The biggest scam and how they did it. Part 3

History of the income tax. 

The nation had few taxes in its early history. From 1791 to 1802, the United States government was supported by internal taxes on distilled spirits, carriages, refined sugar, tobacco and snuff, property sold at auction, corporate bonds, and slaves. The high cost of the War of 1812 brought about the nation's first sales taxes on gold, silverware, jewelry, and watches. In 1817, however, Congress did away with all internal taxes, relying on tariffs on imported goods to provide sufficient funds for running the government.

In 1862, in order to support the Civil War effort, Congress enacted the nation's first income tax law. It was a forerunner of our modern income tax in that it was based on the principles of graduated, or progressive, taxation and of withholding income at the source. During the Civil War, a person earning from $600 to $10,000 per year paid tax at the rate of 3%. Those with incomes of more than $10,000 paid taxes at a higher rate. Additional sales and excise taxes were added, and an “inheritance” tax also made its debut. In 1866, internal revenue collections reached their highest point in the nation's 90-year history—more than $310 million, an amount not reached again until 1911.

The Act of 1862 established the office of Commissioner of Internal Revenue. The Commissioner was given the power to assess, levy, and collect taxes, and the right to enforce the tax laws through seizure of property and income and through prosecution. The powers and authority remain very much the same today.

In 1868, Congress again focused its taxation efforts on tobacco and distilled spirits and eliminated the income tax in 1872. It had a short-lived revival in 1894 and 1895. In the latter year, the U.S. Supreme Court decided that the income tax was unconstitutional because it was not apportioned among the states in conformity with the Constitution.

In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the U.S. tax system. The amendment gave Congress legal authority to tax income and resulted in a revenue law that taxed incomes of both individuals and corporations. In fiscal year 1918, annual internal revenue collections for the first time passed the billion-dollar mark, rising to $5.4 billion by 1920. With the advent of World War II, employment increased, as did tax collections—to $7.3 billion. The withholding tax on wages was introduced in 1943 and was instrumental in increasing the number of taxpayers to 60 million and tax collections to $43 billion by 1945. And here is where the fraud started. And it all centers around what is and what is not “income”. It is not everything that comes in, which is what most US citizens think, and its not “all income except that which is specifically exempt by statute” which what the IRS thinks.

Now I need to point something out here. There is confusion over the 16h amendment. Congress has always had the power to tax incomes, because an income tax is an excise tax - keep this in mind as you read on.. What the 16th did, was tell congress ok, go ahead and tax it. It is no different than the US congress passing a new excise tax for road usage, or a new cable TV tax, both of which are excise taxes.  Why the people of the time thought they needed an amendment to do this confuses people.  

The 16th did not create any new powers of taxation - congress already had those powers. 

The biggest scam and how they did it. Part 2

The Office of Management and Budget and its roll in the Treasury Department. 

The office of Management and Budget assists the President in overseeing the preparation of the Federal budget and in supervising its administration in Federal agencies. The OMB also oversees and coordinates the Administration's procurement, financial management, information, and regulatory policies.

Amongst its jobs is the issuance of OMB numbers for government agencies forms, to comply with the paperwork reduction act.

The Paperwork Reduction Act of 1980 (Pub. L. No. 96-511, 94 Stat. 2812, codified at 44 U.S.C. §§ 3501–3521) is a United States federal law enacted in 1980 designed to reduce the total amount of paperwork burden the federal government imposes on private businesses and citizens. The Act imposes procedural requirements on agencies that wish to collect information from the public

The Paperwork Reduction Act mandates that all federal government agencies receive approval from OMB—in the form of a "control number"—before promulgating a paper form, website, survey or electronic submission that will impose an information collection burden on the general public. The term "burden" is defined as anything beyond "that necessary to identify the respondent, the date, the respondent's address, and the nature of the instrument." No one may be penalized for refusing an information collection request that does not display a control number. Once obtained, approval must be renewed every three years.

The IRS is the only department that seems to be exempt from this act. It is not. But lack of imposed oversight by the US Congress and the Office of management and Budget allow the IRS to continue to run unchecked. All IRS forms and publications must have a valid OMB number assigned and printed on them. Yet when one cross references these numbers, one finds that the IRS is not in compliance with the Paper work reduction act.

This lack of oversight has allowed the IRS to rape the American people. IF they cannot show a liability statute in a court room, (they cannot in 99 percent of the cases) they use what is called a procedurally correct substitute return. This is a file that they create out of thin air, using procedures created by IRS workers to support what the IRS does. These procedures are based on books and pamphlets the IRS worker writes, and then publishes, and without the OMB check, the information contained in them is hearsay at best. And this is what they present to the courts claiming "we followed procedures, so our claim must be valid". This is true even though the higher courts have ruled that absent liability, there is no claim. Yet again, I emphasise that when challenged to do so in court of law, the IRS fails to produce the liability statute. This is where the courts Cheat the American people.

Article 1, section 8 clause 1 reads:

 The Congress shall have 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 UnitedStates; but all duties, imposts and excises shall be uniform throughout the United States;

Then article 1 section 9 contains a few restrictive clauses.

    No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken.

    No tax or duty shall be laid on articles exported from any state. No Preference shall be given for any regulation of commerce or revenue to the ports of one state over those of another: nor shall vessels bound     to, or from, one state, be obliged to enter, clear, or pay duties in another.

This is the taxing power of the US congress. No other entity can create tax law. Not the IRS, not the FCC, not the courts. 

