There are certain principles of natural justice inherent in the Anglo-Saxon character which need no expression in constitutions or statutes to give them effect or to secure dependencies against legislation manifestly hostile to their real interests.
The following remarks of Mr. Justice White in the case of Knowlton v. Moore, 178 U.S. 41, [*75] 109, 44 L. Ed. 969, 20 S. Ct. 747, in which the court upheld the progressive features of the legacy tax, are also pertinent:
"The grave consequences which it is asserted must arise in the future if the right to levy a progressive tax
be recognized involves in its ultimate aspect the mere assertion that free and representative government is a failure, and that the grossest abuses of power are foreshadowed unless the courts usurp a purely legislative function. If a case should ever arise, where an arbitrary and confiscatory exaction is imposed bearing the guise of a progressive or any other form of tax, it will be time enough to consider whether the judicial power can afford a remedy by applying inherent and fundamental principles for the protection of the individual, even though there be no express authority in the Constitution to do so."===========
Internal vs. External Taxes
"The more intelligent adversaries of the new Constitution admit the force of this reasoning; but they qualify their admission by a distinction between what they call INTERNAL and EXTERNAL taxation. The former they would reserve to the State governments; the latter, which they explain into commercial imposts, or rather duties on imported articles, they declare themselves willing to concede to the federal head."
--Alexander Hamilton, Federalist 36
After remembering that "internal" taxes originate from within the States and that "external" taxes originate from the Federal government, it dawned on me that there was a problem with the Federal "internal" income tax. I had to dig through the Constitution to find the answer.
The door finally opened when I read Downes v. Bidwell, in which Justice Harlan explained the existence of
two national governments.A quick rereading of the Constitution allowed me to locate the loophole. I now realized that the Federal income tax was, in essence, a tax on the incomes of citizens of the District government -- that is, Washington D.C. and its Territories, such as Guam, Puerto Rico and Wake Island. But how could Citizens of the States be classified as Federal citizens, and when did this happen?
14th Amendment Citizenship
"No white person born within the limits of the (several) United States and subject to their jurisdiction... or born without those limits, and subsequently naturalized under their laws, owes his status of citizenship to the recent amendments to the Federal Constitution. The purpose of the 14th Amendment... was to confer the status of citizenship upon a numerous class of persons domiciled within the limits of the United States who could not be brought within operation of the naturalization laws because native born, and whose birth, though native, at the same time left them without citizenship. Such persons were not white persons but in the main were of African blood, who had been held in slavery in this country..."
--Van Valkenburg v. Brown 43 Cal 43. 47 (1872)
The answer is rooted in the 14th Amendment, which apparently was
never ratified, but nevertheless holds full force and effect of law. The 14th Amendment, which was drafted and "ratified" specifically for the purpose of granting 2nd class federal citizenship for the freed slaves, has been deliberately misconstrued to assume that all Americans become Federal citizens. This Amendment gave Federal District citizenship to those persons, namely those of African blood who were slaves, but who did not qualify for State citizenship under existing law. Since the Federal Congress has Absolute Legislative power over Federal (District) citizens, it can rule over them the same way each State can rule within their borders. But Congress has one additional advantageous power that the States do not have. The Bill of Rights does not apply to 14th Amendment district citizens. (This prompted the creation of Civil Rights for Federal citizens, but still does not guarantee even the most basic Constitutional protections.)Privileges and Immunities
"The privileges and immunities clause of the 14th Amendment protects very few rights because it neither incorporates the Bill of Rights nor protects all rights of individual citizens. Instead this provision protects only those rights peculiar to being a citizen of the federal government; It does not protect those rights which relate to state citizenship."
--Jones v. Temmer 829 F. Supp. 1226
So that was the hidden secret that allowed Congress to apply unconstitutional law upon
U.S. citizens (district citizens). But another question remained unanswered: How do laws such as the Federal Internal Income tax reach into the States in defiance of Constitutional restrictions?U.S. citizen?
"By metaphysical refinement, in examining our form of government, it might be correctly said that there is no such thing as a citizen of the United States. But constant usage - arising from convenience, and perhaps necessity, and dating from the formation of the Confederacy - has given substantial existence to the idea which the term conveys. A citizen of any one of the States of the Union, is held to be, and called a citizen of the United States, although technically and abstractly there is no such thing. To conceive a citizen of the United States who is not a citizen of some one of the states, is totally foreign to the idea, and inconsistent with the proper construction and common understanding of the expression as used in the constitution, which must be deduced from its various other provisions. The object then to be obtained, by the exercise of the power of naturalization, was to make citizens of the respective states."
