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In the income tax freedom movement, some alluring teachers use the phrase ‘State National’ to distinguish citizens of the 50 states, who are united by and under the U.S. Constitution, from citizens of the District of Columbia (D.C.),who are under the sole jurisdiction of the U.S. government.
Who is liable to pay U.S. income taxes?
One of the reasons these freedom seekers use the phrase “State National” is to try to help explain who is and who is not liable to pay federal income tax. Freedom Law School has made simple and clear that only the following individuals are liable to pay individual income tax:
A. Citizens or residents of D.C.; and
B. Non-resident non-citizens (aliens) in respect to D.C. who have income “effectively connected” with “the performance of the functions of a [federal] public office”.
State citizens, being neither citizens nor residents of D.C., are Nonresident Alien Individuals with respect to D.C. According to the Internal Revenue Code (IRC), non-resident alien individuals are only liable to pay federal income tax to the extent that they receive federal government income!
State citizens vs. U.S. citizens for income tax purposes
The phrase “State National” is not a legal term, since it cannot be found in either state laws or the U.S. Code and is not widely accepted in legal contexts. As such, it is an arbitrarily chosen phrase, used exclusively in the freedom movement. The phrase ‘state citizen’ is shorter, clearer, and widely recognized.
Using the term “state citizen” rather than “State National” will help distinguish a state citizen from a “citizen (or resident) of the United States” (U.S. citizen) as defined by Title 26 (the IRC) for income tax and other revenue purposes only! An IRC ‘U.S. citizen’ is a D.C. citizen, not a state citizen.
However, note that state citizens are also U.S. citizens for immigration and nationality purposes, including eligibility for a passport. A state citizen is also a “citizen of the United States” as defined by Title 8 of the United States Code (USC), the Immigration and Nationality laws. Title 8 contains the laws that specify who is eligible for a U.S. passport.
Using the clearer phrase ‘state citizen’ also has the advantage of avoiding confusion between the layman’s term “State National” to describe the state citizens, and the legal term “nationals of the United States” (‘U.S. nationals’), which does include citizens of the 50 states, plus D.C. citizens and the citizens of nearly all U.S. island territories.
In Hooven & Allison Co. v. Evatt,324 U.S. 652, 671 (1945) (Attachment K), the US Supreme Court listed three possible “senses” of the term “United States” when used in law:
1. As one “sovereign” among many sovereigns in the “family of nations”(United States federal government compared with the governments of other countries like England, Egypt, and Japan). This is the Title 8 meaning of the legal term “United States” for immigration, nationality, and passport purposes, as in ‘U.S. national’ or ‘U.S. citizen’.
2. The “territory over which the sovereignty of the United States [federal government] extends”(such as the District of Columbia, U.S. island territories, and military bases).This is the Title 26 meaning of the legal term “United States”for income tax purposes, as in “citizen or resident of the United States.” For most of the Internal Revenue Code this means D.C., but for other purposes it means certain island territories.
3. The “collective name of the states which are united by and under the Constitution” (the sovereign 50 states, such as Georgia, Texas, and Idaho). This is the ordinary or dictionary meaning of the term ‘United States’ that usually comes to mind.
What Exactly is a ‘U.S. National’?
The legal term “national of the United States” (U.S. national) is defined in Title 8, the Immigration and Nationality Code (at 8 USC 1101(a)(22)), not in Title 26, the Internal Revenue Code.
The definition of “United States” in the Immigration and Nationality Code includes the 50 states, D.C., and the four U.S. island territories of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands. (See 8 USC 1101(a)(38).)
That definition does not include American Samoa and Swains Island, which are defined as “outlying possessions of the United States” in 8 USC 1101(a)(29). Swains Island is unpopulated and not worthy of further discussion.
8 USC 1401 defines those ‘U.S. nationals’ who are also “citizens of the United States” (‘U.S. citizens’)at birth as either having been born in the “United States” (which does not include American Samoa) or having been born of parents in various statuses of citizenship or residency in the “United States” (which, again, does not include American Samoa).
8 USC 1408 defines those ‘U.S. nationals’ at birth who are not ‘U.S. citizens’ at birth as either having been born in “an outlying possession of the United States” (American Samoa) or having been born of parents in various statuses of citizenship or residency in “an outlying possession of the United States” (American Samoa).
American Samoans are issued a different type of passport that indicates that the holder is not a U.S. citizen.
In summary, all American-born “citizens of the United States” according to Title 8, whether born in the 50 states, D.C., or one of the four U.S. island territories, are also “nationals of the United States” according to Title 8. American Samoans, however, although regarded to be ‘U.S. nationals’, are not ‘U.S. citizens’ for purposes of the Immigration and Nationality laws.
Clearing the Confusion
Since the layman’s phrase ‘State National’ is so similar to the legal term ‘U.S. national,’ which term has nothing to do with who is liable to pay federal income tax, using either term in the context of income tax freedom is distracting and confusing.
We also recommend reading our Petition to Congress on the Individual Income Tax issue, then sending a copy of the petition to your three members of Congress per our instructions.
If you become a student in the Restore Freedom Plan, we will handle the printing, certified mailing, and secure archiving of all three petitions for you, to all three of your Congress members, for a total of nine certified mailings.
We also offer many other free educational materials on our website. If you have an urgent income tax issue, see our “Get Help” web page.
