facts about the income tax

7/26/2019 Facts About the Income Tax

1/11

Knowledge will forever govern ignorance; and a people who mean to be their own governors must

arm themselves with the power which knowledge gives.

-James Madison

T!" "#$$%ssociation !" &'&!$%T'& to helping %merican men and women resume their rightfulstature as the masters and mistresses of their own lives and fortunes( )ust as was intended b* the

founders of this great countr*.

%chieving that end involves nothing more than+., gaining an accurate understanding of our lawful legal( economic political structures as

designed implemented in our fundamental law;

., learning how that structure has come to be widel* misunderstood misapplied b* the %mericanpeople generall*;

/., learning how that general misunderstanding is broadl* and deepl* e0ploited b* private interests; and

1., standing up and insisting that the law be administered and upheld as written.

%nd it must be written. !t2s that simple.

3ne of the most important areas of our fundamental law concerns control over individual labor and

propert*. !ntending to establish a societ* based on individual libert*( %merica2s founders designed ourlegal structure so as to ensure that to the greatest degree possible-- consistent with the need for securing

that libert* against internal and e0ternal threats-- an individual2s control over his or her own labor and

propert* remains uncompromised b* government.

The reason for this specific attention was two-fold4 !ndividual control over one2s own labor and

propert* was recogni5ed b* the founders as the essence of the individual libert* which was the point of

the whole e0ercise; further( individual control over labor and propert* was also recogni5ed as the bestmeans of non-violent restraint upon the despotism to which all political structures are prone( including

our own. 6et2s take back our 7epublic b* removing ourselves from their &emocrac* one man8woman

at a time as is the onl* wa* it can be done.

The structure designed with these principles at its heart worked magnificentl* for the +9: *ears or so

that it remained widel* understood. The federal government remained small and relativel* harmless(operating almost entirel* on modest revenue from import tariffs on foreign services products4

%merican prosperit* soared. !n fact( the %merican econom* grew at an average annual rate of 9 fromthe +:s with full emplo*ment( a constantl*- and dramaticall*-rising average standard of

living( and virtuall* no inflation4

?ut in the late +>/:s( a b*-then :-*ear-old concerted effort to erode common understanding of theta0ation principles( prescriptions and proscriptions built into the @nited "tates $onstitution began to

bear fruit. !n particular( and most significantl*( a m*tholog* serving progressive( statist interests was

developed concerning the legal nature of the income ta0. This fraud Aand the conseBuences itengendered, was rightl* seen as the best mechanism b* which %merican libert* and rule of law could

be subverted and control over the resources of individual %mericans could be transferred to those in

command of the "tate.

$onseBuentl*( one supremel* important step for an* %merican wanting to en)o* the benefits of his or

her heritage as a free man of flesh blood( within the structure erected b* the founders for that


2/11

purpose is coming to understand4

'7'2" T' 6!?'7%T!CD T7@T !C % C@T"'664

The income ta0 is a benign( $onstitutional ta0 that simpl* doesn2t appl* to the earnings of most

%mericans. The ta0 laws themselves( scores of @nited "tates "upreme $ourt rulings( and ever* otherrelevant authorit* all acknowledge this truth in no uncertain terms.

The federal and state governments acknowledge this themselves( and have been doing so for *ears now.These acknowledgments take the form of tens of thousands of complete( +:: refunds of ever* penn*

paid-in b*( or withheld from( %merican men and women in connection with the income ta0-- "ocial

"ecurit* and Medicare ta0es included( along with ta0 agenc* surrenders in Edeficienc*E proceedings(lev* and lien releases( garnishment reimbursements( and so on.

Join the SPCCA, Budget some time,

You're in for a long mind-boggle.

