Month: January 2025

09. Short History of the Income Tax | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

The Federal Reserve Bank (FRB) requires “withholding” from employee’s income as an economic mechanism to mitigate the damage from spiraling inflation, while concealing currency devaluation. In addition “withholding” keeps your hard-earned Federal Reserve Notes (FRNs) out of circulation so you cannot spend them as disposable income. The contemporary “income tax” system, as bizarre as it is, is an essential component of the Western debt-based central banking system.

By keeping Federal Reserve Notes (FRNs) out of circulation through “withholding”, economic controls are more effective. By maintaining employee net income as near to subsistence as possible, the Citizen is effectively prevented from engaging in meaningful political activity to threaten the global elite’s monopoly over the political, economic and legal systems. 

First Income Tax for Federal Employees

During the American Civil War, the first version of an “income tax” was implemented for federal U.S. government employees only, and once again after the corporate income tax was repealed. The U.S. Congress have been taxing the incomes of federal U.S. government employees since 1861. 

Second Income Tax for Corporations

The second version on the income tax was a corporate tax introduced concurrently with the Federal Reserve Act of 1913 to off-set the debt incurred by the federal U.S. government corporation to the Federal Reserve Bank (FRB). This was yet another attempt to impose a direct tax on wages.

The U.S. Congress authorized a “voluntary” income tax in 1913 for corporate “persons”, under the very popular guise of “soaking the rich for the sake of the poor”. The income tax for corporations was promulgated simultaneously with the alleged ratification of the 16th Amendment. It was repealed by the Internal Revenue Act (Nov. 23, 1921). 

At this juncture, a surtax on individuals was implemented to offset the corporate income tax. These taxes, which became known as income taxes via the Public Salary Tax Act of 1939, were issued against the government returns for public officials. 

Income Tax Goes Directly to the Federal Reserve Bank (FRB)

Before online banking and electronic fund transfers, we wrote paper checks to pay bills and our “income taxes”. If you noticed the stamp on the back of your cashed check from the IRS, you would have noticed that your check payment was endorsed by the Federal Reserve Bank (FRB), not the U.S. Treasury or the IRS. 

As we stated previously, the Grace Commission Report on Government Waste (1984) concluded that not one dime of your hard-earned tax money goes to pay for government services. All “income tax” payments service the interest only on the federal/national “debt (Ø)”.

All “income tax” collected goes to service an un-payable federal/national “debt (Ø)”, and is the greatest fraud ever perpetrated upon the We the People. 

Since we have already asserted that the International Monetary Fund (IMF) via the Federal Reserve Bank (FRB) is a primary principal/creditor of the federal U.S. government corporation, any “income tax” received would be directly routed to the principal-creditor – just like any other bankrupt entity. This is additional prima facie evidence of the bankruptcy of the federal U.S. government corporation.

“The greatest challenge our tax system faces in the 1990s is to ease the burden on taxpayers. Once people conclude that it is too difficult, too time consuming, too expensive to comply, many will stop complying.”
~ Fred Goldberg, IRS Commissioner

Apportionment as Rule of Law

The IRS has no lawful or delegated authority to assess and collect income taxes. The original U.S. Constitution strictly forbade the federal U.S. government from imposing any “direct” tax upon individuals. 

The U.S. Congress could, however apportion direct taxes to a state, but not to the individuals within the state. A capitation means a “head tax”, “poll tax”, “per capita tax” or direct “income tax”, and is not permitted, unless equally apportioned to each state. This is the apportionment rule of law.

“No capitation, or other direct tax shall be laid, unless in proportion to the census
or enumeration herein before directed to be taken.”
~ U.S. Constitution [1:9:4]

“Representatives and direct taxes shall be
apportioned among the several States
which may be included within the Union
to their respective members…”
~ U.S. Constitution [1:2:3]

These original sections of the U.S. Constitution have never been repealed or lawfully amended, and the 16th Amendment, as passed, is invalid. The U.S. Constitution still today  forbids direct taxation of individuals. 

“Any direct tax that is not apportioned is unlawful.”
~ Commissioner v. Obear-Nester, 349 U.S.948 (1954)

Our Founders intentionally limited the taxing powers of the federal U.S. government so as to keep it small. “[the federal government] has no authority to raise either [men or money] by regulations extending to the individual [state] Citizens of America.” 

Apportionment can be a protective shield against direct taxation for all sovereign “state” Citizens providing you are “domiciled” in one of the 48 sovereign states, and not a resident (or franchisee) of the federal United States.

16th Amendment Created No New Taxing Powers

The Internal Re-Venue Service (IRS) claims the 16th Amendment gives them the constitutional authority to impose and collect direct taxes, despite the fact that the U.S. Supreme Court ruled the 16th Amendment created no new power of taxation, thus, did not amend or change the constitutional limitations forbidding direct taxation on individuals. 

Additionally, as can be shown, the 16th Amendment (1913) was never lawfully ratified by the sovereign “states” of the Union. 

16th Amendment Improperly Ratified

According to The Law That Never Was, authors Red Beckman and Bill Benson traveled to all the State Capitols to obtain certified copies of the official voting records of the thirty-six states that allegedly ratified the 16th Amendment. 

By careful accounting, thirty-two states had committed grievous departures from acceptable procedure during the ratification process. In the official canvas of the first nineteen (19) Amendments of the U.S. Constitution, the U.S. President’s signature is glaringly missing from the 16th Amendment. This is another story in a long history of frauds perpetrated upon We the People.

The real purpose for the 16th Amendment was to create a smoke screen, making it appear that constitutional restrictions on direct taxing had been abolished. But once the smoke had cleared, the Citizens would soon forget and the income tax would further encroach upon the assets and rights of the people who ever increasingly pay tribute to the Federal Reserve Bank (FRB) and their foreign principals-creditors.

“The Congress shall have the power to lay
and collect taxes on incomes,
from whatever source derived, without 
apportionment among the several states,
and without regard to any
census or enumeration.”
~ 16th Amendment

Third Income Tax For Appointed and Elected Government Officials Engaged in Business

The current Subtitle A tax and Subtitle C Social Security and related taxes have never applied to anyone other than appointed and elected government officials engaged in United States trade or business (defined at IRC §7701(a)(26)). 

Victory Taxes After WWII

The U.S. Congress did not make the income tax “mandatory” until World War II, when a “victory tax” was imposed on “wages” as an “National Emergency” measure to help pay for the war. In contrast, both before and after World War II, “wages” were not subject to federal income taxes. 

The U.S. Congress morphed the “victory tax” into the modern version of the “income tax” a few years after WWII to finance the Cold War debt, the rising military-industrial complex, and foreign-aid corporate programs to other developing countries. 

No Direct Tax, Wages Are Not Income

Because many of the “citizens of the United States” weren’t paying attention after World War II, as many are today, We the People did not realize that the federal U.S. government could not constitutionally impose any direct “income tax” on their wages or property. They assumed that “wages” were income; thus, they volunteered to be taxed. Once again, Citizens swallowed a fraud and a hoax, and were left confused and holding the bag.

Several federal courts have ruled that states are prohibited from imposing an indirect tax upon an unalienable right (no sales tax on food items). Your right to work is an unalienable right and many states have right to work laws whereby the government cannot license or tax your right to work in the profession of your choice. 

According to the Internal Revenue Code (IRC), “wages” are not taxable because they are not defined as “income”. 

What is Taxable Income or Gain?

A lawful tax liability is created from an increase or gain in the value of property, not from gross income, providing you are a person required to file and report. 

Where income from private enterprise is defined as property, it is generally exempt from direct tax under fundamental law. “Wages”, salary and other returns from public service are deemed to be privileged, commercial enterprises due to government-granted benefits, thus, are considered to be taxable. In other words, the “income tax” is nothing more than an excise tax levied against privileges and benefits derived from federal government service.  

Income is Defined in the IRC in the Same Light as a Schedule C, Standard Business Calculation

David Myrland’s Our Uncle, Our Problem demonstrates that IRC § 7701(e) (contract for lease of property) relative to IRC §83 calculations (of the fair market value) and IRC §1011, 1012, 1014 (adjusted basis of property transferred) confirms this. 

