Foundations of Freedom

Title 26: IRS Code

 Trade or business . The term ―trade or business‖ includes the performance of the functions of a public office. Title 26 Sec. 7701  Employee . For the purposes of this chapter, the term ―employee‖ includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the forgoing. The term ―employee‖ also includes an officer of a federal corporation. Title 26 3401(c)  The general term ―income‖ is not defined in the Internal Revenue Code.‖ US v Ballard, 535 F2d 400,404 (1976)

See also Title 26 section 1402 for self-employed people, who are only supposed to pay taxes on trade or business as defined above.