Steven J. and Jean L. Liddane - Page 15

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          *   *   *   *   *   *   *                                                   
                    Over $32,450 but not                                              
                    over $78,400 . . . . . . . .  $4,867.50, plus 28%                 
                                                 of the excess over                  
                                                 $32,450.                            
          Married individuals who file separate returns or no return suffer           
          tax liability at the higher rate of 31 percent on much the same             
          amount of taxable income under section 1(d).                                
               Section 61(a) defines “gross income” as “all income from               
          whatever source derived”, the formulation that Chief Justice                
          Warren said, on behalf of the Supreme Court, in Commissioner v.             
          Glenshaw Glass Co., 348 U.S. 426 (1955), and General Am.                    
          Investors Co. v. Commissioner, 348 U.S. 434 (1955), was all                 
          encompassing, and which specifically includes, in paragraph (1),            
          “Compensation for services”.  Section 62 defines the intermediate           
          term “adjusted gross income” minus certain defined deductions.              
          Section 63(b) defines “taxable income” for individuals who do not           
          itemize their deductions, as petitioners failed to do on their              
          return document (and rejected the opportunity that we afforded              
          them to rectify their omission), as meaning “adjusted gross                 
          income, minus-- (1) the standard deduction, and (2) the deduction           
          for personal exemptions provided in section 151.”  The standard             
          deduction for 1992 is defined by section 63(c) as $5,000 in the             
          case of a joint return, and the personal exemption amount for               
          1992 is $4,600 for two individuals.                                         






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Last modified: May 25, 2011