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The Truth About The Income Tax

UPDATE 4/19/2014: The original title of this thread was "The Truth About The Income Tax Is Now Free To Learn".

At the time of the original post, a free .pdf copy of the book was available for free download. The book is no longer available for free download, but it is available for purchase on Amazon...


...or directly from the author (for half the price)

There is however a wealth of free information at the author's website

(Note: I am not the author, and have no interest in the distribution of this book, other than spreading the truth about the widely misunderstood tax)

Here is an updated link describing the history of government efforts to suppress the truth revealed in this book...

I'm leaving the rest of the original post as it was before this update.

While most everyone hates the income tax and many people know there is something majorly wrong with it, there are a lot of misuderstandings about it even among the patriot community and tax honesty movement. Even among the good folks here at the DP.

Peter Hendrickson uncovered the truth about the tax and wrote a book about what he found, called "Cracking the Code: The Fascinating Truth About Taxation In America".

He has just released a digital version of the 12th edition of this book in .pdf format for free download. Yes, absolutely FREE!

I encourage everyone to download this book, read it, and pass it to everyone you know who cares about freedom. Even if you think you already know the truth about the tax, please get the book and read it anyway. You may find that even YOU (yes, YOU) have had some misconceptions about it.

Get the book here: (again, absolutely FREE)

Here is the page describing the book and what you will find in it:

Here is a 10-page description of the governemnts efforts to suppress the book ever since it was published (in 2003):

Please, everyone download this book, read it, and learn from it. Then pass it along to others.

(And beware of anyone who discourages you from reading this book)

Edit: I forgot to include a link to the Victory pages, where a fraction of the many people who have applied what they learned in the book --to receive full refunds of everything withheld from their paychecks-- have posted their proof of the truth:

Before you file for 2010, learn the truth. Get the book!

UPDATE, November 1, 2011: For those naive enough to believe that Pete's conviction in a federal kangaroo court somehow discredits the information in the book, you may wish to read Pete's appeal (set to be heard Nov. 18th) and get a rough idea of how this "conviction" was obtained...

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Constitution v IRC

Under Article I section 9 of the Constitution it says "No Capitation, or other direct, Tax shall be laid" so how does the income tax get around this? Before you jump an say the 16th Amendment look at what the Supreme Court had to say about the 16TH Amendment.

"The Sixteenth Amendment.....does not extend the taxing power to new or excepted subjects....
Peck & Co. v. Lowe, 247 U.S. 165, at 172 (1918)

What this means is the taxing power congress had before the 16th Amendment remained the same after the 16th Amendment.

1895 the Supreme Court stated that a income tax on wages was Unconstitutional.

So in 1895 it was Unconstitutional to tax wages an the 16th Amendment did not change anything.....so what makes it Constitutional today?

two important things... 1)

two important things...

1) The term "income" has a specific meaning, therefore the 16th Amendment only applies to "income" as defined...

see http://www.dailypaul.com/129564/what-most-people-dont-unders...

and specifically this http://www.dailypaul.com/129564/what-most-people-dont-unders...

2) you are correct. The 16th amendment repealed NOTHING, therefore the apportionment clause to Direct taxes still apply...but WHERE does a "Direct tax" have to be apportioned and where doesnt it; and who are protected by the apportionment clause?

Start with the Constitution Art 1, Sec 2, cl 3

    Clause 3: Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers,...

NOTICE this says AMONG THE SEVERAL STATES. This specifically means that a DIRECT TAX can be levied on those in territories or the District of Columbia, but not the States.

NOW look at the 14th Amendment.

    Section 2.

    Representatives shall be apportioned among the several states according to their respective numbers, counting the whole number of persons in each state, excluding Indians not taxed.

Here it ONLY says that representatives shall be apportioned.

This is made more clear when you see that there are "Citizens" and there are "citizens of the United States". The latter are creations of Congress and are NOT protected by the Constitution unless Congress or the Courts declare so as they did in the incorporation cases. In those cases, the courts allowed certain "civil rights" to apply to citizens of the united States.

So, to sum it up. Nearly every American today claims their citizenship under the 14th Amendment, as a "citizen of the United States", they are therefore presumed to be Federal property, and they also agree to be "treated as residing in the District of Columbia" under USC Tile 26, 7701 (39) by having a Social Security number and claiming said citizenship.



It's in the book

I can't tell if you are asking because you already know the answer, or what, but all of this is covered in the FREE ebook linked above.

