TAX DEPOSITION QUESTIONS: 2.  RIGHT TO LABOR

2. RIGHT TO LABOR

Introduction

Labor is property.  It is the most valuable property protected by law because through it all other rights manifest in the People are realized and enjoyed.

Additionally, a mandatory income tax on labor is indistinguishable from a "slave tax".  This is in direct violation of the Constitution’s 13th Amendment prohibiting peonage and involuntary servitude.

Findings and Conclusions

With the assistance of the following series of questions, we intend to prove that the income tax is a slave tax prohibited by the Thirteenth Amendment to the U.S. Constitution.  We will also show that:

  • Labor is property. It is the most valuable property to protect because through it all other rights manifest in the People are realized and enjoyed.
  • Under the government’s own accounting rules in the tax code as well as court decisions, the sale or conversion of one’s personal labor into wages or salaries as property does not result in any taxable income or a taxable event.
  • There is no legal basis for mandatory payment of employment taxes on wages or salaries.
  • Income has been defined by the Supreme Court as being a federal corporate tax on profit, and applies to federal corporations and the officers of those corporation, but not individuals. 
  • For individuals, income taxes can only be legal if they are voluntary and not compelled, which is to say that they are not taxes, but donations.
  • A mandatory/compelled income tax on labor in all respects, functions as a "slave tax". This is in direct violation the Constitution’s 13th Amendment prohibiting peonage and involuntary servitude.

Bottom Line: The wages and salaries of ordinary Americans cannot be taxed.

Section Summary

Witnesses:

  • Larry Becraft (Constitution Attorney)
  • Sherry Peel Jackson (Ex. IRS Examiner, CPA, Certified Fraud Examiner)

PDF Transcript

PDF Acrobat version of this section including questions and evidence (large: 8.89 Mbytes)

Further Study On Our Website:

2.1. Admit that it was the intent of Congress to require "individuals" to make income tax returns based upon receipt of more than a threshold amount of gross income even if the individual ends up not "liable for" a tax on that gross income. (WTP #122)

2.2. Admit that the "gross income" mentioned in Section 6012 of the Internal Revenue Code is the "gross income" as set forth at Section 61(a) of the Internal Revenue Code. (WTP #123)

2.3. Admit that Section 61(a) of the Internal Revenue Code defines "gross income" as "all income" from whatever source derived, but does not define "income." (WTP #063)

2.4. Admit that in Eisner v. Macomber, 252 U.S. 189, 206 (1920), the United States Supreme Court held that Congress cannot by any definition it may adopt conclude what "income" is, since it cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised. (WTP #125)

2.5. Admit that the definition of "income" as it appears in Section 61(a) is based upon the 16th Amendment and that the word is used in its constitutional sense. (WTP #126)

2.6. Admit that the United States Supreme Court has defined the term "income" for purposes of all income tax legislation as:  (WTP #127)

"The gain derived from capital, from labor or from both combined, provided it include profit gained through a sale or conversion of capital assets."

2.7.  Admit that the United States Supreme Court defined "income" to mean the following: (WTP #127a)

“…Whatever difficulty there may be about a precise scientific definition of ‘income,’ it imports, as used here, something entirely distinct from principal or capital either as a subject of taxation or as a measure of the tax; conveying rather the idea of gain or increase arising from corporate activities.”

[Doyle v. Mitchell Brothers Co., 247 U.S. 179, 185, 38 S.Ct. 467 (1918) [emphasis added]]

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“This court had decided in the Pollock Case that the income tax law of 1894 amounted in effect to a direct tax upon property, and was invalid because not apportioned according to populations, as prescribed by the Constitution.  The act of 1909 avoided this difficulty by imposing not an income tax, but an excise tax upon the conduct of business in a corporate capacity, measuring, however, the amount of tax by the income of the corporation…Flint v. Stone Tracy Co., 220 U.S. 107, 55 L.Ed. 389, 31 Sup.Ct.Rep. 342, Ann. Cas.”

[Stratton’s Independence v. Howbert, 231 U.S. 399, 414, 58 L.Ed. 285, 34 Sup.Ct. 136 (1913)]

2.8.  Admit that the term "corporation" as used above infers a federally chartered and not a state chartered corporation.(WTP #127b)

2.9.  Admit that the United States Government is defined as a federal corporation: (WTP #127c)

United States Code

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

Sec. 3002. Definitions

(15) ''United States'' means -

(A) a Federal corporation;

(B) an agency, department, commission, board, or other entity of the United States; or

(C) an instrumentality of the United States.

