reply to post by Ahabstar
...in Section 63 as being either "gross income" or "adjusted gross income". What is "gross income" and adjusted gross income"? Section 61
defines "gross income" as being "all income from whatever source derived..." and Section 62 defines "adjusted gross income" as being "gross
income minus the following deductions..." Herein lies the rub, and where many become confused enough to believe that their income is what is being
taxed and ultimately what has made them liable for this tax; "all income from whatever source derived...". However, if all income is what is being
taxed then why the games of semantics by the IRC? Why first call it "taxable income" then define that as "gross income" in order to make clear
that it is income that is being taxed? It is not made clear and why it hasn't been made clear is that income is not what is being taxed.
Let's go back to to the beginning with Section 1 which is subtitled
Tax imposed. One would think that given the title of that it would be
made perfectly clear what sort of tax is being imposed. It is important for people to know the nature of a tax if they are expected to know whether
they are liable for that tax. After all, we are all presumed to know the law in the U.S. so based upon that presumption the people have ever right to
expect clear language from the statute or legislation that would endeavor to make them liable for and/or subject to such legislation. So then, how
clear is Section 1 of Title 26 when it comes to explaining the nature of the tax imposed? Here is the beginning of that Section:
(a) Married individuals filing joint returns and surviving spouses
There is hereby imposed on the taxable income of—
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2 (a)),
a tax determined in accordance with the following table:
If taxable income is: The tax is:
Not over $36,900 15% of taxable income.
Over $36,900 but not over $89,150 $5,535, plus 28% of the excess over $36,900.
Over $89,150 but not over $140,000 $20,165, plus 31% of the excess over $89,150.
Over $140,000 but not over $250,000 $35,928.50, plus 36% of the excess over $140,000.
Over $250,000 $75,528.50, plus 39.6% of the excess over $250,000.
Clear enough? Is it? Let's consider this. Why would a Section of a Revenue Act that claims to explain the nature of the tax being imposed begin
with "Married individuals filing joint returns and surviving spouses" before finally getting to the heart of the matter and saying not so clearly
that; "There is hereby imposed on the taxable income of—"? Reason dictates that if someone is filing a return, joint or other wise, they have
all ready been made liable for the tax, otherwise why would they be filing at all? And again, it was not the personal income of those married
individuals that a tax had been imposed upon but rather "taxable income".
It is the circumlocution of the Code itself that is confusing. In order to understand what "taxable income" means one must turn to Section 63 that
in turn makes one turn to Sections 61 and 62 and not only that if one is to truly understand the nature of this so called "Personal Income Tax" then
one must also find what is meant by "taxable year" and that definition can be found in Section 441 but only then forces us to turn to Sections 7701
and 1313 in order to know what is meant by "taxpayer". You made reference to the taxpayer in your post and most people tend to understand that
word to mean anyone who pays taxes. However, the IRC has a much more specific definition of the word "taxpayer". Section 7701 first states:
(a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof—
Then goes on to...