IRS

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I read the thread from the 2 former IRS guys and agree and believe that much of what they say is true. My ? is how would the gov. pay for important services (DOD)etc. if people woke up and stopped paying taxes. PATRIOT

-- BRAD (FNWYSS5@AOL.com), January 17, 2000

Answers

If you wanted to pay for these "important services", you would be free to do so voluntarily. Personally, I can't think of any services I want from the government.

-- Steve Heller (stheller@koyote.com), January 17, 2000.

I'll tell you what, there is more to this "violation" of our rights then meets the eye. I would gladly pay for important services, simply ask me to contribute, but do not lie to me and make me think I could loose house and home for not "voluntarily" complying. Important services? What of all that waste in government. What of all those pay raises? What of all the corruption? How much of our hard earned money actually gets put to good use? Pennies on the dollar, I'd venture to say.

Personally, I'm sick of it, and only wished that Y2K would screw it all up.....patience, patience.

-- Electman (vrepair1@tampabay.rr.com), January 17, 2000.


Please, pleeeeeeaaaaaassseee, OH PUHLEEEEZZEEEEE!!!!

Supplicant Kook

-- Y2Kook (Y2Kook@usa.net), January 17, 2000.


How would we pay for important services?The same way we pay for them now---with excise taxes and tariff charges.The money that is paid to the irs goes to the federal reserve system to pay the interest.This determains how much we must pay as a nation.

-- just a thought (tigerpm@netscape.com), January 17, 2000.

The IMPORTANT services can be provided through duties and excises -- JUST AS THEY WERE PROVIDED BEFORE THE INCOME TAX. The income tax PRIMARY purpose is social control, NOT income. All you wondering "whatever shall we do" for funding government essential services have swallowed the establishment/Marxist/NWO line.

-- A (A@AisA.com), January 17, 2000.


How would the federal government get money without taxes?

Same way it does now; like this:

-- Yan (no@no.no), January 17, 2000.


How would the federal government get money without taxes?

Same way it does now; like this:

======================================================================

This article was first published in the January, 1946, issue of a periodical named American Affairs.

TAXES FOR REVENUE ARE OBSOLETE

by Beardsley Ruml, Chairman of the Federal Reserve Bank of New York.

Mr. Ruml read this paper before the American Bar Association during the last year of the war [World War II]. It attracted then less attention than it deserved and is even more timely now, with the tax structure undergoing change for peacetime. His thesis is that given (1) control of a central banking system and (2) an inconvertible currency, a sovereign national government is finally free of money worries and need no longer levy taxes for the purpose of providing itself with revenue. All taxation, therefore, should be regarded from the point of view of social and economic consequences. The paragraph that embodies this idea will be found italicized in the text. Mr. Ruml does not say precisely how in that case the government would pay its own bills. One may assume that it would either shave its expenses out of the proceeds of taxes levied for social and economic ends or print the money it needs. The point may be academic. The latter end of his paper is devoted to an argument against taxing corporation profits. --- Editor.

********************************************

The superior position of public government over private business is nowhere more clearly evident than in government's power to tax business. Business gets its many rule-making powers from public government. Public government sets the limits to the exercise of these rule-making powers of business, and protects the freedom of business operations within this area of authority. Taxation is one of the limitations placed by government on the power of business to do what it pleases.

There is nothing reprehensible about this procedure. The business that is taxed is not a creature of flesh and blood, it is not a citizen. It has no voice in how it shall be governed --- nor should it. The issues in the taxation of business are not moral issues, but are questions of practical effect: What will get the best results? How should business be taxed so that business will make its greatest contribution to the common good?

It is sometimes instructive when faced with alternatives to ask the underlying question. If we are to understand the problems involved in the taxation of business, we must first ask: "Why does the government need to tax at all?" This seems to be a simple question, but, as is the case with simple questions, the obvious answer is likely to be a superficial one. The obvious answer is, of course, that taxes provide the revenue which the government needs in order to pay its bills.

It Happened If we look at the financial history of recent years it is apparent that nations have been able to pay their bills even though their tax revenues fell short of expenses. These countries whose expenses were greater than their receipts from taxes paid their bills by borrowing the necessary money. The borrowing of money, therefore, is an alternative which governments use to supplement the revenues from taxation in order to obtain the necessary means for the payment of their bills. A government which depends on loans and on the refunding of its loans to get the money it requires for its operations is necessarily dependent on the sources from which the money can be obtained. In the past, if a government persisted in borrowing heavily to cover its expenditures, interest rates would get higher and higher, and greater and greater inducements would have to be offered by the government to the lenders. These governments finally found that the only way they could maintain both their sovereign independence and their solvency was to tax heavily enough to meet a substantial part of their financial needs, and to be prepared ---if placed under undue pressure --- to tax to meet them all.