2.10.  Admit that "individuals" as defined in Subtitle A of the Internal Revenue Code and in 26 CFR §1.1441-1(c)(3) are not federal corporations, and therefore cannot have "profit" or "gain" as constitutionally defined above.  (WTP #127d)

2.11. Admit that in the absence of gain, there is no "income." (WTP #128)

2.12. Admit that there is a difference between gross receipts and gross income. (WTP #129)

2.13. Admit that the United States Supreme Court recognizes that one's labor constitutes property. (WTP #130)

2.14. Admit that the United States Supreme Court stated in Butchers' Union Co. v. Crescent City Co., 111 U.S. 746, 757 (concurring opinion of Justice Fields) (1883), that: (WTP #131)

"It has been well said that, "The property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable."

2.15. Admit that the United States Supreme Court recognizes that contracts of employment constitute property. (WTP #132)

2.16. Admit that the United States Supreme Court stated in Coppage v. Kansas, 236 U.S. 1, 14 (1914) that: (WTP #133)

"The principle is fundamental and vital. Included in the right of personal liberty and the right of private property-partaking of the nature of each-is the right to make contracts for the acquisition of property. Chief among such contracts is that of personal employment, by which labor and other services are exchanged for money or other forms of property."

2.17. Admit that the United States Supreme Court recognizes that a contract for labor is a contract for the sale of property.  (WTP #134)

2.18. Admit that the United States Supreme Court has stated in Adair v. United States, 208 U.S. 161, 172 (1908) that:  (WTP #135)

"In our opinion that section, in the particular mentioned, is an invasion of the personal liberty, as well as of the right of property, guaranteed by that Amendment (5th Amendment). Such liberty and right embraces the right to make contracts for the purchase of the labor of others and equally the right to make contracts for the sale of one's own labor."

2.19. Admit that Congress recognizes at Section 64 of the Internal Revenue Code that "ordinary income" is a gain from the sale or exchange of property. (WTP #136)

2.20. Admit that Internal Revenue Code Sections 1001, 1011 and 1012 provide the method Congress has set forth for determining the gain derived from the sale of property. (WTP #137)

2.21. Admit that Section 1001(a) states that: "The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain . . . ."  (WTP #138)

2.22. Admit that Section 1001(b) states that: "The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received."  (WTP #139)

2.23. Admit that Section 1011 states that: "The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under section 1012...), adjusted as provided in section 1016." (WTP #140)

2.24. Admit that Section 1012 states that: "The basis of property shall be the cost of such property . . . ." (WTP #141)

2.25. Admit that the cost of property purchased under contract is its fair market value as evidenced by the contract itself, provided neither the buyer nor sell were acting under compulsion in entering into the contract, and both were fully aware of all the facts regarding the contract.   (WTP #142)

2.26. Admit that in the case of the sale of labor, none of the provisions of Section 1016 of the Internal Revenue Code are applicable. (WTP #143)

2.27. Admit that when an employer pays the employee the amount agreed upon by their contract, there is no excess amount realized over the adjusted basis, and thus no gain under Section 1001 of the Internal Revenue Code.  (WTP #144)

2.28. Admit that if one has no gain, one would have no income in a constitutional sense. (See 26 U.S.C. §1001)  (WTP #145)

2.29. Admit that if one has no income, one would have no "gross income."  [Common knowledge]  (WTP #146)

2.30. Admit that in the absence of "gross income," one would not be required to make a return under Section 6012 of the Internal Revenue Code. (See 26 U.S.C. § 6012.)   (WTP #147)

2.31. Admit that Section 6017 of the Internal Revenue Code requires individuals, other than nonresident alien individuals, to make a return if they have net earnings from self-employment of $400 or more.   (WTP #148)

2.32. Admit that the term "net earnings from self-employment" is defined at Section 1402(a) of the Internal Revenue Code as follows:   (WTP #149)

"The term 'net earnings from self-employment' means the gross income derived by an individual from any trade or business carried on by such individual . . . ."

2.33. Admit that in the absence of "gross income," one would not have more than $400 of "net earnings from self-employment."   (WTP #150)

2.34. Admit that the "taxable income" upon which the income tax is imposed in Section 1 of the Internal Revenue Code is defined at Section 63 of the Internal Revenue Code.   (WTP #151)

2.35. Admit that the term "taxable income" is defined differently for those who itemize deductions and those who don't itemize deductions.  (See questions 2.36 and 2.37 below)  (WTP #152)

2.36. Admit that for those who do itemize deductions, the term "taxable income" means "gross income" minus the deductions allowed by Chapter 1 of the Internal Revenue Code, other than the standard deduction.   (WTP #153)

2.37. Admit that for those who do not itemize deductions, the term "taxable income" means "adjusted gross income" minus the standard deduction and the deduction or personal exemptions provided in section 151 of the Internal Revenue Code.   (WTP #154)

2.38. Admit that for individuals, the term "adjusted gross income" means gross income minus certain deductions.   (WTP #155)

