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:
- Wikipedia | U.S. Appellate Court Justice Learned Hand.
- FEE | The Hidden Cost of Government; Marotta on Money | How Much Does Government Cost?; Tax Foundation | Taxes: The Price We pay for Government.
- Family Guardian | 1918 Gross Income First Defined from IRS Humbug: Weapons of Enslavement by Frank Kowalik; Amazon
- 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.
- Wikipedia | Grace Commission Report on Government Waste (1984); Free At Last by N.A. Scott, Ph.D., D.D., pp.2-5.
- Wikipedia | Washington D.C.; Citizens for Sovereignty (defunct).
- 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.
- 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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