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PrefaceMost working Americans today have either read or heard that there is something terribly wrong with our personal income tax system-that maybe there is truth in what they have been hearing more frequently each year-that working Americans, for the most part, don’t even owe Big Brother an income tax. This book is primarily a textbook. It will prove why so many Americans who suspect that they have been scammed are correct. It will also explain how cleverly our Federal government, through the IRS, has deceived most of the public for decades into believing a monstrous lie-one that has sold working Americans into falsely believing that the law requires them to pay a substantial portion of their earnings to the government as “income” tax. In truth, however, the fact is that our Constitution itself forbids any direct tax on U.S. citizens. This book will also show how the Internal Revenue Code itself, which, as Federal law, must be written in conformity with the Constitution, does, in fact, comply with these constitutional prohibitions and restrictions even though the Code is cleverly disguised to make us think otherwise. Key sections of the Constitution, some U.S. Supreme Court decisions and the Internal Revenue Code, which IS written in conformity with the Constitution, are repeated many times throughout this book for emphasis because their importance must be imbedded in the readers’ mind for a proper understanding of this subject. Fortunately, public awareness of the income tax scam has been growing steadily over the past thirty years, during which time this writer and others have been researching and educating others on this subject. At the same time, because the deception has been so cleverly concealed by the IRS through the use of misleading words and defined “terms” in the Internal Revenue Code, finding and proving the truth has been a difficult task. The research that has been done over the years could be compared to finding many needles in MANY haystacks. After exposing the truth, some dedicated researchers who have had the courage to spread their knowledge to the public have been falsely prosecuted and otherwise illegally punished by government. We Americans don’t like to believe that we have been deceived by our own government. To acknowledge that we have been conned is an insult to our intelligence and our sensitive egos. Consequently, we whistle-blowers have sometimes lost the respect of some family and friends who have refused to admit that their own government could be so outrageously corrupt. The life of a whistle-blower is never easy. Many have paid a dear price for waving the red flag at the biggest bully on the block! Government’s knowledge of the growing public awareness about the massive misapplication of the income tax has created fear among politicians of a huge public outrage when the truth becomes widely known. This has led to proposals by government of an alternative to the income tax. One actively promoted alternative is the national sales tax which would replace the income tax with a sales tax of approximately 20% or more to be applied on the sale of almost all goods and services. Of lesser notoriety is the proposal of the so-called VAT tax (value-added tax). This particular strategy imposes a tax at the point of production and passes the tax through the jobber, wholesaler, retailer, and finally to you, the consumer, so at the consumer level the tax is hidden. The VAT proponents plan is to use the VAT tax to make these drastic changes before the general public learns the truth about the IRS’ misapplication of the tax laws to U.S. citizen’s earnings. A general public awareness of this fraud would cause an angry public reaction against government-not just against the IRS but, Congress, the executive branch and judges as well, particularly judges who are supposed to know and uphold the law. As of this writing in 2009 the IRS has admitted in an article published seventeen years ago in 1992 that in the year 1990 over ten million working Americans had stopped filing tax returns. Considering the explosion of knowledge that has taken place since 1992, this writer thinks it’s safe to predict that currently the number of working people who have learned the truth about the law and have stopped volunteering to file returns and pay an income tax they don’t owe has at least doubled to twenty million and probably many more. A former Commissioner of the Internal Revenue Service stated in an IRS instruction booklet: “Each year American taxpayers VOLUNTARILY file their tax returns…” (emphasis added). The U.S. Supreme Court also confirmed the voluntary nature of the income tax for citizens in the decision of U.S. v. Flora, 362 U.S. 145 when it stated: “Our system of taxation is based upon voluntary assessment and payment, not upon distraint (force).” (emphasis added) As this book shows, the United States Constitution contains limitations on federal taxing powers which prohibit taxation of citizens or their earnings. For U.S. citizens, payment of income tax on their earnings is voluntary, not mandatory, because the law does not apply to them. The obvious question arises: why would the IRS Commissioner describe the agency’s function as trying to achieve VOLUNTARY compliance if the law required citizens to file and pay-that is, if it were COMPULSORY? The answer is apparent-the Commissioner so described his agency’s purpose because he was well aware that for citizens, who are merely exercising their God-given inalienable right to earn a living, the income tax laws do not apply to them in the first place. Those citizens who have unnecessarily filed income tax returns and paid income tax on their earnings have done so VOLUNTARILY through fear from a lack of understanding of the law and the deceptions practiced by the IRS. Note how regularly the IRS publications which pile up in our post offices, libraries and other public places each year in mid-winter encourage us to file tax returns and VOLUNTARILY “pay our fair share”. If, by law, we were all required to file and pay a substantial percentage of our wages, salaries or other receipts to Big Brother, would they not say that the law REQUIRES us to file and pay under threat of punishment? Yes, of course they would so threaten us, but, because they know that there is no statute that requires us to file on our own behalf as individual citizens, their use of the words “voluntary compliance” tells us that most of us have no obligation at law, and that they are merely asking for a donation! Former IRS Publication 21, which has been widely distributed in high schools and colleges, also acknowledges that compliance with the filing requirement is voluntary for individual citizens and at the same time