IRS Insights

by D. Smith

            Do you like to be robbed? Do you appreciate being lied to and deceived? Well if not, take a few minutes and look upon one of the biggest mass thefts in history.

            This short paper deals with the ‘income tax’. Literally millions of people have found out the truth concerning what this tax is, and who owes it. Now, you can join that group. A few simple, clear legal principles and court rulings can clear away decades of lies and fraud. What you do with that information, once you understand it, is up to you.

            I will use only Supreme and major Federal Court rulings and definitions from legal dictionaries.

            First, the Supreme Court ruled many years ago that the federal government does not have the authority to directly tax people or their ability to earn a living. This legal maxim comes from several rulings, including the Pollock case.(Pollock v Farmers Loan and Trust, 158 US 106) This court (and several other courts) threw out the idea that the federal government could directly tax peoples’ earnings. The Constitution clearly states that representation and direct taxes must be apportioned among the states, not among the people of the states. (Article I, Section 2, paragraph 3) The federal government can directly tax states, but not people.

            Again, much more recently, in Charles C. Stewart Mach. Co. v Davis, 301 US 548, 582, 1937, the Supreme Court ruled that any tax that is not an impost, duty or excise must be apportioned to and paid by the states, not individuals. It is a long settled issue that the federal government may directly tax the states, but not people in the states.

            In 1913, the 16^th Amendment was placed in operation. Few people understand what this Amendment did, so we will take a look at it. The Amendment says that the federal government has the authority to tax ‘income from whatever source derived’. But most people have a mistaken idea of what these terms mean. And, as we will see, the confusion is intentional.

            ‘Source’ has always been attached to ‘earning’. In Coppage v Kansas, 236 US 14, Adkins v Children’s Hospital, 261 US 525, 558, and other related cases, the Supreme Court ruled that ‘wages, salaries and commissions’ are ‘source’ or earnings. They are, then, not ‘income’.

            So what is ‘income’? Income has been defined, from a boil down of many court rulings on the matter, as ‘gain or profit from invested source’ or ‘capital’. So ‘income’ is not ‘everything that comes in’. It is ‘gain’ from investments. Again, the confusion is intentional. The courts and the IRS are well aware that the term is being intentionally misapplied.

            Just to be sure of what we are talking about, what ‘comes in’ or is earned is almost always defined as ‘revenue’. In the case of ordinary people, that would include ‘wages, salaries and commissions’, as well as receipts from sales, rents, etc. So these revenues are ‘source’, and not ‘income’ when we are talking about taxation.

            In fact, the specific term ‘income’ is not defined in the tax Code. The standing rule is, as common sense would dictate, that an item being taxed or regulated must be clearly defined. There are many items defined in the Code, such as ‘gross income’, but never the exact term, ‘income’. If they don’t define it, they may not tax it.

             In the Brushaber case (Brushaber v Union Pacific Railroad Co., 240 US 1, 1916) the Court decided that the (then new) 16^th Amendment created ‘no new powers of taxation’.   That is to say, the Amendment did not change the definitions of terms nor did it alter the types of taxation. That Supreme Court referred back to the ‘Corporations Profits Excise Tax Act of 1909’. The Amendment is a tax law concerning corporations. It has been well understood since this ruling that the Court was saying that the federal government has authority over corporations and the profits of corporations.

            The basic issue is that of a creator. The federal government creates corporations. These are literally legal ‘persons’. And, since the government created them, it may control, regulate and tax them. The tax is an excise, a tax on a special, government created privilege of carrying on business as an incorporated entity.

            ‘Persons’ can be legally defined as ‘corporate entities’. “A ‘person’ equals a corporate entity, not a man or woman. The word ‘person’ in legal terminology is perceived as a general word which normally includes in its scope, a variety of entities other than human beings.”(emphasis added) (Church of Scientology v U. S. Dept. of Justice, 612 F 2^nd 417)

            This term is another intentional delusion for trapping ordinary people is a net of government regulation. Free people cannot be regulated by their government. The mere idea of a collection of ‘public servants’ (which is what the government is supposed to be) could never regulate the daily activities or remove rights or apply taxation illegally. But that is what we live with every day.

            What the general population does not understand, and what they are purposefully kept ignorant of, is the simple fact that people are not corporations. Therefore, corporate taxes cannot be applied to people today any more than they could be when Pollock, Coppage of Adkins were ruled.

            The Code even defines what an ‘employee’ is for tax purposes. Section 3401 (c) defines an employee as a corporation, an officer of a corporation or certain government workers. That’s all. No other entities come under the definition of ‘employee’.

            It doesn’t take a rocket scientist to see that the whole federal ‘income tax’ system is being falsely applied to ordinary people. This is a massive fraud, and it is intentional. If it were not, the IRS would have quit taxing most people after these facts were brought to the attention of the IRS and the Courts. The entire federal income tax structure, as it is being applied today, is legalized robbery.

            And these issues have already been made obvious to the courts and the IRS. Look up the name ‘Marcella Brooks’ on youtube. This lady was foreman (foreperson) of a jury in a federal case of ‘Willful Failure to File and Pay’ the ‘federal income tax’. The defendant was one Mr. Harold. His only defense, through a couple of years of IRS persecutions and investigations was basically, ‘Show me where the law (the Internal Revenue Code) makes an ordinary man like myself liable (requred), and I’ll shut up and pay’. The IRS and all its officials and agents never answered that foundational question. If one is not liable, they cannot owe. It’s that simple.

