Illegal Individual Income Tax Supplies 42% of u.S. Federal Revenue

A Confederate Exposure of Federal Lawlessness

Federation of States, December 20, 2001 - According to the Annual Report on the united States Government 2001 issued by the Ways & Means Committee of the House of Representatives a full 42% of the revenue for 2001 of the Federal Government came from individual (Personal) income tax. Another 28% of the revenue came from social security taxes, totaling 70% of the revenue for the government. The illegal nature of the personal income tax shall be discussed later and what could be done about it, but continuing to look at this annual report other shocking information is shown.

Corporate taxes only accounted for 6% of the national revenue and the constitutionally mandated excise taxes and customs duties (imposts and/or tariffs) only amounted to 4% of the revenue.

It is very obvious who the economic slaves are and who is being gored to pay for the ever-growing, largely unexposed, mostly unproductive and very irresponsible federal bureaucracy which is one of the main driving forces behind World Empire building now becoming so transparent. Few, if any, of these federal bureaucrats pay social security, for they have their own much better system for retirement. Our wonderful Congress (both houses) have just voted themselves nearly $5000.00/yr increase in their own salaries which is now about $150,000.00/year and these and their predecessors are the ones who have voted to not only further the illegal and never ratified nor constitutionally authorized personal income tax, but who have also voted over the years to reduce corporate taxes and the constitutionally mandated excise taxes and customs duties (imposts and/or tariffs).

Why do you suppose that the taxes on duties, imposts and excises are hardly being applied? Corporations did not exist as state authorized business organizations at the time of the writing of the Constitution. But, since they are government authorized, they are under the jurisdiction of the state and federal government and a tax system was established to tax them as well. But, today giant international U.S. corporations operate much of their business outside of the united States, thus being essentially tax free on those operations. If we applied substantial duties to these foreign operating arms of these American corporations, a large amount of income would derive. But, the fat cow is in the foreign operations of such corporations.

Some would say, well, if you tax the foreign operations of American corporations, they might not build such foreign operations. The answer to that is “Good”. Let them invest within the country and create jobs for our people here. We must apply excise taxes to these foreign operations of American corporations.

Secondly, inadequate steps have been taken to prevent very large corporations from becoming monopolistic. OPEC is a price fixing mechanism of international oil corporations, many who have American corporations as their parents. A serious consideration should be placed upon a graduated corporate asset tax schedule which would become increasingly larger as such corporation assets became larger, thus placing a reasonable limit of the size of such monopolies and opening the door for many smaller corporations to expand to fill the void, thus increasing efficiency which is lost on large corporate or bureaucratic organizations and also increasing jobs.

Let us now consider the illegality of the “personal individual income (slave labor) tax.” The u.S. Constitution states:

ARTICLE I, Section 2. . . . Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers,

ARTICLE I, Section 8. 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 United States; . . .

AMENDMENT XVI. The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. (The 16th Amendment was never legally ratified by the states and furthermore has been completely misapplied as written to wrongfully allow federal taxation of individual income.)

Citizens have argued that since they were not paid in gold or silver, they received no Constitutionally legal tender and therefore had no income. That argument, although with a valid basis, has failed in court. Others have tried to argue that the income tax is voluntary and therefore they choose not to pay it. This argument has usually failed in court.

Others who afforded the right attorneys were able to use the Fifth Amendment to prevent the IRS from getting their records or from asking sufficient questions to be able to prosecute the client or even to access a tax against them.

Many have boldly tried to attack the income tax more directly by claiming rather convincingly that the Sixteenth Amendment was never Constitutionally ratified and therefore never legally took effect and thus the IRS has no authority to access tax against personal income. This has failed to save most citizens in court also.

There have been those who have boldly argued that wages are not income because they exchanged their time, sweat and talents for wages in an equal trade and thus there was no gain or income. Interestingly, some judges have seen merit in this argument and have granted some citizens victory in court.

All of these above arguments have some merit and several might be combined for a possible defense.

A more direct Constitutional attack against the supposed legality of the personal income tax is needed. Regardless of whether the Sixteenth Amendment was actually Constitutionally ratified, it is still blatantly Un-Constitutional since the amendment flies in the face of Article I, Section 9, clause 4 of the Constitution which forbids other direct tax unless in proportion to the census or enumeration.