2.39. Admit that in the absence of "gross income" an individual would have no "adjusted gross income" and no "taxable income."   (WTP #156)

2.40. Admit that in the absence of taxable income, no tax is imposed under Section 1 of the Internal Revenue Code.   (WTP #157)

2.41. Admit that employment taxes are contained in Subtitle C of the Internal Revenue Code.   (WTP #158)

2.42. Admit that the taxes imposed in Subtitle C of the Internal Revenue Code are different than the taxes imposed in Subtitle A of the Internal Revenue Code.   (WTP #159)

2.43. Admit that The Federal Insurance Contributions Act (FICA) tax contained in Subtitle C at Section 3101 of the Internal Revenue Code is imposed on the individual's "income."   (WTP #160)

2.44. Admit that the rate of the tax set out at Section 3101 of the Internal Revenue Code is a percentage of the individual's wages.   (WTP #161)

2.45. Admit that the term "income" as used at Section 3101 of the Internal Revenue Code is the same income as used in Subtitle A of the Internal Revenue Code.   (See 26 U.S.C. 3101; Title 26, United States Code Index) (WTP #162)

2.46. Admit that if one has no income, one is not subject to the tax imposed at Section 3101 of the Internal Revenue Code.   (WTP #163)

2.47. Admit that The Federal Insurance Contributions Act (FICA) tax on employers contained in Subtitle C at Section 3111 of the Internal Revenue Code is an excise tax on employers with respect to their having employees.   (WTP #164)

2.48. Admit that at Section 3402 of the Internal Revenue Code, employers are directed to withhold from wages paid to employees, a tax determined in accordance with tables prescribed by the Secretary of the Treasury.    (WTP #165)

2.49. Further admit that Congress does not identify the Section 3402 "tax determined" as either a direct tax, an indirect tax, and/or an "income" tax.   (WTP #166)

2.50. Admit that Congress made the employer liable for the Section 3402 tax at Section 3403 of the Internal Revenue Code.   (WTP #167)

2.51. Admit that at Section 3501 of the Internal Revenue Code, Congress directed the Secretary of the Treasury to collect the taxes imposed in Subtitle C and pay them into the Treasury of the United States as internal revenue collections.   (WTP #168)

2.52. Admit that Congress has not anywhere imposed the tax described at Section 3402 of the Internal Revenue Code.   (WTP #169)

2.53. Admit that at Section 31 of the Internal Revenue Code, the amount of the Section 3402 tax on wages is allowed as a credit against the income tax imposed in Subtitle A.    (WTP #170)

2.54. Admit that if one does not have any tax imposed at Subtitle A for any reason whatsoever, the law enacted by Congress at Section 3402(n) of the Internal Revenue Code constitutes an exemption of the tax described at Section 3402(a) of the Internal Revenue Code.   (WTP #171)

2.55. Admit that a typical American family works until noon of every working day just to pay its alleged tax obligations.    (WTP #172)

2.56. Admit that the typical American family pays more in taxes than they spend on food, clothing, and housing combined.    (WTP #173)

2.57. Admit that there are currently over 480 tax forms.    (WTP #174)

2.58. Admit that the federal tax code contains over 7 million words.    (WTP #175)

2.59. Admit that over 1/2 of Americans are paying some sort of tax professional to help them comply with alleged tax law requirements.    (WTP #176)

2.60. Admit that each year the Internal Revenue Service sends out approximately 8 billion pages of tax forms and instructions, generating enough paper to stretch 28 times around the Earth.    (WTP #177)

2.61. Admit that Americans spend approximately 5.4 billion labor hours and $200 billion dollars per year attempting to comply with alleged tax requirements - more time and money that it takes to produce every car, truck, and van each year in the United States.   (WTP #178)

2.62. Admit that in 1913, the average American family had to work only until January 30th before earning enough to pay all alleged tax obligations. (See Tax Facts.)    (WTP #179)

2.63. Admit that the average American family had to work all the way through May 12th in order to pay their alleged federal, state, and local tax bills for the year 2000.   (WTP #180)

2.64. Admit that economist Daniel J. Mitchell recently observed that: "[Medieval serfs] only had to give the lord of the manor a third of their output and they were considered slaves. So what does that make us?" (See "Legalized Loot", by Machan)  (WTP #181)

2.65. Admit that the average Wisconsin citizen had to work until May 9th this year to pay all alleged tax obligations.   (WTP #182)

2.66. Admit that Americans own less of their labor than feudal serfs.   (WTP #183)

2.67. Admit that the 13th Amendment to the U.S. Constitution states:    (WTP #184)

"Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction. Congress shall have power to enforce this article by appropriate legislation."