The US has 2 types of taxes. Direct taxes which are apportioned amongst the several states and the state governments are then responsible for paying the tax, and indirect or excise taxes, such as duties, imposts, tariffs, and other excise taxes. 

The courts have ruled that the Income tax is an excise tax, and that as such it does not need apportionment. 

The biggest scam and how they did it. Part 1

Entitled “Understanding the USA’s Greatest Fraud - The Personal Income Tax”.

Or, “how the victory tax of WWII became the US’s biggest fraud”.

It’s not one problem, but a series of smaller problems, that combined make up one of the biggest falsehoods imposed on the American people costing them trillions of dollars. No paymetriot mythology will be presented here, but actual evidence that you can and should verify yourself to help you understand this. 

The US Congress could not hold 2 people accountable in 2015 (Louis Learner and IR Commissioner John Koskinen) for their part in abusing conservative political groups. What chance does 1 citizen have to correct IRS wrong doings, or the IRS records?

I spent 25 years in the tax honesty movement and here are the results. Around 1980 or so when Personal Computers first came out and the networks began forming people started sharing ideas about things. One of these was the income tax and how it was wrong.

Irwin Schiff was a big tax protester at the time and his book, “The Federal Mafia” got people thinking about the income tax and the IRS’s heavy handedness, because many felt something was wrong – and they were right. Schiff pushed an idea called a ZERO return, were a person would write in zero on the 1040 form where income was to be reported. The IRS didn’t like this, so it ended up in court. The courts ruled in favor of Schiff, but still he was persecuted and eventually imprisoned by the federal government on the insistence of the IRS claiming he was promoting tax evasion schemes. If the IRS could not get you to stop one way, they got you to stop another. Their use of "promoting tax evasion schemes" is now a standard tool they use against ANYONE who shares information to help another citizen keep his or her liability to a minimum, or to rightfully discover if they even have a liability. This "federal mafia" is damm good at protecting its own by others who would demand they uphold the law as its written, not as they interpret it.

Then there was Barry Konicov, and many others selling “detaxing” kits to people, claiming if they filed the proper paperwork, they could get the IRS to leave them alone. Tons of paperwork and few if any results. Konicov who once ran for state legislature, was also convicted and sent to prison. Others pushed the ideas that having a social security number made you liable for the tax, or that it was a contract that could be dissolved. Others claimed that a government document with your name spelled in all capitals was a “strawman” and had no legal effect on you. All of this was patriot mythology. It claimed a lot of victims. People looking for answers fell easy prey to the hawkers of this kind of junk legal research. Many people embracing this stuff found themselves in trouble with the law. 

Many pay-me-triots as they came to be known, sold various “kits” of various paperwork to get the IRS to leave people alone. And many like Schiff and Knicov ended up in Prison for selling tax evasion schemes. The IRS tried to get another patriot by the name of Charles Conces, who formed a group called “the lawmen” who were more of a coffee clutch group, than anything. Folks met for lunch and coffee on weekends, and shared ideas and such. Conces sold copies of his research to people for a fee, to cover the expenses of photocopying over 100 pages,  and the IRS went after him for selling a tax evasion scheme calling the members of “lawmen” customers at an IRS hearing, even over the objection of Conces and 2 of his witnesses. Conces later died before the IRS could take him to court over it.

Arron Russo, a Hollywood movie maker, made a patriot movie called “Freedom to Fascism” that many people saw before Cancer took Arron from us. Bob Schultz started a group called We the People congress on a website called “givemeliberty.org” and successfully took 2 cases to the supreme court of the United States. The court by this time was already starting to disintegrate and they refused to hear 1 of Bob’s cases that went to the very foundation blocks of our Nations charter, the Constitution for the united States of America. However, 1 case did go to the full court and Schultz won the case. In this case, Schultz v US, the court ruled that people have the right to refuse to show their books and records to an IRS official, at a summons meeting, without first being presented with a court order to do so. The court ruled the person did not have the right to outright refuse to show the records. That the taxpayer had to appear before the IRS, with the books and records as required by law, and at that point could exercise their 5^th amendment rights, absent a court order.  This gives the citizen a chance to be heard by the courts before such books and records are turned over to the IRS which would then use them to persecute the taxpayer.

Shortly after this another Tax Honesty Movement individual named Peter Hendrickson used the court systems decisions to come up with the idea that citizens and taxpayers have the right to correct the IRS’s records that are incorrect or that contain wrong information. He surmised that the IRS allowed this using an IRS form. Like it or not the idea has standing in law. There is a case that says it is the job of the people to correct the government, not the other way around. The question then becomes, how to do it. Peter wrote a book called “Cracking the Code”, meaning the Internal Revenue code, also known as Title 26, the 26^th title of the 50 titles that make up the federal statues at law. The theory behind this is that the IRS has a form available for taxpayers to use to correct the IRS’s records. And although many people claim victory, a number of them have found the IRS going after them years later with added penalties and interest. Yet Hendrickson’s idea again, has standing in law. So why does it work some times and yet not others? Because of the way the IRS is structured and how it operates. More on this later.

Hendrickson's wife is currently being held as a political prisoner by a federal judge because she refused to lie on a 1040 form (commit perjury per IRC 7206). Doreen is currently serving time in a federal prison and the dishonored judge is walking free. The man needs to be changed with treason. 

Like all things that go against the IRS’s own ideas, anyone standing against them, is soon declared a tax protester, or what they are doing a tax evasion scheme. Their methods are added to the list of “The official list by the IRS of tax scams to avoid.” Schiff’s methods, Konicov’s methods, and now Hendrickson’s methods are all listed there.