The Taxing Statute Imposing S.S. Taxes

Ok people. You all have been arguing and not researching about the SS tax and what is it that makes one subject to pay the SS Tax and where is the statute. And you talk about benefits that you apply for. Well you are going to be shocked that you already applied for and got those benefits. Shocked? Well read on.

I, on the other hand, did some digging and here is what I got when I went to Title 42. Yup, you all forget Title 42 is where SS lies. The internet on the government web page, when I typed in “Social Security tax statute”, up came Title 42 Chapter 7 section 401. So I read that Section and it said See 1939 Code Statutes at Large Subchapter A, Chapter 9 of 1939 IRC. It so happens I have the complete Statutes at Large so I went there. Well it was changed to Subchapter B Chapter 9 as Subchapter A only goes to chapter 5. Probably a misprint on the web page of government. Now it states, reading further in Section 401 of Title 42 that the tax is defined in IRC section 1426 and chapter 21 (other than sections 3101(b) and 3111(b)) and the wages are defined by 3121 of the IRC. You all have been looking at definitions and they ain’t the taxing statute.

Now when I search for the parallel regs for the TAXING STATUTE it is 20 CFR 404. Everyone is way off base. It is not in Title 26 or Title 5 or Title 29. It is in Title 42 because that is the authorization by Congress to impose the tax and use the IRC as the medium to which it is carried out.

So, what does Chapter 9 of the 1939 Statute say?

Employment taxes. It is all in Section 1400, 1402 & 1402.

1402 is short and sweet when it states;

“For the purposes for the income tax imposed by chapter 1 or by any act of Congress in substitution therefore, the tax imposed by section 1400 shall not be allowed as a deduction to the taxpayer in computing his net income for the year in which such tax is deducted from his wages.”

So there you have the real truth as to just what is the taxing statute imposing the Social Security taxes. You cannot deduct SS taxes on the 1040 deduction form, can you?

Now the employers are taxed as an EXCISE tax and it is laid out in spades in Part II, Section 1410.

The Employee is taxed as an INCOME TAX in Subchapter B, Part 1, Section 1500 as well as in 1400. They lie in the NOTES below because there is no section 1432. The 1400 is for government employees only who are not carriers even though they are presumed to be excepted from the section. You will see below what I mean.

Here in section 1420 you will find that old nemesis “addition to tax” that you find on all 4304’s and letters and Notices of Liens and Levy. The addition is to a SS tax, NOT an individual income tax.

Now you won’t believe to whom the tax is applied. Here it is right from the Statutes At Large itself, under collections at section 1532. I am not quoting it all as it is too much typing it is the only pure definition of employer that is deficient in the 1400 sections.

SEC. 1532 DEFINITIONS.

As used in this subchapter.

(A) Employer. – The term "employer" means any carrier (as defined in subsection (h) of this section, and any company which is directly or indirectly owned or controlled by one or more carriers or under common control therewith, and which operates any equipment of facility (except trucking service, casual service, and the casual operation of equipment or facilities) in the connection with transportation or passengers or property by railroad . .

So now you know to whom the employee is that has a SS tax imposed. Yes, Commerce. Want more proof?

Part II Tax on employee representatives.
Section 1510

In addition to other taxes (that’s individual income tax people) there shall be levied, collected, and paid upon the income of each employee representative a tax equal to the following percentages …"

This section follows the definition and the tax imposed by section 1500 on the employee under Carrier section.

Now compare the very vague definition of employee in 1426 compared to the above definition of Employer? Why, you will not find “employer” defined in the 1400 section at all. You have to go to the 1500 section

Everyone says you put your application in for benefits. Not so. You already got that benefit for working for the Carriers described in the statutes at large. Yes, that is right and if you don’t believe me read the below notes where they refer to benefits as employment.

Now I am including only a portion from Title 42 Notes and as you can see it is all Social Security and the benefit is working for the carrier of the transportation company. It’s all for you to see so take a peek by running to your Federal Depository for the original 1939 Statutes at Large Vol. 53 Part 1 Internal Revenue Code. You will not find it on the Internet. You gotta work instead of griping and making conjecture.