The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government. Two changes of the greatest consequence have occurred in the last twenty- five years which have substantially altered the position of the national state with respect to the financing of its current requirements.

The first of these changes is the gaining of vast new experience in the management of central banks.

The second change is the elimination, for domestic purposes, of the convertibility of the currency into gold.

Free of the Money Market Final freedom from the domestic money market exists for every sovereign national state where there exists an institution which functions in the manner of a modern central bank, and whose currency is not convertible into gold or into some other commodity. The United States is a national state which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity. It follows that our Federal Government has final freedom from the money market in meeting its financial requirements. Accordingly, the inevitable social and economic consequences of any and all taxes have now become the prime consideration in the imposition of taxes. In general, it may be said that since all taxes have consequences of a social and economic character, the government should look to these consequences in formulating its tax policy. All federal taxes must meet the test of public policy and practical effect. The public purpose which is served should never be obscured in a tax program under the mask of raising revenue.

What Taxes Are Really For Federal taxes can be made to serve four principal purposes of a social and economic character. These purposes are: 1. As an instrument of fiscal policy to help stabilize the purchasing power of the dollar; 2. To express public policy in the distribution of wealth and of income, as in the case of the progressive income and estate taxes;

3. To express public policy in subsidizing or in penalizing various industries and economic groups;

4. To isolate and assess directly the costs of certain national benefits, such as highways and social security.

In the recent past, we have used our federal tax program consciously for each of these purposes. In serving these purposes, the tax program is a means to an end. The purposes themselves are matters of basic national policy which should be established, in the first instance, independently of any national tax program. Among the policy questions with which we have to deal are these:

Do we want a dollar with reasonably stable purchasing power over the years? Do we want greater equality of wealth and of income than would result from economic forces working alone?

Do we want to subsidize certain industries and certain economic groups?

Do we want the beneficiaries of certain federal activities to be aware of what they cost?

These questions are not tax questions; they are questions as to the kind of country we want and the kind of life we want to lead. The tax program should be a means to an agreed end. The tax program should be devised as an instrument, and it should be judged by how well it serves its purpose. By all odds, the most important single purpose to be served by the imposition of federal taxes is the maintenance of a dollar which has stable purchasing power over the years. Sometimes this purpose is stated as "the avoidance of inflation"; and without the use of federal taxation all other means of stabilization, such as monetary policy and price controls and subsidies, are unavailing. All other means, in any case, must be integrated with federal tax policy if we are to have tomorrow a dollar which has a value near to what it has today.

The war has taught the government, and the government has taught the people, that federal taxation has much to do with inflation and deflation, with the prices which have to be paid for the things that are bought and sold. If federal taxes are insufficient or of the wrong kind, the purchasing power in the hands of the public is likely to be greater than the output of goods and services with which this purchasing demand can be satisfied. If the demand becomes too great, the result will be a rise in prices, and there will be no proportionate increase in the quantity of things for sale. This will mean that the dollar is worth less than it was before --- that is inflation. On the other hand, if federal taxes are too heavy or are of the wrong kind, effective purchasing power in the hands of the public will be insufficient to take from the producers of goods and services all the things these producers would like to make. This will mean widespread unemployment.

The dollars the government spends become purchasing power in the hands of the people who have received them. The dollars the government takes by taxes cannot be spent by the people, and, therefore, these dollars can no longer be used to acquire the things which are available for sale. Taxation is, therefore, an instrument of the first importance in the administration of any fiscal and monetary policy.

To Distribute the Wealth The second principal purpose of federal taxes is to attain more equality of wealth and of income than would result from economic forces working alone. The taxes which are effective for this purpose are the progressive individual income tax, the progressive estate tax, and the gift tax. What these taxes should be depends on public policy with respect to the distribution of wealth and of income. It is important, here, to note that the estate and gift taxes have little or no significance, as tax measures, for stabilizing the value of the dollar. Their purpose is the social purpose of preventing what otherwise would be high concentration of wealth and income at a few points, as a result of investment and reinvestment of income not expended in meeting day-to-day consumption requirements. These taxes should be defended and attacked it terms of their effects on the character of American life, not as revenue measures. The third reason for federal taxes is to provide a subsidy for some industrial or economic interest. The most conspicuous example of these taxes is the tariffs on imports. Originally, taxes of this type were imposed to serve a double purpose since, a century and a half ago, the national government required revenues in order to pay its bills. Today, tariffs on imports are no longer needed for revenue. These taxes are nothing more than devices to provide subsidies to selected industries; their social purpose is to provide a price floor above which a domestic industry can compete with goods which can be produced abroad and sold in this country more cheaply except for the tariff protection. The subsidy is paid, not at the port of entry where the imported goods are taxed, but in the higher price level for all goods of the same type produced and sold at home.

