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(the content of this thesis / monograph is an abridged study)

INCOME / WAGES

These writings are not intended to be a complete telling of these topics, but with a thought to brevity, it should allow for good learning.
Probably no topic or issue can stand alone without consideration for information from other topics and issues.  Therefore, for better understanding of terms and concepts used herein, other papers should be read in conjunction with this paper and others.

1 Popular mis-understanding and apathy beget a confusion of property, especially where labor is exchanged for wages.

2 Popular confusions deal with gross & net income and income & wages.  The average individual believes each means the other, but such is an oxymoron.

3 Income and wages, "compensation for labor", are not the same and differ widely.

Income:  The gain derived‚ from capital or labor‚ Income is not a gain accruing to capital or a growth in the value of the investment, but is a gain, a profit, something of exchangeable value, proceeding from the property, severered from the capital, however invested or employed, and coming in, being derived, that is received or drawn by the recipient for his separate use, benefit and disposal.   (Black's 5th)

Derived:  Received from specified source.  (Black's 5th)

4 Derived from is not the source itself.

5 In other words, ‚income is what remains after subtracting the investment.

GAIN:  Profit‚.  Difference between receipts and expenditures.  (Black's 5th)
6 Gain and profit are synonymous.
Wages:  Term should be broadly defined and includes not only periodic monetary earnings but all compensation for services rendered without regard to manner in which such compensation is computed.
Ware v Merrill Lynch, Pierce, Fenner & Smith, Inc., 24 Cal. App. 3d 35
7 The Supreme court has definitively explained labor and compensation for labor.
"The property which every man has is his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable.  The patrimony of the poor man lies in the strength and dexterity of his own hands, and to hinder his employing this strength and dexterity in what manner he thinks proper, ... without injury to his neighbor, is a plain violation of this most sacred property."
Butcher's Union Company v Crescent City, 111 U.S. 746

"There is a clear distinction between profit and wages or compensation for labor.  Compensation for labor ‚can not be regarded as a profit within the meaning of the law.  The word '‚profit‚, as ordinarily used, means the gain made upon any business or investment -- a different thing altogether from mere compensation for labor."
Oliver v Holstead, 86 S. E. Rep 859

8 Wages are compensation for labor, a natural property right, which cannot be Lawfully taxed.  Income is a profit or gain, a taxable privilege.

9 An individual may have wages, but not necessarily income.  Such can be very important to an individual, especially if that individual is to consider whether such is subject to taxation.
 

>>>> this is not legal advice.  if you want legal advice, get an attorney or accountant (for all the good it will do you)<<<<

April 1996
revised June 1998
revised January 2004

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