RE: His premise is wages aren’t taxable because a person’s labor is considered an expense to them, cites case history, and therefore a wash/not income.
So, why did Wesley Snipes go to jail?
The article linked, actually mentions that very thing.
This may have had something to do with it:
" The conspiracy charge against Snipes included allegations that he filed a false amended return, including a false tax refund claim of over US$4 million for the year 1996, and a false amended return, including a false tax refund claim of over US$7.3 million for the year 1997. "
Well it wasn't because he was black. He used a different defense which was bogus. I thought he was unfairly punished (as I do about most IRS scofflaws). Pay a fine, do some community work plus interest on back taxes . . maybe, but jail time? No.
From the article:
In 1969, the high court ruled: “Whatever may constitute income, therefore, must have the essential feature of gain to the recipient. This was true when the 16th amendment became effective. … If there is no gain, there is no income. … [Income] is not synonymous with receipts.” Read more at http://www.wnd.com/2013/06/businessman-irs-fears-prosecuting-me/#XxAzCPB1lOzwOFfB.99
In short, whether we wish to support this man or copy his behavior, we must admit he has a point.
If we taxed Sears on every dime they took in, then we would not be distinguishing between profit (income) and expense (receipts).
A household, no less than Sears corporation, is an enterprise that has significant expense. Technically, the "profit" is the amount left over that you have to put in your bank account as savings. Some households are poorly run, and that's why there are a tremendous number of bankruptcies. Some are well run, and wealth accumulates.
But, to pretend that housing, food, clothing, transportation, education, etc., are not EXPENSE is silly.