Income
The following is a summary of what the Supreme Court has ruled regarding “income”.
There are only two categories of taxation allowed by law in the Constitution - DIRECT (must be apportioned) and INDIRECT (must be uniform).
See: U.S. Constitution, Article 1, Section, 2 Section, 8 Section 9.
2. An Income tax cannot be classified as a direct tax; it therefore must be an indirect tax in the nature of an excise.
See:
Pollock v. Farmers' Loan and Trust
Brushaber v. Union Pacific RR Co.
3. Indirect taxes cannot be levied on personal or real property, wages or salary.
See: Flint v. Stone Tracy, Co.
4. Income itself is not the subject of the tax, but the tool used to determine the amount of tax due on taxable events.
See: Flint v. Stone Tracy, Co.
5. People not engaged in activities that are taxable for revenue purposes are nontaxpayers. They are not within the jurisdiction of Congress.
See: Long v. Rasmussen
The revenue laws are a code or system in regulation of tax assessment and collection. They relate to taxpayers, and not to nontaxpayers. The latter are without their scope. No procedure is prescribed for nontaxpayers, and no attempt is made to annul any of their rights and remedies in due course of law. With them Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws.