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From: dave@utcsrgv.UUCP (Dave Sherman)
Newsgroups: net.taxes
Subject: Re: income taxes
Message-ID: <2716@utcsrgv.UUCP>
Date: Sun, 13-Nov-83 15:35:29 EST
Article-I.D.: utcsrgv.2716
Posted: Sun Nov 13 15:35:29 1983
Date-Received: Sun, 13-Nov-83 23:18:06 EST
References: <724@ihuxl.UUCP>
Organization: The Law Society of Upper Canada, Toronto
Lines: 49

>>>From: marchant@ihuxl.UUCP
>>>I would like to mention that as far as I know the courts have never given a
>>>ruling in the matter that income is not wages. Income was defined by the 
>>>courts as being gain from capital. I would like to say that I am not gaining
>>>anything by working for someone. I give a company part of my time and in turn
>>>gives me wages for this time. In my honest opinion I can't see how the 
>>>government can take something from me that I worked for unless I voluntaryly
>>>do so. Any comments.

Ahem. Pardon a Canadian stepping into this, but please read your Internal
Revenue Code (what? you don't have a copy handy? :-) before making such
statements.

Section 61(a) of the Code states:

Except as otherwise provided in this subtitle, gross income means all income
form whatever source derived, including (but not limited to) the following
items:
	(1) Compensation for services, including fees, commissions,
		and similar items;
	(2) Gross income derived from business;
	(3) Gains derived from dealings in property;
	(4) Interest;
	(5) Rents;
	(6) Royalties;
	(7) Dividends;
... etc. It goes up to number 15. But #1 clearly covers wages.

Furthermore, you are incorrect (or at least incomplete) in saying
that "income was defined by the courts as being gain from capital".
The leading case is Eisner v. Macomber, cited at 252 U.S. 189 (1920).
The United States Supreme Court declared (at p. 207):

	Income may be defined as the gain derived from capital,
	from labor, or from both combined, provided it be understood
	to include profit gained through a sale or conversion of
	capital assets.

Later court definitions extended this definition still further.


(By the way, I'm presently taking a course in U.S. tax law as part
of my LL.M., which is why I know a bit about your system.)


Dave Sherman
Toronto
-- 
 {allegra,cornell,decvax,ihnp4,linus,utzoo}!utcsrgv!dave