There is an old saying that Americans have one thing in common: They all believe they are better than average drivers. There is one other trait that many Americans share- they each think they understand the law, even when they do not. Nowhere is this more true than with tax protesters.
There are numerous fallacies that are held by them that simply drive me crazy. For example:
– Arguments that tax laws only apply to corporate officers and government employees. This belief stems from the following definition from the tax code:
“For purposes of this chapter, the term ‘employee’ includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term ‘employee’ also includes an officer of a corporation.” I.R.C. section 3401(c).
This erroneous belief stems from a misunderstanding of the word “includes.” To illustrate, if I said, “My gun collection includes a Colt Combat Commander and a Mossberg 500,” would that mean that my collection did not contain a Kimber Ultra Carry? Of course it wouldn’t. Using the word “includes” does not mean “only includes.”
Similarly, many protesters claim that when section 7701(a)(1) of the Internal Revenue Code states that:
“The term ‘person’ shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.”
That there are no people in the country EXCEPT corporations and trusts. Of course that is ridiculous.
There are tons of tax arguments, and the reasons they are wrong, that can be found here. Read them, and we can discuss them after you have an understanding of the principles involved.
I agree that progressive income taxes are wrong. I agree that taking my money to give to someone else in a socialistic redistribution of wealth is the equivalent of armed robbery. I disagree that the tax code has such ludicrous loopholes.