7/26/2019 Do You Pay Alcohol Tax on Milk

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Do you pay alcohol tax on milk?Do you pay cigarette tax on bacon?

No? Why not?

Because whats drunk and smoked from the grocery story is not subject to the same excise tax as troducts smoked and drunk from the convenience store. Then why do you pay an income tax on non-

xcise-taxable activities of common right, such as earning a living?

If your accountant, CPA, or payroll departments corporate counsel tells you that the income is a dirx, excused from apportionment by the 16thAmendment, then they are woefully misinformed1by the IRS

ffice of disinformation, and have completely failed to conduct due diligence.

The federal income tax in the United States is an indirect tax2. More specifically, it is an excise3taxertain privileged4activity, just like there is an excise tax on certain products such as alcohol, cigarettes, aasoline. That is why the federal income tax is entirely lawful and constitutional, as written. That is why 6thAmendment and the Internal Revenue Code harmonize with the US Constitutions prohibition5of direcxes that are not apportioned among the states based on population. In fact, the 16th Amendment does

ot deal with direct taxes6at all! Though the income tax is entirely lawful, it is often misapplied.

Would you stop the cashier at a grocery store from charging you fuel tax on a gallon of apple cider?hough its similar in color to gasoline, its entirely different altogether, and not subject to the fuel excise the same goes for milk and bacon and the tax on alcohol and cigarettes. Its no different from the commght to earn a living versus the privilege of working for or getting paid by the federal government, an actihich issubject to the excise tax.

Learn how to stop paying the excise (privilege) tax on your exercise of the common right to earn aving. Its not much harder than informing the cashier that your apple cider isnt gasoline, even if the stoerk, like a misinformed payroll clerk, slaps the wrong label on the product or earnings. Learn why onlybout 8% of the population, on average, paid the income tax from 1862 to 1942, during the years that thecome tax was active, and learn how & why that number jumped up to around 90% during a few years

ollowing 1943. Learn all this and much, much more at LostHorizons.com or by reading Cracking theodeThe Fascinating Truth about Taxation in America by researcher, analyst, and legal scholar Peter Eendrickson.

If [a] tax is a direct one, it shall be apportioned according to the census or enumeration. If it is a duty, impost, or excise, it shall be uniform throughout the United States. Together, these classesery form of tax appropriate to sovereignty. Whether the [income] tax is to be classified as an "excise" is in truth not of critical importance [for this analysis]. If not that, it is an "impost", or a "duty". A capitaher "direct" tax it certainly is not." --U.S. Supreme Court, Steward Machine Co. v. Collector of Internal Revenue, 301 U.S. 548 (1937) (Emphasis added; citations omitted.)

he Supreme Court, in a decision written by Chief Justice White, first noted that the Sixteenth Amendment d id not authorize any new type of tax, nor did it repeal or revoke the tax clauses of Article I of thenstitution, quoted above. Direct taxes were, notwithstanding the advent of the Sixteenth Amendment, still subject to the rule of apportionment" --Legislative Attorney of the American Law Division of the Libr

ngress Howard M. Zaritsky in his 1979 Report No. 80-19A, entitled 'Some Constitutional Questions Regarding the Federal Income Tax Laws'

In Brushaber v. Union Pacific Railr oad Co., Mr. C. J. White, upholding the income tax imposed by the Tariff Act of 1913, construed the Amendment as a declaration that an income tax is "indi rect," rather than as

exception to the rule that direct taxes must be apportioned." --Harvard Law Review, 29 Harv. L. Rev. 536 (1915-16)

[T]he amendment made it possible to bring investment income within the scope of the general income-tax law, but did not change the character of the tax. It is still fundamentally an excise or duty..." Tpartment legislative draftsman F. Morse Hubbard in Hearing Testimony in 1943

The terms excise tax and 'privilege tax are synonymous and the two are often used interchangeably. --American Airways, Inc. v. Wallace, 57 F.2d 877, 880 (M.D. Tenn. 1937)the requirement to pay [excise] taxes involves the exercise of privilege..." --United States Supreme Court, Flint v. Stone Tracy Co., 220 U.S. 107 (1911)

No capitation, or other direct, Tax shall be laid, unless in P roportion to the Census or Enumeration herein before directed to be taken." --United States Constitution, Article 1, Section 9direct Taxes shall be apportioned among the several Statesaccording to their respective NumbersUnited States Constitution, Article 1, Section 2

The Supreme Court, in a decision written by Chief Justice White, first noted that the Sixteenth Amendment did not authorize any new type of tax, nor did it repeal or revoke the tax clauses of Article I of thenstitution, quoted above. Direct taxes were, notwithstanding the advent of the Sixteenth Amendment, still subject to the rule of apportionment" --Legislative Attorney of the American Law Division of the Librngress Howard M. Zaritsky in his 1979 Report No. 80-19A, entitled 'Some Constitutional Questions Regarding the Federal Income Tax Laws'

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