I am not a Tax Lawyer, Nor do I play Dan Evans on the internet.
I am not a Certified Public Accountant, Nor do I play Paul Thomas on the internet.
I am not an Enrolled Agent, Nor do I play Richard Macdonald on the internet.
Go look it up for yourself.

U.S. Federal Income Tax

Subjugation by taxation

The 1909 Tax Act

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        The main points of the 1909 Tax Act:

  • Every corporation;
  • Every joint stock company;
  • Every association;
  • Every insurance company
    • Organized by law (incorporated);
    • Organized (incorporated) for profit;
    • Having capital stock represented by shares;
    • Doing business within the boundaries of the United States;
      • Shall pay a special excise tax;
      • Based on its net income;
      • Excluding income already taxed by this law;
  • Net income is corporate gross income less deductions listed.

'Sec. 38. That every corporation, joint stock company, or association organized for profit and having a capital stock represented by shares, and every insurance company now or hereafter organized under the laws of the United States or of any state or territory of the United States, or under the acts of Congress applicable to Alaska or the District of Columbia, or now or hereafter organized under the laws of any foreign country, and engaged in business in any state or territory of the United States or in Alaska or in the District of Columbia, shall be subject to pay annually a special excise tax with respect to the carrying on or doing business by such corporation, joint stock company or association, or insurance company equivalent to one per centum upon the entire net income over and above five thousand dollars, received by it from all sources during such year, exclusive of amounts received by it as dividends upon stock of other corporations, joint stock companies or associations, or insurance companies subject to the tax hereby imposed; ...
Such net income shall be ascertained by deducting from the gross amount of the income of such corporation, joint Stock company or association, or insurance company, received within the year from all sources,  a bunch of deductions, blah blah.

  • A natural person is NOT included in the 1909 Tax Act. 
  • The 1909 Tax Act definition of income applies only to the corporate persons listed. 
  • The "income" being taxed by this Act is the "net" income of the listed corporate persons.
  • The "net" income is the (corporate) "profit" of the listed corporate persons.
  • A natural person does NOT have such (corporate) "profit" unless;
  • Such a natural person owned shares of stock and was paid dividends on such stock

         A dividend is a payout of corporate profit to the corporation's stock holders. Such a dividend would have already been taxed under the 1909 Act prior to distribution.

1954 IRC as amended:
Internal Revenue Code
Sec. 316. Dividend defined
(a) General rule

For purposes of this subtitle, the term "dividend" means any distribution of property made by a corporation to its shareholders -
(1) out of its earnings and profits accumulated after February 28, 1913, or
(2) out of its earnings and profits of the taxable year ...

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