The fourth purpose served by federal taxes is to assess, directly and visibly, the costs of certain benefits. Such taxation is highly desirable in order to limit the benefits to amounts which the people who benefit are willing to pay. The most conspicuous examples of such measures are the social security benefits, old-age and unemployment insurance. The social purposes of giving such benefits and of assessing specific taxes to meet the costs are obvious. Unfortunately and unnecessarily, in both cases, the programs have involved staggering deflationary consequences as a result of the excess of current receipts over current disbursements.

The Bad Tax The federal tax on corporate profits is the tax which is most important in its effect on business operations. There are other taxes which are of great concern to special classes of business. There are many problems of state and local taxation of business which become extremely urgent, particularly when a corporation has no profits at all. However, we shall confine our discussion to the federal corporation income tax, since it is in this way that business is principally taxed. We shall also confine our considerations to the problems of ordinary peacetime taxation since, during wartime, many tax measures, such as the excess-profits tax, have a special justification. Taxes on corporation profits have three principal consequences --- all of them bad. Briefly, the three bad effects of the corporation income tax are:

1. The money which is taken from the corporation in taxes must come in one of three ways. It must come from the people, in the higher prices they pay for the things they buy; from the corporation's own employees in wages that are lower than they otherwise would be; or from the corporation's stockholders, in lower rate of return on their investment. No matter from which sources it comes, or in what proportion, this tax is harmful to production, to purchasing power, and to investment. 2. The tax on corporation profits is a distorting factor in managerial judgment, a factor which is prejudicial to clear engineering and economic analysis of what will be best for the production and distribution of things for use. And, the larger the tax, the greater the distortion.

3. The corporation income tax is the cause of double taxation. The individual taxpayer is taxed once when his profit is earned by the corporation, and once again when he receives the profit as a dividend. This double taxation makes it more difficult to get people to invest their savings in business than if the profits of business were only taxed once. Furthermore, stockholders with small incomes bear as heavy a burden under the corporation income tax as do stockholders with large incomes.

Analysis

Let us examine these three bad effects of the tax on corporation profits more closely. The first effect we observed was that the corporation income tax results in either higher prices, lower wages, reduced return on investment, or all three in combination. When the corporation income tax was first imposed it may have been believed by some that an impersonal levy could be placed on the profits of a soulless corporation, a levy which would be neither a sales tax, a tax on wages, or a double tax on the stockholder. Obviously, this is impossible in any real sense. A corporation is nothing but a method of doing business which is embodied in words inscribed on a piece of paper. The tax must be paid by one or more of the people who are parties at interest in the business, either as customer, as employee, or as stockholder. It is impossible to know exactly who pays how much of the tax on corporation profits. The stockholder pays some of it, to the extent that the return on his investment is less than it would be if there were no tax. But, it is equally certain that the stockholder does not pay all of the tax on corporate income --- indeed, he may pay very little of it. After a period of time, the corporation income tax is figured as one of the costs of production and it gets passed on in higher prices charged for the company's goods and services, and in lower wages, including conditions of work which are inferior to what they otherwise might be.

The reasons why the corporation income tax is passed on, in some measure, must be clearly understood. In the operations of a company, the management of the business, directed by the profit motive, keeps its eyes on what is left over as profit for the stockholders. Since the corporation must pay its federal income taxes before it can pay dividends, the taxes are thought of --- the same as any other uncontrollable expense --- as an outlay to be covered by higher prices or lower costs, of which the principal cost is wages. Since all competition in the same line of business is thinking the same way, prices and costs will tend to stabilize at a point which will produce a profit, after taxes, sufficient to give the industry access to new capital at a reasonable price. When this finally happens, as it must if the industry is to hold its own, the federal income tax on corporations will have been largely absorbed in higher prices and in lower wages. The effect of the corporation income tax is, therefore, to raise prices blindly and to lower wages by an undeterminable amount. Both tendencies are in the wrong direction and are harmful to the public welfare.

Where Would the Money Go? Suppose the corporation income tax were removed, where would the money go that is now paid in taxes? That depends. If the industry is highly competitive, as is the case with retailing, a large share would go in lower prices, and a smaller share would go in higher wages and in higher yield on savings invested in the industry. If labor in the industry is strongly organized, as in the railroad, steel, and automotive industries, the share going in higher wages would tend to increase. If the industry is neither competitive nor organized nor regulated --- of which industries there are very few --- a large share would go to the stockholders. In so far as the elimination of the present corporation income tax would result in lower prices, it would raise the standard of living for everyone. The second bad effect of the corporation income tax is that it is a distorting factor in management judgment, entering into every decision, and causing actions to be taken which would not have been taken on business grounds alone. The tax consequences of every important commitment have to be appraised. Sometimes, some action which ought to be taken cannot be taken because the tax results make the transaction valueless, or worse. Sometimes, apparently senseless actions are fully warranted because of tax benefits. The results of this tax thinking is to destroy the integrity of business judgment, and to set up a business structure and tradition which does not hang together in terms of the compulsion of inner economic or engineering efficiency.