F3@ C''& T3 6'%7C T!" T7@TG

3ur fellow %mericans need *ou to learn this truth.6earning the truth about the ta0-- along with how it works( how it is often misapplied( and what can

and should be done when that has happened-- is the onl* wa* to stop being an e0ploited victim of a

decades-old scheme that is a national disgrace. More importantl*( learning that truth transformshelpless victims into powerful( responsible( grown-up citi5ens of the $onstitutionall*-limited %merican

republic that the Hounders of this great countr* established for themselves and their posterit*.

! sa* Eresponsible( grown-up citi5ensE ver* deliberatel*. %s noted earlier( one of the ke* ob)ects of the

@" $onstitution is to keep the federal government from being the master of its own fuel suppl*( lest it

get out of control and burn down the house around us all. %mong the mechanisms deplo*ed b* the

Hounders on behalf of this criticall*-important purpose was putting control over how much wealth thegovernment could take directl* from the citi5enr* entirel* in the hands of each individual %merican.

This design relies upon each %merican being a responsible grown-up and using this control to keep our

servant government on the leash and obedient to the fundamental law.

The Hounders2 fuel-suppl*-control mechanism remains full* intact Athe +=th %mendment

notwithstanding,( and all income-ta0-related federal and state laws conform to that mechanism and itspurpose faithfull* and precisel*. The onl* thing lacking is *ou doing *our part.

! know this all sounds fantastic Aas in( Ea fantas*E,-- but *ou &!& ask( rightI

The reason this all seems fantastic is simpl* the success of that campaign to implant in *our mind the

m*th that back in +>+/( the %merican population got drunk one night and undid the $onstitutional

structure of strict limits on federal ta0ing power Aand thus %66 federal power, that had brought thiscountr* to the ver* pinnacle of wealth and personal freedom in all of world histor*. %s ludicrous as it

sounds when actuall* said( the m*th declares that the elite( or the working class( or both together(

somehow got it into their minds to unleash the )unk-*ard dog of government and authori5e it to takean*thing or ever*thing from an*bod* who earned it( whenever an* given cabal of political hacks in

ashington or a statehouse or a bankhouse chose to do so.

%s *ou have now seen( this is pure hogwash.

#lain Hacts %bout The !ncome Ta0 That The Dovernment Four Ta0 %ttorne* &on2t ant Fou To


3/11

Know

Please read the following material carefully, including the notes at the end.

Anything you've ever heard or had suggested to you about the tax

hi!h does not !onform to ea!h and every one of these fa!ts is sim"ly not true,

no matter ho or by hom it as said or suggested to you.

hat *ou2re going to see proven is4

+. The income ta0 is an e0cise;

. '0cise ta0es are ta0es on privilege;

/. The preceding facts about the income ta0 cannot change( because a ta0 on @C-privileged activities

Aor the gains therefrom, is a capitation or other direct ta0( and the $onstitution prohibits capitations and

other direct ta0es Aother than b* apportionment,; and

1. The prohibition on unapportioned capitations and other direct ta0es has never changed( even b*

action of the "i0teenth %mendment.

hat these facts mean. and wh* this is all ver* important to *ou and *our kids4 'mphasis mineL

+. The ta0 is an e0cise4

EThe ta0 upon gains( profits( and income isL an e0cise or dut*( and not a direct ta0( within themeaning of the constitution( and itsL imposition isL not( therefore( unconstitutional.E

@nited "tates "upreme $ourt( "pringer v. @. ".( +: @.". 9+=,

E! hereb* certif* that the following is a true and faithful statement of the gains( profits( or income of

NNNNN NNNNN( of the NNNNN of NNNNN( in the count* of NNNNN( and "tate of NNNNN( whether derived from

an* kind of propert*( rents( interest( dividends( salar*( or from an* profession( trade( emplo*ment( orvocation( or from an* other source whatever( from the +st da* of Januar* to the /+st da* of &ecember(

+


4/11

#reamble to the +>/> !nternal 7evenue $ode

EThe income ta0... ...is an e0cise ta0 with respect to certain activities and privileges which is measured

b* reference to the income which the* produce. The income is not the sub)ect of the ta0; it is the basisfor determining the amount of ta0.

