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- Apr 21, 2005
- Sythe Gold
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"The Doctrine of Constructive Receipt is a taxation principle that taxes income before that income is actually received. It says that that gross income under a taxpayer's control before it is actually received must be included by the taxpayer in gross income, unless the actual receipt is subject to significant constraints. Therefore according to this doctrine, even if the income is not actually received, the fact that the person could have had it if s/he had simply requested it, means that for all intents and tax purposes, that the person did have it." -- http://definitions.uslegal.com/c/constructive-receipt-doctrine/
In otherwords, you are liable to pay income tax on your labour (work performed) regardless of whether or not you actually receive money as a result.
This is directly analogous to master-slave relationship from the days of slavery; The labour of the slave is considered the property of the master. As such, any product or value arising from labour is also the property of the master regardless of the slave's compensation. It is at the master's discretion that the slave gets anything to live on for himself.
Why is this important? It differentiates taxation from serial robbery. Serial robbery is where you are repeatedly robbed of your property. But having no property, there is nothing to take. However under Constructive Receipt, you can incur a debt for labour expended whether or not you receive income by it. Or put in more simple terms: someone else directly owns your labour, and therefore you.
In otherwords, you are liable to pay income tax on your labour (work performed) regardless of whether or not you actually receive money as a result.
This is directly analogous to master-slave relationship from the days of slavery; The labour of the slave is considered the property of the master. As such, any product or value arising from labour is also the property of the master regardless of the slave's compensation. It is at the master's discretion that the slave gets anything to live on for himself.
Why is this important? It differentiates taxation from serial robbery. Serial robbery is where you are repeatedly robbed of your property. But having no property, there is nothing to take. However under Constructive Receipt, you can incur a debt for labour expended whether or not you receive income by it. Or put in more simple terms: someone else directly owns your labour, and therefore you.




































