I've been flamed before for my stance on the taxation issue. I 'd like to take some time to explain it a bit better.
First of all, I was one of you. When I read in "Good to be King" Badnarik's views on the IRS and 16th amendment, I thought there had to be some "creative interpretation" going on. He had a lot of damn nerve to stand up the the IRS and take a position so counter to common belief. So I embarked on what I thought would be a short journey. The goal was to find the creative interpretation or oversight. Weeks into it (spending much of my waking hours outside of work) I came to the realization that there was at least something fishy going on with the IRS, and they were the ones actually guilty of creative interpretation. Suffice to say, I found no oversight or "creative interpretation". This only pissed me off more because I wanted closure, damn it! I then found the book in my sig. It even if you think that the income tax is real (as most people do) it at least shows that your wages are not to be entered on your 1040 form, depsite that employer issued w-2. Same thing goes for the 1099-misc. You can practice what is in the book, even if you think the income tax is real, or even if you think that it is not. What you end up doing is recovering your payroll taxes, which are the majority of taxes paid by most working Americans.
That book was a nice, cheap ($20) read that seems to work with minimal resistance from the IRS. And it got me thinking - and thinking only happens with me when I want answers. But the longer I go without answers, the more I want them. So next, I bought Otto Skinner's books which have a more acedemic focus on the issue. Appearently, in addition to not having your wages be taxed, you are also not liable for the income tax, though the regulations do look that way. After digesting Otto Skinner's books, I can now appreciate the following quotes:
"Your income tax is 100 percent voluntary tax, our
liquor tax is 100 percent enforced tax. Now the situation is as different as day and night. Consequently, your same rules just will not apply." -
William E. Avis, Head, Alcohol, Tobacco Division of IRS
"The responsibility for determining whether or not
you are a person liable, is yours." -Stephen L. Daige; District Director of New England, August 22, 1997
Such quotes can only arise when someone finds themselves liable absent of a legal liability. In fact, though that know how to properly argue their case usually get dismissed (When the IRS is the plaintiff). The problem is though, that the IRS convinces people to go to a "Tax Court". Such tax courts are only for "taxpayers". The method for getting to the Tax Court is that a "taxpayer" must petition the court. This does several things that the average Joe is not aware of:
* Admit to being a taxpayer (and in doing so admistting a liability)
* Recognizing the court has jurisdiction
* Puts the burden of proof on themselves.
Such a situation spells doom for many who have tried to argue they are not a taxpayer or are not liable. (Incdentally, this is a Circuit court, and you fill find no shortage of pro "income tax" rulings in US Circuit courts)
Indeed the only solution is to go into DISTRICT court and ask for the law/statute that makes you liable. Indeed, there is none. Sections 1,61,60xx and 7xxx all put a tax on "taxable income", establish tax tables, and establish penalties, but none establish a legal liability. the 60xx section has a clause that makes someone pay if there is tax due, but that still is not a legal liabilty.
All of this would be more clear if the 16th amendment hadn't been ratified. Some claim that it never was. But the whole issue is a red herring. (And this why FairTax is just supporting a federal sales tax AND income tax - the FairTax conditions that the 16th amendment will be repealed and "end the income tax" but imagine their surprise when they finally realize that the 16th amendment is irrelevant!) It looks like it does establish an income tax, and it does allow congress to do just that. Congress has done that to some degree, but congress has not established an income tax on individuals. (Back-point: those in HR who allege you have taxable incomes with w-2, w-3s and 1099-miscs are treating you as a legal fiction when it comes to the word "income" - that is why they generate "taxpayer evidence" and usually insist on doing so. They know the company is liable for income taxes, but fail to recognise that "income" from flesh and blood is fundamentally different from a fiction's income.)
When reading the 16th amendment, you must factor in Brushaber vs Union Pacific (Surpreme court, delivered 3 years after the 16th amendment was ratified), which established the nature and interpretation of the 16th amendment. It held that the fundamental powers of taxation originally laid out in the Consitution are indeed still fully in effect and were not modified. (After all the amendment does not say that it "repeals or modifies", so the only other option is to be "in addition to"). Instead the court ruled that the "income tax" was still an excise tax. The definition of excise is a tax on excercising a privilage, and measured by something. No where in the laws does it say what privilage we, flesh and blood people, are engaging in. There are plenty of excise taxes laid, but the only one that does not fit is the "income tax" on individuals. Indeed, one must only ask in district court what privilage is creating the legal liability for him to be liabile for the tax, and the case should be dismissed. Don't worry, you will not be the first to do this. The others that have done this seem get their cases dismissed. You'll never find these cases because they never get flagged for publication. (I wonder why...)
I probably would not be so bold about taking on this issue, but there have been several recent vicoties for the people. There have also been a number of set-backs for the IRS.
March 7 2005 (three weeks ago)
Tax Court documents must be made availible for appeal
two months ago:
That all "enforcement actions" including petitioning the tax court are voluntary. There is no legal authority to deprive someone of money until district court rules on the issue. Additionally no fines can be assesed for not compling for the administrative proceedures set forth by the IRS.
I hope the above will give you some idea that the "income tax" is at least worth your own look. Today, these issues are more relavant than ever, particulary with the failure of social security in the next 40-80 years. (Regardless of privatization, tax increases and the like, it will become pyramid balancing on its point. with people putting in less than those drawing out.) Using the methods in CtC is the way to protect that money to make sure you will still have it by the time you retire.
PS. One question is why is this happening now in American history. Several things have come together:
* Internet - collaboration and research in microseconds.
* FindLaw?Cornell law library - Court cases and laws online
* Rumors of failing Social Security increase awesess of taxes which we might not get back
* The tax rate has increased to 33% (from 1% when initially enacted) and now eats into our economic development (30yr mortgages instead of 10yr, etc)
* People unhappy with Democratic and Republican parties - many people I know want to pick and choose platform issues from both parties. In this, they may invistigate other parties and see that these two main parties suck more then they have to. Other parties are typically for a much smaller federal government, which means lower federal taxes.
PPS. Why did Donald Duck have to convince people to pay federal income taxes? Shouldn't a law have done that?
PPPS. I get the question "How is the federal government supposed to fund itself?" Well the same way it did up until 1913. Duties, foreigners, treaties. We always operated with an "embarassing surplus" up until we had a federal "income" tax. Don't forget when needed, Congress can apportion taxes to the states for collection.