WHAT
IS EXEMPT?
The taxing authority of the federal government
extends ONLY to any activity over which it has authority to
exercise control, and any activity outside that authority is
“exempt” from taxation by the federal government.
U S. Supreme Court in McCulloch v.
Maryland, 17 U.S. 316 (1819)
The federal government is forbidden by the Constitution to regulate
or abridge the exercise of a fundamental right, those rights that are
included in the “right to life, liberty and the pursuit of
happiness.” Among those fundamental rights are your right to
freedom of speech, to worship as you choose and your right to
earn a living for yourself and your family through any lawful
occupation.
U. S. Supreme Court in Butchers' Union Co. v. Crescent City Co.,
111 U.S. 746,
4 S.Ct.
652 (1884); Yick Wo v. Hopkins, 118
U.S. 356 (1886); Truax v. Raich, 239 U.S. 33
(1915); Coppage v. Kansas, 236 U.S. 1; Adams v.
Tanner, 244
U.S. 590, 37
S.Ct. 662 (1917); Meyer v. Nebraska, 262
U.S. 390, 43
S.Ct. 625 (1923); and many other cases.
Because the power to tax is the power to destroy (Chief
Justice John Marshall in McCulloch v. Maryland, above), and
because the federal government does not have the right to restrict,
much less destroy, your fundamental rights, the exercise of a
fundamental right, such as your freedom of speech, your freedom of
religion and your freedom and right to earn a living through
any lawful occupation is EXEMPT from taxation by the federal
government!
U. S. Supreme Court in Grosjean v. American Press Co., 297
U.S. 233 (1936); and, again, in Murdock v.
Pennsylvania, 319
U.S. 105 63
S.Ct. 870 (1943); and, again, in Jones v.
Opelika, 316 U.S. 584, 56
S.Ct. 444 (1943); Follett v. McCormick, 321
U.S. 573 64
S.Ct. 717 (1944); and Harper v. Virginia Bd. Of
Elections, 383 U.S. 663, 86
S.Ct. 1079 (1966).
The law, as it is written, instructs us to EXCLUDE EXEMPT
INCOME (26 CFR § 1.861-8T), so even if part of your
personal earnings can be separated as profit “derived from
compensation for services”, that exempt income should be
excluded from your gross income.
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