The Fed buys deficit spending Treasury securities with book-entry bogus credit then auctions them for cash. Profit is distributed to Rothschild shareholders by FRBOG, Inc. Profit belongs to govt. Ref. 31 CFR §375.3.

THE INCOME TAX Taxation is an attribute of Sovereignty. That over which the taxing entity is not Sovereign is not a suitable object to tax. A State cannot tax federal assets, nor can a state tax purchases made by the Fed government. The current term is 'immune'.  Fewer people associate with it. The Sovereignty of the Citizens is identified in the Preamble of the Constitution. It is We the People who created government for our security and pleasure. Courts now use the word immune. All states are required to maintain a Republican government. Citizens are Sovereign in a Republican govt. Ref. Article IV, Section 4.