Buck Act

The Buck Act, passed in 1940, allows the federal government to tax income within states by creating “federal areas” that overlay state boundaries.

This act establishes capitalized “federal states” that have the same boundaries as sovereign states but are under federal jurisdiction, enabling the federal government to consider everyone living in a state to be residing in a “federal area” and thus subject to federal taxation according to the Public Salary Tax Act of 1939.

The Buck Act is codified in the United States Code as Title 4, Sections 12 and 13-18.