Frank R. Brushaber Precedent for an American “Nonresident ...€¦ · 1 Frank R. Brushaber 2...
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Frank R. Brushaber 1 Precedent for an American “Nonresident Alien” Tax Status 2 3 4 The following evidence demonstrates that a United States citizen under the Fourteenth Amendment who is 5 domiciled and resident within the boundaries of one of the fifty states is a “nonresident alien” for the purposes of the 6 federal income tax. Treasury Decision 2313 has not been repealed and is still in legal effect. 7 8 Frank Royal Brushaber was born September 6, 1884, in Brooklyn, New York. Brushaber was the plaintiff in the 9 landmark Supreme Court tax case of Brushaber v. Union Pacific Railroad Company, 240 U.S. 1 (1916). Brushaber, 10 a cashier for the Wall Street firm of Davies, Thomas & Co. protested the withholding and reporting of income 11 accrued from his stock investment in the Union Pacific Railroad Company—a “domestic” “United States” 12 corporation. 13 14 In Brushaber’s bill of complaint, he specifically identified himself as “…a citizen of the State of New York and a 15 resident of the Borough of Brooklyn, in the City of New York”—establishing as a matter of fact his domicile and 16 residence to be without the “United States” as defined for the purposes of the federal income tax. However, 17 Brushaber wrongly identified the Union Pacific Railroad Company as a corporation and citizen of the State of Utah. 18 In fact, the Union Pacific Railroad Company was incorporated in the District of Columbia under the Pacific Railway 19 Act of 1862 (12 Stat. 489)—an “Act of Congress.” At the time of the Union Pacific Railroad Company’s 20 incorporation, Utah had not yet been admitted into statehood, but was a federal territory under the exclusive 21 jurisdiction of the United States government pursuant to art. IV, § 3, cl. 2 of the Constitution. The Brushaber case 22 was ruled upon in 1916, two decades after Utah had been admitted into statehood, which occurred in 1896. 23 24 Because the Union Pacific Railroad Company was a “domestic” “United States” corporation and not a “foreign” 25 corporation created by and under the laws of the State of Utah, the income accruing to Brushaber’s stock investment 26 was indeed “United States” sourced, and subject to withholding and taxation under the federal income tax. Had the 27 Union Pacific Railroad Company been a corporation and citizen of the State of Utah as alleged in Brushaber’s bill of 28 complaint, the proceeds of the stock investment would not have been “United States” sourced within the meaning of 29 the act of 1913, and would have been exclusively outside of the Federal government’s taxing power unless taxed 30 through the process of apportionment under art. I, § 9, cl. 4 of the Constitution, as Brushaber was domiciled and 31 resident without the “United States” so defined in the act of 1913 and not within. 32 33 The most noteworthy item in the wake of the Brushaber v. Union Pacific Railroad case was the ensuing Treasury 34 Decision 2313, which was issued just eight weeks following the Brushaber ruling. In T.D. 2313, the Commissioner 35 of Internal Revenue, W.H. Osborn, and Acting Secretary of the Treasury, Byron R. Newton declared, in an effort to 36 clarify the Brushaber ruling, that “income accruing to nonresident aliens in the form of interest from bonds and 37 dividends on the stock of domestic corporations is subject to the income tax imposed by the act of October 3, 1913. ” 38 39 The circumstances surrounding the aforementioned case and subsequent Treasury Decision present an interesting 40 question for the unsophisticated or casual observer: 41 42 Question: If Brushaber was born in Brooklyn, New York, and a citizen of the United States under the Fourteenth 43 Amendment, why was he considered a “nonresident alien” for the purposes of the federal income tax? 44 45 Answer: The United States of America is organized under the principles of federalism—not nationalism. Although 46 politically domestic, the State of New York is civilly foreign to the federally domestic geographical region 47 comprising the District of Columbia, Federal Territory, and possessions. This geographical division of the United 48 States of America is defined as the “United States” in the Internal Revenue Code—a geographical circumscription 49 establishing where an “Act of Congress” is locally applicable and thus “domestic” for tax purposes . 50 51 52 53 54 55
Transcript of Frank R. Brushaber Precedent for an American “Nonresident ...€¦ · 1 Frank R. Brushaber 2...