Premium on Debt The most conspicuous illustration of the bad effect of tax consideration on business judgment is seen in the preferred position that debt financing has over equity financing. This preferred position is due to the fact that interest and rents, paid on capital used in business, are deductible as expense; whereas dividends paid are not. The result weighs the scales always in favor of debt financing, since no income tax is paid on the deductible costs of this form of capital. This tendency goes on, although it is universally agreed that business and the country generally would be in a stronger position if a much larger proportion of all investment were in common stocks and equities, and a smaller proportion in mortgages and bonds. It must be conceded that, in many cases, a high corporation income tax induces management to make expenditures which prudent judgment would avoid. This is particularly true if a long-term benefit may result, a benefit which cannot or need not be capitalized. The long- term expense is shared involuntarily by government with business, and, under these circumstances, a long chance is often well worth taking. Scientific research and institutional advertising are favorite vehicles for the use of these cheap dollars. Since these expenses reduce profits, they reduce taxes at the same time; and the cost to the business is only the margin of the expenditure that would have remained after the taxes had been paid --- the government pays the rest. Admitting that a certain amount of venturesome expenditure does result from this tax inducement, it is an unhealthy form of unregulated subsidy which, in the end, will soften the fibre of management and will result in excess timidity when the risk must be carried by the business alone.

The third unfortunate consequence of the corporation income tax is that the same earnings are taxed twice, once when they are earned and once when they are distributed. This double taxation causes the original profit margin to carry a tremendous burden of tax, making it difficult to justify equity investment in a new and growing business. It also works contrary to the principles of the progressive income tax, since the small stockholder, with a small income, pays the same rate of corporation tax on his share of the earnings as does the stockholder whose total income falls in the highest brackets. This defect of double taxation is serious, both as it affects equity in the total tax structure, and as a handicap to the investment of savings in business.

Shortly, an Evil Any one of these three bad effects of the corporation income tax would be enough to put it severely on the defensive. The three effects, taken together, make an overwhelming case against this tax. The corporation income tax is an evil tax and it should be abolished. The corporation income tax cannot be abolished until some method is found to keep the corporate form from being used as a refuge from the individual income tax and as a means of accumulating unneeded, uninvested surpluses. Some way must be devised whereby the corporation earnings, which inure to the individual stockholders, are adequately taxed as income of these individuals.

The weaknesses and dangers of the corporation income tax have been known for years, and an ill-fated attempt to abolish it was made in 1936 in a proposed undistributed profits tax. This tax, as it was imposed by Congress, had four weaknesses which soon drove it from the books. First, the income tax on corporations was not eliminated in the final legislation, but the undistributed profits tax was added on top of it. Second, it was never made absolutely clear, by regulation or by statute, just what form of distributed capitalization of withheld and reinvested earnings would be taxable to the stockholders and not to the corporation. Third, the Securities and Exchange Commission did not set forth special and simple regulations covering securities issued to capitalize withheld earnings. Fourth, the earnings of a corporation were frozen to a particular fiscal year, with none of the flexibility of the carry-forward, carry-back provisions of the present law.

Granted that the corporation income tax must go, it will not be easy to devise protective measures which will be entirely satisfactory. The difficulties are not merely difficulties of technique and of avoiding the pitfalls of a perfect solution impossible to administer, but are questions of principle that raise issues as to the proper locus of power over new capital investment.

Can the government afford to give up the corporation income tax? This really is not the question. The question is this: Is it a favorable way of assessing taxes on the people --- on the consumer, the workers and investors --- who after all are the only real taxpayers? It is clear from any point of view that the effects of the corporation income tax are bad effects. The public purposes to be served by taxation are not thereby well served. The tax is uncertain in its effect with respect to the stabilization of the dollar, and it is inequitable as part of a progressive levy on individual income. It tends to raise the prices of goods and services. It tends to keep wages lower than they otherwise might be. It reduces the yield on investment and obstructs the flow of savings into business enterprise.

THE END.



-- Yan (no@no.no), January 17, 2000.


Brad,

guns and drugs.

heh

-- Hokie (Hokie_@hotmail.com), January 17, 2000.


Turn all government entities over to the private sector. It would force a whole lot of people who are sucking off the government tit to get a real job and produce something significant for mankind.

-- Rasty (Rasty@bulldoggg.xcom), January 17, 2000.

Personally, I can't think of any services I want from the government. -- Steve Heller

Lessee.... For openers -- let's dump INS. From that point forward, immigration is unrestricted. Think again, Steve.

-- Tom Carey (tomcarey@mindspring.com), January 17, 2000.



