Direct Tax Is Legal When It Is Imposed On The Artificial Person

Because the U.S. does not have a Parliament, Congress is in charge of levying taxes, not the president. The enumerated powers, which can be exercised by Congress, are powers that are granted by the Constitution. The enumerated powers begin by stating: “To lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.” As the U.S. grew and as a requirement all states, they had to have an income so all of their residents could be provided the common good.

The arguments regarding federal progressive income tax has been represented to us through the United States Supreme Court, on the floors of congress, and in media. The revenue from taxes reached the objective of financing wars from the Civil War through World War II. At the same time deteriorating the economy with fewer dollars that could be used on imports, exports, and services (Henchman). Today, the United States deficit is $18,800,241,350,538.12 this is a grand total of 58,405.32 owed by every man, woman, and child (Brown). The legal illusion is presenting the question, is income tax legal? There are Americans today who believe income tax is not legal and stand by their beliefs in a movement that has cost many individuals considerably. I am interviewing such a person, his name is Bobby Ray and the history he presented to me was interesting, and has left me with more questions than answers.

“When it came to levying taxes the Articles stated Congress could request states to pay taxes. The Constitution states Congress has the right to levy taxes on individuals” (Feldmeth, Greg D. "U.S. History Resources" http://home.earthlink.net/~gfeldmeth/USHistory.html (31 March 1998). “A federal court the Articles

2. Before the Sixteenth Amendment to the Constitution was ratified, there was no valid Federal income tax on individuals.

The Articles of Confederation and the Constitution have many differences and a few similarities. The Constitution is stricter than the Articles of Confederation. The writers of the Articles of Confederation believed a utopian society as opposed to the writes of the Constitution who believed in a constitutional society. The Articles of the Confederation went by the motto of friendship. The writers of these documents had different views and beliefs so the documents have many differences.

The Revenue Act of 1862 is the first instance of income tax in America. It imposed a progressive income tax rate on Union citizens in order to raise money for the war effort against the Confederacy. http://money.howstuffworks.com/personal-finance/personal-income-taxes/income-tax.htmThe income tax was abolished in 1872, declared unconstitutional in 1895, and then passed as an amendment in 1913.http://www.archives.gov/publications/prologue/1986/winter/civil-war-tax-records.html Cite everything above! The 16th amendment states “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.” (YOU NEED

Congress taxed states based on their population, rather than an individual’s income. Progressives believed people with a higher incomes should pay a higher percent of taxes, so those with lower incomes were able to pay a lower amount of taxes. The Sixteenth Amendment was passed and gave Congress the power to create a personal income tax, based on how much a person makes rather than

The first proposal to impose an income tax on Americans occurred during the War of 1812. After two years of war, the federal government had accumulated a whopping $100 million of debt. To fund the war against Britain, the government doubled the rates of its major source of revenue, customs duties on imports, which obstructed trade and ended up yielding less revenue than the previous lower rates. At the height of the war, excise taxes were imposed on goods and commodities, housing, slaves and land were taxed. Finally when the war ended in 1816, these taxes were abolished. A high tariff was then passed to retire the accumulated war debt. Thankfully, the notion of an income tax was conquered (Young, 2004). However, the thought of the income tax reappeared as an idea to fund the Union armies in the war to prevent the secession of the Confederacy. The war was expensive, costing on average $1,750,000 a day. Struggling to meet these expenses, the Republican Congress borrowed heavily, doubled tariff rates, sold off public lands, imposed a maze of licensing fees, increased old excise tax rates and created new excise taxes. But none of this was enough to fund the debt (Young, 2004)..

• “The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several states within the time agreed upon by the United States in Congress assembled.” Articles of Confederation, Section VIII • Without a way to collect taxes , congress could not pay war debts or make a national budget. • “The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.” United States Constitution, Article I, Section VIII, Clause I • After levying taxes became a federal power

In 1861, Lincoln levied the first federal income tax by signing the Revenue Act. Needing cash with which to fund the Civil War, Abraham Lincoln and the Congress agreed to impose a 3 percent tax on annual incomes over $800.00. The wording of the Revenue Act was broadly written to define income as a monetary gain derived from any kind of property, or from any specialized trade, employment, or vocation carried on in the United States or elsewhere or from any source whatever. (A&E Television Networks, 2014)

The case would determine that the source of income would be used in order to classify whether the income was direct or indirect, and thus, allowing for the definition of what kind of income tax would be levied. Income taxes on wages were not to be apportioned by the population numbers, while those on interests, dividends and rent were. here are still some debates on whether the 16th Amendment is constitutional or not. America’s Founding Fathers who designed the constitution wanted the power between the federal government and the states to be balanced. Therefore, the national government was not allowed to collect taxes from individuals directly.

The Articles of Confederation was the first constitution of the United States. This constitution was used from 1781 until 1789. While writing this document, the founders still had a fear of central authority after the American Revolution. Because of this fear, our first constitution had many weaknesses. Our country was still very afraid that too much power given to the central government would turn into a similar situation like they faced with Great Britain.

The United States of America's 16th amendment says, "The Congress shall have the 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."

(A) Historical meaning- The 16th amendment means that Congress can impose and collect taxes on the income of citizens. The 16th amendment was influenced by a certain court case and also by the Income Tax Act of 1894. The Income Tax Act was a law that taxed interest, dividends, and rents of citizens. The Supreme Court stated that the Tax Act was a direct tax and was labeled unconstitutional.

The United States economy, as known by all, is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however, many people believe the system of Flat Tax, or Proportional Tax, should be the system that is used for taxing.