GROSS INCOME (minus) EXPENSES = INCOME (PROFIT or GAIN)
or INCREASE OF VALUE

In calculating “gross income”, 26 USC §83 applies to all compensation for services.  §1.83-4(b)(2) requires that the cost of compensation for services is to be figured by applying the provisions of §1012 and the regulations hereunder. 

Regarding 26 USC §83 calculations, ask these questions. Where, under §1012, is the exclusion of intangible personal property, such as labor, from property that is to be treated as a cost? 

Which specific provisions exclude my compensation from the provisions of §83? How am I to comply with the provisions and requirements of §83? 

As an independent contractor or employee, does §83 allow the taxation of the fair market value of services, received as a fee or wage?

Labor is Property, Not Taxable Income

If you are selling your labor to an employer, then labor is your property. Your labor is your property, therefore not taxable. If you are exchanging labor for a paycheck, then zero gain = zero tax. This is the same as if you are breaking even, not making a “profit”. 

The same calculation applies for both cash or bartered exchanges. The entire income tax code has nothing to do whatsoever with “wages”, but “profit”, “gain” and “increase” in value.

NO INCOME = NO INCOME TAX
NO PROFIT = NO GAIN

As an “employee”, you are not even required to keep books and records. 

“Compensation for labor (wages) cannot be regarded as profit within the meaning of the law. The word ‘profit’ …means the gain made upon any business or investment – a different thing altogether from mere 
compensation for labor (wages).” ~ Oliver v. Halstead, 196 Va. 992 (1955)

“[The IRS] taxes only income ‘derived’ from many different [U.S.] sources; one does not ‘derive income’ by rendering services and charging for them.”
~ Edwards v. Keith, 231 F.110

References:

  1. Wikipedia | Internal Revenue Act of 1921, §213, pp.237 and 238; IRC of 1954, §3401(c), people identified as “employees” amended in 1986].
  2. Cornell Law | United States v. Constantine, 296 U.S. 233, 56 S.Ct. 223, 80 L.Ed 233 (1935).
  3. GovInfo | U.S. Government Manual, p.794, 1995/96 edition.
  4. Wikipedia | Grace Commission Report on Government Waste (1984); Free At Last by N.A. Scott, Ph.D., D.D., pp.2-5; Family Guardian | Confirms the allegation that the income tax revenues go 100% to pay the interest on the national debt and not a single nickel of it goes to the government; Citizens Against Government Waste
  5. Wikipedia | Fred Goldberg, IRS Commissioner.
  6. Wikipedia | U.S. Constitution [1:9:4]; Limits on Federal Power.
  7. Wikipedia | U.S. Constitution [1:2:3]; House of Representatives.
  8. Court Listener | Commissioner v. Obear-Nester, 217 F.2d 56 (7th Cir 1954).
  9. Founders Archives | The Federalist Paper #15 by Alexander Hamilton, Modern Library.
  10. Justia | Brushaber v. Union Pacific Railroad, 240 U.S. 1 (1916).
  11. The Law That Never Was | The Law That Never Was by Red Beckman and Bill Benson; Amazon; Senate Document 240.  Regarding the supposed ownership of the IRS;  Pandora’s Box by Alexander Christopher, p.523 (IRS is owned by R.E. Harrington Insurance Company of England which had its roots in the original Virginia Company that colonized the southern part of the USA) www.archive.org/details/PandorasBoxAlexChristopher1993
  12. Cornell Law | 16th Amendment, U.S. Constitution.
  13. Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992) (income tax is for public employees).
  14. Congressional Record | Congressional Record for March 27, 1943, p.2580.
  15. Citation Needed | Our Uncle, Our Problem by David Myrland. regarding IRC §7701(e) (contract for lease of property) relative to IRC §83 calculations (of the fair market value) and IRC §§1011, 1012, 1014 (adjusted basis of property transferred).
  16. Ibid.
  17. Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992) (wages are not taxable as income).
  18. Justia | Oliver v. Halstead, 196 Va. 992 (1955); People ex rel. Thomas B. Needles, Auditor, 90 Ill. 166. “Reasonable compensation for labor or services rendered is not profit.” Laureldale Cemetery Association Matthews, 354 Pa. 239, 47 A.(2d) 277; The word “profit” is defined in Black’s Law Dictionary (3rd ed.) as “The advance in the price of goods sold beyond the cost of purchase. The gain made by the sale of produce or manufactures, after deducting the value of the labor, materials, rents, and all expenses, together with the interest of the capital employed.” There is a clear distinction between “profit” and “wages” or compensation for labor. “Compensation for labor can not be regarded as profit within the meaning of the law. The word ‘profit’, as ordinarily used, means the gain made upon any business or investment — a different thing altogether from mere compensation for labor.”
  19. Case Law Vlex | Edwards v. Keith, 231 F.110 (2nd Cir 1916).

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.85 – 90

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09. Individual Master File (IMF) | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

As if this bizarre scheme to collect taxes is not convoluted enough, the Internal Re-Venue Service (IRS), apparently limited is in its legitimate ability to tax Citizens directly, has contrived an incredible scam of imposing excise taxes based not on income or gain, not with jurisdiction or delegation of authority, but due to a specific taxable activity beyond the scope of the U.S. Constitution, such as: “operating an offshore oil well, importing drugs from the Cayman Islands, or dealing in gasoline used in school buses”.

We admit this conclusion seems far-fetched, virtually impossible to believe, but there appears to be evidence to support this presumption. Imagine that in order to impose excise taxes directly on Citizens, the IRS has been intentionally mis-classifying 95% of all taxpayers as involved in some excise taxable activity light-years removed from any sense of reality. 

Ludicrous, as it may seem, the Individual Master File (IMF), or Business Master File (BMF), of each individual or  business taxpayer has a series of “industry activity codes”. If decoded they reveal excise taxable activity that creates a false liability to pay excise taxes. Simply stated, the Internal Re-Venue Service (IRS) has systematically falsified the file of every taxpayer “U.S. citizen” to create a basis for tax liability. 

The IRS is primarily a record management agency. Every administrative action taken by the IRS is designed to settle the record in favor of assessment and collection. 

As a remedy for frustrated taxpayers, addressing the falsehoods in the IMF or BMF with a request to correct the record may stop the assessment and collection activity altogether. Request a complete copy of your IMF and the corresponding decoding book may be a valuable tax reduction strategy.

IRS Classifies Some Taxpayers Narcotics Dealers

“When Freedom of Information Act (FOIA) requests have been filed for an Individual Master File (IMF) for people who are experiencing tax problems with the IRS, every return has been found to contain the above codes except for some which are coded as ‘Guam’ returns. Every return shows that the unsuspecting Citizen is being taxed on income derived from importing narcotics, alcohol, tobacco, or firearms into the United States, or one of its territories or possessions, from a foreign country or from Guam, Puerto Rico, the Virgin Islands, or into the Virgin Islands from the Cayman Islands.”

IRS Venue and Statute of Limitations

There are no regulations published in the Federal Register which extend Internal Revenue Code (IRC) authority to the state republics for establishing federal internal revenue districts (26 USC §7621). 

There is no regulatory authority extending jurisdiction of the Department of the Treasury to the state republics (26 USC §7801). There are no regulations extending authority of the Commissioner of Internal Revenue to the state republics and the population at large (26 USC §7802).

Tom Dunn of Maine claims to have documented that judges of the “United States” participate in this international scam by way of the Capital Trust Corporation in the District of Columbia (D.C.), by way of an offshore trust linked with the Internal Re-Venue Service (IRS). 

If the international connection can be shown, the assertion that the Internal Re-Venue Service (IRS) collects for an undisclosed foreign principal/creditor can be proven, and the Department of Justice (DOJ) represents an undisclosed, foreign “Central Authority”, which appears to be an international long-arm of the hidden Global Power structure.

The general authority statute for the Department of Justice (DOJ) is 28 USC §516. In U.S. v. Mattison, C.A. 9 (Mont.) 1979, 600 F.2d 1295, the court stated that 28 USC §516 was a general housekeeping statute and that the authority of the Department of Justice (DOJ) must be prescribed by a statute specific to an offense.

IRS Tax Protester Types

Here are a few IRS classifications of tax protesters which they claim use “frivolous tax arguments”:

(1) A tax protester is a person who employs one or more illegal schemes that affect the payment of taxes.

(2) The following are schemes used by illegal tax protesters:

(a) Constitutional basis.