Federal sales tax. At least you'll have some options about how much you'll pay based on what you buy. Rich people and the "useless eaters" alike will pay in proportion to their lifestyles. Tax returns reduced to collective retail enterprises instead of every single one (supposedly)of us. And I'll keep shopping at garage sales! ; D

-- Charli (claypool@belatlantic.net), January 17, 2000.

tom, i'm willing to bet that someone in your family tree came to this country unobstructed, many years ago.

think again. that's what this country was based on. freedom. for everyone. not subjective freedom like we have today.

-- mike (mike@knuckledragger.com), January 17, 2000.


Well it seems to me that up until the late 1900's, our country did alright without a federal tax. Until the govt got too bloated and large.

Consider that probably 80-90% of what the Feds do is un- constitutional, and if we did away with those things, the govt could afford to function on excise taxes again.

If we were able to get back to a Constitutional govt, we could ditch so many govt programs and madates it'd make your head spin.

During the last Federal govt shutdown, how many of you really noticed a lack of services? I sure didn't. I wouldn't have minded if everything but the Post Office, and military closed up shop. That's about all the Feds are SUPPOSED to do, not all this nanny-state crap that they do.

However, since we the citizens LIKE being taxes to pay for all the govt services we can handle...I doubt that there will be any significant change for a long time.

-- Bill (billclo@msgbox.com), January 17, 2000.


2 Retired IRS Agents "EXPOSE" the income tax scam.

We are 2 retired IRS Agents and we have witnessed the IRS defrauding Americans for many years. It is destroying the freedoms of ALL Americans. It "MUST STOP" and it is now time to expose this fraud to ALL Americans.

We challenge you to ask ANY IRS Agent to show you a Statute that "REQUIRES" Americans to FILE Income Tax. They cannot find it. There is NO LAW that makes ANY American "liable" or "subject" to pay or file Income Tax. IRS fraud expert, Irwin Schiff 702-877-2833 offers a $5000 award to anyone who can find such a statute.

Bill Conklin from Denver offers a $50,000 reward. His phone number is 303-455-0837, in case you can find such a Statute. His web site is www.anti-irs.com He also offers a "free book" about the IRS that you can download and print up.

The IRS has for many years used Alcohol, Tobacco and Firearms Implementing and Enforcement Regulations (Title 27) to "ENFORCE" the Federal Income Tax (Title 26) and has used the ATF Regulations to fraudulently take homes and bank accounts away from Americans. Because the Income Tax is voluntary and un-Constitutional, the IRS Code has NO Enforcement Regulations! So in order to BLUFF Americans into paying Income Tax, the IRS uses Alcohol, Tobacco and Firearms Implementing Regulations to force and to defraud all Americans into paying Income tax that they are not required to pay.

The IRS is DEFRAUDING ALL Americans and is bankrupting and impoverishing America by "GIVING" all our Income Tax payments to the Federal Reserve Bank in payment for the "PHONY' Federal Debt. Look on the back of each and every check of Income Tax payment you have ever paid to the IRS. With the stamp shown below,the IRS has signed over ALL your Income Tax Payments to the Federal Reserve bank. YOUR INCOME TAX IS NOT USED TO RUN OUR GOVERNMENT. This fraud will BANKRUPT America.

The IRS has been defrauding Americans for many years. The IRS has even sent ALL your Social Security payments to the Federal Reseve Bank. Go check it out for yourself and then you will know FOR SURE that we are telling the TRUTH.

******************************************* THIS IS AN IRS CHECK ENDORSEMENT.

Pay any F.R.B. Branch or Gen. Depository for credit U.S. Treas. This is in payment of US. oblig; Must be paid in par N.P. Do not wire none-payment.20-09-0900 Dir.I.R.S. CTR. Kansas City, Missoury. *******************************************

The Federal Reserve Bank IS NOT a Federal bank, but is a private Bank owned by FOREIGN BANKERS who do not pay Income tax! Rothchild, (London), Lazard Bros. (Paris), Israel Seiff, (Italy), Kuhn-Loeb-Warburg,Lehman-Goldman-Sachs-Rockefeller, (New York). In fact, the Federal Reserve Bank has NEVER EVER been audited. Your Phone book PROVES that it is not a Federal Bank. They are listed in the Yellow Pages with all the other "PRIVATE BANKS." They put "Federal" in their name to deceive WE Americans. The Federal Reserve Bank is draining the American economy with the "phony" Income Tax.

AMERICA IS BANKRUPT WITH A $6 TRILLION "PHONY" DEBT.

The Federal Reserve Bank is destroying America! America "WAS" the richest nation on earth, until 1913, when the Federal Reserve Bank was created by foreign Bankers. This was passed in Congress on Christmas "EVE" 1913, when most Congressmen had gone home for Christmas. It was passed by Un-American Congressmen, who had been paid-off and bribed by the wealthy foreign bankers.