--Ex parte Knowles, 5 Ca. 300, 302 (1855)
After more research, I learned that in 1939, Congress established the Public Salary Tax Act to tax any and all federal workers. Congress was, at the time, unable to impede within the States and tax their federal workers. So in 1940, Congress passed the Buck Act, which authorized them to reach into the domain of the States and impose the Public Salary Tax Act, thus forcing federal employees working within a State to pay this Federal Salary Tax. (Notice that they didn't call it income.) At the time, only 3 to 5 percent of the American population was required to pay a salary or income tax to the Federal government. But that's how the Feds got their foot in the States' door. And thanks to FDR and World War II, the income tax snowballed into the beast we have to contend with today.
W-4's Are OPTIONAL -- the Law Says So!
26 CFR Sec. 31.3402(p)-1
Title 26
CHAPTER I
SUBCHAPTER C
PART 31
Subpart E
Sec. 31.3402(p)-1 Voluntary withholding agreements.
(a) In general. An employee and his employer may enter into an agreement under section 3402(b) to provide for the withholding of income tax upon payments of amounts described in paragraph (b)(1) of Sec. 31.3401(a)-3, made after December 31, 1970. An agreement may be entered into under this section only with respect to amounts which are includible in the gross income of the employee under section 61, and must be applicable to all such amounts paid by the employer to the employee. The amount to be withheld pursuant to an agreement under section 3402(p) shall be determined under the rules contained in section 3402 and the regulations thereunder. (b) Form and duration of agreement. (1)(i) Except as provided in subdivision (ii) of this subparagraph, an employee who desires to enter into an agreement under section 3402(p) shall furnish his employer with Form W-4 (withholding exemption certificate) executed in accordance with the provisions of section 3402(f) and the regulations thereunder. The furnishing of such Form W-4 shall constitute a request for withholding.
(ii) In the case of an employee who desires to enter into an agreement under section 3402(p) with his employer, if the employee performs services (in addition to those to be the subject of the agreement) the remuneration for which is subject to mandatory income tax withholding by such employer, or if the employee wishes to specify that the agreement terminate on a specific date, the employee shall furnish the employer with a request for withholding which shall be signed by the employee, and shall contain -
(a) The name, address, and social security number of the employee making the request,
(b) The name and address of the employer,
(c) A statement that the employee desires withholding of Federal income tax, and applicable, of qualified State individual income tax (see paragraph (d)(3)(i) of Sec. 301.6361-1 of this chapter (Regulations on Procedures and Administration)), and
(d) If the employee desires that the agreement terminate on a specific date, the date of termination of the agreement. If accepted by the employer as provided in subdivision (iii) of this subparagraph, the request shall be attached to, and constitute part of, the employee's Form W-4. An employee who furnishes his employer a request for withholding under this subdivision shall also furnish such employer with Form W-4 if such employee does not already have a Form W-4 in effect with such employer.
(iii) No request for withholding under section 3402(p) shall be effective as an agreement between an employer and an employee until the employer accepts the request by commencing to withhold from the amounts with respect to which the request was made.
(2) An agreement under section 3402 (p) shall be effective for such period as the employer and employee mutually agree upon. However, either the employer or the employee may terminate the agreement prior to the end of such period by furnishing a signed written notice to the other. Unless the employer and employee agree to an earlier termination date, the notice shall be effective with respect to the first payment of an amount in respect of which the agreement is in effect which is made on or after the first 'status determination date' (January 1, May 1, July 1, and October 1 of each year) that occurs at least 30 days after the date on which the notice is furnished. If the employee executes a new Form W-4, the request upon which an agreement under section 3402 (p) is based shall be attached to, and constitute a part of, such new Form W-4.
(86 Stat. 944, 26 U.S.C. 6364; 68A Stat. 917, 26 U.S.C. 7805) (T.D. 7096, 36 FR 5216, Mar. 18, 1971, as amended by T.D. 7577, 43 FR 59359, Dec. 20, 1978)
In 1942, Congress needed money for the war effort and passed a Constitutional two-year income tax called the Victory Tax. FDR invented
the Voluntary W-4 Tax Withholding system, making income tax and withholdings mandatory for all citizens of the Union. Again, this was a two-year tax, and as expected, both the Victory tax and W-4 withholdings legislation were repealed by Congress in 1944.Unfortunately, they forgot to tell America.
Victory Tax Repealed
s476 of the Victory Tax:
"The taxes imposed by this subchapter shall not apply with respect to any taxable year after the date of cession of hostilities in the present War."
May 29, 1944 (58 Statutes at Large, Chapter 210, Page 234) Repeal of the Victory Tax and all of it's provisions, including W-4 tax withholdings.
Under the disguise of the 1913 Internal Income tax, the machinery of the Victory tax remained in operation. Voluntary compliance with the Federal internal income tax jumped from an anemic 5 percent to a robust 60 percent in a matter of a couple years via the repealed Victory tax system of tax collection.
By using two illegitimate tax systems, Congress created the beast we have today, taxing us under rates and conditions exceeding those which prompted the Boston Tea Party and the Declaration of Independence.
You may have heard the rumblings, a whisper here, a thinly-veiled news report there.
