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The Fair Tax- Jumping From An Imaginary Frying Pan Into A Very Real Fire

I'm a member of a very small political sub-group. I love the Internal Revenue Code.

Now I am not a card carrying communist, or even a left-leaning pinko. I never hugged a tree in my life, and I never look to government to solve my problems.

Trained in legal research as I am, I read a lot – a lot of legal stuff. Boring, voluminous stuff. During the course of some heavy reading I came across something very interesting. As I was deep into Title 26, the Internal Revenue Code, I discovered what I now know, is the largest financial scam in the history of the world.

Depending heavily on a fine treatise by Pete Hendrickson, (Cracking The Code-The Fascinating Truth About Taxation In America) I put the puzzle together. Now believe me when I say that when the pieces fit together, a clear picture appears.

There are three areas of law that when considered together and applied to the I.R.C., enable one to understand the true nature of the tax code. Upon gaining that insight, one is truly liberated and empowered. Free at last, free at last! Here's three general law subjects that one should understand before trying to unravel the tax code.

One. Black Letter Law. What does the actual law really say? One must take the time to actually READ the law and where there is ambiguity or confusion, take the effort to clear it up. You may need to consult a treatise or a law dictionary. You will probably learn some Latin along the way. It's all good. Find Title 26 at the Law Library and pack a lunch – it's an all day affair.

Two. Judge-made Law. This comes from appellate cases. Find the Supreme Court cases that are relevant to federal income tax issues. Here is where you will find out about the 16th amendment and how it changed almost nothing about who or what is taxed under the code. In musical terms, this is called “the hook.” This is where I started to fall in love with the federal income tax.

Three. Statutory Construction. Very simply, how laws are worded and the basic rules for statutory language and structure. What concerns us most here, are custom definitions, versus everyday household words. (Words and terms are two different animals.) Are you an employee? Probably, but are you an “employee?” You could be, but the term is narrowly defined in and for the purposes of the tax code, and that makes all the difference in the world.

The IRS provides a mechanism and a form to use, to correct payroll clerks who, having failed to read anything like the tax code or Supreme Court cases, naturally report false information about your earnings. Unless you use the form (4852) and rebut and correct the record, the IRS will accept the clerk's sworn-to error as fact. The IRS is obligated to return all withheld property to persons whose earnings may have been mis-characterized by payroll clerks who are mis-informed about all of this.

Knowing what I know, when I hear Neil Boortz and others promoting a national sales tax, I ask – Why would you jump from an imaginary frying pan into a very real fire? Why give the federal government what is does not now have, and does not need? Why go from a tax that most citizens can avoid (by not engaging in federally connected activities that trigger a tax liability.) to a tax that gives the federal government jurisdiction over every retail transaction in the nation? What is it about the fair tax that would reduce the government in size?

Why not learn the tax code we now have, and learn that it is an avoidable excise tax? If you don't care to delve into the code just yet, get Hendrickson's book (LOSTHORIZONS.COM) and educate yourself. Then tell the IRS the scam is over.

Imaginary frying pans are forged of ignorance and a lack of scholarly diligence. I, for one, will not be holding hands with ignorant fair taxers and leaping into a very real fire.

William A. Shields is a talk radio host and a recovering, former air traffic controller. His novel- Exit 13A – A Control Tower Diary, has been called politically incorrect, scary, enlightening and funny. He can be heard on Monday evenings at 9:00 PM EST on WVLT.COM, or 92.1 FM in Philadelphia.

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So What is the big misconception between employee and "employee"

And what can we do with it? We have all read a number of stories about this, and from the code I have read and articles followed it makes some sense. So if the picture is so Clear why doesn't someone post the reasons in a clear way? One person learning at a time won't go far to solving any problems. If anyone ever wins a court case against the tax code because of the definition will the code just be changed? Since most people already believe what they have been told about paying tax on each of your earned dollars we won't see any uproar without a media explosion of the facts.