(b) Fair Market Value.

(c) Gold/Silver Standard.

(d) Blank IRS Form 1040/1040A.

(e) Non-Payment Protest.

(f) Protest Adjust.

(g) Mail Order Ministries.

(h) Protester Letters and Cards.

(i) Family Estate Trust.

The trusts are filed on IRS Form 1041. Terms such as “family”, “pure”, “prime”, and “constitutional” are used in the title of the trust. Income is from “wages”or “contract”sources and deductions are for personal living expenses, such as housing, medical, auto, child care, interest or taxes. Generally, an individual will establish a trust and give his-her wages or other income to the trust. Then the trust pays for the expenses of the individual. The expenses claimed as administrative expenses of the trust, result in the individual paying no tax and the trust paying little or no tax.

Individual Income Tax as Excise Tax

The individual “income tax” prescribed in Subtitle A of the Internal Re-Venue Code (IRC) is an excise tax levied for the privilege of working for the federal government. The tax is mandatory only for officers, agents and employees of the United States agencies, and officers of United States corporations (26 USC §3401(c)and(d). The tax is otherwise voluntary (26 USC §3402 (p).

Yet the IRS, with full cooperation of state and federal courts, United States attorneys, and Department of Justice (DOJ) attorneys routinely assails the “citizens of the United States” by way of administrative edicts, seizures, etc., and both civil and criminal prosecution.

The study of IRS generated Individual Master Files (IMF) demonstrates that many lawsuits for tax collection are premised on coding which classifies the alleged taxpayer as being involved in illegal drug trafficking via the Virgin Islands and/or other off-shore jurisdictions. 

People expert in IRS document decoding may be among those presenting testimony to the grand jury. 

“In order to avoid open hostilities,
it is necessary to move evidence into
proper legal forums so there can be
peaceful  remedies that minimize
danger and damage.”
~ Dan Meador

References:

  1. Wikipedia | Individual Master File (IMF); Archives | Request for Records Disposition Authority; The Matrix Has You | Individual Master File (IMF) Decoding by Sovereignty Education and Defense Ministry (SEDM); Family Guardian | Obtaining and Analyzing Your IMF; Family Guardian | 12 Deposition Questions; Legal Beagle | How to Access the IMF from the IRS?
  2. Sourced from Veritas Magazine.
  3. Cornell Law | 28 USC §516: Tax Refund Case www.law.justia.com/cases/federal/appellate-courts/F2/273/13/455842
  4. Wikipedia | Tax Protester History; Family Guardian | IRS Tax Protester Handbook for Training Agents; Internal Re-Venue Service | IRS Frivolous Arguments.
  5. Cornell Law | 26 USC §3401(c)and(d); Cornell Law | 26 USC §3402 ℗.
  6. Quote by Dan Meador; Family Guardian | The Great Income Tax Hoax: Why We Don’t Owe Income Tax by Dan Meador, an excellent brief on the history of the Internal Re-Venue Service.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.83 – 85

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09. IRS is a Bizarre Scheme to Collect Taxes | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

Income Taxes Intended for Elected U.S. Officers and Employees

Tax prescribed in Subtitles A and C of the Internal Revenue Code of 1954, as amended in 1986 and since, were classified as Chapters 1,2 and 21 of the Revenue Code of 1939, which codified the Public Salary Tax Act of 1939 and the Social Security Act of 1935, both of which issue only against appointed and elected United States officers and employees. 

The IRS may administer Subtitle A and C taxes in United States off-shore territorial jurisdiction pursuant to 26 USC §7701(a)(12)(B).

IRS Has No Legitimate Enforcement Authority in Union of Several States

IRS and BATF, both emerging from the Bureau of Internal Revenue, Puerto Rico, with authorization from the Department of the Treasury, operating in conjunction with Puerto Rico Trust #62 (Internal Revenue), have the primary responsibility for administration of the Federal Alcohol Administration Act and United States custom laws, applicable only in the geographical “United States” under Congress’ Article IV territorial jurisdiction and U.S. Constitution, Article III, section 2 legislative jurisdiction.

The Internal Re-Venue Service (IRS) is authorized to administer custom laws relating to narcotics and other drugs pursuant to 26 CFR, Part 403. The Bureau of Alcohol, Tobacco & Firearms (BATF) is authorized to administer custom laws relating to alcohol, tobacco and firearms under the provisions of 27 CFR, Part 72.

The Treasury Department, not the Department of the Treasury, is authorized as the Secretary’s delegate in the  continental “United States” so far as Subtitle A and Subtitle C taxes are concerned. 

The Internal Re-Venue Service (IRS) works on contracts to develop and maintain records and provide record-keeping services for the Treasury Department. The agency has absolutely no legitimate enforcement authority in the sovereign state republics.

IRS Not a Corporation

Although, we know the Internal Re-Venue Service (IRS) is not a corporation, foreign or domestic, it is also not authorized to do business in the corporate State either. To verify this, we acquired a Certificate of Non-Existence from the Secretary of State of Nevada. Therein it stated:

 “…The Internal Re-Venue Service is not a Nevada corporation and has never qualified as a foreign corporation to do business in this State under the provisions of Chapter 80 of the Nevada Revised Statutes, that to the date of this certificate, said corporation has failed to appoint a Resident Agent upon whom process may be served, as required under NRS 14.020, and at the date hereof, there is no such agent in Nevada for said corporation and that this certificate is made under the provisions of NRS 14.030(1).~ Nevada Secretary of State (June 4, 1993)

IRS Taxing Authority

The primary taxing authority of the federal “United States” involves duties, imposts and excises. Subtitles A and C of the Internal Revenue Code (IRC) prescribe excise taxes, mandatory only for officers and employees of the “United States”. 

These are not direct taxes, but taxes built into the consumer price index of everything we buy, sell, trade, import or export. They are levies on everything that is imported, exported or manufactured. These are legitimate taxes within the authority of the U.S. Constitution.

The Internal Re-Venue Service (IRS) has a hidden practice of fraudulently involving an individual in a hidden excise taxable activity to be able to assess and collect taxes legitimately.  The Internal Re-Venue Service (IRS) has even assigned “industry activity codes” in the Individual Master (IMF) File for all taxpaying “U.S. citizens” to justify their assessment activities, although the activities assigned are usually irrelevant to the individual’s actual commercial activity. 

Ask the IRS for Form 5546 and the excise taxing activity codes assigned to you. You will be surprised to find out what bizarre basis they are assessing taxes on you.

“The Congress shall have the power to lay and collect taxes,  duties, imposts and excises to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout
the United States;…” ~ U.S. Constitution [1:8:1]

This sinister and bizarre scheme puts the entire federal United States tax system in jeopardy, as the Revenue Act of Nov. 23, 1921 effectively repealed all federal taxes enacted under Congress’ Article I delegated authority. Even excise taxes prescribed in Subtitle D of the current Internal Revenue Code (IRC) are applicable and enforceable only in “United States” territorial and maritime jurisdictions.

References:

  1. Ibid.
  2. Ibid.
  3. Ibid.
  4. Quote from Nevada Secretary of State.
  5. Family Guardian | IRS Form 5546.
  6. Constitution Congress | U.S. Constitution [1:8:1]. The Congress shall have the power…
  7. Wikipedia | Revenue Act of 1921.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.81 – 82

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Sovereign’s Handbook by Johnny Liberty 
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Dawning of the Corona Age: Navigating the Pandemic by Johnny Freedom 
(3rd Edition)
(Printed, Bound Book or PDF)

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09. What is the Internal Re-Venue Service? | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

In the simplest terms, the Internal Re-Venue Service (IRS) is a private collection agency for the Federal Reserve Bank on behalf of the International Monetary Fund (IMF) which is a principal/creditor of the perpetually bankrupt federal U.S. government corporation. Of course, this courageous assertion is taboo to even discuss, let alone bring into the light, in these times. 

IRS Authority

As a record management agency, the Internal Re-Venue Service (IRS) presumes authority over all Citizens to assess and collect federal income taxes from any source derived. 

As may be shown in the following, this has been a monumental fraud which has been perpetrated upon We the People for over one-hundred and ten years while the U.S. Congress, U.S. President and U.S. Supreme Court, with few exceptions, have all gone along for the ride. 

