-14-
Because the issues are purely legal, this case is ripe for
summary judgment. Tax protester arguments like the claim that
wages are not taxable income also suffice (as an alternative to
dismissal, and in the absence of better argument) to justify
summary judgment for respondent. Coleman v. Commissioner, 791
F.2d 68 (7th Cir. 1986) (wages not income), affg. an Order of
this Court; Beard v. Commissioner, 82 T.C. 766, 772-774 (1984)
(wages not income), affd. per curiam 793 F.2d 139 (6th Cir.
1986); Cornell v. Commissioner, T.C. Memo. 1983-370 (wages not
income). Even if wages are, in effect, an exchange of equal
value for value, they are nevertheless taxable income. Rowlee v.
Commissioner, 80 T.C. 1111, 1121-1122 (1983); Rice v.
Commissioner, T.C. Memo. 1982-129. And even if we apply section
1001 to determine petitioner's gain, his basis is defined under
sections 1011 and 1012 as his cost, not fair market value. Since
he paid nothing for his labor, his cost and thus his basis are
zero. Rice v. Commissioner, supra. Consequently, even under
section 1001, his taxable income from his labor is his total gain
reduced by nothing, i.e., his wages.
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