RIVERSIDE, Calif., Dec. 12, 2017 /PRNewswire/ -- The tax reform bills currently before Congress would be struck down by the courts as unconstitutional on multiple grounds if either, or a compromise, version is passed claims tax expert Nancy Robey.
Nancy Darlene Robey B.A. and Marvin Lee Robey are experts on Constitutional law, especially regarding tax law. They have spent 43 years and thousands of hours in law libraries analyzing how the tax laws work within the U. S. Constitution, relying on U. S. Supreme Court decisions.
Marvin Lee Robey has not paid income tax in 20 years, with the complete cooperation of the IRS. Marvin Lee Robey has decided to give his intimate knowledge of what the income tax is, and how it actually works. They have written the book "Axe The Taxes" to show that most Americans do not owe the income tax.
Taxing gifts has never been allowed under the U. S. Constitution. Therefore, both the House and Senate tax plans violate the U. S. Constitution by attempting to tax gifts. What parts of the tax reform bills are therefore likely to be struck down by the U. S. Supreme Court?
1. Endowment tax. The endowment itself cannot be taxed because it is a gift. See Doyle vs. Mitchell Brothers, 247 U. S. 330. Profits from the endowment being invested in stocks and bonds are taxable under Eisner vs. Macomber, 252 U. S. 189.
2. College employee dependent benefits. Traditionally, colleges give the spouses and children of college employees reduced or free tuition. Tuition benefits are gifts, and were never taxable income to begin with. This makes this part of the plan unconstitutional, and likely to be ruled against under Doyle vs. Mitchell Brothers, 247 U. S. 330.
3. Graduate student tuition. Graduate students are often given reduced or free tuition when they work for the college. Tuition reduction is a gift, and is not taxable income to anyone. Again, this is likely to be ruled against under Doyle vs. Mitchell Brothers, 247 U. S. 330.
4. Employer provided education assistance. But employers' providing education assistance is a gift, and is not taxable income. There is no provision in the U. S. Constitution to tax gifts, therefore this portion of the tax plan is unconstitutional. This is likely to be ruled against under Doyle vs. Mitchell Brothers, 247 U. S. 330.
It is commonly believed that the 16th Amendment to the U. S. Constitution gives Congress and the IRS unlimited taxing power:
But the U. S. Supreme Court has ruled that the 16th Amendment changed nothing:
"The 16th Amendment conferred no new power of taxation but simply prohibited the income tax from being taken out of the category of indirect taxation to which it inherently belonged." Stanton vs. Baltic Mining Co., 240 U. S. 103.
"The 16th Amendment does not extend the power of taxation to new or excepted subjects…" Peck v Lowe, 247 U.S. 165.
Here is what the U. S. Supreme Court has to say about Congress' overstepping their boundaries: "We must reject…the broad contention submitted in behalf of the Government that all receipts, everything that comes in – are income within the proper definition of the term 'gross income…" Doyle vs. Mitchell Brothers, 247 U. S. 330 (1918). This decision was five years after the 16th Amendment was passed.
So what is taxable income as defined by the U. S. Supreme Court?
Income is profit from capital investment, the money from the sale of stocks and bonds that is above what was paid for those stocks and bonds. Eisner vs. Macomber, 252 U. S. 189.
SOURCE Nancy Robey