So. Pacific v Lowe, 247 US 330, (1918)
“...’income’, as used in the statute should be given a meaning so as [not] to include everything that comes in. The true function of the words, ‘gains’ and ‘profits’ is to limit the meaning of the word ‘income’....We must reject... the broad contention submitted in behalf of the government that all receipts— everything that comes in— are income...”
So, did you miss the all-important fact that Southern Pacific v Lowe was a case about dividends paid to one corporation by another, wholly-owned corporation under the corporation income tax act of 1913?
Do you understand that it has ABSOLUTELY NOTHING to do with the federal taxation of individual income? Not then. Not now. Not ever.
Did you miss the simple fact that your “quote” is a total fake and fabrication? It is of course, straight from Hendrickson because a convicted federal tax felon is a go-to kind of guy when it comes to tax advice.
Notice how he leaves out any mention that the case deals with corporate income tax law (at the time) and not the taxation of individuals?
Go read the decision and try and find your “quoted” words in the text. Can’t be done, they ain’t there.
http://caselaw.findlaw.com/us-supreme-court/247/330.html
Now, I don’t know if Hendrickson concocted that pile of junk you call a quote or if it had been floating around the internet for years and he just decided to use it to fool himself and others.
Doesn’t matter, neither he nor you have any idea of what you are talking about.
Speaking of the legal definition of income, here ya go:
26 U.S. Code § 61 - Gross income defined
(a) General definition. Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1) Compensation for services, including fees, commissions, fringe benefits, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
(4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (...)
And the list goes on.
It’s really very simple — if it isn’t later specifically exempted in the IRC, it’s income and that’s that. And as has said every single federal court that has ever ruled on it.
Nowhere in the entire IRC will you find a word about federal privilege or any of the other nonsense Hendrickson foists on the unsuspecting public.
The only mentions of him and his goofy theories by federal courts are to dismiss his nonsense as frivolous.
See, the only thing that various tax protester types like without exception is the self-serving outcome — no tax due! Until you get caught.