Frank R. Brushaber 1
Precedent for an American “Nonresident Alien” Tax Status 2 3 4 The following evidence demonstrates that a United States citizen under the Fourteenth Amendment who is 5 domiciled and resident within the boundaries of one of the fifty states is a “nonresident alien” for the purposes of the 6 federal income tax. Treasury Decision 2313 has not been repealed and is still in legal effect. 7 8 Frank Royal Brushaber was born September 6, 1884, in Brooklyn, New York. Brushaber was the plaintiff in the 9 landmark Supreme Court tax case of Brushaber v. Union Pacific Railroad Company, 240 U.S. 1 (1916). Brushaber, 10 a cashier for the Wall Street firm of Davies, Thomas & Co. protested the withholding and reporting of income 11 accrued from his stock investment in the Union Pacific Railroad Company—a “domestic” “United States” 12 corporation. 13 14 In Brushaber’s bill of complaint, he specifically identified himself as “…a citizen of the State of New York and a 15 resident of the Borough of Brooklyn, in the City of New York”—establishing as a matter of fact his domicile and 16 residence to be without the “United States” as defined for the purposes of the federal income tax. However, 17 Brushaber wrongly identified the Union Pacific Railroad Company as a corporation and citizen of the State of Utah. 18 In fact, the Union Pacific Railroad Company was incorporated in the District of Columbia under the Pacific Railway 19 Act of 1862 (12 Stat. 489)—an “Act of Congress.” At the time of the Union Pacific Railroad Company’s 20 incorporation, Utah had not yet been admitted into statehood, but was a federal territory under the exclusive 21 jurisdiction of the United States government pursuant to art. IV, § 3, cl. 2 of the Constitution. The Brushaber case 22 was ruled upon in 1916, two decades after Utah had been admitted into statehood, which occurred in 1896. 23 24 Because the Union Pacific Railroad Company was a “domestic” “United States” corporation and not a “foreign” 25 corporation created by and under the laws of the State of Utah, the income accruing to Brushaber’s stock investment 26 was indeed “United States” sourced, and subject to withholding and taxation under the federal income tax. Had the 27 Union Pacific Railroad Company been a corporation and citizen of the State of Utah as alleged in Brushaber’s bill of 28 complaint, the proceeds of the stock investment would not have been “United States” sourced within the meaning of 29 the act of 1913, and would have been exclusively outside of the Federal government’s taxing power unless taxed 30 through the process of apportionment under art. I, § 9, cl. 4 of the Constitution, as Brushaber was domiciled and 31 resident without the “United States” so defined in the act of 1913 and not within. 32 33 The most noteworthy item in the wake of the Brushaber v. Union Pacific Railroad case was the ensuing Treasury 34 Decision 2313, which was issued just eight weeks following the Brushaber ruling. In T.D. 2313, the Commissioner 35 of Internal Revenue, W.H. Osborn, and Acting Secretary of the Treasury, Byron R. Newton declared, in an effort to 36 clarify the Brushaber ruling, that “income accruing to nonresident aliens in the form of interest from bonds and 37 dividends on the stock of domestic corporations is subject to the income tax imposed by the act of October 3, 1913.” 38 39 The circumstances surrounding the aforementioned case and subsequent Treasury Decision present an interesting 40 question for the unsophisticated or casual observer: 41 42 Question: If Brushaber was born in Brooklyn, New York, and a citizen of the United States under the Fourteenth 43 Amendment, why was he considered a “nonresident alien” for the purposes of the federal income tax? 44 45 Answer: The United States of America is organized under the principles of federalism—not nationalism. Although 46 politically domestic, the State of New York is civilly foreign to the federally domestic geographical region 47 comprising the District of Columbia, Federal Territory, and possessions. This geographical division of the United 48 States of America is defined as the “United States” in the Internal Revenue Code—a geographical circumscription 49 establishing where an “Act of Congress” is locally applicable and thus “domestic” for tax purposes. 50 51 52 53 54 55
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Supporting Evidence 1 2 3 -- Copy of 1880 New York Census Record Indicating Brushaber’s Parents’ birthplace as New York, U.S.A. 4
-- Copy of Brushaber’s Birth and Baptism Record from the Zion German Evangelical Lutheran Church in Brooklyn 5
-- Copy of 1905 New York Census Record Indicating Brushaber’s political citizenship as “United States” 6
-- Copy of Brushaber’s 1918 Draft Registration Card Indicating a “Native Born” “U.S. CITIZEN” political status 7
-- Copy of Brushaber’s Certificate and Record of Marriage Indicating a birthplace of Brooklyn 8