Please consider all three historically convoluted lines of legal construction detailed as follows. Afterward, we would imagine that any intelligent and thoughtful individual would only conclude that the IRS is a massive con game foisted upon the ignorance, complacency and fear of the people.

Commissioner of Internal Revenue

Firstly, the original office of the Commissioner of Internal Revenue, created by the Revenue Act of 1862 (12 Stat 432), was in the Treasury Department. However this office was effectively abolished with promulgation of the Revised Statutes of the United States 1873. 

The current office of the Commissioner of Internal Revenue (IRC §7802), is not in the Treasury of the United States (Treasury Department). Instead, it is in the Department of the Treasury, Puerto Rico.

In the early part of the 19th century, provisional governments for the Philippines and Puerto Rico, operating chiefly under supervision of the Navy, established entities known as the Bureau of Internal Revenue. 

The first by way of Philippines Trust #2 (internal revenue), the second by way of Puerto Rico Trust #62 (Internal Revenue). When the Philippines became an independent commonwealth in 1946, only one of these trusts remained. The Secretary of the Treasury still administers this trust.

National Prohibition and 18th Amendment Repealed by 21st Amendment

Secondly, when the 18th Amendment effecting national prohibition was ratified in 1919, it granted concurrent state and federal authority relating to the production and distribution of distilled spirits. 

However, the 21st Amendment repealed the 18th in 1933 and effectively terminated federal police powers. The Federal Alcohol Commission was enacted in 1935. However, it never got off the ground due to the Constantine case. 

Functions of the Federal Alcohol Commission were merged with the Bureau of Internal Revenue, Puerto Rico, not the Internal Re-Venue Service as we know it in the united states of America today.

Bureau of Internal Revenue Morphed Into Internal Re-Venue Service  (IRS)

Thirdly, the Internal Re-Venue Service (IRS) as we know it today did not formally come into existence until the name of the Bureau of Internal Revenue was changed to the Internal Re-Venue Service (IRS) via Treasury Department Order (T.D.O.) #150-29 in 1953. 

The fact that the U.S. Congress never created a Bureau of internal Revenue is verifiable in the U.S. Department of Treasury history of the United States internal revenue laws.

From 1953 until 1972, the IRS continued to have responsibility for the administration of the Federal Alcohol Administration Act. The Bureau of Alcohol, Tobacco and Firearms was established and segregated from the IRS via Treasury Order #221, effective July 1, 1972.

The fact that BATF still administers the Federal Alcohol Administration Act is verified at 27 CFR, Part 1.1, and in definition at 27 CFR, Part 1.5, and the solid link with the Department of the Treasury, Puerto Rico, is made by definition at 27 CFR, Part 250.11.

Delegation of Authority

The IRS does not have any legitimate “delegation of authority” at the federal level from the U.S. Congress. Title 26 of the Internal Revenue Code (IRC) is often cited by the IRS to justify their authority to assess and collect income taxes.

The Internal Revenue Code (IRC) authorizes the Treasury Department (Treasury of the United States) to administer internal revenue taxes of the United States in the continental United States, not the Internal Re-Venue Service of the Department of the Treasury.

Title 26, though, never passed as “positive” law, and the implementing statutes are missing. The IRS collection process is legitimate providing that they obey the laws and assess the tax on the proper persons, but the assessment process is a complete and total fraud. 

All legitimate delegations of authority at the federal level must be “filed” and “published” in the Federal Register. 

The Presidential Reorganization Plan No. 26 of 1950 divested the IRS Commissioner of all authority to enforce the 1939 Internal Revenue Code and vested all such authority to the Secretary of the Treasury. The U.S. Treasury has re-vested to the IRS only the following authority. 

“The Commissioner shall, to the extent 
of authority otherwise vested in him, 
provide for the administration of the 
United States Internal Revenue laws
in the U.S. territories and insular possessions
and other authorized areas of the world.”
~ Treasury Order 150-01

The U.S. Congress authorized the President to re-delegate authority to various administrative departments and department heads. Most of the core Executive Order (EO) delegations are published immediately following 3 USC §301 (1994 edition). Where the Secretary of the Treasury is concerned, key Executive Order delegation is EO #10289. 

Authority delegated by the U.S. President, so far as “Internal Re-Venue” is concerned, addresses custom laws, particularly with respect to narcotics and related drugs, the anti-smuggling act, other maritime activity, and authority in offshore territories of the “United States” such as Puerto Rico, etc. 

No authority relating to internal revenue laws prescribed in Subtitles A and C of the Internal Revenue Code is mentioned. That EO #10289 is the authority for the Secretary of the Treasury to establish revenue districts is verified at 26 CFR §301.7621-1. 

In the Parallel Table of Authorities and Rules, located in the index of the Code of Federal Regulations, reveals that the authority to establish revenue districts does not apply to the Union of sovereign states of the republic, as parties to the U.S. Constitution.

The Secretary of the Treasury in turn delegated authority to the Commissioner of Internal Revenue by way of Treasury Department Order (T.D.O.) #150-42, effected July 27, 1956 (Federal Register, pg., 5852).

Therefore, we find no authority cited for any delegation of authority in the Union of sovereign states of the republic.

“The Commissioner shall, to the extent
of authority vested in him, 
provide for the administration
of the United States Internal Revenue laws in
the Panama Canal Zone, Puerto Rico,
and the Virgin Islands.”
~ Treasury Department Order 150-42

“No inference, implication or presumption
of legislative construction shall be drawn
or made by reason of the location of grouping
of any particular section
or provision or portion of this Title [26],
nor shall any table of contents,
table of cross references, or similar outline,
analysis or descriptive matter
relating to the contents of this Title
be given any legal effect.”
~ 26 USC Section 7806(b)

In summary, these three historical lines demonstrate the most bizarre and convoluted income tax scheme ever legally perpetrated against a developed nation.

References:

  1. Wikipedia | Revenue Act of 1862, 12 Stat 432.
  2. Wikipedia | Commissioner of Internal Revenue; Cornell Law | Internal Revenue Code.
  3. Cornell Law | Trust Funds. 31 USC §1321.
  4. Census | 21st Amendment repealed the 18th and terminated federal police powers; Federal Alcohol Commission enacted, but did not get off the ground.
  5. 1215 | Who and What is the IRS? by Dan Meador (April 1, 2000) and B.A.T.F. ? IRS Criminal Fraud by William Cooper; Federal Alcohol Commission merged with Bureau of Internal Revenue, Puerto Rico; Family Guardian | The Great Income Tax Hoax: Why We Don’t Owe Income Tax by Dan Meador.
  6. §1111.2 in Internal Revenue Manual 1100, published variously in the Federal Register, particularly at 36 F.R. No. 12, for Tuesday, Jan 19, 1971, at page 850.
  7. Cornell Law | 26 USC §7701(a)(12)(A) and at §7805(a).
  8. Wikipedia | Administrative Procedures Act of 1946 in 5 USC §552(a) with 60 Statutes at Large 237 at Ch. 324;  Codified in 26 CFR 1.6001-1, 1.6011-1 and 1.6012-1 (all delegations of authority must be filed and published in the Federal Register www.federalregister.gov; Records www.law.cornell.edu/cfr/text/26/1.6001-1 and General Requirement of a Return www.law.cornell.edu/cfr/text/26/1.6011-1 and Individuals Required to Make Returns www.law.cornell.edu/cfr/text/26/1.6012-1; International Tax Technologies (IRS has no delegated authority).
  9. U.S. Treasury | Treasury Department Order 150-10 (April 22, 1982).
  10. Note: Re-Venue means to shift the “venue” from one location or place to another. It has become synonymous with “income” or the intake of funds.
  11. Cornell Law | EO #10280. 26 CFR §301.7621-1. (Sep 17, 1951); 21 Fed Reg, p.5852 (7/27/56) (no longer can be found).
  12. 51 Fed Reg. pg 9571 (2/27/86) (no longer can be found).
  13. Cornell Law | 26 USC §7806(b).
  14. Family Guardian | The Great Income Tax Hoax: Why We Don’t Owe Income Tax by Dan Meador, an excellent brief on the history of the Internal Re-Venue Service.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.77 – 80

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09. Privacy Act and Freedom of Information Act | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

Privacy Act Protection

The Privacy Act (PA) of 1974 was specifically enacted to curtail the expanding use of SSNs with the rise of computer use as an existential threat to both personal privacy and confidentiality. If the U.S. or state governments or private corporations are invading your personal privacy, or soliciting information without your permission, you have rights and recourse under the Privacy Act (PA) of 1974.

