The government does not define “income”. The IRS does not define “income”. But Thomas Jefferson did define “income”: 

“Income is the annual profit on capital.” – Treatise on Political Economy, 1826
What is profit?

          Profit is property gained by investment risk of one’s capital. This is a return on investment beyond compensation (which is an even trade). Wages, salaries and interest are compensation. Profit is also referred to as “gain”. The IRS term “earned income” is nonsense since all income is earned by the lending of one’s capital, and is therefore earned.

Compensation vs. Profit

       Compensation and profit are both property. Compensation is where you have an even trade of your human capital with one employer. An employer is a person or company of persons with whom you have an employment contract. The employer contracts with the public, not you. He uses your human capital to make a profit while compensating you.

       Profit is obtained when you act on your own to do business with the public. Each business transaction is a separate limited contract for service or merchandise. You determine the profit or gain in agreement with a separate customer rather than a set of your employer’s customers. You determine how much more than your compensation you are willing to work for.

       When you work for an employer you receive a certain amount of security in trade for your freedom. When you work for yourself you receive a certain amount of freedom in trade for your security.

       An unconstitutional government preys on both. It undermines your liberty while claiming to support it.


          Property is a right. It is a right to own it when you are born with it, when you inherit it, when you purchase it. Rights are not taxable. “Life, liberty and the right to pursue property” is the principle written by John Locke and paraphrased by Thomas Jefferson and the Continental Congress in 1776. They chose to reword it to “…pursuit of happiness” because in those times “happiness” was considered a substitute for “property” and “property” could be misconstrued as “slavery” which was not their intent.


          These three words are all you need to remember when seeking to determine if a “tax” is legitimate. Remember these are rights and rights are not taxable.


          Legitimate taxes are always indirect and not invasive or repressive.

          Taxtortion is extortion mislabeled as a tax. Extortion is always invasive and repressive. It takes threats and force to collect taxtortion. It has no place in a free country. Taxtortion comes in three main forms: income, property and estate. Taxable means take-able. Taking without permission is theft. Taxtortion is theft. Taxtortion is a crime not a tax.

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