Income tax is a tariff

[shikamaru]

.... according to this article. Most interesting.


The Income Tax is not an Excise Tax

[shikamaru]

The link doesn't seem to work for me.

Sorry about that. That's the first time I've botched up a link. Its fixed.

A tax attorney (you remember ol' Mert, don't you?) disagrees.
He says that income tax is an excise tax.

[Christopher David]

Interesting read. However, the writer fails to mention that businesses, or employers, are generally licensed, and by law, are allowed to withhold income from the employee in order to pay for the privilege of doing business.

[Freed Gerdes]

Actually the employer is only allowed to withhold taxes because the employee agrees to have taxes withheld 'as if they were due.' Then when the employee files a tax return, he swears that he owes the tax, and the IRS happily accepts his perjury. If the employee refuses to agree to have taxes withheld, the employer has no right, or duty, to withhold. This fuzzes off the employer something fierce, since he stupidly believes he has a 'duty' to collect the tax, although the W-4 clearly protects him against liability for any uncollected tax.
I am inclined to believe that the income tax acts as an excise tax on the privilege of using Federal Reserve Notes (debt obligations), thus it is uniform over all forms of income. How the IRS justifies different brackets is still a mystery.

[shikamaru]

Interesting read. However, the writer fails to mention that businesses, or employers, are generally licensed, and by law, are allowed to withhold income from the employee in order to pay for the privilege of doing business.

And that privilege of doing business using the government's franchise is subject to excise taxes.

Check out Helvering v. Davis 301 U.S. 619 (1937). An eye opening read.

[shikamaru]

I am inclined to believe that the income tax acts as an excise tax ....

I'm inclined to believe this as well

[Christopher David]

And that privilege of doing business using the government's franchise is subject to excise taxes.

Check out Helvering v. Davis 301 U.S. 619 (1937). An eye opening read.

My point exactly.