“The purpose of this [Privacy] Act is to provide certain safeguards for an individual against invasion of personal privacy by requiring Federal agencies…to permit an individual to determine
what records pertaining to him
are collected, maintained, used,
or disseminated by such agencies.”
~ Public Law 93-579

The Privacy Act may appear to be powerless these days given the extensive illegal institutionalized snooping happening by the National Security Agency (NSA) an other police organizations. However, the Act may still have a few teeth to consider. 

“Actual damages sustained by the individual
as a result of the refusal or failure,
but in no case shall a person entitled to recovery receive less
than the sum of $1,000
the costs of the action together with reasonable attorney fees determined
by the court.” ~ Privacy Act of 1974

All public servants are required to complete and sign a questionnaire before securing private information about a “citizen of the United States”. Therefore, be certain to nclude in any correspondence to any government agency the following, “If any request for information relating to me is received from any person or agency, you must advise me in writing before releasing such information. Failure to do so may subject you to possible civil or criminal action as provided by the Privacy Act of 1974.”

Freedom of Information Act Requests

Furthermore, a Citizen can request information from the U.S. or state government through the Freedom of Information Act (FOIA) of 1974 in order to discover what the government has on record about you except for criminal investigations. 

A FOIA Request is a powerful tool for discovering unrevealed commercial agreements in the record under your NAME in ALL CAPITAL LETTERS. You can also discover evidence in the record by researching government documents, laws, administrative rules and procedures, so as to determine the hidden public policy of various government agencies.

On any FOIA Request, provide your name, address, and the former SSN account number designated For Information Only with the years in question requested, along with reasonable costs to provide the information. 

The U.S. or state government agency has 10 days to respond to any Citizen making a formal request through FOIA. If they deny you information (which is often so on the first attempt), appeals must be processed within 20 days. 

Unless you are under criminal investigation (which is always good to know), nothing should be exempt from disclosure. The penalty to the government agency for failure to respond, or for denying you information legally required, is $1,000. Make FOIA requests to State agencies addressed to Attn: Disclosure Officer.

Title 5 §552(C). Request for Records

“Any person making a request to any agency for records under paragraph (1), (2), or (3) of this subsection shall be deemed to have exhausted his administrative remedies with respect to such request if the agency fails to comply with the applicable time limit provisions of this paragraph.”

Title 5 §552a(d)(2). Records Maintained on individuals

“Permit the individual to request amendment of a record pertaining to him/her and (A) not later than 10 days after the date of receipt of such request, acknowledge in writing such receipt; and (B) promptly, either-(i) make any correction…(ii) inform the individual of their refusal to amend the record…”

“The authority of public officers to proceed in a particular way and only upon specific conditions as to such matters implies a duty not to proceed in any manner other than that which is authorized by law.”
~ First Nat. Bank v. Filer, 107 Fla. 526, 145 So 204, 87 ALR 267

“If taxes are laid upon us without our having
a legal representation where they are laid,
we are reduced from the character
of free subjects to the state of tributary slaves.” ~ Sam Adams

References:

  1. Wikipedia | Privacy Act of 1974, P.L. 93–579, 88 Stat. 1896, enacted December 31, 1974, 5 U.S.C. § 552a www.justice.gov/opcl/privacy-act-1974 and www.epic.org/privacy/1974act 
  2. Ibid.
  3. Ibid.
  4. Ibid.
  5. Wikipedia | Freedom of Information Act of 1974, 5 U.S.C. § 552.
  6. Ibid.
  7. Ibid.
  8. Citation Needed | First Nat. Bank v. Filer, 107 Fla. 526, 145 So 204, 87 ALR 267.
  9. Wikiquotes | Quote by Sam Adams.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.75 – 77

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09. Social Insecurity | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

Most U.S. citizens believe that applying for and getting a Social Security Number (SSN) is mandatory. Thus, they routinely applied for them. In the beginning, an SSN was not assigned at birth, but applied for before being hired for your first job as a teenager.  Recently, SSNs are assigned either through“enumeration-at-birth” programs at the hospitals. Hospitals get paid for each newborn franchisee or “U.S. citizen” of the corporate “State”.

In fact getting a Social Security Number (SSN) is voluntary for American Nationals and/or sovereign “state” Citizens, unless they intend on receiving a federal or state government benefit, or pay income taxes. There exists no legal requirement to have a SSN. However, government officials and corporations make it very difficult to function in society without one.

There is a standing debate as to whether Social Security is another form of income tax, or whether or not it is an insurance and retirement program. This author asserts Social Security is a type of income tax with no mandatory gratuity. There is no individual social security trust account with funds waiting for you when you need it; however, the government accounts for your contributions as if it were so. 

Social Security as a Tax Program

In my opinion, Social Security is not an insurance or retirement program. They have no obligation to pay you one dime of the social security tax it collects. When Social Security inevitably goes bankrupt, or the funds are designated elsewhere, there will no longer be an account with your name on it. 

Applying and receiving a SSN qualifies the applicant for federal and state benefit programs, although there is no guarantee you will ever receive any. Despite court decisions, there is no particular clause in the U.S. Constitution sufficient to sustain the power to compel every “Citizen of the United States” to participate in a “compulsory” retirement or government benefits plan. The same legal principle should also be applied to Obamacare and any compulsory program to receive health insurance as well. 

“There is no Social Security law requiring that one have a number,
but the IRS Tax Code, 
Section 6109 subsection A, stipulates that taxpayers shall utilize their Social Security numbers when filing tax returns. Therefore, if one pays taxes,
one must have a Social Security number.”
~ Lloyd Bentson, U.S. Senator from Texas

When the U.S. Congress adopted the Social Security Act of 1938, the U.S. Supreme Court, held in Railroad Retirement Board, that the U.S. Congress had no authority to establish a retirement scheme through its most formidable power. 

The U.S. Congress had imposed excise taxes upon employers and the U.S. Supreme Court found nothing constitutionally objectionable to the Act. But neither did they address the issue of whether there was a requirement to receive Social Security.

Courts have ruled that there is no obligation to have a Social Security Number (SSN) unless: 

  1. You are obligated to pay taxes.
  2. You receive public assistance.
  3. You obtain and use a driver’s license, operate or register a motor vehicle. 

SSN = TRUST I.D. #

Social Security as a Trust Account

The de jure (lawful)governor of Colorado state, Eric Madsen, theorized that nowhere in the Social Security Act of 1938 does the SSN attach to a natural-born individual. Instead, Madsen asserted, that the SSN is an account number for a trust established in the trustee’s birth NAME in ALL CAPITAL LETTERS (Birth Registration is distinct from the Certificate of Live Birth). Social Security may very well be a constructive trust with the U.S. Congress as the Creators/Grantors.  

TRUST NAME = JOHNNY LIBERTY
TRUSTEE = Johnny Liberty

Therefore, IRS Form 1041 may be the appropriate tax form for “U.S. citizens” who volunteer as federal taxpayers, not the IRS Form 1040 as we have been told. This is a very interesting theory.

This theory is curiously similar to Roger Elvick’s popular “strawman” theory and the Redemption Movement which replaced your birth name in upper and lower case letters with ALL CAPITAL LETTERS. This created a “strawman” (legal fiction) as a commercial “person” pursuant to “commercial law” and the Uniform Commercial Code (UCC).

NATURAL MAN = Johnny Liberty
STRAWMAN = JOHNNY LIBERTY

How to Apply for a USA Passport Without an SSN?

A Social Security Number (SSN) is not mandatory for applying for or receiving a passport for the united states of America. A USA passport is still a valid function of the national government. I highly recommend all American Nationals and/or sovereign “state” Citizens apply for a USA passport preferably without a SSN, if that is still possible.  

Notice on the first page of the application, the instructions distinctly say that, “U.S. passports are issued only to U.S. citizens or Nationals”.

Additionally, when you receive a USA Passport, inside the front cover it reads, “The Secretary of State of the United States of America hereby requests all whom it may concern to permit the citizen/national of the United States named herein to pass without delay or hindrance and in case of need to give all lawful aid and protection.”