READ - - - Dave Champion's Book - - -

The Book is titled:

Income Tax: Shattering the Myths

Best read I have ever had

http://taxrevolt.us/

You will learn a lot more about the tax then just "employee" as defined in section 3401(c) of the code

Enjoy the Rabbit Hole!!!

Love Liberty, be Vigilant

"Now the Lord is that Spirit: and where the Spirit of the Lord is, there is liberty" (2 Corinthians 3:17)

Faith in God will prevail all things!

IMO

All taxation is unethical and should be patently abolished

I can't speak to the point you make concerning the IRC

but even if the code does apply to everyone's income, as we have been programmed to accept, it is still better than the "Fair Tax". I personally do not desire any tax code but the so called fair tax is a rip off to anyone who has a savings account. The fair tax is also a con to get EVERYONE signed up on the government doles.

The Fair Tax is a wolf in sheep's clothing.

This is an OUTSTANDING analysis!

OUTSTANDING! Thank you.

I think you should refine this and post it far and wide!

I spent a good long time

studying the code, and I hear what you're saying. But asking people to familiarize themselves with the IR Code is a little bit like asking them to familiarize themselves with the stars in a neighboring galaxy. The IR Code is some 7,500 pages of incomprehensible legalese, fer cryin' out loud. Who would read it? Who would even WANT to comprehend it? All across the nation there are professionals that we hire to do just that for us. Of course, those professionals just interpret the code the way the IRS wants them to; and so it goes. I'm not flat tax fan. I agree with you that it would be just one more nightmare on top of another. But if I had my way I would just scrap the IR Code altogether. Replace it with nothing. Wasn't there a candidate a while back who advocated doing just that? I forget who he was......

I have heard this before.

For those that try it, they end up in court; They end up broke; They end up in prison.
Irwin Schiff has been in prison for 8 years because he believed he had no income and no obligation to pay the tax. The court would not allow him to present a defense.
Larkin Rose was sentenced to 15 months in prison for not filing tax returns.
William J. Benson was sentenced to 4 years in prison.
Sherry Peel Jackson is serving a 4 year sentence.
There is a long list.
You may be right. Good luck with that. Let me know how it turns out for you. If you end up in court, you will discover the judge does not want to be lectured by a non-lawyer on the tax law.

[F]orce can only settle questions of power, not of right. - Clyde N. Wilson

Hey Weirami..

For those that try WHAT??
Irwin Schiff has nothing to do with this.
Larken Rose has nothing to do with this.
William J. Benson has nothing to do with this.
Sherry Peel Jackson has nothing to do with this.
Long list? No. There is NO ONE in jail because they filed a 1040 correcting and rebutting the false information supplied to the IRS by third parties. (Hendrickson CTC method) NO ONE! Schiff, Larken, et al are different cases, and not CTC cases.
At LOSTHORIZONS.COM you will find hundreds of persons who demanded and received ALL withheld property (without getting their boss involved.)
PLEASE....You don't know what you don't know. In fact, by posting as you did, you may as well be the P.R. and dis-information director for the IRS.

>>> Let me know how it turns out for you. If you end up in court, you will discover the judge does not want to be lectured by a non-lawyer on the tax law.<<<

This is about the most smarmy, pathetic and juvenile paragraph I have read on this site.
Millions of non-lawyers file returns and they are expected to know and understand the law (s) that apply, especially before signing under penalty of perjury. You don't seem to know anything about trial practice, especially if you believe that judges get lectures from litigants in court.
So, go on signing a 1040, swearing to things you have no real knowledge of, while ridiculing others who have read the law and have the guts to demand that their government follow the same law.
It is okay that you don't know...that you believe the urban legend that many others believe - that "income" means "all that comes in" that the 16th amendment created the income tax. That if you earn a living you owe the federal government, and on and on....
I understand. But please - if you wish to refute my assertions about the tax, please learn what I know (or think I know) and refute it using logic and the written law. This is all I ask.

