Making legal arguments against the income tax is fighting the bad guys on their turf. It is much more important to say "Taxes are immoral" than "Income taxes are illegal". After analyzing it, I conclude the legal status of the income tax is incredibly confusing and complicated. The legal arguments against the income tax are:
- The 16th amendment was never properly ratified.
- The income tax violates other provisions of the Constitution, such as the ban on involuntary servitude and the right against self incrimination.
- When the income tax was ratified, "income" meant dividends, rents, interest, capital gains, and corporate profits. In the early 20th century, "income" meant "passive income". Wages were not considered part of income. "Income" was redefined to include wages *AFTER* the income tax was ratified.
- Your employer is required to automatically report all income to the IRS and automatically withhold taxes. An employment agreement should be a private contract and none of the government's business. Unfortunately, all corporate employers follow this regulation. Management of large corporations receives massive government subsidies, so they won't rock the boat on the taxes that feed their profits. Small business owners aren't going to risk their business to fight the IRS.
Suppose I made an arrangement with my employer to be paid in cash off-the-books. If I deposit that cash in my bank account, it becomes a corporate profit for the FSK FSK corporation and therefore taxable.
This corporation with the same name as you, except in ALL CAPS, is your "Strawman corporation". It is uniquely identified via your Social Security Number, in case two slaves have the same name. The Strawman Corporation is created when you sell your child into a lifetime of slavery. A birth certificate is really a document signing away your child as government property, and the Social Security Number is the State assigning a unique tracking number to its property. The Strawman Corporation is destroyed when a death certificate is filed. The individual is the sole trustee and beneficiary of the property owned by the Strawman Corporation. The individual can be punished for "tax evasion", because that's fraudulently using your Strawman Corporation.
Using the "Strawman Corporation" trick, income taxes are justified because they're actually corporate profits for your Strawman Corporation. The Strawman Corporation is a loophole that works around the concept that "income is only dividends, rents, interest, capital gains, and corporate profits". Your W-2 wages really are corporate profits for your Strawman Corporation.
Of course, such legal arguments are irrelevant. The *MORAL* argument against income taxes is much more important than the legal argument.