Sovereign Citizens Have No SSN

In our well-researched opinion, an American National OR sovereign “state” Citizen does not require a Social Security Number (SSN), because they are not “persons” required to file, report or pay a federal income tax. Sovereign Citizens are not eligible to receive government benefit programs either. 

If you are a Sovereign Citizen, having a SSN and receiving benefits is a legal disability. If you or your parents did not get a SSN when you were a child, or you have properly rescinded the SSN or challenged the signature on the one issued, then you can reclaim your Sovereign Citizen status by Verified Affidavit and Constructive Legal Notice. 

In any circumstance where a SSN is requested, substitute 999-99-9999, or any other 999 prefix in lieu of a SSN, EIN or TIN. Otherwise leave it blank on the form.

SSN is Voluntary

Regulations stated on the SS-5 application for a SSN simply say that you can obtain an SSN if you need or request it. There is no legal compulsion by law to apply or receive a SSN. Neither can a state require something which is voluntary under federal law mandatory under state law. 

Furthermore, should any right be denied when you decline to provide your SSN, you may file an action in the federal court under the Privacy Act of 1974 with penalties paid by the individual, business, or government agency who wronged you. 

Be certain to have a witness present when you assert these remedies. “It shall be unlawful for any federal, State or local government agency “[including businesses within the federal United States] to deny to any individual any right, benefit, or privilege provided by law because of that individual’s refusal to disclose his-her Social Security Account Number.”

Prior to the Social Security Act of 1938, each state government had its own social welfare system and paid various benefits. The Social Security Administration was federalized in 1939 with national standards of benefit compensation. The SSN (or TIN) was incorporated into the Internal Re-Venue Service (IRS) as an ID number for income tax purposes as well as for receiving social security. 

SSN as National ID Card

Since the introduction of the SSN, there have been many attempts to make the SSN a mandatory federal/national ID card. Unfortunately, the illegal practice of using the SSN as a personal identifier has broadened over time well beyond the original intent or scope of the law.

The most recent attempts have been mandatory Supplemental Nutrition Assistance Program (SNAP) ID cards for welfare recipients, food stamps and for legal immigrants.

SSN is an Adhesion Contract

Applying for and receiving a SSN is an unrevealed commercial agreement and adhesion contract that:

  1. Assigns your Power of Attorney to the federal U.S. government to act on your behalf.
  2. Impairs your inherent sovereign “state” Citizenship through involuntary naturalization as a 14th (or 15th) Amendment, U.S. citizen of the District of Columbia (D.C.).
  3. Creates a juristic “person” in your NAME in ALL CAPITAL LETTERS subject to the laws and jurisdiction of the federal U.S. government corporation.

According to the Social Security Administration’s internal regulations, which are extremely difficult to find, you may terminate your agreement to participate in the Social Security benefit program. 

As a parent, you can object to an SSN being issued in the hospital through the Enumeration at Birth Program, or have it rescinded if the SSN was issued under threat, duress and coercion (TDC) by Verified Affidavit and Constructive Legal Notice. 

Some have theorized that you can apply for a refund of any social security paid after you have become fully vested in the program for ten years or 40 quarters, but this author has yet to see evidence of this. Do not hold your breath waiting for a rebate. 

Never expect honest disclosure from the Social Security Administration when you rescind or revoke your SSN by Verified Affidavit and Constructive Legal Notice. Do not expect government bureaucrats to make it easy. 

If you do engage them, be polite, respectful and courteous so as to not be perceived as a threat or a “domestic terrorist”, which is often the case when exercising your 4th Amendment due process rights since 911. 

When asked, the Social Security Administration bureaucrats will insist that you cannot terminate your SSN, or get a rebate if asked. But as a sovereign “state” Citizen, you do not ask their permission to rescind, revoke or withdraw from the system. Be prepared though to surrender government benefits, to be financially self-sufficient and independent.

References:

  1. Cornell Law | 26 CFR 301.6109-1(d)(1) (getting a SSN is voluntary).
  2. Lowell H. Becraft, Jr., Attorney at Law;  42 USC, Sections 301-433; Public Agencies Opposed to Social Security Entrapment (POSSE) v. Heckler, 613 F. Supp. 558 (E.D. Cal., 1985), rev., 477 U.S. 41, 106 S.Ct. 2390 (1986);  Social Security: Partners In Crime by Richard Neff Hubbard, Perceptions Magazine, May/June 1995, p.21.
  3. Wikipedia | Lloyd Bentson; Quote sourced from a letter from Senator Lloyd Bentson (D-TX) (December 16, 1981);  IRC §6109(a); famous Taco Bell (no longer requires a SSN for employment) or other success stories including Smith Food Drug, Ford Motor Company in southern California, a bank and hospital in Washington.
  4. Findlaw | Railroad Retirement Board (1935).
  5. Team Law | From audio series by Eric Madsen.
  6. Wikipedia | Redemption Movement and Strawman; Wikipedia | Sovereign Citizen Movement. The “strawman” is legal fiction created in your birth name in all capital letters. It is not “you”, but a legal fiction created to replace you.
  7. USA Passport Application DS-11
  8. Sourced from USA Passport inside front cover.
  9. An essay by Lowell H. Becraft, Jr., Attorney at Law; Findlaw | Railroad Retirement Board (1935);  IRC §3401.c; Social Security Administration has not issued any 999 prefix SSN’s.
  10. Social Security Numbers are Voluntary www.ssa.gov/pubs/EN-05-10023.pdf
  11. National I.D. and REAL ID Card www.epic.org/privacy/id_cards; Social Security Mini-Pak by John Quade.
  12. 20 CFR §404.1905 (termination of agreement and/or participation in Social Security) www.gpo.gov/fdsys/pkg/CFR-2004-title20-vol2/pdf/CFR-2004-title20-vol2-sec404-1905.pdf; Wikipedia | Paperwork Reduction Act of 1980 (Pub. L. No. 96-511, 94 Stat. 2812, codified at 44 U.S.C. § 3501-3521 and www.gpo.gov/fdsys/granule/STATUTE-94/STATUTE-94-Pg2812/content-detail.html 

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.71 – 75

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09. Government Without Taxes and Tyranny | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

“Anyone may so arrange his affairs that his taxes shall be as low as possible;
He is not bound to choose that pattern which will best pay the treasury.
There is not even a patriotic duty to increase one’s taxes.

Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.”
~ U.S. Appellate Justice Learned Hand

When are We the People going to wake up and choose freedom? When will we decide to elect a representative government legislating what is best for all the people, instead of only an elite few? 

How much longer will we work long and hard, then pay a huge share of our day-to-day productivity in taxes to a corrupt government that lies, robs, oppresses and abuses its own people? Can you even imagine a government without income taxes, without tyranny, and without threats to fund its necessarily limited operations?  

Furthermore, we realize that it is for some reason taboo to talk about or question the origin and current legitimacy of the “income tax” and the authority of the Internal Re-Venue Service (IRS) as it applies to sovereign “state” Citizens. Thus, be aware, the following information may be hazardous to your preconceptions! 

Cost of Government

According to the Cost of Government website in 2013 (now defunct), taxpaying “U.S. citizens” worked from January 1 – July 13, just to pay their “fair share” of various “taxes”. Compared to the size of the national economy, the cost of government makes up 53% of annual Gross Domestic Product (GDP). As if four seasons were not enough, there now exists a “tax season”.

Can you imagine giving yourself and your family an annual raise by de-taxing from the federal U.S. government corporation and its political subdivisions, the Internal Re-Venue Service (IRS) and the “tax-and-spend”politicians who are destroying this once great nation by continuously bankrupting us into economic slavery? 

“…Those who wish to stake their claim to sovereignty, to make a personal record, under penalty of perjury under the laws of the united states of America, that they are not ‘taxpayers’ under the IRC and, as to property not emanating from an employment agreement within the U.S. government, declare that they are not ‘transferees’ under the IRC, thereby putting IRS employees on notice that no lawful authority exists to pursue [income taxes].” ~ Frank Kowalik, IRS Humbug

Duty and Moral Responsibility

American Nationals, sovereign “state” Citizens, U.S. citizens and private-sector employers have a duty and a moral obligation to not pay one dime of income taxes more than legally required. 