suggests that the filing of a return is mandatory when it states: “Two aspects of the Federal income tax system-voluntary compliance with law and self-assessment of tax-make it important for you to understand your rights and responsibilities as a taxpayer. ‘Voluntary compliance’ places on the taxpayer the responsibility for filing an income tax return. You must decide whether the law requires you to file a return. IF IT DOES, you must file your return by the date it is due.” (emphasis added) Now wait just a minute! Here is our own government actually telling us that we should check out the law-that maybe we don’t have to file and pay! Haven’t we always known that compliance with law is mandatory?...that there are consequences in the form of penalties-either civil monetary penalties or even jail time for failure to obey (comply with) the law? Common sense tells us that compliance with law can’t be both mandatory and voluntary. It must be one or the other. But here is the IRS suggesting that we research it ourselves-they aren’t going to tell us whether or not we are required to file and pay! That determination is up to us! This book will tell you why, in all likelihood by law, you don’t have to file or pay-unless you are one of a very, very few people! So now we know why the IRS asks us to “volunteer” to file and pay. In the past, America prospered and became the greatest and richest, debt-free country in the world when individuals paid no income tax and government’s revenues were raised by tariffs on imports and other constitutionally-authorized excise taxes on certain goods and on government-privileged activities such as those enjoyed by corporations. But now money is extorted by the IRS’ deception and trickery about the income tax law from millions of U.S. citizens who don’t owe it in order to support the non-productive sector, endless pork-barrel give-away’s and bloated, needless bureaucracy which has now put our nation trillions of dollars in debt. Congress’ projected spending for fiscal 2007 was 2.7 trillion dollars-an increase over 2006 by almost 13%! A billion dollars is 1,000 times a million; a trillion dollars is 1,000 billion; hence, Congress’ 2007 budget of 2.7 trillion dollars was 2,700 billion dollars. Dividing this annual budget by 365 days in a year means our government spent 7.397 billion dollars every day of the fiscal year 2007! To raise this money in order to pay this inconceivable budget, our government must constantly sell bonds, both domestically to banks and individuals and in the world market and print huge amounts of unbacked currency for the Federal Reserve Bank to use in buying up unsold amounts of newly- issued government bonds. Based upon the very reasonable presumption that our Congress will continue to spend far more than it takes in, the value of the dollar will continue to erode and interest rates must rise as our government is forced to pay higher and higher interest rates on its harder to sell bonds. Our nation’s 2007 bonded national debt of roughly seven trillion dollars required payment of huge amounts of interest each year. Although interest rates vary from year to year, we can conservatively estimate an average interest rate on this bonded indebtedness of about 4 percent. Applying this percentage to this seven trillion dollar debt figure means an annual interest obligation of 280 billion dollars (this is .767 billion dollars a day!), and this is money that must be paid by our government each year-not on goods or services but on interest alone! As our country’s debt grows ever larger each year, this monstrous interest figure grows with it, diminishing the purchasing power of all our dollars at an ever increasing rate! It is reasonable to assume that these 2007 debt and interest figures can have only increased since 2007. Income taxes paid by citizens because of fear and intimidation sharply reduce their earnings; they then buy less causing business to decline even more, leading to unemployment and depression, lowering the standard of living for all Americans. This misapplication of the income tax laws through trickery and deceit has created havoc in America’s economy in addition to the harassment of our people by IRS’ oppressive and unlawful collection tactics. The unlawful collection of this tax enforced by fear and intimidation is as un-American as the origin of the income tax itself. A graduated income tax is the second plank of Karl Marx’s Communist Manifesto. Deceiving our citizens through deceptions and fear into voluntarily subjecting themselves to a tax they do not owe is fraud. Black’s Law Dictionary, 5th Edition, defines “fraud” as follows: “An intentional perversion of truth for the purpose of inducing another, in reliance upon it, to part with some valuable thing belonging to him or to surrender a legal right.” Finally, after reading this book and learning the truth about this fleecing of the American public, the knowledge acquired will give our citizens the option to take the necessary steps to stop being a voluntary victim and start keeping ALL the fruits of their labor, to which they are constitutionally entitled! No refund should be expected for the many thousands that may have already been stolen by deception. From a practical standpoint this is virtually impossible. However, the future theft CAN be ended, and this book will give the reader the knowledge of how to do it for both the employed and the self-employed. Knowledge creates courage. David slew Goliath by gaining the knowledge and skill to kill him with his sling. By using the knowledge obtained through study of this subject, citizens will be better equipped to free themselves from the oppression caused by IRS’ misapplication of the income tax law. As this book will show, ALL the law is on our side-the Constitution, the statutory law in the Internal Revenue Code and many court decisions by our courts, including the U.S. Supreme Court. We need only the knowledge and the courage to demand that it be applied in such a way that its truth cannot be denied. Government officials, both Federal and state, including all judges, are sworn by oath to support and uphold the United States Constitution. Those, including Federal judges, who deny our position, violate this sacred oath and are subject to dismissal and other penalties for such violation of their oath. A renowned aphorism about truth should be recalled by every judge, Congress member, accountant, IRS bureaucrat, tax preparer and lawyer who practices or condones the misapplication of the income tax law against many millions of U.S. citizens: In these days of fear and confusion, let us remember that As for truth, our Lord said it best in the gospel of John, chapter 8, verse 32: And ye shall know the truth, and the truth shall make you free. |