“...taxes are not raised to carry on wars, but that wars are raised to carry on taxes”
Thomas Paine, Rights of Man

I believe there is a force that exists

which is greater than any gun. I can not explain nor describe it yet I believe it. The patterns of it's effects which have been stamped upon civilization are undeniable.

No just authority can possibly exist without consent. Whether consent is acquired in ignorance is irrelevant as it is nonetheless acquired. I consider it no coincidence the Declaration of Independence made an appeal to a supreme judge of the world. I consider it no coincidence pledges made in fortunes, lives, and sacred honor declared just authority derives from the consent of the governed. I consider it no coincidence the further American people have strayed from all are equally endowed with certain unalienable rights by their creator the nation has declined. I consider it no coincidence as more and more authority is exercised without just consent the nation has declined.

I agree with your points there are many victims of unjust authority. Men of honor and integrity do not care about such risks. They are motivated to do what is right.

Can any government rightly tax air? So instead of a carbon tax why not simply tax air if the power to tax is unlimited? Because like all things legal it is a carefully crafted illusion. No one created the air. Carbon on the other hand ...

Is the carbon you exhale taxed? No. Carbon produced from business activities are proposed to be taxed. The constitutional system is premised on the notion money can not buy happiness and the pursuit of happiness is a natural and fundamental right not subject to any regulation. It is the activities of business and commerce that are considered privileges. It is the activities of business and commerce that are supposed to fund so called constitutional government.

Same with property taxes. Is dirt taxed? No, who created dirt? What is taxed is the border agreement because borders and any bundles of rights for uses within said borders are the creation of man.

The splinter in peoples minds about an unjust income tax they can not identify are the precise reasons it is unjust. Income taxation is nothing more than a payment reporting system. Using conventional constitutional language ... the owners of Disney, the owner of the intellectual property Mickey Mouse have a natural and fundamental right to use their property to pursue happiness in whatever manner they choose and a right to be rewarded from its industrial, business, or commercial uses.

If Mickey Mouse (ie. First Middle Last) receives a paycheck it is reported. Mickey Mouse is intellectual property. It does not have a body it has an owner. Possessing no body it has no basis in any labor performed to earn income.

First Middle Last is also intellectual property. It also does not have a body and it also has an owner (ie. parents who thought up the idea). If you are using someone else's intellectual property, which has been placed under the protection of the United States by an act of birth registration in any member state, to distinguish yourself because reputations have value ... then any payment made to First Middle Last is income for First Middle Last. You have a liability to report and pay taxes upon that income because you are the one choosing to benefit from distinguishing yourself as Mickey Mouse to benefit from the valuable reputation of Mickey Mouse.

The government used to tax specific activities but nowadays it taxes all income from whatever source derived and using a name (ie. intellectual property) that has been registered in any member state of the United States is a federally connected activity especially in light of the 14th Amendment. Nowadays if there is any mention of specific activities it is merely to tax certain activities at a different rate.

The complexity of the matter increases with aliens which is one reason for all this non-sense about so called illegal aliens. You see, legal aliens are using a name that has been registered in the United States which means they are performing a federally privileged activity. What people typically bitch about when they refer to aliens are unregistered ones who do not have a nexus with the federal government and do not pay income taxes, rightly I might add as there is no real element of consent to be governed.

Now, getting back to where I started about a force greater than any gun. Yes, there are political prisoners but with each one the credibility of the IRS has diminished. In the cases you mention there are irregularities. People already suspicious of the legitimacy of the IRS see some irregular antics occur in a court and become even more suspicious. Then there are the special flowers who have been given what I will call prophetic visions that have enabled them to decode all of the patterns and plainly explain them to a point they make so much common sense it is impossible to deny.

Without a change of trajectory, ultimately all of the hypocrisy will lead to system failure and quite frankly if one looks at the latest taxation statistics more people than ever are not filing any returns. The hypocrisy necessary to maintain the illusion of authority by failing to precisely define income or provide any full and honest disclosure of the nature of any tax liability.