IRS Commissioners complain that 34 million Americans no longer file personal income taxes. Most people are smart enough to see the obvious flip side of those figures: 30 to 40 percent of America doesn't file and pay the Federal income tax.I fall in that 30 to 40 percent category. I am often questioned by people about how I have "survived" non-compliance for nearly a decade without going to prison. Although this is an easy question for me to answer, it's very difficult for most people to understand.
Commissioner's Confession
From Financial Survival, Issue I, 1990:
"Former I.R.S. Commissioner Roscoe Egger resigned in April of 1986 after publicly admitting that 35 million Americans no longer file personal income taxes!"
By understanding my status as a citizen of the States, by knowing how to exercise my Rights under the Constitution, and by knowing who the Federal Internal Income tax does apply to, I have been able to stand up to the IRS without flinching. Some have accused me of being unAmerican. My response to those critics: If I commit fraud against you, you send me to jail. When did participating in government fraud become one's patriotic duty?
Besides, knowledge of the truth is empowering. For example, I know I can sue any IRS employee who violates my Rights. This seems to strike terror to Revenue employees. You see, the IRS is legal fiction. Their employees cry wolf, assuming you'll take their bait. But when you request signatures on all communication or notify them that you record your phone calls, a miraculous transformation of their attitude occurs.
Another example: If you understand how the Code of Federal Regulations works and discover that the policing and collection powers that the IRS claims to have were only delegated to the Bureau of Alcohol, Tobacco and Firearms, IRS agents tend to quickly reassign your case to another unsuspecting minion of the agency.
Legal Fiction
"The Tax Code represents the genius of legal fiction...The I.R.S. has never really known why people pay income taxes...The IRS encourages voluntary compliance, through fear."
--Jack Warren Wade Jr., former IRS officer in charge of the IRS' nationwide Revenue Officer training program.
If they know you understand your Rights, their only resort is to what I call "faxscimile warfare." This is where the think tank of the IRS bombards you with Civil Notices which are not signed or connected with any employee's name. Usually, there isn't a return address to specifically reply to or a phone number to call the person assessing you with yet another groundless penalty.
I found it quite easy to stop this type of harassment by responding to them with questions about the purpose of the assessment. This puts a wrench in their trickery, since they are required to respond as part of the Civil procedure. The response, if there ever is one, is usually another form letter stating that you are a tax protester and that there is no legal requirement for them to answer your questions. Whether such tactics will ever hold up in Court, I will never know. Echoing their thug-like threats, I've told them to take me to court, but they never seem willing to oblige me.
I don't hear much from the IRS these days. I occasionally get the $500 penalty notice for using "unreasonable excuses" like my Constitutional Rights to avoid the income tax. I can only guess that the IRS is only doing their job of running the numbers and maximizing revenues from an increasingly agitated tax base. I'm still waiting for the $500 penalty for breathing Federal air or not recycling the 1040 pamphlet they sent me several years ago. At this point, nothing would surprise me. But hopefully I won't run into anything I can't handle, either.
(c) Copyright 1997 ParaScope, Inc.
Nothing in the world
pisses off those stiffs at
the IRS more than an
improperly stapled
tax return.
Don't Get Mad, Get Even!
The Top 10 Ways to Hassle the IRS
by Anonymous
The following list of "tips" on thwarting, annoying and generally badgering workers at IRS processing offers was delivered anonymously to the ParaScope mailbox. The author, who claims to have worked in an IRS mail room, offers the following suggestions for annoying, aggravating or otherwise f***ing with the IRS. Note: These agitation methods are presented FOR ENTERTAINMENT PURPOSES ONLY. Use at your own risk and discretion.
That said, here are the top 10 ways to hassle the IRS with relative impunity:
1. Always put staples in the right-hand corner. Go ahead and put them down the whole right side. The extractors who remove the mail from the envelopes have to take out any staples in the right side.
2. Never arrange paperwork in the right order, or even facing the right way. Put a few upside down and backwards. That way they have to remove all your staples, rearrange your paperwork and re-staple it (on the left side).
3. Line the bottom of your envelope with glue and let it dry before you put in your forms, so that the automated opener doesn't open it and the extractor has to open it by hand.
4. If you're very unfortunate and have to pay taxes, use a two- or three-party check.
5. On top of paying with a three-party check, pay one of the dollars you owe in cash. When an extractor receives cash, no matter how small an amount, he has to take it to a special desk and fill out many nasty forms.
6. Write a little letter of appreciation. Any letter received has to be read and stamped, regardless of what it is about.
7. Write your letter on something misshapen and unconventional. Like on the back of a grocery sack.
8. When you mail your return, mail it in a big envelope (even if it's just a single form). Big envelopes have to be torn and sorted differently than regular business-sized ones. An added bonus to the big envelope is that they take priority over other mail, forcing them to hurry up and deal with your mess first.
9. Always put extra paper clips on your forms. Any foreign fasteners have to be removed and put away.
10. Sign your name in ink on every page. Any signature has to be verified and then date stamped.