If you understood how income tax money was spent, solely to pay interest on an un-payable national/federal debt, you might choose to simply refuse to pay “income tax” on the grounds of “social conscience” as many tax protestors have done in the past. 

Settled law from a constitutional and historical perspective, if examined “Without Prejudice”, is solidly on the side of the American National or sovereign “state” Citizen with regards to the legality of the “income tax”, despite the perpetuation of this monumental fraud upon the people since its inception in 1913.

No Authority for a Direct Tax

In 1791, under the U.S. Constitution and “Common law” of the land, the federal U.S. government was forbidden to borrow money, or delegate the authority to create money, or impose a direct tax upon the Citizens of the states of the Union. 

Prior to 1913, when the federal U.S. government needed money to finance a war or build a government project, it either had to sell U.S. Savings Bonds directly to the sovereign “state” Citizens, or get approval from the state legislatives to “apportion” a tax to raise the necessary funds. This kept the federal U.S. government accountable to both the people and the state legislatures which resulted in a balanced budget and fewer wars. 

Today, with the advent of the Federal Reserve Bank (FRB), the Internal Re-Venue Service (IRS), and the alleged ratifications of the 16th Amendment and 17th Amendment to the U.S. Constitution, those original checks and balances were eliminated. 

Upon closer examination you might discover, that even these constitutional amendments, legislative acts and court decisions did not lawfully expand federal authority to impose a direct tax.

Income Taxes are Unnecessary

Most of the income taxes we pay are unnecessary to sustain the basic, constitutional functions of the U.S. government. According to the Grace Commission Report on Government Waste (1984), not one dime of your income taxes pays for government services.

U.S. government services are primarily funded through federal excise taxes, imposed upon goods, services, manufacturing, and customs, etc. In fact, we could have quality government services and a balanced budget without an income tax, and without the usury and exploitation inherent in our current tax system. 

We the People do not have to live in a socialist/communist government welfare state in order to be capable of providing for a wide range of necessary human needs while taking care of those who honestly cannot provide for themselves. 

In the past, families either took care of their own, or private charitable trusts were established to take care of the elderly, orphans, the sick and indigent before the government welfare state existed. It is possible to organize society in a more self-reliant, less government-dependent fashion if only We the People have the will to do so.

Building the Capitol with a Lottery

When the “United States” was a fledgling nation, a country in formation, the first U.S. Capitol Building in Washington D.C. was built with money raised from a lottery, not from taxes.

“The original federal United States government had to build a whole new country 
without the ability to tax its citizens. 
They built roads, bridges, canals and schools funded to a great extent by lotteries.
In 1793, President George Washington built
Washington, D.C. by selling 50,000 tickets 
at $7 each. The top prize 
was a hotel worth $50,000.”

Federal / National Debt Proportional to Government Size

Throughout American history we can track the size of the federal U.S. government proportional to the amount of the national/federal debt. It is easy to see that the more debt was incurred, the larger the government became. 

We can understand the inherent motivation for the U.S. Congress to approve the Federal Reserve Act of 1913 and the resulting income tax. The more money the government could borrow, the more power and reach they had over the lives of their Citizens. Thus, politicians have had their fingers in larger and larger shares of the pie for more than one-hundred and ten (110) years.

The federal U.S. government was virtually debt-free with a balanced budget from 1789 to 1860. There was a proportional three-fold increase in the size of both outlays and the government, and five-fold increase in debt between 1861 and 1865 during the American Civil War years. 

The outlays and debt stabilized after the American Civil War, and the national/federal debt was paid off between 1866 and 1915. There was a five-fold increase in size of both outlays and government, and a two-fold increase in debt between 1916 and 1920, the beginning of World War I. 

As is evident, wars were great excuses for an increase in spending, but also an increase in the size of the government. Private and public banking interests were always increasing their profit-margins and expanding their power during wars. This trend continues unabated to the present.

After the undeclared federal U.S. bankruptcy of 1933, larger outlays and debt increased by unprecedented, exponential magnitude through the present day. As you now understand the larger the federal U.S. government, the larger the debt burden for its Citizens. If we wish to reduce the national/federal debt and balance the budget, even if it were possible in a fiat money system, we must shrink both the size and outlays of the government. Any other approach is wishful thinking and foolishness.

Curiously, the amount of federal aid to state governments decreased by 80% from 1970 to 1990. Federal spending on aid to the states increased from $286 billion in fiscal 2000 to an estimated $449 billion in fiscal 2007. This is the third largest item in the federal budget after Social Security and National Defense. The number of different aid programs for the states soared from 463 in 1990, to 653 in 2000, then to 814 by 2006.

The state governments have grown accustomed to funding from federal aid programs. However, by doing so, they limit their state sovereignty and independence. Every federal aid program comes with terms and conditions which the states must abide by to receive the funding.

When government services and federal benefits are cut on the congressional budget floor, both the Citizens and the states are left holding the bag of all federal debt obligations to the central banks.

There are sound money alternatives to continuing large, centralized, big government “borrow and spend” policies that will inevitably bankrupt We the People and bind us with the chains of economic slavery. We the People must liberate ourselves from economic and political tyranny and apply the necessary intelligence to transform the government at all levels.

References:

  1. Wikipedia | U.S. Appellate Court Justice Learned Hand.
  2. FEE | The Hidden Cost of Government; Marotta on Money | How Much Does Government Cost?; Tax Foundation | Taxes: The Price We pay for Government.
  3. Family Guardian | 1918 Gross Income First Defined from IRS Humbug: Weapons of Enslavement by Frank Kowalik; Amazon
  4. Internal Re-Venue Service | The Agency, It’s Mission and Statutory Authority; Library Guides Louisiana Law | Tax Policy and Procedure: Hierarchy of Tax Authorities; Citation Needed | Show Me The Law.
  5. Wikipedia | Grace Commission Report on Government Waste (1984); Free At Last by N.A. Scott, Ph.D., D.D., pp.2-5.
  6. Wikipedia | Washington D.C.; Citizens for Sovereignty (defunct).
  7. Wikipedia | History of Public Debt; World Almanac and Book of Facts, Phanos Books (1992) p. 139, 153  www.worldalmanac.com; Financial Management, US Department of Treasury; Cato Institute | Federal Aid to States.
  8. World Population Review | Federal aid to states in 2022.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.68 – 71

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08. Building Economic Sovereignty | Bankruptcy | Sovereign’s Handbook

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By Johnny Liberty

Building a Foundation

Building economic sovereignty can be a stumbling block for people who have lived their entire lives in “debt (Ø)”, never having been paid real “money ($)” in their entire lives, never having acquired tangible assets, investments, land, property or real estate sufficient for financial independence and freedom. May we be relatively independent from the rapidly emerging New World Order for our “right livelihood” and survival.

These obstacles must be overcome as all “seven aspects of sovereignty” must be reclaimed and restored to become completely free once again, namely, physical, mental, emotional, spiritual, economic, legal and political sovereignty. 

Fear, victim mindsets, co-dependency, non-responsibility and entitlement programs are pervasive in the contemporary human psyche, while the attitudes behind these “victim” mindsets must be transformed into “sovereign” mindsets. Attitude is everything. 

As Fredric Lehrman aptly taught in his audio course Prosperity Consciousness, if one feels unworthy of having wealth, and of having choice, then certainly one will not. If one does not believe that there is enough for everyone, then certainly there will be scarcity and struggle.

“The best way to help the poor is to not be one of them yourself.”

Finding Right Livelihood

Achieve economic sovereignty via “right livelihood”, an integral expression of your own talents and skills, what you love to do, both ethically and morally. Managing your own business instead of working for someone as an “employee”, is the preferred, realistic method for achieving financial independence, awareness and freedom. Obligation and debt are poor companions.

Assess your current financial and economic condition. Be honest. Inventory your debts, resources, talents, skills and dreams. What motivates you? What excites you enough to get out of bed in the morning and be self-motivated and self-disciplined? How can you be of greatest service to others? 

Assess your ability to make a contribution, your capacity to generate a viable livelihood for yourself and for your family while providing goods and services that are needed and wanted in the local and regional economy. 

Achieving these goals may not happen overnight. It takes time to break down old belief structures and mindsets that have limited ones potential. Be patient. However, stay focused and energized on your objective of being economically sovereign, free and financially responsible for your own business.

