He seems to be suffering from the delusion that, because some kind of income was once declared to be exempt from tax under the constitution or by statute, *his* income is also exempt from tax, without any need to connect his income to any constitutional or statutory exemption.
Larken Rose wrote:I would, however, like to pass on some comments from various U.S. Supreme Court justices and regulation-writers at the IRS and Treasury:
1) “It is elementary law that EVERY statute is to be read in the
light of the Constitution. HOWEVER BROAD AND GENERAL ITS LANGUAGE it cannot be interpreted as extending beyond those matters which it was within the constitutional power of the legislature to reach.” [McCullough v. Virginia, 172 U.S. 102 (1898)]
2) "It should be noted, too, that the court, speaking of the extent of the TAXING power, used these cautionary words (p. 541): There are, indeed, certain VIRTUAL LIMITATIONS, arising from the principles of the Constitution itself." [Bailey v. Drexel Furniture, 259 U.S. 20]
3) "And while [the federal income tax] cannot be applied to any income which Congress HAS NO POWER TO TAX [citations omitted], it is both nominally and actually a general tax." [William E. Peck & Co. v. Lowe, 247 U.S. 165 (1918)]
4) “‘From whatever source derived,’ as it is written in the Sixteenth Amendment, DOES NOT MEAN from whatever source derived.” [Wright v. United States, 302 U.S. 583 (1938) (dissenting opinion)]
5) "The tax imposed by chapter 1 is upon income. Neither income exempted by statute OR FUNDAMENTAL LAW, nor expenses incurred in connection therewith, other than interest, ENTER INTO THE COMPUTATION OF NET INCOME as defined in section 21." [26 CFR 39.21-1, Meaning of net income (1956)]
6) "Certain items of income specified in section 22(b) are exempt from tax and may be excluded from gross income. These items, however, are exempt only to the extent and in the amount specified. No OTHER items may be EXCLUDED from gross income EXCEPT (a) those items of income which are, UNDER THE CONSTITUTION, NOT TAXABLE BY THE FEDERAL GOVERNMENT;..." [26 CFR 39.22(b)-1, Exemptions; exclusions from gross income (1956)]
7) "Among the items entering into the computation of corporate earnings and profits for a particular period are all income exempted by statute, income NOT TAXABLE BY THE FEDERAL GOVERNMENT UNDER THE CONSTITUTION, as well as all items includible in gross income under SECTION 61 or corresponding provisions of prior revenue acts." [26 CFR 1.312-6(b)]
8) "To the extent that another section of the Code or of the regulations thereunder, provides specific treatment for any item of income, such OTHER provision shall apply NOTWITHSTANDING SECTION 61 and the regulations thereunder." [26 CFR 1.61-1]
9) "For purposes of this section, the gross income to which a specific deduction is definitely related is referred to as a 'CLASS OF GROSS INCOME' and may consist of one or more items (or subdivisions of these items) of gross income ENUMERATED IN SECTION 61, namely: (i) Compensation for services, including fees, commissions, and similar items; (ii) Gross income derived from business; (iii) Gains derived from dealings in property; (iv) Interest; (v) Rents; (vi) Royalties; (vii) Dividends;... [more items listed]." [26 CFR 1.861-8(a)(3)]
"See... paragraph (d)(2) of this section which provides that a CLASS OF GROSS INCOME may include EXCLUDED income." [26 CFR 1.861-8(b)(1)]