A.L.E.R.T.
(America Law Education Rights & Taxation)

09-23-2001

Money That Tracks You

Foreword from Gordon Phillips -- 

Sometime in the near future, Americans are going to wake up one morning to find their castles invaded by a dangerous parasitic infection -- a Trojan Excise in the guise of a 'National Sales Tax'.

Count on it, plan on it. It's in your future. Watch for the Bush administration to attempt to trump this 'ultimate tax relief' issue during the 2004 presidential elections. Hillary will have to bake a lot of cookies to compete with this.

A sincere if (in my opinion) misguided group of tax researchers -- yes, the same team who ran last summer's ads in USA Today -- will soon be butting heads with the IRS and the DOJ at a well-publicized hearing to take place in the Imperial City in an effort to force the government to admit to past shenanigans.

The result of their persistent efforts -- win, lose or draw -- is that the government will win. Remember, the logo on the front of the Treasury Building is a Smiley Face.

Under the guise of the 'necessity' to heed the public clamor for relief, the federales will ride in on a white horse, 'solve' the 'tax problem' by 'ripping out the income tax by its roots' (echoes of Dick Armey), and 'rescue' the public from the 'burden' of a tax that no citizen with solely domestic sources of income has ever owed, or paid (whoops! ... did I really say that? ... shhhh, don't tell anyone, there might be a revolution, and revolutions are bad for business).

The same old dead horse, beaten so often during criminal tax trials charging 'willful failure' (to file a non-required return) and 'tax evasion' (of a tax for which most are not liable in the first place), will be dragged out and beaten some more. 

'Dubya' will drawl for the cameras: 'Now those unpatriotic, no-good, deadbeat non-taxpaying cheats will be smoked out of their holes to pay their 'fair share' just like the rest of you good, loyal Americans.'

The constitutionality of the NST will come before the courts a few years later and the Supremes will rule it constitutional in the form of an excise (it's not). Game Over.

The NST will move us a giant step closer towards the cashless society the global elites crave (see the article to follow). Small businesses will be mandated to transmit the NST electronically to the government each week. All must transmit. Resistance is futile. All will be assimilated.

The IRS enforcement goon squad, unable to crush the growing non-filing, non-withholding tax resistance, will be concentrated anew upon this far smaller number of taxpayers -- America's small businesspeople, the backbone of our nation.

And they will all have voted for it, in the name of relief (from a tax they didn't owe in the first place unless in receipt of foreign source income). Is this making sense yet? Please take notes, there's a quiz later.

Plus, the employment (wage/Social Security/Medicare/free cheese) tax will continue to be withheld on a W-4, providing the government with a bi-level means (NST -plus- FICA) of regulating the never-ending expansion of credit derivatives (as Beardsley Ruml explained -- read my book!) that some still humorously refer to as 'inflation'.

The NST will be small at first. But the camel will have stuck its snout under the tent. Not long thereafter, Americans will fork over an extra 22% for a new VCR (made in China), for those lawn chairs (made in Canada), for that hibachi (made in Japan). 

At first, as many conspire to avoid the NST and the value of used items soars, the local "Thrifty Nickel" or 'Penny Saver' will swell to the size of the Manhattan White Pages. But soon, as used VCR's begin to wear out thanks to the disposable economy and 'planned obsolescence', everyone will be forced into the welcome arms of the retail crime syndicate that took over Sam Walton's original vision. 

The 'underground economy' which the NST was intended to 'smoke out' will blossom as the number of private barter clubs explodes. Eventually, the Congress will require that each American complete a form on all transactions over (say) $25.00 and send it to the IRS. Neighbors will spy on neighbors. Resentment against non-filers will run high. Soccer moms will lead the campaign for 'tax fairness'. Cash will be demonized more than ever.

For a view of the endpoint of this possible future where the value of each citizen is no more than his debit/credit relationship vis-a-vis the Central Computer, rent the video 'THX 1138', George Lucas' first feature length film.

Or ... change the future. Pass this e-mail on to 10 others. Let's INFORM AMERICA together! Tell a friend. Click here --> http://www.informamerica.com/news/tellafriend.htm

* * *

http://www.newsmax.com/archives/articles/2001/7/27/212324.shtml

Latest Privacy Nightmare: Money That Tracks You -- by Wes Vernon

Saturday, July 28, 2001

WASHINGTON -- It isn't every day that you learn how to promote the Constitution and trash it in one easy congressional hearing. But that's exactly what happened this week. A House Subcommittee on Financial Services divided its session Tuesday between praising an idea by young students to print parts of the Constitution on U.S. currency and an anti-privacy proposal to rig that same currency with a device that would allow others to keep track of who has had it and for how long.

What's more, the irony seemed to go over the heads of everyone who participated.

'In just one hearing, they showed us how to educate on the Constitution and how to ignore it,' a startled J. Bradley Jansen, deputy director of the Center for Technology Policy at the Free Congress Foundation, told NewsMax.com.

Every politician knows the public relations value of the 'dog and pony show' that puts future voters on display so as to figuratively pat them on their heads for being good citizens.

Chairman Michael G. Oxley, R-Ohio, gaveled the House committee session to order by proclaiming that counterfeiting is done often by organized crime or violent drug gangs.

After greeting the students who were to testify, he welcomed Director Thomas A. Ferguson of the Bureau of Engraving and Printing. He would soon discuss the ongoing testing of 'innovative security features, outside the current traditions of U.S. currency design, for possible application to future generations of currency.'

Outrageous Federal Intrusiveness

Jansen fears that the ideas circulating among crime fighters will venture 'outside the current traditions' of the protections of the Fourth Amendment to the Constitution. You don't go following people's money habits to find where they get the currency, where they spend it and how long they keep it. That is the equivalent of burning the house down just to kill a few bugs.

It would have been interesting to learn if the young students from Liberty Middle School and Patrick Henry High School in Ashland, Va., attending that hearing had been taught the Bill of Rights and the meaning of the Fourth Amendment. One assumes that if they want parts of the Constitution printed on our currency, they probably have. If they sat through the entire hearing and witnessed the contradictions, they must have been confused.

Article Four reads: 'The right of people to be secure in their persons, houses, papers, and effects against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.'

As the Center for Technology Policy sees it, the so-called 'Mew' chip inserted in currency to trace the habits of citizens is a high-tech violation of that amendment. Pure and simple.

'It is important that the adoption of new technologies to thwart counterfeiting and to increase security are not used as government surveillance programs,' Jansen said.

The Mew chip is small enough that it could easily be implanted in money for security purposes. Bureaucrats at home and abroad 'have expressed interest in expanding their power in ways that could easily trample over our liberties,' he added.

Marvin Goodfriend, a senior Federal Reserve official in Richmond, Va., proposed one such plan several years ago.

Stealing Your Money With 'Hoarding Tax'

This proposal would have imposed a tracking device on currency that would automatically reduce its value through a 'carry tax' on hoarding.

It would hit you at your bank's cashier window. If you go there to make a cash deposit, the Mew chip would determine whether you had held on to the cash for period that someone else determined is 'too long.' Thus, you could walk up to the window, make a $120 deposit and get back a receipt for only $105.

Goodfriend's idea sparked such backlash that it was dropped. 

Keynesian economists at one time flirted with the idea. Supposedly, their purpose was to boost the economy with greater cash circulation in the event lower interest rates failed to boost the economy.

Does that ring a bell? What is Fed Chairman Alan Greenspan doing right now? Driving interest rates down, down, down, and the economy remains sluggish.

'That's scary,' said Jansen.

### END OF ARTICLE