            The court allowed every manner of subterfuge during the trial, but Mr. Harold stuck with his basic argument; ‘Am I required’. The jury found Mr. Harold innocent on all charges. The youtube segment is a statement by Ms. Brooks on how the court made every attempt to illegally influence the outcome. But the people on the jury saw through the frauds and lies, and ruled the man had been arguing correctly all along. And the presentation you can see on youtube was not done in some secret place. It was recorded at the National Press Club! So, we may ask, why are the media not making the truth available to the public?

            One more mention of intended confusion is the often used term ‘voluntary compliance’ as it applies to ‘income tax’ issues. The term ‘voluntary’ clearly means ‘without coercion’ or ‘of one’s own choice’. ‘Compliance’ refers to a required action. The two are incompatible. One cannot volunteer to be forced, or be forced to volunteer. This was recognized in the ‘draft’ of men into the military years ago. We weren’t asked if we wanted to join the military and go to war. Volunteers into the Army at the time of the Viet Nam war had the prefix RA on their ID number. Draftees had US as their prefix. The difference is quite clear, once people understand the basics. So there can be no such thing as volunteering to do what you are required to do.

            Worse yet, it was uncovered a couple of decades ago that the 16^th Amendment was never legitimately passed and added to the Constitution. It really doesn’t matter to ordinary people, since it has been shown that the tax does not apply to people, but only to corporations. But this is another example of intentional lying to the people over many decades. Since the IRS and federal lawyers refer to the 16^th Amendment all the time in ‘income tax’ cases, the suggestion is that the tax people must file and pay is connected to the 16^th Amendment.

            A couple of citizens, Bill Benson and M. J. “Red” Beckman, heard that the 16^th Amendment had not been legally ratified by the required number of state legislatures. They decided to go to the capital of each state that was in the union at the time, and see what the actual record said. Over the next two years, they traveled, at their own expense, to all the capitals of the states involved. They made copies of all the voting records.

            To their surprise, they found that several states had not passed on the Amendment as it was originally worded. Some ‘passed’ what they would have liked to see, but not what was in the actual Amendment. So the required number of states did not actually pass the actual Amendment. So, how did the Amendment become part of the Constitution?

            The federal Secretary of State at the time was Philander Knox. It was his job to certify whether or not the required votes had been cast in favor of ratification. Knowing that the Amendment had not been ratified by the required number of state legislatures, he declared that it had been legally ratified! This was later found out, but the fact was intentionally buried. The proofs of all this can be found in a book that Benson and Beckman wrote. It is called ‘The Law That Never Was’, if you can find a copy. In the book, the authors document, with records of the state votes, that the required number of states never did ratify the 16^th Amendment.

            The federal tax Code does not apply to ordinary people or companies. It only applies to corporations.

            The federal tax code does not apply to ‘source’, which is ‘wages, salaries and commissions’.

            The liars have developed several stories or reasonable sounding ‘arguments’ in defense of people paying the ‘federal income tax’. One favorite is the ‘fair share’ doctrine. Under this fraud, people have their conscience pricked by the con men. They say that it is only fair for people who enjoy the benefits of our supposedly free society to help pay the expenses. This would be true, except for two facts:

            The government, particularly the feds, have literally hundreds of different taxes. One newspaperman I know did a study of the many taxes, and filled the bottom third of a page of a newspaper with the names of different taxes. So the government already had and has lots of ways to raise needed revenue.

            The other side of that issue comes from a book by J. Peter Grace titled ‘Burning Money’. Thoughtful people remember Grace as the man who did a study of government waste for President Ronald Reagan. After he did the work, his findings were basically ignored. That is why he wrote the book. One fact that he brought out was that all of the revenue brought in by the ‘individual’ as opposed to ‘corporate’ income taxes goes to paying down the ‘national debt’. Not a dime goes for any useful service. The debt was generated by a Congress that literally ‘burns’ money, and then places us in debt to waste even more! And this is done against the expressed wishes of the people well enough read to understand what’s going on.

            So the ‘pay your fair share’ admonishment holds no water. First, we the people never asked or authorized the debt. And none of the ‘income tax pays for anything useful: only paying the debt created by a spendthrift government.

            Many former IRS workers have quit the robbery game and exposed the fraud. One is Joe Bannister. He was a career IRS agent until he came across the above information. Instead of blowing it off, he looked into the issue. He found that the above facts are accurate and correct. He wrote up a report on the issue and handed it to his boss at the IRS. He was told to ‘bury’ the report and shut up, or he would be fired. So he quit the IRS and made the report available on line at www.freedomabovefortune.com. He and other agents who have exposed the lies, fraud and open robbery of the American people have been persecuted by the IRS and other government agencies for their stand on honesty.

            I have only covered the basics in this paper, but it is enough for anyone to prove to themselves that the federal income tax is a scam above all other scams. Now you know the story and have been handed enough evidence to prove the issue to yourself. As my mentor in these issues said to me after I had researched these evidences, “When will you quit financing your own enslavement?”

            Because of the evidence and that statement, I quit filing and paying ‘the federal income tax’ a couple of decades ago. And I am only one of millions who have done the same.

                                                                                                                        WhoOwes       04/19