If you are an “employee” working a job consider starting your own business, at first part time or on the side. In the long run, you will have more options for success working your own business than working for someone else. Become an entrepreneur.

Become independent of“employee” status as soon as possible, or be prepared to educate your “employer” and exercise other tax-reduction strategies, if you choose.

Create, then extend a beautiful imagination of what is possible into the world around you, then provide quality goods or services. Create and commit to an action plan so as to manifest your objectives and goals. Commit to frugality while living as debt-free as possible. Create a community of family, friends and neighbors to support your mutual goals.

Deregulate or Abolish the Federal Reserve

May we either deregulate or abolish the Federal Reserve Bank (FRB) monopoly over “legal tender (Ø)”, and restore a constitutional “money ($)” system as required by the U.S. constitution. The U.S. Treasury could issue interest-free U.S. Notes, then spend those into circulation, perhaps backed by gold and/or silver, as well as an index of multiple commodities.

However, it is extremely unlikely to do so since the Federal Reserve Bank (FRB) is in control of the U.S. Treasury as well. U.S. President Donald J Trump quietly took control of Federal Reserve Bank (FRB) during his term in office in 2020 without any fanfare or massive media exposure.

In a cunning move, the U.S. President is in complete control by simply absorbing the FED into the U.S. Treasury Department. This may take some time to sink in. However, this may be a pivotal moment in the “United States”.

References:

  1. Sourced from Bruce Cockburn’s Stealing Fire.
  2. NIghtingale-Conant | Prosperity Consciousness by Fredric Lehrman (audios).
  3. Quote by Johnny Liberty.
  4. Liberty International Blog | Trump takes control of the Federal Reserve Bank under the U.S. Treasury with Michael Telling.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.65 – 66

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08. Alternative Bankruptcy Strategies | Bankruptcy | Sovereign’s Handbook

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By Johnny Liberty

Foreclosures and Commercial Liens

Declaring personal or corporate bankruptcy is not for everyone. Bankruptcy is not desirable for American Nationals or sovereign “state” Citizens as it creates a “commercial lien” upon your legal fiction “strawman” as a “U.S. citizen”, on your assets and future productivity. 

Instead of reclaiming “unalienable” (un-a-lien-able) rights as a sovereign “state” Citizen, you are requesting a “lien-able” bankruptcy from the government, instead of being “un-a-lien-able”. To declare bankruptcy is an admission that one is neither economically sovereign, nor capable of being financially responsible.

A U.S. bankruptcy court in Chapter 7, 11, 12 or 13 would make you a “ward of the court” and place your assets in “receivership”. Bankruptcy is not recommended for aspiring sovereigns. Here are a few alternatives to declaring bankruptcy. 

DISCHARGING DEBT

Third-Party Accord and Satisfaction

Accord and Satisfaction is a commercial process for discharging debt.  Sovereign “state” Citizens should not declare bankruptcy. Accord and Satisfaction may be an alternative for those who get over their head in “credit (Ø)” and cannot meet their debt obligations. 

For example, a third party on behalf of the debtor will offer a creditor consideration as a conditional Accord and Satisfaction in exchange for a full and complete “discharge (Ø)” of the “debt (Ø)”. If the consideration is offered and clearly designated on the back of the negotiable instrument (check), then accepted by the creditor, the debt is legally discharged in full. 

In the case of Ford Motor Company, a third party sent consideration on behalf of the debtor to Ford Motor Company. Ford Motor accepted the conditional Accord and Satisfaction when they deposited the check.

When Ford Motor realized what had happened, they tried to send the check back to the issuer, which it could not do by law. The cost of litigation for Ford Motor was prohibitive against a pro se litigant, so Ford settled for a full “discharge (Ø)” of the debt, and provided title to the truck free and clear. Accord and Satisfaction is one alternative to declaring “bankruptcy (Ø)”.

Repudiating Credit Card and Mortgage Fraud

The Great Snow Job by Barrie Konicov advocated massive credit card repudiation and mortgage debt cancellation, on the basis that those unlawful debts are perpetrating the fraudulent nature of the nation’s money system; a fraud that is currently hurling the country toward imminent financial collapse. 

Mr. Konikov’s methods are not for everyone, but for those faced with un-payable credit card debts, imminent foreclosure on a mortgage, or the prospects of bankruptcy. Perhaps this is a remedy, perhaps not. 

Barry Konicov advocates fighting bank fraud and outright theft by canceling personal debts. The “money (Ø)”system, he points out, is sustained by lies, cheating and thievery. Big bankers, who are all ultimately linked to the Federal Reserve Bank (FRB), create “money (Ø)” out of thin air every time a person swipes a credit card or makes a deposit to a bank account.

In a lawful system, borrowers put up collateral (something tangible) in order to borrow real wealth that actually comes from real deposits or investments at the bank. In our fraudulent system, borrowers are still putting up collateral that was created by their actual labors. However, the banks are loaning “credit (Ø)”, which is created out of thin air by electronic computer entries. 

As a result, bank customers become unwitting enablers of this systemic “bankster” fraud, and pay interest for the privilege. U.S. taxpayers, who have become accustomed to paying the U.S. government for the mere privilege of existing, have been hoodwinked into the same crooked system of paying back debt “money (Ø)” that never existed in the first place via federal and state income taxes. Furthermore, “citizens of the United States” are encouraged to be quiet, comply without thinking, and not dare to ask any questions regarding real purpose and legitimacy of the “income tax”. 

SHOW US THE LAW, THE STATUTE and THE IMPLEMENTING REGULATION

The private, for-profit corporation called the Federal Reserve Bank (FRB), creates “fiat debt money (Ø)” out of nothing at the government’s request. Then the Internal Re-Venue System (IRS) as a collection agency for the Federal Reserve Bank (FRB) and the International Monetary Fund (IMF) extracts debt payments from We the People who incorrectly assume that they have no other choice but to sweat and pay their “income taxes”.

Don’t let the system fool you; all it wants to do is rule you.”
~ Bruce Cockburn, Stealing Fire

References:

  1. Timothy Lee Richardson, Patriot Resource Center (defunct)
  2. The Great Snow Job: The Story of Taxes and Money, Fraud and Slavery by Barrie Konicov; Amazon; Reviewed by Esther Holmes, North American News Service, Spring ‘96, p.73; Commentary by Johnny Liberty.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.16 – ?

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08. Borrowing Forever From the Future | Bankruptcy | Sovereign’s Handbook

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By Johnny Liberty

Before a central bank and before the Federal Reserve Bank (FRB), the federal U.S. government corporation had to live within its means. And it did so for 126 years with few exceptions (1789 – 1915). Imagine that! 

1789 – 1860 – The federal U.S. government was virtually debt-free with a balanced budget until the Civil War.

1861 – 1865 – There was a proportional three-fold increase in the size of both outlays and the government, and five-fold increase in federal U.S. debt during the Civil War years.

1866 – 1915 – The size of the outlays and federal U.S. debt stabilized after Civil War, and the debt was paid off

Direct Veto Power Over Government Spending

The Founders knew what they were talking about when they vehemently opposed a central bank at the beginning of the constitutional Republic. When the federal U.S. government needed to borrow to finance this project, or that, to declare war, it had to borrow directly from the people by selling government securities (i.e., U.S. savings bonds or U.S. war bonds). Thus, We the People had a direct veto power over the spending policies of the United States and their political subdivisions.

These checks and balances did not please the European central bankers, as it did not make them any substantial profits. They were accustomed to arranging wars as they pleased. So the Federal Reserve Act of 1913 was created and foisted on the American people with the worst of intentions.

The Federal Reserve Act of 1913 offered an unlimited credit line to the federal U.S. government corporation which bypassed the will of the people and their respective states. , Since then, the federal U.S. government corporation has borrowed directly from the Federal Reserve Bank (FRB), forcing the American people to indirectly lend them the funds without their knowledge or consent, but nonetheless obligating them to pay the federal/national debt through the imposition of an “income tax”. 

This is the fundamental evil of “monetizing the public debt (Ø)”. It no longer mattered what the We the People wanted. The international central bankers were now in control of the American political machinery, and they have been ever since.

References:

  1. Creature from Jekyll Island by Edward G. Griffin (American Media, 1994); Amazon
  2. Critical Path by R. Buckminster Fuller, (St. Martins Press, New York, p. 81); Amazon

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.62. 63

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