Now America is bankrupt with a $6 Trillion phony Federal debt, because EVERY single dollar in circulation has been "BORROWED" from the Federal Reserve Bank. The US Treasury prints our money and then "sells" it to the Federal Reserve Bank for the printing cost. The US Treasury then borrows it back and then we the people pay interest on the "FACE VALUE" of our money to the Federal Reserve Bank with our Income Tax payments to pay for the "PHONY" debt. This is the BIGGEST FRAUD in US history. This is a deliberate and planned bankruptcy to destroy America. Governments are the creators of money, and should not have to borrow it from a foreign private Bank.

Congressman Louis T. Mc Fadden, Chairman House Banking said..."The Federal Reserve Bank CAUSED the Great Depression by DELIBERATELY witholding money out of circulation"...Congressional Record May 23,1933. After 3 attempts on his life, Mc Fadden was poisoned at a banquet! Can you guess who killed him? They steal and plunder from America, but they even kill Americans.

Congress has been lying to you because it is mathematically impossible to pay off the debt or balance the budget with "BORROWED MONEY". President Woodrow Wilson confessed on his deathbed that he committed TREASON against ALL Americans. The Federal Reserve Bank will soon force America into bankruptcy when the interest on the debt has become un-payable. This will cause an economic collapse. This is when our corrupt Government will bring in the "New World Order" and we will be ruled by the United Nations. We will then lose our freedoms and Constitution.

We have already lost our Constitution and Common Law in the US Courts. All US Courts are now under Maritime Military Law with the New World Order, "Gold Fringed US Flag" (Army Regulations 260-10) "displayed" in every US Courtroom with a conviction rate of 97.3%. All US Judges have perjured their Oath to uphold the Constitution and are in CONTEMPT of the Constitution. Just seek the protection of the Constitution and the Judge will tell you to "shut up and sit down". This could NEVER happen in a Common Law Court.

All US Banks also display the Gold Fringed Flag. Many US Police Officers are starting to wear a gold fringed flag patch on their uniforms. Millions of Americans "unknowingly" pledge allegiance to the "Gold Fringed New World Order Flag" at schools, churches and scout meetings.

AMERICANS,IT'S TIME TO GET "MAD AS HELL" AND FIGHT TO GET OUT COUNTRY BACK.

Henry Kissinger said, Nafta and Gatt are the major stepping stones towards the New World Order. Nafta and Gatt caused 28.6% unemployment in Clay County, Tennessee. In 3 years Nafta has cost Americans over 700,000 jobs and more to come! Congress has "SOLD OUT AMERICA.! By the way, what ever happened to the "CONTRACT WITH AMERICA?" How can they forget so easy?

America's Founding Fathers formed our Government to SERVE WE THE PEOPLE and to give us "FREEDOM". Our Government has defrauded WE THE PEOPLE and has turned this around and now ALL Americans are ENSLAVED by our Government by working 5 months EVERY YEAR to pay the Phony Income Tax. That should make you "MAD AS HELL. Read on and you'll get even MADDER.

Our Constitution, Section 9 reads......"No direct Tax shall be laid". This has NEVER been repealed. IT IS STILL LAW. The Income Tax is a Constitutional violation. The IRS Code, Title 26 has NEVER been enacted by Congress into POSITIVE LAW. The proof is in the inside cover of all Titles of US Codes at your local Library. Section 7401 of Title 26 claims that the IRS does not have the power to lien, levy or seize property WITHOUT a Court Order. The IRS NEVER uses Court Orders.

"Notice of Levy" or Lien is just that, a notice, THERE IS NO ACTUAL LIEN!

Americans, you need to challenge the IRS when they try to take your property or bank account away from you without a Court Order. Without a Court Order they DO NOT HAVE JURISDICTION to take ANYTHING.

The IRS has been illegally stealing and plundering from Americans for decades. It is a known fact among IRS Agents that the IRS is responsible for over 500 suicides per month, over half the divorces and 3/4 of the bankruptcies.

THE IRS IS NOT A GOVERNMENT AGENCY.

The proof....IRS Agents cars DO NOT have Government EX-empt License Plates! Most IRS Agents have no clue why. Plus.....the IRS puts 32 Cents Postage on ALL their mail. All Government Agencies get "FREE" license plates and "FREE" postage. Why not the IRS? IRS Agents don't even know why. Most of them have no clue.

Many years ago the Telephone Company "gave" the IRS a Government listing, because of many complaints from people who could not find them in the phone book. The IRS was created through a Puerto Rico Trust and is no more Federal than the Federal Express! As a private Corporation, the IRS is NOT registered to do business in ANY State! Without a Business License, by Law they cannot legally be engaged in business. A "heavy graduated Income Tax" is the Second Plank of the Communist Manifesto by Karl Marx 1848! Income Tax is the very core of Communism.

The IRS is only a collection Agency for the EVIL Federal Reserve Bank. The US Tax Court is located in Washington, DC. and has NO branches in ANY State! This is because the IRS ONLY has Jurisdiction (Authority) in the District of Columbia. Challenge their Jurisdiction and refuse to pay their $60 filing fee and your case will be DISMISSED. They only have Jurisdiction "IF" you pay the filing fee, because then you have entered into their arena.

Many IRS publications and IRS Agents handbooks claim that the Income Tax is VOLUNTARY. The word "mandantory" cannot be found in the IRS Code, Title 26. Why do you voluntarily pay Income Tax? Nowhere in the IRS Code can you find a Statute that says that ALL Americans are required to pay Income Tax........NOWHERE!

The US Supreme Court has ruled in Flora vs. USA 362 U.S.145. that the Income Tax is VOLUNTARY. They ruled that..."Our Tax system is based upon voluntary assessment and payment, NOT upon distraint" (Force). Tax liability does not appear on the 1040 Form and is not "defined" ANYWHERE in the IRS Code.

Every Statute says, "IF YOU ARE LIABLE" then you have to do this and do that. They also state that, "if you have a Taxable year"....."IF" means that YOU have to determine IF.... So if you determine that you are Liable and that IF you determine that you have a Taxable year, then you can "voluntear to pay Income Tax. If you determine that you are not liable or that you do not have a Taxable year, you are not "REQUIRED" to pay the Tax.

It is "YOU" who determines that you are liable by voluntarily filing a 1040 Form. Americans make themselves liable by filing Income Tax. If you don't file, you're not liable. Off course the IRS will try to "bluff" you into filing by sending you phony enforcement letters, with 32 Cent Stamps on it, quoting ATF Enforcement Statutes and Regulations.

Before you stop filing, to give you piece of mind, we suggest you place all your assets in a Trust. Your assets should be in a Trust anyway for all kinds of circumstances and protection. If you have no assets, no sweat. Then claim 9 dependents and stop filing and paying Income Tax. Then wisely invest the money saved and then retire in style as a millionaire. Then you will not need Social UN-Security.

The IRS Code, Title 26, only applies to Tax payers and NOT to NON-Tax payers. Always respond to their letters with this statement and tell them they have no Jurisdiction over you. This is called "THE BIGGEST INCOME TAX LOOPHOLE". In fact that this the name of a book by Otto Skinner. $45. P.O.Box 6609, San Pedro, Ca. 90734. This is one of the best books on the Income Tax. Plainly said...."the Income Tax Laws DO NOT apply to you if you do not file a 1040 Return, because you are not a Tax payer". If you are not a Tax payer, you are not liable for the Tax.

YOU WAIVE YOUR CONSTITUTIONAL RIGHTS BY FILING INCOME TAX.

When you sign the 1040 Form under penalties of "PERJURY", you waive your Fifth Amendment Rights, which state that you CANNOT be compelled to give "POTENTIALLY" incriminating evidence against yourself. This makes the Income Tax Un-Constitutional. They get away with this by declaring that the income tax is "voluntary". This is why the IRS Code Statutes say..."If you are liable"... Because if you pay Income Tax, you volunteer to pay. When you volunteer, then you make yourself liable.

The Fourth and Fifth Ammendment of the Bill of Rights give you the right to "refuse" to show your records during an audit. Only if you voluntarily show your records, can the IRS Agent audit them. Americans, STOP VOLUNTEERING anything the IRS asks you to do. They have absolutely No Jurisdiction and Authority over you.

THE IRS CLAIMS THAT OVER 50 MILLION AMERICANS DO NOT FILE INCOME TAX.

In 1991, the IRS reported that there were 163 Million Taxpayers. In a seperate report they claimed they received 111 Million Tax filings for that year. That is 52 Million that do not file Income tax. IRS Commissioner Peggy Richardson claimed in 1991 that one out of five has stopped paying Income Tax and that the Tax revolt is growing. None of them are in jail. Only a handfull is in jail because they yielded to IRS jurisdiction. In fact, you can only go to jail for falsifying Income Tax Returns, when you sign the 1040 Form under penalties of perjury. If you don't file, they DO NOT have jurisdiction. Without Jurisdiction they have no Case.

If they take you to Court,DO NOT HIRE A LAWYER. A Lawyer is an Officer of the Court and he will argue the Case for you because that is how he earns money. REFUSE to enter the Court and stay BEHIND the little fence and challege their Jurisdiction and DO NOT EVER argue the case. Once you argue the case, then you have yielded to their Jusrisdiction.

Become educated and eliminate fear of the IRS. Order the book "Economic Solutions" $8.95. Quality Press. 2888 Bluff Street. Suite 315. Boulder, Colorado. Also order "IRS under Indictment" and learn how to legally stop paying Income Tax. Advantage Publishing 1-916-222-4684.