Hormer Treasur* &epartment legislative draftsman H. Morse ubbard(in testimon* before $ongress in +>1/

. '0cise ta0es are ta0es on privilege4

E...the reBuirement to pa* e0ciseL ta0es involves the e0ercise of privilege.E

@nited "tates "upreme $ourt( Hlint v. "tone Trac* $o.(( : @.". +:O A+>++,

The terms Pe0ciseQ ta0 and 2privilegeQ ta0 are s*non*mous

and the two are often used interchangeabl*.

%merican %irwa*s( !nc. v. allace( 9O H.d


5/11

libert* might otherwise be taken to saddle the "tates with a read)ustment b* this rule( of past

7eBuisitions of $ongress - and that his amendment b* giving another cast to the meaning would take

awa* the prete0t. Mr illiamson ded. the motion( which was agreed to( 3n motion of $ol4 Mason Eor

enumerationE inserted after( as e0planator* of E$ensusE A$on. ". $. onl*. no.,E

James Madison( Cotes of the $onstitutional $onvention

ECo capitation( or other direct( Ta0 shall be laid( unless in #roportion to the $ensus or 'numeration

herein before directed to be taken.E

@nited "tates $onstitution( %rticle +( "ection >

E$%#!T%T!3C( % poll ta0; an imposition which is *earl* laid on each person according to his estateand abilit*.E

?ouvier2s 6aw &ictionar*( =th 'd. A+ A+9,

E&irect ta0es bear immediatel* upon persons( upon the possession and en)o*ments of rights;

@nited "tates "upreme $ourt( Knowlton v. Moore( +O< @.". 1+ A+>::,

EThe right to follow an* of the common occupations of life is an inalienable rightS !t has been wellsaid that Pthe propert* which ever* man has in his own labor( as it is the original foundation of all other

propert*( so it is the most sacred and inviolable. The patrimon* of the poor man lies in the strength and

de0terit* of his own hands( and to hinder his emplo*ing this strength and de0terit* in what manner hethinks proper( without in)ur* to his neighbor( is a plain violation of this most sacred propert*Q. "mith(

ealth of Cations( ?k. !( c. +:.

@nited "tates "upreme $ourt( ?utcherQs @nion $o. v. $rescent $it* $o.( +++ @.". O1= A+


6/11

1. The prohibition on unapportioned capitations and other direct ta0es has never changed( even b*

action of the "i0teenth %mendment4

EThe "i0teenthL amendment made it possible to bring investment income within the scope of the

general income-ta0 law( but did not change the character of the ta0. !t is still fundamentall* an e0cise or

dut* with respect to the privilege of carr*ing on an* activit* or owning an* propert* which producesincome.E

Hormer Treasur* &epartment legislative draftsman H. Morse ubbard in testimon* before $ongress in+>1/

EThe %mendment( the "upremeL court said( )udged b* the purpose for which it was passed( does nottreat income ta0es as direct ta0es but simpl* removed the ground which led to their being considered as

such in the #ollock case( namel*( the source of the income. Therefore( the* are again to be classified in

the class of indirect ta0es to which the* b* nature belong.E

$ornell 6aw uarterl*( + $ornell 6. . >< A+>+9-+=,

AThe #ollock court had reasoned that even though otherwise proper sub)ects of an e0cise ta0( a ta0 onprivilege-based dividends and rent was functionall* a ta0 on the personal propert* from which the

gains were derived-- the stock and real estate-- and therefore was reall* a direct ta0. The "i0teenth

%mendment sa*s that the EsourceE can no longer be considered in this wa*. !f something is EincomeE inthe sense meant in the income ta0-- that is( a gain from a privilege-based( and thus e0cisable activit*--

it can be ta0ed as such without regard to the source from which it is derived.,

E!n ?rushaber v. @nion #acific 7ailroad $o.( Mr. $. J. hite( upholding the income ta0 imposed b* theTariff %ct of +>+/( construed the %mendment as a declaration that an income ta0 is Eindirect(E rather

than as making an e0ception to the rule that direct ta0es must be apportioned.E

arvard 6aw 7eview( > arv. 6. 7ev. 9/= A+>+9-+=,

EThe "upreme $ourt( in a decision written b* $hief Justice hite( first noted that the "i0teenth%mendment did not authori5e an* new t*pe of ta0( nor did it repeal or revoke the ta0 clauses of %rticle

! of the $onstitution( Buoted above. &irect ta0es were( notwithstanding the advent of the "i0teenth

%mendment( still sub)ect to the rule of apportionmentSE

6egislative %ttorne* of the %merican 6aw &ivision of the 6ibrar* of $ongress oward M. Uaritsk* in

his +>O> 7eport Co. %( entitled 2"ome $onstitutional uestions 7egarding the Hederal !ncome

Ta0 6aws2

EThe "i0teenth %mendment( although referred to in argument( has no real bearing and ma* be put out

of view. %s pointed out in recent decisions( it does not e0tend the ta0ing power to new or e0ceptedsub)ects...E

@.". "upreme $ourt( #eck v. 6owe( 1O @.". +=9 A+>+


7/11

regarded as unapportioned-e0cise ta0ableL income.E

@.". "upreme $ourt( Taft v. ?owers( O< @" 1O:( 1>,

ETLhe sole purpose of the "i0teenth %mendment was to remove the apportionment reBuirement for

whichever incomes were otherwise ta0able. 19 $ong. 7ec. 19-1= A+>+:,; id. at 9/>; see also

?rushaber v. @nion #acific 7. $o.( 1: @. ". +1: @. ". +O-+< A+>+=,E

@.". "upreme $ourt( "o. $arolina v. ?aker( ( 1


8/11

There are others who would rather *ou didn2t know the truth( also. #undits who make a living

complaining about the si5e of the government; ta0 attorne*s; $#%s; Eta0 reformE advocates; Hlat-Ta0;

and even man* folks who present themselves as Eta0 honest* crusadersE don2t want *ou to know.Knowing the truth about the ta0( *ou will no longer bu* what the*2re selling( )ust as *ou will no longer

lose up to half *our hard-earned wealth to a dangerousl* over-fed "tate.

7ead the The+=th notes now and get the whole stor*. Fou and *our kids will end up eaten alive b* the

6eviathan Aor( more accuratel*( spoon-fed in ever-more pathetic and contemptible bits and pieces to its

clients,( and *ou2ll have no one to blame but *ourself.

C3T'"4 %n* construction of an* aspect of the ta0 which would produce a result inconsistent with the

above facts is a manifest misconstruction. Hor instance( an* construction of the nature of what is ta0ed(or the meaning or effect of EincludesE( or of EprivilegedE( which brings all economic activit* or its

products into the class of ta0able events or ta0ed ob)ects is self-evidentl* incorrect.

This is so( however cleverl* the misconstruction ma* be defended. %n* construction with the effect ofimposing or )ustif*ing an unapportioned capitation or other direct ta0 is manifestl* unconstitutional(

even if teasing or arguing out )ust where the mistakes are being made gives *ou a headache or is

be*ond *our abilities altogether. Fou don2t need to be able to argue( understand or defend the relevantph*sics or the geometr* to be able to confidentl* sa* that the 'arth is not flat.

VVV

The same principle discussed above applies to Eta0 honest*E arguments that the ta0 onl* falls on

corporations( or foreigners( or citi5ens( or residents( or the use or receipt of Hederal 7eserve notes( or is

interlinked with the @$$( or Ato put it succinctl*, an* construction or argument that the ta0 is an*thingother than what it is revealed to be in 2$racking the $ode- The Hascinating Truth %bout Ta0ation !n

%merica2. "uch notions are )ust as incompatible with one or more of the facts shown above as is the

m*th that the ta0 falls on all economic activit*( and thus )ust as self-evidentl* incorrect.

VVV

"ome unscrupulous beneficiaries8defenders of the fraud8misapplication of the ta0 have argued that

certain of the "upreme $ourt rulings cited and e0cerpted above( such as ?utcher2s @nion v. $rescent

$it* are not actuall* ta0-specific cases. This is pure evasion masBuerading as criticism.

?utcher2s @nion is not cited as evidence that the "upreme $ourt has specificall* said that common

occupations are not ta0able other than b* apportionment. The case doesn2t sa* this( directl*.

!ndeed( it is often difficult or impossible to find court rulings which declare the obvious or

uncontroversial directl*. Most cases are marked Enot for publicationE on them. This is no surprise; after

all( what would be the occasion for such a declarationI as an* court ever found itself needing to holdthat the "un rises in the 'ast Aso to speak,I

?ut ?utcher2s @nion &3'" acknowledge that common occupations are a matter of right. That factAwhich we don2t reall* need an* court to tell us( but wh* not use it when it is thereI, con)oins with

Knowlton v. Moore2s observation that a ta0 on the en)o*ment of a right is a direct ta0( thus reBuiring

apportionment as specified in %rticle +( "ec. >( and with all the "upreme $ourt rulings declaring that


9/11

apportionment reBuirement to continue( even after the "i0teenth %mendment. Taken all together( these

are a bod* of )udicial acknowledgment that under the @" $onstitution a federal ta0 on common

economic activities engaged in b* right Aor the product thereof, can onl* be laid per the apportionment

rule.

&o *ou think taking care of the fraud8misapplication of the ta0 doesn2t matterI

or h* !t Matters.

T' T7@T %?3@T T' !C$3M' T%W !" 6!?'7%T!CD

"3 '7'2" T' 6!?'7%T!CD T7@T !C % C@T"'664The income ta0 is a benign( $onstitutional ta0 that simpl* doesn2t appl* to the earnings of most

%mericans. The ta0 laws themselves( scores of @nited "tates "upreme $ourt rulings( and ever* other

relevant authorit* all acknowledge this truth in no uncertain terms.

The federal and state governments acknowledge this themselves( and have been doing so for *ears and

include tens of thousands of complete( +:: refunds of ever* penn* paid-in b*( or withheld from(

%merican men and women in connection with the income ta0-- "ocial "ecurit* and Medicare ta0esincluded( along with ta0 agenc* surrenders in Edeficienc*E proceedings( lev* and lien releases(

garnishment reimbursements( and so on.

?udget some time.Fou2re in for a long mind-boggle.

Four fellow %mericans need *ou to learn this truth.

6earning the truth about the ta0-- along with how it works( how it is often misapplied( and what canand should be done when that has happened-- is the onl* wa* to stop being an e0ploited victim of a

decades-old scheme that is a national disgrace. More importantl*( learning that truth transforms

helpless victims into powerful( responsible( grown-up citi5ens of the $onstitutionall*-limited %mericanrepublic that the Hounders of this great countr* established for themselves and their posterit*.

! sa* Eresponsible( grown-up citi5ensE ver* deliberatel*.%s noted earlier( one of the ke* ob)ects of the @" $onstitution is to keep the federal government from

being the master of its own fuel suppl*( lest it get out of control and burn down the house around us all.

%mong the mechanisms deplo*ed b* the Hounders on behalf of this criticall*-important purpose wasputting control over how much wealth the government could take directl* from the citi5enr* entirel* in

the hands of each individual %merican. This design relies upon each %merican being a responsible

grown-up and using this control to keep our servant government on the leash and obedient to the

fundamental law.

The Hounders2 fuel-suppl*-control mechanism remains full* intact Athe +=th %mendment

notwithstanding,( and all income-ta0-related federal and state laws conform to that mechanism and itspurpose faithfull* and precisel*.