Notes on Title 42, Section 401

SOURCE

(Aug. 14, 1935, ch. 531, title II, Sec. 201, 49 Stat. 622; Aug. 10, 1939, ch. 666, title II, Sec. 201, 53 Stat. 1362; Feb. 25, 1944, ch. 63, title IX, Sec. 902, 58 Stat. 93; Aug. 28, 1950, ch. 809, title I, Sec. 109(a), 64 Stat. 521; Aug. 1, 1956, ch. 836, title I, Sec. 103(e), 70 Stat. 819; Pub. L. 85-840, title II, Sec. 205(a), Aug. 28, 1958, 72 Stat. 1021; Pub. L. 86-346, title I, Sec. 104(2), Sept. 22, 1959, 73 Stat. 622; Pub. L. 86-778, title VII, Sec. 701(a)-(e), Sept. 13, 1960, 74 Stat. 992, 993; Pub. L. 89-97, title I, Sec. 108(a), title III, Sec. 305, 327, July 30, 1965, 79 Stat. 338, 370, 400; Pub. L. 90-248, title I, Sec. 110, 169, Jan. 2, 1968, 81 Stat. 837, 875; Pub. L. 91-172, title X, Sec. 1005, Dec. 30, 1969, 83 Stat. 741; Pub. L. 92-336, title II, Sec. 205, July 1, 1972, 86 Stat. 422; Pub. L. 92-603, title I, Sec. 132(a)-(c), 136, title III, Sec. 305(a), Oct. 30, 1972, 86 Stat. 1360, 1364, 1484; Pub. L. 93-233, Sec. 7, Dec. 31, 1973, 87 Stat. 955; Pub. L. 94-202, Sec. 8(d), Jan. 2, 1976, 89 Stat. 1137; Pub. L. 95-216, title I, Sec. 102(a), Dec. 20, 1977, 91 Stat. 1513; Pub. L. 96-265, title III, Sec. 310(a), title V, Sec. 505(a)(5), June 9, 1980, 94 Stat. 459, 474; Pub. L. 96-403, Sec. 1, Oct. 9, 1980, 94 Stat. 1709; Pub. L. 97-123, Sec. 1(a), Dec. 29, 1981, 95 Stat. 1659; Pub. L. 98-21, title I, Sec. 126, 141(a), 142(a)(1), (2)(A), (3), (4), 152(a), 154(a), title III, Sec. 341(a), Apr. 20, 1983, 97 Stat. 91, 98-100, 105, 107, 135; Pub. L. 98-369, div. B, title VI, Sec. 2661(a), 2663(a)(1), (j)(2)(A)(I), July 18, 1984, 98 Stat. 1156, 1160, 1170; Pub. L. 99-272, title IX, Sec. 9213(a), Apr. 7, 1986, 100 Stat.180; Pub. L. 100-360, title II, Sec. 212(c)(1), July 1, 1988, 102 Stat. 741; Pub. L. 100-647, title VIII, Sec. 8005(a), Nov. 10, 1988, 102 Stat. 3781; Pub. L. 101-234, title II, Sec. 202(a), Dec. 13, 1989, 103 Stat. 1981; Pub. L. 101-508, title V, Sec. 5106(c), 5115(a), title XIII, Sec. 13304, Nov. 5, 1990, 104 Stat. 1388-268, 1388-274, 1388-627; Pub. L. 103-296, title I, Sec. 107(b), title III, Sec. 301(a), (b), 321(a)(1), (c)(1)(A)(I), (B)(I), (C), Aug. 15, 1994, 108 Stat. 1478, 1517, 1535, 1537; Pub. L. 103-387, Sec. 3(a), (b), Oct. 22, 1994, 108 Stat. 4074, 4075; Pub. L. 104-121, title I, Sec. 103(a), Mar. 29, 1996, 110 Stat. 848; Pub. L. 105-277, div. J, title IV, Sec. 4005(b), Oct. 21, 1998, 112 Stat. 2681-911.) -REFTEXT-

REFERENCES IN TEXT

Subchapter A of chapter 9 of the Internal Revenue Code of 1939, referred to in subsec. (a)(1) to (3), was comprised of sections 1400 to 1432, and was repealed (subject to certain exceptions) by section 7851(a)(3) of the Internal Revenue Code of 1986. Sections 1426 and 1420(c)) of the Internal Revenue Code of 1939, referred to in subsec. (a)(3), were a part of subchapter A of chapter 9 of the 1939 Code. See above. Internal Revenue Code of 1954, referred to in subsecs. (a)(3), (4) and (b)(1)(A), (2)(A), redesignated Internal Revenue Code of 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095. Subchapter E of chapter 1 of the Internal Revenue Code of 1939, referred to in subsec. (a)(4), was comprised of sections 480 to 482, and was repealed (subject to certain exceptions) by section 7851(a)(1)(A) of the Internal Revenue Code of 1986. Section 481 of the Internal Revenue Code of 1939, referred to in subsec. (a)(4), was a part of subchapter E of chapter 1 of the 1939 Code. See above. For provision deeming a reference in other laws to a provision of the 1939 Code as a reference to the corresponding provision of the 1986 Code, see section 7852(b) if the 1986 Code. For table of comparisons of the 1939 Code to the 1986 Code, see table preceding section 1 of Title 26, Internal Revenue Code. The Internal Revenue Code of 1986 is classified generally to Title 26. Chapters 2 and 21 and subtitle F of the Internal Revenue Code of 1986, referred to in subsec. (g)(1)(A), (2), are classified to sections 1401 et seq., 3101 et seq., and 6001 et seq., respectively, of Title 26, Internal Revenue Code. Section 207 or 208 of the Social Security Independence and Program Improvements Act of 1994, referred to in subsec. (g)(1)(A), are sections 207 and 208 of Pub. L. 103-296. Section 208 of Pub. L. 103-296 is set out as a note under section 1382 of this title. Section 207 of Pub. L. 103-296 was set out as a note under section 1382 of this title prior to repeal by Pub. L. 104-193, title II, Sec. 212(b)(2), (d), Aug. 22, 1996, 110 Stat. 2193, 2194. Section 505(a) of the Social Security Disability Amendments of 1980, referred to in subsec. (k), is section 505(a) of Pub. L. 96-265, title V, June 9, 1980, 94 Stat. 473, which enacted subsec. (k) of this section and provisions set out as a note under section 1310 of this title. -MISC2-

