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The government’s power to tax is laid out in Article I of the Constitution, which states, “Congress shall have Power To lay and collect Taxes.” Refusing to pay income tax is called “tax evasion,” which is a felony crime. The Internal Revenue Code (IRC) section 7201 imposes a fine of up to $100,000 or 5 years in prison. From the inception of the United States until WWI, tariffs on imported goods were the main form of tax. Other taxes included property tax, poll tax (tax per person such as a fee for voting), and excise taxes (alcohol, tobacco, estate tax, etc.) Article I of the Constitution grants the government the power to collect all forms of tax provided that they are “necessary and proper” and in alignment with the will of the people through the democratic process. Income tax was collected during the Civil War to fund the war effort, and then ended. Then, in 1913, the 16th Amendment stated, “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived.” Congress defined “gross income” in IRC section 61 as including “compensation for services.” The Supreme Court ruled that “gross income” was any “accession to wealth” unless specifically excluded. Tax protesters have claimed that the 16th Amendment was never properly ratified. This argument has been looked into by numerous federal courts and rejected. Some argue that reporting personal tax information violates the 5th Amendment self-incrimination clause. However, the U.S. Supreme Court rejected this argument. Another is that taxation is a form of involuntary servitude which is prohibited by the 13th Amendment. However, the Congress defines “involuntary servitude” as being forced to work against one’s will. No one in the United States is forced to work. Many of the arguments above fail to acknowledge the power of the courts to interpret statutory law and to make new law. |