THEREFORE, FOR THE SIXTEENTH AMENDMENT TO HAVE BEEN LEGAL (REGARDLESS OF THE LACK OF RATIFICATION ISSUE) IT WOULD HAVE ALSO HAD TO HAVE STATED THAT IT WAS REPEALING ARTICLE I, SECTION 9, CLAUSE 4 OF THE CONSTITUTION AND IT DID NOT!

But, there is much more. Congress was given authority to lay and collect taxes in Article I, Section 8, clause 1.

However, Article I, Section 2, clause 3 states:

“DIRECT TAXES” AS USED IN THE ABOVE CONSTITUTIONAL CLAUSES MEANS:

A DIRECT TAX MAY BE LAID AGAINST EACH OF THE SEVERAL STATES IN PROPORTION TO THE CENSUS ENUMERATION OF PERSONS RESIDING IN EACH STATE.

DIRECT TAXES ON INCOME FROM WHAT EVER SOURCE DERIVED COULD HAVE BEEN LEGALLY ASSESSED BY CONGRESS IF APPORTIONED ACCORDING TO THE CENSUS, BUT SUCH TAX WOULD HAVE TO BE LAID DIRECTLY AGAINST THE STATES, NOT AGAINST INDIVIDUALS.

SAVING GRACE FOUND IN THE AMBIGUITY OF THE SUPPOSED LAW OF THE SIXTEENTH AMENDMENT

But, we are blessed with a saving grace which must have resulted from the haste of Congress to pass the Sixteenth Amendment. They all apparently failed to notice that the Sixteenth Amendment was fatally defective in still another way. While the Sixteenth Amendment pretends to allow Congress the power to lay and collect taxes on incomes, from whatever source derived without apportionment among the several States and without regard to any census or enumeration, IT FATALLY FAILS TO STATE FROM WHOM SUCH INCOME TAXES ARE TO BE COLLECTED. Therefore, we must look to the Constitution itself to determine WHOM may be taxed.

No authority exists anywhere in the Constitution or the Amendments thereto for Congress to lay and collect Capitation or other direct or individual taxes on the People. In fact, that is clearly forbidden by ARTICLE I, Section 9, Clause 4, which was never constitutionally repealed.

Therefore, no establishment of personal jurisdiction over the people could be lodged and thus no jurisdiction exists over the people for Congress to lay and collect Capitation or individual taxes on the People and this regardless of the years Congress has adjusted the tax laws and this also regardless of the decisions of the courts all of these years, including the Supreme Court. Because of the Constitution, such rights as preventing government from illegally grabbing power such as in the case of their allowance of the personal income tax against individual citizens are retained by the people who were the creators of the government in compliance with the Ninth and Tenth Amendments.

Clearly, Congress lacked Constitutional authority to establish personal jurisdiction over American individuals for the purpose of taxation because of the prohibitions in Article I, section 9, clause 4 against Capitation or other direct Tax which could be otherwise assessed against the several States. Since nowhere else in the Constitution is such authority given to Congress, it does not exist. Congress does not have personal jurisdiction over American individuals in regards to their personal income taxation.

The jurisdiction issue was a very fundamental issue among the founding fathers of our nation as seen from a portion of the Unanimous Declaration of Independence issued on July 4, 1776:

Since the Sixteenth Amendment fails to mention who would be assessed the income tax being advocated, someone other than Congress must have been guilty of extending unwarrantable jurisdiction over us, the individual people. This was the dark and insidious work of the IRS, the Federal Reserve Bank and the Executive Branch of government under President Woodrow Wilson. By the way, Congress never passed a bill authorizing the formation of the IRS!

THE IRS SHOULD BE TERMINATED BY CONGRESS AS UNAUTHORIZED

The IRS and all of its code involving the taxation of the personal incomes of individual citizens must be terminated by Congress to correct a terrible wrong which is one of the main divisive issues facing the united States today. The Treasury Department can and should directly handle all taxation.

To make up for the loss of 42% of the government’s revenue from individual income tax, Congress could pass a flat tax amendment, which would be taxed directly against the various states in strict accordance with their enumeration. It would then devolve upon the various states to tax their individual citizens in whatever way they wished such as sales tax, lottery, or even a flat tax of a percentage of their increase in assets or even of their income above a reasonable level needed to allow reasonable existence.

The u. S. Congress could also apply corporate asset taxes as a duty and an excise on foreign assets. And, Congress must reduce the federal bureaucracy with drastic cuts up to 50% or so. In this way, with these new measures, a legal and fair tax system could be established which would be sufficient to support the trimmed down government.