Devvy Kidd, 12453 West Baltic Ave. Lakewood, Colorado 80228, also has very infomative books. Write her for a brochure!

Senator Henry Belmon in 1969 said....If Tax payers EVER discover that the IRS operates on 90% bluff, the entire system will collapse. Before 1940 there was no Income Tax. To finance World War ll, we paid a VICTORY TAX, which was repealed in 1944. Why are Americans still paying this VICTORY TAX? It is because Americans are COMPLACENT and have fear of the IRS, because the IRS has cleverly made Americans think that they are required to pay Tax.

Order Irwin Schiff's book, "The Federal Mafia" $25 from Freedom Books, Post Office Box 5326, Evansville, IN. 47716. This book is also a MUST. Irwin will show you that....No law requires you to file Income Tax returns! No law requires you to pay Income Taxes. No law requires you to keep books for Income Tax purposes. No law authorizes the IRS to audit you. No law authorizes employers to withold Tax from wages. Talk to Irwin about your Tax problem at 1-702-877-2833. Become educated and order his video's and audio cassettes. He can be found on the internet. His Web site is http:/www.ischiff.com If you have a computer, enter patriot, tax fraud, IRS fraud, etc, on your Search Engines and learn more of what we have been telling you in this letter.

PRESIDENT REAGAN CALLED FOR AN INCOME TAX REBELLION.

President Ronald Reagan, May 1983.... "Our Federal Tax system is, in short, utterly impossible, utterly unjust and completely counter productive. It reeks with injustice and is fundamentally UN-American! It has earned a rebellion, and it is time we rebelled.

On January 1, 2000, ALL IRS COMPUTERS WILL MALFUNCTION.

The IRS has admitted that repairs required to make their computers year 2000 compliant are IMPOSSIBLE to do. All IBM Mainframes will interpret the abreviation "00" to mean 1900 instead of 2000. This will wipe out ALL IRS Income Tax histories. This is a "gift" to all Americans from all the early computer programmers. The time is NOW to stop filing Income Tax.

Eliminate the IRS out of your life, explained on 2 video's,$40. 702-853-2342. IRS Jurisdiction investigated,$25, on video, call 801-377-0570. Weekly Newspaper "The Spotlight" exposes Government fraud. 1-800-522-6292. Their web site is www.spotlight.org

Congress MUST SAVE AMERICA and abolish the "GESTAPO" IRS, Federalize the Federal Reserve Bank, and throw out the foreign bankers from our money system and start printing interest free Constitutional money. (US Notes!) The Constitution only gives Congress the right to create our money and NOT a private bank, run by foreigners.

Income Tax will then no longer be neccesary. Excise Tax, Tariffs and Duties will then pay for Government. When the British Taxed the Colonies, John Adams, John Hancock and other Patriots had the "GUTS" to rebel against their 5% Tax with the Boston Tea Party and the American Revolution. Our country became free because of a 5% tax. Without these hero's we would still be paying Tax to the Queen of England. America needs HERO'S like that again to take our wonderful country back from the "BLOOD SUCKING MONEY CHANGERS".

Now Federal Taxes are up to 39.6%. THAT IS UNACCEPTABLE. All Americans MUST become Patriots and UNITE to restore Constitutional Government. Massive Civil disobedience is a "proper form" of Petition for Redress of Grievances and Political Protest. This is the ONLY way to wake up Congress. We Americans MUST force Congress to finally END the Income Tax scam. Imagine what your life will be like without Income Tax! You would be living a life of luxury.

AMERICA IS IN GREAT PERIL.

You MUST sacrifice your time and effort to help us inform other Americans. Being complacent will not save America. Americans have been complacent long enough. Send this message to all your local Politicians, friends, neighbors and relatives. Also send to your local Talk Radio's. When 100 million Americans stop filing Income Tax, the IRS will be powerless and Congress will be forced to stop the "phony" Income Tax.

Mark Twain..."In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, only then the timid join him". Our great country needs true Patriots again. Our Government is totally out of control. Our Government was created to serve We The People. Now we Americans have become the slaves and servants of our Government. Americans are not free anymore.

Our Government forces all Americans to obtain a permit or a license to do ANYTHING. Without these Permits and Licenses we would be breaking the Law. WHAT KIND OF FREEDOM IS THAT? Licenses and Permits are used to control us and to steal money from us. Our Government has taken away our basic God given freedoms! Our Government has TOTAL control over American.

If you want to be free again, we Americans need to overthrow the MOST corrupt Agency first and that is the IRS.

As retired IRS Agents we learned long ago about IRS and Federal Reserve fraud. Because we love America, we MUST expose the IRS Monster we have worked for. It is YOUR Patriotic DUTY to help us spread this news to ALL AMERICANS. UNITED WE STAND, DIVIDED WE FALL! Earl Sorensen & Fred Fuller.



-- ... (...@...com), January 17, 2000.


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