All this reminds me of arguments I’ve heard to the effect that Federal Income Tax is actually illegal. It may be technically true, who knows, but we can pretty much guarantee that nothing will ever come of it.
Those fraudulant arguments are very falsely derived from the Insular Cases. Anyone following those fraudulant promoters is so perpetuating a fraud and will go to jail. There was no federal income tax in American prior to 1913. But there were the import taxes and the customs revenues zones. These custom zones served as the US military law precedents of the conquest principle leading to the insular law doctrine of unincorporated territory.
That is the pattern of evolution of Taiwan status we have seen from the SFPT, Shanghai Communiques, and Taiwan Relations Act. If the pattern of foreign policy evolution for the WTO is derived from the SFPT, then there is a question of unincorporated territory and the civil rights of the interim status. Having a separate revenue authority is the insular case law basis of the US Virgin Islands for also being an IRS qualified “foreign country” for the Foreign Export Sales Corporations (FSC) under IRS regulations and GATT rules. It was just ruled unfair by the WTO. So don’t cry tax fraud unless you are from the European Union.
The question of the SFPT and unincorporated territory If not the case, then it is a moot point and I’ll withdraw argument.
Jeff. As someone who studied Public International Law but has now forgotten it all, I am interested in this issue and finding a decent textbook on the matter. I could get a UK university text, but I am interested in it from the US point of view, and would like to read recent US jurisprudence on PIL and Conflict Resolution. Could you recommend a text ? Is there anyything dealing specifically with Taiwan ?
[color=red]A new 150-page report circulating in the Legislative Yuan suggests that Taiwan is actually an Insular Area of the USA. The following excerpt from APPLICATION OF THE US CONSTITUTION IN INSULAR AREAS, November 1997, outlines some of the potential tax implications of this.[/color]
The Congress has authority to impose income taxes on the worldwide income of US citizens and corporations, including income from the insular areas. However, federal individual and corporate income taxes as such are not currently imposed in the insular areas.
Footnote: The Congress is vested with power “to lay and collect Taxes” under Article 1, Section 8, of the US Constitution. Hence, individuals in the insular areas may be subject to Federal Income tax liability if they have other USA source (i.e. fifty-state) income or foreign source (i.e. non insular area) income.