2.68. Admit that if Congress can constitutionally tax a man's labor at the rate of 1%, then Congress is free, subject only to legislative discretion, to tax that man's labor at the rate of 100%.    [Common knowledge] (WTP #185)

2.69. Admit that "peonage" is a condition of servitude compelling a man or woman to perform labor in order to pay off a debt.   (WTP #186)

2.70.  Admit that the Federal Reserve Act was passed in 1913, within a few months of the ratification of the Sixteenth Amendment that allegedly authorized a tax on the incomes of most Americans.   (WTP #186a)

2.71.  Admit that the Federal Reserve Act allowed the U.S. government to borrow large sums of money from private banking institutions at interest, and thereby potentially create a large public debt.    (WTP #186b)

2.72.  Admit that U.S. Congress' inability to balance the federal budget or lack of fiscal discipline could create large volumes of public debt to the Federal Reserve.   (WTP #186c)

2.73.  Admit that the result of increasing public debt must be an increase in income tax revenues to pay off the debt in order to maintain solvency of the federal government.    (WTP #186d)

2.74. Admit that an increase in income tax revenues would require a larger percentage of the wage (labor) income of average Americans to be extracted as income tax, because more than half of federal income tax revenues derive from personal income taxes rather than corporate income taxes.   (WTP #186e)

2.75.  Admit that there is an incentive for politicians to buy votes with borrowed money that will be paid off by unborn children at interest.   (WTP #186f)

2.76.  Admit that requiring unborn children of tomorrow paying off extravagances of today at interest amounts to taxation without representation, which was the very reason our country rebelled from Great Britain to become an independent nation.   (WTP #186g)

2.77.  Admit that Thomas Jefferson, one of our founding fathers and author of our Declaration of Independence, said the following
(refer to http://famguardian.org/Subjects/Politics/ThomasJefferson/jeffcont.htm or http://etext.lib.virginia.edu/jefferson/quotations/jeffcont.htm for original source of quotes)   (WTP #186h)

"I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." --Thomas Jefferson to John Taylor, 1816. ME 15:23  Click here for original quote

"Funding I consider as limited, rightfully, to a redemption of the debt within the lives of a majority of the generation contracting it; every generation coming equally, by the laws of the Creator of the world, to the free possession of the earth He made for their subsistence, unencumbered by their predecessors, who, like them, were but tenants for life." --Thomas Jefferson to John Taylor, 1816. ME 15:18.  Click here for original quote

"[The natural right to be free of the debts of a previous generation is] a salutary curb on the spirit of war and indebtment, which, since the modern theory of the perpetuation of debt, has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating." --Thomas Jefferson to John Wayles Eppes, 1813. ME 13:272.  Click here for original quote

"We believe--or we act as if we believed--that although an individual father cannot alienate the labor of his son, the aggregate body of fathers may alienate the labor of all their sons, of their posterity, in the aggregate, and oblige them to pay for all the enterprises, just or unjust, profitable or ruinous, into which our vices, our passions or our personal interests may lead us. But I trust that this proposition needs only to be looked at by an American to be seen in its true point of view, and that we shall all consider ourselves unauthorized to saddle posterity with our debts, and morally bound to pay them ourselves; and consequently within what may be deemed the period of a generation, or the life of the majority." --Thomas Jefferson to John Wayles Eppes, 1813. ME 13:357.  Click here for original quote

"It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world." --Thomas Jefferson to A. L. C. Destutt de Tracy, 1820. FE 10:175.  Click here for original quote

To preserve [the] independence [of the people,] we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, give the earnings of fifteen of these to the government for their debts and daily expenses, and the sixteenth being insufficient to afford us bread, we must live, as they now do, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers." --Thomas Jefferson to Samuel Kercheval, 1816. ME 15:39.  Click here for original quote

2.78.  Admit that with an unlimited source of credit in the Federal Reserve, and an ability to claim any percentage of the income of the Average American in income taxes, the growth of the federal government and the smothering and complete extinguishment of liberty is inevitable given the vagaries and weaknesses of the humankind who occupy public office.   (WTP #186i)

2.79. Admit that "peonage" is a form of involuntary servitude prohibited by the Thirteenth Amendment to the Constitution of the United States.   (WTP #187)

2.80. Admit that the U.S. Congress abolished peonage in 1867.   (WTP #188)

2.81. Admit that holding or returning any person to a condition of peonage is a crime under 18 U.S.C. § 1581.   (WTP #189)

2.82. Admit that involuntary servitude means a condition of servitude in which the victim is forced to work for another by use or threat of physical restraint or injury, or by the use or threat of coercion through law or legal process.   (WTP #190)

2.83. Admit that if an American stops turning over the fruits of his or her labor to the federal government in the form of income tax payments, he suffers under the risk of possible criminal prosecution and incarceration.   (See Schiff Affidavit or Form 1040 Instruction Booklet) (WTP #191)