AMENDMENTS

1998 - Subsec. (g)(1)(A). Pub. L. 105-277, Sec. 4005(b)(2), which directed the amendment of subsec. (g) by inserting ‘‘and the functions of the Social Security Administration in connection with the withholding of taxes from benefits, as described in section 407(c) of this title, pursuant to requests by persons entitled to such benefits or such persons’ representative payee’' before period at end of paragraph (1)(A), was executed by inserting this material after ‘‘the first sentence of this subparagraph’’ in provisions following cl. (ii) to reflect the probable intent of Congress. Subsec. (g)(1)(A)(ii). Pub. L. 105-277, Sec. 4005(b)(1), inserted before period at end ‘‘and the functions of the Social Security Administration in connection with the withholding of taxes from benefits, as described in section 407(c) of this title, pursuant to requests by persons entitled to such benefits or such persons’ representative payee’'. Subsec. (g)(1)(B)(I)(I). Pub. L. 105-277, Sec. 4005(b)(3), substituted ‘‘subparagraph (A)) and the functions of the Social Security Administration in connection with the withholding of taxes from benefits, as described in section 407(c) of this title, pursuant to requests by persons entitled to such benefits or such persons’ representative payee,’' for ‘‘subparagraph (A)),'’. Subsec. (g)(1)(C)(iii). Pub. L. 105-277, Sec. 4005(b)(4), inserted before period at end ‘‘and the functions of the Social Security Administration in connection with the withholding of taxes from benefits, as described in section 407(c) of this title, pursuant to requests by persons entitled to such benefits or such persons’ representative payee’’. Subsec. (g)(1)(D). Pub. L. 105-277, Sec. 4005(b)(5), inserted “and the functions of the”

Social Security Administration in connection with the withholding of taxes from benefits as described in section 407(c) of this title'' after ‘‘section 432 of this title’’. Subsec. (g)(4). Pub. L. 105-277, Sec. 4005(b)(6), inserted after first sentence ‘‘The Board of Trustees of such Trust Funds shall prescribe the method of determining the costs which should be borne by the general fund in the Treasury of carrying out the functions of the Social Security Administration in connection with the withholding of taxes from benefits, as described in section 407(c) of this title, pursuant to requests by persons entitled to such benefits or such persons’ representative payee.’' 1996 - Subsec. (g)(1)(A). Pub. L. 104-121 inserted at end ‘‘Of the amounts authorized to be made available out of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund under the preceding sentence, there are hereby authorized to be made available from either or both of such Trust Funds for continuing disability reviews - ‘'(I) for fiscal year 1996, $260,000,000; ‘'(ii) for fiscal year 1997, $360,000,000; ‘'(iii) for fiscal year 1998, $570,000,000; ‘'(iv) for fiscal year 1999, $720,000,000; ‘'(v) for fiscal year 2000, $720,000,000; ‘'(vi) for fiscal year 2001, $720,000,000; and ‘'(viii) for fiscal year 2002, $720,000,000."

Don’t you love getting raped by Congress and Roosevelt as the genesis of SS had not one blessed thing to do with you unless you were a RR or transportation carrier. Oh, there is more about government employees and the post office being subject to the SS, but I will leave that for you to find and when reading this remember what United States they are talking about because it is rather clear in the definitions of State. You will love ripping into this 1939 Statutes at Large book. The object is to get you to prove me wrong in what I have stated from the real taxing statute for Social Security, namely Title 42 section 401 with the 20 CFR 404.

Sincerely
The Informer