, Clause 4 above. And nothing else!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.
As a result of Amendment 16 direct taxes can now be levied without need for them to be in proportion to populations. Again it's actually quite simple......unless you are a tax protestor!
A bunch of people have tried to show that the 16th Amendment is not legal, was not properly ratified, etc, but that argument is so hackneyed that it is now considered a frivolous argument by the US courts, and the wiki page on Tax Protester arguments about the 16th does a better job of pointing it out than I can.
The 16th Amendment makes no change to what taxes are levied, nor to whether the US can levy taxes in the first place - which power comes from Article I, Section 8, Clause 1 of the Constitution:
constitution texts above have been taken from www.constitutionus.comThe Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States
The Rational Wiki page on Tax Protestors has scathing and possibly amusing (depending on your soh!) commentary about arguments including the 16th Amendment one