What are those in power going to do? Take away free speech so people can't talk about any plain truths of income taxation? Summarily execute people who talk about it? Such things will only increase a force already at work against dishonesty and fraud which is more powerful than any gun.

The truth is that anyone using a name registered in the United States or any member state to distinguish themselves for reputation value, measured in dollar units of federally privileged private credit notes, is deemed a mere economic unit operating in a sea of commerce while engaging in for profit activities 24/7/365 ... and anything that economic unit does can be taxed. One question remains, can it possibly be said one does not consent to be governed if they voluntarily and freely choose to distinguish themselves using intellectual property thought up/owned by someone else which has been registered in the United States or any member state even if it used in ignorance without full knowledge of any terms? Is it a coincidence ignorance of the law is no excuse? Know thyself.

Chances are

Chances are if anyone tries this they won't even get a chance to argue their case before a judge, unless it's a sufficiently high-profile case that the IRS pushes for prison time. The process is highly streamlined now. If someone tries to sell you some magic words that they claim will turn the ravenous IRS beast into a docile puppy, be skeptical.

Below is an example of someone who filed a form 4852, "correcting" his wages to zero. The IRS re-calculated his taxes due for him, using the "un-corrected" numbers from his employer of course, and tacked on $10,000 in penalties. This was done via summary judgement so he didn't get to argue his case in court. Read the whole thing if you want to see in some detail how the IRS chews up and spits out people who are duped into making these kinds of arguments.

http://www.ustaxcourt.gov/InOpHistoric/clark4.TCM.WPD.pdf

I think you are missing the point.

He is not making "sovereign citizen" arguments.

He's saying that to enforce the current tax, they have to go to extraordinary, anti-constitutional and extra-constitutional lengths to do it.

If you pass the BBA (via Art V) or the FairTax and put it in the constitution, you have just codified in this nations supreme law legal theft of the nation's wealth by Washington DC.

Now they are forced to do it by subterfuge. I.e. Do not provide them with the cloak of legitimacy in our nations founding document!

I think not.

Many of those jailed for not paying income tax are using their own interpretation of the tax code and court precedent.
I understand what you and the poster of this thread means by the current tax enforcement; He believes a flat tax or "fair tax" (an oxymoron) would be a step backward. Even if this is true, the idea that there is some way to point out to the IRS, or a court, that wages are not taxable income has been tried and it has failed repeatedly from several different angles.
The reason the income tax was passed was the major source of revenue for the federal government was the protective import tariff established at the beginning of the War to Prevent Southern Independence. It killed agriculture in the U.S. In 1913 most people in the U.S. lived on farms. As a way to get the government to take its grip off farmers, the promise that with the income tax, the rich who lived off their investments would be taxed instead. The tariff was lowered as a trade for the 16th Amendment until the Depression. Then it was raised and income tax was expanded to include wages. After that employer tax with-holding was put into place.
Trading one tax for a promise of a better one has a bad history.
Get rid of the income tax, or pass a constitutional amendment or law that says for purposes of the 16th amendment wages is not income and cannot be taxed.

[F]orce can only settle questions of power, not of right. - Clyde N. Wilson

Wages

"wages" is another term narrowly defined by the code. If you believe your earnings are "wages" you pay the tax, and play the deductions game.
Respectfully, you know so little about this issue, you are making yourself a fine example of how the IRS dupes Americans into giving over their property to the government.

I will purchase Hendrickson's book for you if you promise to read it, and read it until the light comes on....or you can refute the assertions therein using logic and the law. (the light will come on first)
Send a note to WSHIELDS@COMCAST.NET

“...taxes are not raised to carry on wars, but that wars are raised to carry on taxes”
Thomas Paine, Rights of Man

I think so.

The poster didn't recommend to not pay taxes. He said don't LEGITIMIZE taxes by putting it into the constitution.