"...which would essentially do away with the IRS and as long as we repeal the 16th amendment then that means we no longer have to pay income taxes."
The notion that the 16th amendment is what allows the government to tax income is a fallacy (albeit a common one). The actual effect of the 16th amendment is that, "Congress may impose the tax on income from any source without having to apportion the total dollar amount of tax collected from each state according to each state's population in relation to the total national population".
The fact of the matter is that the government had the power to tax *direct income* (wages) long before the 16th amendment. The 16th amendment essentially allowed them to declare (and hence make eligible for taxation) other sources of profit 'income'. For example, the gains you make on the stock market, or selling your investment properties.
A quotes on the matter (taken from Wikipedia for ease of use, though it has been recorded extensively):
In the Supreme Court case of Bowers v. Kerbaugh-Empire Co.,[25] Mr. Justice Butler stated: It was not the purpose or the effect of that amendment to bring any new subject within the taxing power. Congress already had the power to tax all incomes. But taxes on incomes from some sources had been held to be "direct taxes" within the meaning of the constitutional requirement as to apportionment. The Amendment relieved from that requirement and obliterated the distinction in that respect between taxes on income that are direct taxes and those that are not, and so put on the same basis all incomes "from whatever source derived". "Income" has been taken to mean the same thing as used in the Corporation Excise Tax of 1909 (36 Stat. 112), in the Sixteenth Amendment, and in the various revenue acts subsequently passed. After full consideration, this court declared that income may be defined as gain derived from capital, from labor, or from both combined, including profit gained through sale or conversion of capital.
***After full consideration, this court declared that income may be defined as gain derived from capital, from labor, or from both combined, including profit gained through sale or conversion of capital.***
http://en.wikipedia.org/wik...
Repealing the 16th amendment won't eliminate income tax, or force the dissolution of the IRS. Contrary to popular belief.
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