MSNBC article on tax cheats

Colonel_Buck
Scalawag
Scalawag
Posts: 58
Joined: Sun Jan 22, 2006 3:13 pm
Location: West Hills, CA

MSNBC article on tax cheats

Post by Colonel_Buck »

Al Capone

This infamous mobster's name has been associated with a variety of illegal acts including bootlegging, prostitution and murder. However, only one illegal act landed Al Capone in prison - income tax evasion.

Under Capone's watch as boss of the Chicago Outfit, the organization generated estimated revenues of $100 million per year.

Due to the removal of the word "lawful" from the 16th Amendment in 1916, even income earned via illegal activities is subject to tax.

This put criminals like Capone in a bind because they could either admit breaking the law and file proper taxes (essentially confessing), or cheat on taxes and risk getting jailed for evasion.

In addition to paying fines and the outstanding tax bill, Capone was sentenced to 11 years in prison.


Does anybody know what they are talking about the word "lawful" being removed from the 16th amendment?
What kind of bomb was it? The exploding kind.
How can a blind man be a lookout? How can an idiot be a policeman?
But that's a priceless Steinway. Not any more.
Famspear
Knight Templar of the Sacred Tax
Posts: 7668
Joined: Sat May 19, 2007 12:59 pm
Location: Texas

Re: MSNBC article on tax cheats

Post by Famspear »

Colonel_Buck wrote:
Al Capone

This infamous mobster's name has been associated with a variety of illegal acts including bootlegging, prostitution and murder. However, only one illegal act landed Al Capone in prison - income tax evasion.

Under Capone's watch as boss of the Chicago Outfit, the organization generated estimated revenues of $100 million per year.

Due to the removal of the word "lawful" from the 16th Amendment in 1916, even income earned via illegal activities is subject to tax.

This put criminals like Capone in a bind because they could either admit breaking the law and file proper taxes (essentially confessing), or cheat on taxes and risk getting jailed for evasion.

In addition to paying fines and the outstanding tax bill, Capone was sentenced to 11 years in prison.


Does anybody know what they are talking about the word "lawful" being removed from the 16th amendment?
With respect to the history behind the Amendment, I don't recall whether that is accurate or not.

I do know that Justice Whittaker, in his dissent with respect to the U.S. Supreme Court decision in James v. United States, 366 U.S. 213 (1961), mentioned that "Congress, in its 1916 revision of the Income Tax Act, omitted the word 'lawful' in describing businesses whose income was to be taxed."
"My greatest fear is that the audience will beat me to the punch line." -- David Mamet
Cpt Banjo
Fretful leader of the Quat Quartet
Posts: 781
Joined: Mon Nov 08, 2004 7:56 pm
Location: Usually between the first and twelfth frets

Re: MSNBC article on tax cheats

Post by Cpt Banjo »

The Court below was right in holding that the defendant's gains [Note: the gains were derived from violations of the National Prohibition Act] were subject to the tax. By section 213(a), being Comp. St. 6336 1/8 ff, gross income includes 'gains, profits, and income derived from ... the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever.' These words are also those of the earlier Act of October 3, 1913, c. 16, section II, B (38 Stat. 114, 167), except that the word 'lawful' is omitted before 'business' in the passage just quoted. By section 600 (42 Stat. 285 (Comp. St. 5986e)), and by another Act approved on the same day Congress applied other tax laws to this forbidden traffic. Act Nov. 23, 1921, c. 134, 5 (42 Stat. 222, 223 (Comp. St. 10138 4/5 c-10138 1/5 e)). United States v. One Ford Coupe , 272 U.S. 321, 327 , 47 S. Ct. 154, 47 A. L. R. 1025;1 United States v. Stafoff, 260 U.S. 477, 480 , 43 S. Ct. 197. We see no reason to doubt the interpretation of the Act, or any reason why the fact that a business is unlawful should exempt it from paying the taxes that if lawful it would have to pay. U.S. v. Sullivan, 274 U.S. 259, 263 (1927)
It appears the statute was changed, not the Amendment.
"Run get the pitcher, get the baby some beer." Rev. Gary Davis
Judge Roy Bean
Judge for the District of Quatloosia
Judge for the District of Quatloosia
Posts: 3704
Joined: Tue May 17, 2005 6:04 pm
Location: West of the Pecos

Re: MSNBC article on tax cheats

Post by Judge Roy Bean »

Colonel_Buck wrote:...

Due to the removal of the word "lawful" from the 16th Amendment in 1916, even income earned via illegal activities is subject to tax.

Does anybody know what they are talking about the word "lawful" being removed from the 16th amendment?
I don't believe there was a version of the amendment that had the word "lawful" in it.
The Honorable Judge Roy Bean
The world is a car and you're a crash-test dummy.
The Devil Makes Three
notorial dissent
A Balthazar of Quatloosian Truth
Posts: 13806
Joined: Mon Jul 04, 2005 7:17 pm

Re: MSNBC article on tax cheats

Post by notorial dissent »

The Amendment just refers to income and is neutral upon from whence it came.

Congress may have fallen into the "lawful" trap, but quickly extricated itself and it now applies to ALL income, regardless of source.
The fact that you sincerely and wholeheartedly believe that the “Law of Gravity” is unconstitutional and a violation of your sovereign rights, does not absolve you of adherence to it.
Famspear
Knight Templar of the Sacred Tax
Posts: 7668
Joined: Sat May 19, 2007 12:59 pm
Location: Texas

Re: MSNBC article on tax cheats

Post by Famspear »

In re-reading my own post and others in this thread, I just realized that I did not read the quote carefully.

Clarification: The word "lawful" was not "removed" from the Sixteenth Amendment in 1916 or in any other year. I rushed through the reading so quickly I assumed that the reference to "removal" of the word was a reference to something that might have happened in the process of preparing the initial drafts of the proposed Amendment -- prior to the time Congress sent the Amendment to the states for consideration. As the Amendment was ratified in 1913, it could not have had any word "removed" from it during 1916 -- or in any other year -- without a further amendment. And that has never happened.
"My greatest fear is that the audience will beat me to the punch line." -- David Mamet
User avatar
The Observer
Further Moderator
Posts: 7502
Joined: Thu Feb 06, 2003 11:48 pm
Location: Virgin Islands Gunsmith

Re: MSNBC article on tax cheats

Post by The Observer »

Judge Roy Bean wrote:I don't believe there was a version of the amendment that had the word "lawful" in it.
Of course there was - that was the famous hidden 16th amendment that we had to jerk out of Congress before they approved it and substitute with the lluminati version of the 16th amendment.
"I could be dead wrong on this" - Irwin Schiff

"Do you realize I may even be delusional with respect to my income tax beliefs? " - Irwin Schiff
User avatar
Pottapaug1938
Supreme Prophet (Junior Division)
Posts: 6107
Joined: Thu Apr 23, 2009 8:26 pm
Location: In the woods, with a Hudson Bay axe in my hands.

Re: MSNBC article on tax cheats

Post by Pottapaug1938 »

The Observer wrote:
Judge Roy Bean wrote:I don't believe there was a version of the amendment that had the word "lawful" in it.
Of course there was - that was the famous hidden 16th amendment that we had to jerk out of Congress before they approved it and substitute with the lluminati version of the 16th amendment.
Since the amendment was never validly ratified, it's all a moot question, anyway. Just ask Bill Benson :twisted: .... :roll:
"We've been attacked by the intelligent, educated segment of the culture." -- Pastor Ray Mummert, Dover, PA, during an attempt to introduce creationism -- er, "intelligent design", into the Dover Public Schools