Just had a gander at
http://www.losthorizons.com/tax/Misu...raand1040s.htm
which is part of the "Cracking the Code" reference.
Looks good- the best administrative approach I have seen so far.
It all comes down to the specific defined limitation of the "income tax" to Federal related entities- employees, corporation etc. This is true, as far as the law is written. It's a giant, flexible "on-demand" accounting system, based on filing claims and reports.
But...like "transportation", something that originally applied strictly to a class of special activities, has
morphed into something very vague and all-inclusive: by implied consent, of course. (you presumably break it, you bought it)
So yes, the specific "trades and business" to which this administration applies are limited- except that almost anyone can choose to participate and be treated as though a "trade or business subject to the U.S."
Any "trade or business" that displays a "U.S. flag" (mark) will be treated as such- including it's employees, sub-contractors, etc. That's where it gets tricky.
How about sign everything- EVERYTHING, whether it makes sense or not:
"SECURE TRANSACTION: PREPAID EVEN-EXCHANGE ACCT SETTLEMENT."
"REDEEMED AT PAR W/O NEGOTIATION ENDORSEMENT SPECULATION."
"W/O BENEFIT GAIN PROFIT OR PRIVILEGE"
"ALL RIGHTS RESERVED W/O RECOURSE OR PREJUDICE."
Because even the U.S. has to pay it's debts by law.