-- Copy of 1920 and 1930 Federal Census Records Indicating Brushaber’s birthplace as New York 9
-- Copy of Brushaber’s Certificate of Death Indicating a birthplace of Brooklyn 10
-- Copy of the Opening Page of the “Act” establishing the Union Pacific Railroad as a “domestic” corporation 11
-- Copy of the Final Page of the “Act” establishing the Union Pacific Railroad as a “domestic” corporation 12
-- Copy of the Opening Page of Brushaber’s Petition to the U.S. District Court – Southern District of New York 13
-- Copy of the Opening Page of Treasury Decision 2313, referring to Brushaber as a “nonresident alien” 14
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Copy of 1880 New York Census Record Indicating 1
Frank R. Brushaber’s Parents’ Place of Birth as New York 2
and Residence as 278 Quincy Street, Brooklyn, New York 3
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Copy of Frank R. Brushaber’s Birth & Baptism Record 1
Zion German Evangelical Lutheran Church 2
125 Henry Street, Brooklyn Heights, New York, U.S.A. 3
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6 Frank Royal Brushaber. geb. (born) 6 Sept. 84 (1884). 7
v. (father) Henry Brushaber, (born in) New York. 8 m. (mother) Lucia Maria geb. (born - maiden name) Luke, (born in) New York. 9 flH. Nr. (Family House Number) 278 Quincy Street. p. (Paten – Godparents) Eduard W. Brushaber. 10 und seine Ehefrau (and his wife) Emma Louisa. 11
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Copy of 1905 New York Census Record Indicating 1
Frank R. Brushaber’s Citizenship as “United States” 2
and his Residence as 278 Quincy Street, Brooklyn, New York 3
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Copy of Frank R. Brushaber’s Draft Registration Card 1
Indicating Native Born “U.S. CITIZEN” Political Status 2
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NAME: Frank Royal Brushaber 5 PERMANENT HOME ADDRESS (domicile): 936 St. Marks Ave., Brooklyn, Kings, New York 6 Age by Years: 34 7 Date of Birth: Sept. 6, 1884 8 RACE: White “checked” 9 U.S. CITIZEN: Native Born “checked” 10 PRESENT OCCUPATION: Cashier 11 EMPLOYERS NAME: Davies, Thomas & Co. 12 PLACE OF EMPLOYMENT OR BUSINESS: 5 Nassau St., N.Y. City 13 NEAREST RELATIVE: Anna S. Brushaber, 936 St. Marks Ave., Brooklyn 14 DESCRIPTION OF REGISTRANT: 15 HEIGHT – Medium “checked” 16 BUILD – Medium “checked” 17 COLOR OF EYES – Blue 18 COLOR OF HAIR – Brown 19 Has person lost arm, leg, hand, eye, or is he obviously physically disqualified? “O.K. except-Hd Rupture” 20 (Probably refers to a “Herniated disc Rupture” in the back) 21
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Blank Copy of Draft Registration Card 1
Similar to that filled out by Frank R. Brushaber 2
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Copy of Frank R. Brushaber’s Marriage Certificate 1
Indicating a Birthplace of Brooklyn, New York 2
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Copy of 1920 & 1930 Federal Census Records Indicating 1
Frank R. Brushaber’s Birthplace as New York, U.S.A 2
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Copy of Frank R. Brushaber’s Death Certificate 1
Indicating a Birth Place of Brooklyn, New York 2
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Copy of the Opening Page of the “Act of Congress” 1
Establishing the Union Pacific Railroad Company 2
as a “domestic” “United States” Corporation 3
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5 12 Stat. 489 (1862) Created a “domestic” “United States” corporation called the Union Pacific Railroad. 6
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Copy of the Final Page of the “Act of Congress” 1
Establishing the Union Pacific Railroad Company 2
as a “domestic” “United States” Corporation 3
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Copy of Opening Page of Frank R. Brushaber’s Petition 1
to the U.S. District Court – Southern District of NewYork 2 3
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Brushaber identifies himself as a Citizen of the State of New York and a resident of the Borough of 5
Brooklyn. This establishes him as “nonresident” to the “United States” (geographically defined as D.C., 6
Federal Territory and possessions) for the purposes of the federal income tax. 7
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Copy of Opening Page of Treasury Decision 2313, 1
Referring to Frank R. Brushaber as a “Nonresident Alien” for the 2
Purposes of the Federal Income Tax 3
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5 Brushaber was a United States citizen under the Fourteenth Amendment, but a statutory “nonresident 6 alien” for the purposes of the federal income tax because he was domiciled and resident within the state 7 of New York—a foreign civil jurisdiction to that of the “domestic” “United States” defined in the act of 8
October 3, 1913. Tax status and nationality are mutually exclusive in the United States of America. 9