The onl* thing lacking is *ou doing *our part.

! know this all sounds fantastic Aas in( Ea fantas*E,-- rightI

The reason this all seems fantastic is simpl* the success of that campaign to implant in *our mind the

m*th that back in +>+/( the %merican population got drunk one night and undid the $onstitutional


10/11

structure of strict limits on federal ta0ing power Aand thus %66 federal power, that had brought this

countr* to the ver* pinnacle of wealth and personal freedom in all of the world2s histor*. %s ludicrous

as it sounds( when actuall* said( the m*th declares that the elite( or the working class( or both together(

somehow got it into their minds to unleash the government and authori5e it to take an*thing orever*thing from an*bod* who earned it( whenever an* given cabal of political hacks in ashington or

a statehouse chose to do so.

%s *ou have now seen( this is pure hogwash.

To learn the Hascinating Truth %bout Ta0ation !n %merica( the truth about the +=th %mendment( and thetruth about the ta0--

?* the wa*( some of the concrete ta0-agenc* acknowledgments of the truth about the law happen onl*after strenuous resistance b* the governments involved-- but happen nonetheless( making them even

more pointed evidence of the real nature of the ta0.

%66 of these victories in enforcing our law against f raud8misapplication-- the simple( no-hassle vast

ma)orit* and the minorit* that have had to overcome obno0ious ta0-agenc* misbehavior-- have beenhappening continuousl* week after week for *ears now despite ever-increasingl*-vicious

disinformation and discouragement campaigns designed to suppress knowledge of; and keep more

%mericans from learning the liberating truth about the ta0 and the law that some in the political classfind e0tremel* inconvenient.

These campaigns against us b* the !7"( the &3J( the C"%( omeland "ecurit*( the political hacks thathave been looting %merica for decades and a lapdog mainstream media that is perfectl* happ* with the

status Buo are conducted because those responsible for them simpl* &3C2T %CT F3@ T3 KC3

this truth.

The political elite 6!K' spending *our mone* Aor seeing it spent in wa*s that suit their polic* agendas,(and the* will stoop at nothing to discourage *our interest( including slanderous character assassination(

fraud( and worse.

By the ay, the systemati! ex"loitation of the in!ome tax's !onfusing design

to a""ly it to un"rivileged a!tivities only began in the #$%&s.

o you ant to see hat ha""ened hen it did( read on....

2Now, Here's A Curious Thing...2

'7' F3@ %%7' T%T 3@T 3H % #3#@6%T!3C 3H + M!66!3CX( with more than 19

million gainfull*-occupied( onl* 1.+O+ million ta0 returns were filed b* %mericans of +>9-- the same%mericans who had adopted the +=th %mendment + *ears beforeI ere *ou aware that this was the

generall*-consistent ratio of earners to return-filing and ta0-pa*ing during all the *ears from +1:s and the enormousl* successful Eignorance ta0E-implementing scam of the 2Rictor* Ta0%ct2 and the 2$urrent Ta0 #a*ment %ct of +>1/2( b* which an historical average filing rate of less than

> was snookered up to more than >:( even though what Bualifies for the ta0 has never changedI

!f *ou &!& know about the low number of filings compared to earners for all those *ears( did *ou keep

its implications at ba* with the absurd m*th that e0emption rates were simpl* kept so astronomicall*

high compared to earnings as to shield most folks from the ta0-- even while the government slogged


11/11

through *ear after *ear of the revenue-demanding e0igencies of orld ar !( the Dreat &epression( and

most of orld ar !!I 7eall*I !llussionsG

hen *ou sign the -1 or whichever A- -< etc., *ou voluntaril* claim to be an income earner

sub)ect to the income ta0. #rior to signing said forms *ou are not sub)ect to the income ta0. !t is that

simple.

facts about the income tax

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