Double post oopsie

Double post oopsie

It is constitutional because

It is constitutional because it applies only to federally-connected activity. Income tax is an excise tax so the activity that produced the income is what is being taxed, not the income itself. Unfortunately you have to start with the Revenue Act of 1862 and work your way forward to understand it. So it is important that Americans read this book to learn the truth. Whether they act on the info or not is another story.

I'm not sure what Dave Champion thinks he knows that Pete doesn't know but I'm not paying $100 for his book to find out. Pete Hendrickson was convicted in a kangaroo court, not on the merits of the IRS' case against him. His conviction in no way negates the book and the victories page on losthorizons is proof of that.


His conviction only proves that anybody can be convicted in a federal courtroom, no matter what the facts are, and no matter what the law says.

so what makes it Constitutional today?

If I were given 3 chances to guess...

Nothing, nothing, nothing. :)

Excellent doc on it by Aaron Russo. Freedom to Fascism. :)


Patriot Cell #345,168
I don't respond to emails or pm's.
Those who make peaceful revolution impossible will make violent revolution, inevitable.

That is a great film

I own a copy, and the author of the FREE e-book linked above in the OP recommends people to watch the film. However, Russo has some misunderstandings about the tax which can be corrected by downloading and reading the FREE e-book Cracking the Code: The Fascinating Truth About Taxation in America.

Thanks for the post

Did you know that the national debt is by political choice and not necessity?

No sovereign nation ever needs to borrow as they may issue the money instead. In fact, if a nation borrows from private or foreign concerns, it is no longer sovereign.

END the FED before it ENDS US

sorry but bills of credit are not money

They are promises to pay money. Under the constitution the federal government is not given the power to emit bills of credit, and the state's are specifically forbidden from doing so, leaving that right reserved to individuals. Furthermore the constitution gives no power to the federal government to make bills of credit a tender in payment of debts and the states are specifically forbidden from doing so. Money is coin that is why the congress has the power to coin money, and why the states are only allowed to make gold and silver coin a tender in payment of debts.

Excuse me?

"Beware of anyone who discourages you from reading this book."

Um, why is that?

Why beware?

Can you provide some substance to that?

Maybe the guy is WRONG on key parts of the puzzle?

Look I won't tell anyone NOT to read a book. That's just silly.

But I will say you might want to hear someone else's opinion (who has also studied the tax code in depth for about 20 years now) who shows WHY Pete Hendrickson doesn't have it correct and why he was predicted and eventually did, get convicted in court.

By all means, read Pete's book. It's free after all.

Now, following his advice is another matter entirely.

I'd prefer to err on the side of caution and listen to someone who gives specific reasons where Pete went wrong.

The funny thing is, Pete refuses to admit or even address those concerns and steadfastly clings to "conspiracy" claims, rather than the possibility that while he might be say 99% correct, it was the crucial 1% mistake he made that got him convicted.

And you can bet dimes to dollars, if you follow his advice exactly as he did, the same will likely befall you.

If after reading Pete's book, you want to hear another tax honesty researcher on the 1% Pete got wrong, check out http://AmericanRadioShow.us Also, check out the newer site: http://davechampionshow.net

Educate yourselves, and get second opinions, and third opinions. Blindly following someone because they wrote a book and lost in court, may not always be the wisest move. (the IRS is now "on" to Pete's approach, and odds are, it will no longer "work" as a "trick" in the courts any longer.)

You ask "why beware?"

Because the book is free and even you seem to be saying it is 99% correct, so why should anyone be discouraged from reading it? You admitted it would be silly to discourage someone from reading a book, so haven't you answered your own question as to why we should beware of someone who discourages others from reading it?

If people want to get second and third opinions, that is fine, but there is nothing of substance at the links you gave, unless I want to shell out $100 for the book, which may be good, or may be full of errors itself.

What happened to Pete is not going to happen to everyone who learns what he teaches and acts upon what they learn, so I'd take that dimes to dollars bet. They made a special effort to make an example out of him and in th eprocess made obvious to all careful observers that they are desperately afraid of the knowledge contained in his book becoming widespread.

The links I gave have all the substance you need to see where

Pete went wrong. You don't need to buy the book.

However, it isn't laid out point blank for you in text on the web page.

You have to look through the podcast archives. Dave is nice enough to list each episode's topics so you can use CTRL+F or equivalent to search the page for "Pete Hendrickson" and "Cracking the Code" and get the analysis I am describing. There are several episodes on the topic specifically of Pete and his approach and why he failed.

