Obamacare Uncharted and Dangerous Waters

While much debate is being aired regarding OBAMACARE, has it ever occurred to anyone that OBAMACARE cannot apply to the private sector within the outer limits of the States of the Union? Consider for a minute that since OBAMACARE enforcement is under the jurisdiction of the Internal Revenue Service (the President authorized the IRS to hire 16,000 new IRS agents to enforce OBAMACARE), it would be reasonable to assume that OBAMACARE is limited to jurisdiction tax of the Federal Government.

Since OBAMACARE is not an excise tax on an activity regulated by the Bureau of Alcohol, Tobacco and Firearms, it must be under the jurisdiction of Subtitle “A” of the Internal Revenue Code of 1986.

“Just the facts” reveal that any return authorized by Subtitle “A” is considered an individual income tax return, including the U.S. Individual Income Tax Return Form 1040. self-employment account taxed under IRC § 1401 is also reported on the US Individual Income Tax Return Form 1040, and both are listed in the individual account master file. It should be noted that True Tax Class 2 does not have information returns, and the Treasury Financial Manual states that Tax Class 2 is used to report estimated tax on the taxable trust. This calls into question, to whom does the Personal Income Tax apply?

The Supreme Court of the United States in 1941 answered this question. In District of Columbia v Murphy, 314 US 441 (1941), the Superior Court copied Senator Overton’s statements to the President of Senate members in which he affirms; Mr. President, I now draw your attention to the fact that personal income tax is imposed “only” on persons domiciled in the District of Columbia. The limited jurisdiction of Individual Income Tax under Subtitle “A” is further supported by the fact that the term “trade or business” which predicates “net earnings from self-employment” (IRC § 1401), is not defined nor in the Social Security Act or the Internal Revenue Code of 1954. However, the IRS has admitted that IRC § 162 contains part of the definition. To find the full definition, you’ll need to refer to 47 District of Columbia Code § 1801-4, which supports the conclusion that Personal Income Tax, Form 1040, MFT-30 Tax Class 2 only applies to domiciled in the District of Columbia.

The IRS maintains some fifty-seven different data files on each Social Security Number, one of which is the Individual Master File, MFT-30, which lists only two categories of employment; IRS and federal. Another data file, AMDISA, contains a “POD” (Post of Duty) code, which only applies to federal military and civilian employees, including vendors and independent contractors under contract to the Federal Government. While several of the approximately fifty different data files contain IRS and federal employment categories, none of the data files contain employment codes for individuals.

Since the District of Columbia is a National City belonging to the Nation, all persons under contract to the federal government are considered “domiciled” in the District of Columbia, and their place of service is called their “Duty Post.” This would suggest that the Individual Master File, MFT-30 (Master Tax File), Form 1040 US Individual Income Tax Return, only applies to the IRS and federal employees.

One might wonder why there are two categories of employees in the IMF (Individual Master File). – Are the IRS and the federal employee the same? The answer may be “NO” considering the definition of Internal Revenue Agent found in 27 CFR 26.11, it is: Internal Revenue Agent of the Internal Revenue Service of the Commonwealth of Puerto Rico.

While it’s common knowledge that the Sixteenth Amendment allows Congress to tax income from any derived source, and it sounds definitive to the average observer, even the IRS admits that there is taxable and nontaxable income. Reason would dictate that the Sixteenth Amendment must be based on a filing requirement. See United States Supreme Court case Central Illinois Public Serv. Co. v. United States, 435 US 21 (1978). Example: If the alleged taxpayer receives only gifts for the tax year, they would not have a filing requirement and the Sixteenth Amendment would be a moot point.

The fact is that Forms W-2, W-4, 1099 Misc. they are all True Tax Class five (5) estate and gift tax information reporting documents, which is subtitle “B”. Inheritance and gift tax has its own forms, specifically the 706 and 709. These two BMF (Business Master File) returns can be retrieved via an SSN (Social Security Number) which is noted in the Individual Master File as BODC-SB (commercial operating file). division code-small business) all other BMF forms can be retrieved via an EIN (employer identification number) and are listed in a business master file, not an individual master file.

What does this mean? If a payer reports an amount to the IRS on Forms W-2 or 1099 Misc., that payer reports that he has given the recipient a gift. The Secretary of the Treasury likewise accepts the reported amount as a gift under 42 USC § 3535, and because gifts are nontaxable income, gift tax under IRC § 2501 is imposed on the donor, making that the payer is responsible for the tax

While the above has been called “uncharted” and “dangerous” by some, this author agrees that the facts listed above are uncharted waters, the question is; Who is “dangerous to” this author, or the Federal Government and OBAMACARE?