Someone should beware of a method that is a proven failure. I would say listen to Dave's critique, then read Pete's book with that critique in mind. Then you'll have a clearer picture of the whole thing. But it all you do is read and promote Pete's book, you're asking for trouble.

"proven failure"????

Do you and Dave Champion consider Pete's conviction to be proof of the supposed failure of his "method"? If so, I heartily disagree.

It is one thing to argue Pete may be wrong on some point or another, but anyone who thinks that a conviction in a federal court is proof of ANYTHING is not someone I am going to go too far out of my way to listen to. Come on. Do you think they could not railroad Ron Paul himself into prison if they decided to? or you? or ANYBODY?

If anything, Pete's "method" has been proven CORRECT by way of the government's ongoing campaign to suppress the book as cursorily reviewed here (also linked above in OP):

And if you read all the filings in those previous assaults, it should become even more obvious that Pete has it right. After all, it is not just what the government has done, but what it has failed to do, and what it failed to even attempt at his criminal trial!

You may be interested in reviewing Pete's appeal, which is set to be heard November 18th (almost halfway through his sentence)...


And this doesn't even get into the unfathomable incompetence of his lead defense attorney, who threw him under the bus.

Anyway, if you want to ENCOURAGE people to ALSO read --in addition to Pete's book-- Dave Champion's book and listen to his show (as opposed to discouraging them from reading CtC), go right ahead, but I would encourage them to also make sure they have read the two links I have just linked in this reply.


I will read it and proceed accordingly.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

My favorite book!

Don't pass up on the opportunity to read this! -LP-


Thanks for the important info

END the FED before it ENDS US


Bump for thought crime.




In a last ditch effort to discredit the author of the FREE ebook now available for download, the government corruptly orchestrated a farcical trial which resulted in his current incarceration in a federal gulag.

The government hopes this will discourage you from reading the book and learning the truth about the tax revealed therein.

Is their effort going to work on you?

Or maybe Pete lost because he got it 1% wrong at the

crucial step?

See my above post and links.

Pete refuses to admit even a 1% error and instead resorts to calling the trial "farcical" and "orchestrated."

The reality is that Pete made a serious error and a crucial mistake. THAT is what cost him the trial.

I went to your links

and didn't see anything specific which could shed light on the 1% you say Pete got wrong. Perhaps Pete is mistaken about something, but do I have to listen to 1oo hours of radio shows to get to the meat?

By the way, the words "farcical" and "orchestrated" were my choice of words to describe the trial, not Pete's, and even if Pete is wrong on 1% of what he believes, that was not his downfall in court. The trial was a joke and without getting into all the reasons why, I am not inclined to pay much attention to anybody who denies he was corruptly railroaded into prison. If he made any mistake it was in trusting his "defense" to back-stabbing, false patriot mark lane.

No, you don't have to listen to 100 hours of audio. Use the

search functions of your browser to look for his name or his book title, or browse over the episode topics manually. There are at least 3 if not 5 or more episodes which cover this.

I posted the exact show links in an old thread here, but I don't know where that is now. Perhaps you can find it on a DP search. Though I'd bet it would be faster to just search on Dave's site directly.

Or maybe they hope everyone follows it as their roadmap...

So they can all be imprisoned, or such.


but I don't think so. Tell you what...Why don't you read the book, study the supplemental information at his website (also free), and review their efforts to suppress it and see if you still think that they are hoping everyone follows him?

If we are too afraid to stand up for the rule of law, what chance do we have of taking our country back? Maybe those who intend to rule us will just change their minds. Yeah. Let's just do nothing and cross our fingers.

Already knew the information.

My same question...

Were you expecting the information to change policy on a national scale?

If we flood the courts with the information, we'll have all our changes in the "community" but that will do nothing to the national law. Is that a victory?

To change the national law, the states have to step in.

"Changing the national law"...

...is not necessary. All we need do is insist that it be observed. It would be nice if the law were not so complicated so it could be more easily understood, but technically the law is fine. Do you really already know the information, or do you presume that you already know what Pete teaches without having actually read it for yourself?

If knowledge of the truth about the law becomes widespread, they will no longer be able to get away with their lawlessness such as was displayed in railroading the great American patriot Pete Hendrickson.



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Rand Paul 2016

bump for anti-tax activism

bump for anti-tax activism

fireant's picture

Saved for later. Thanks


Undo what Wilson did