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

11-17-2001

Publius Rides Again!

I received the following e-mail this week and thought it instructive to pass it on. If I did not know the sincerity of the author (who is known to me), I would ordinarily file it under 'Appeasement'. Let's examine it together and see.

Following this interchange, we'll revisit an outstanding piece written last year by the now-notorious 'Publius', whose viewpoint on taxation and the inadvisability of a National Sales Tax (NST) remains precisely my own.

Back to today's correspondence. My comments are interspersed with the author's. 

AUTHOR WROTE: 'Here's another view of the NST. My position remains the same: a NST, no matter how bad, is still FAR better than an income tax.'

GORDON REPLIES: So we are to go from REALLY bad to just VERY bad? Let's see where this line of reasoning leads, shall we?

AUTHOR: 'Yes it is true that an informed American can lawfully refuse to pay an income tax, an employment tax, an inheritance tax, or a capital gains tax, but the problem is there are VERY few truly informed Americans at this point in time and we do not have time on our side.' 

GORDON: Lawfully refuse? To refuse is either to decline something which is offered (in which case no consequence would ensue other than perhaps hurt feelings), or to reject something which is required (which, if by law, would invoke penalties). Income tax, capital gains and gift/inheritance tax are imposed on foreign sources only -- i.e., on sources from outside the 50 States of the Union. If I am not engaged in such 'foreign affairs', how then would I, Gordon Phillips, be 'refusing' to pay these taxes? Already, I'm beginning to wonder whether the AUTHOR actually understands law, or the tax issue. But let's move forward.

AUTHOR: 'Let's take care of the problem at hand and worry about the next one when it comes.' 

GORDON: 'I'll worry about that tomorrow.' Shades of Scarlet O'Hara! And what, according to AUTHOR, is the problem? Is the present imposition of taxes not owed by Americans living and working within the several states a 'problem'? Fuzzy thinking or full-blown constitutional schizophrenia? Let's continue.

AUTHOR: 'As we educate more Americans about the constitutional limitations on government, it will get easier to defeat unlawful taxation of any kind.'

GORDON: Fair enough. But how soon will that happen? AFTER we have already entered the planned cashless global 'utopia' (from which there will be no return), or BEFORE? It took approximately eleven generations for Americans to sink to their current general level of ignorance. Perhaps home schoolers will be our overnight salvation? Maybe they'll reverse all tax tyranny in the upcoming generation? Maybe not. Many (most?) of today's home-educated are using 'government approved' curricula or other grossly 'lightweight' educational materials compared to what the Founders cut their teeth on. Many 'constitutional' study materials being used in kitchen classrooms all across America are published by 501(c)(3) tax exempt organizations. Need I say more? So where, precisely, is this educational revolution that AUTHOR foresees going to come from?

AUTHOR: 'Yes, it is true that employment taxes will probably continue to be foisted upon the ignorant, but ending the income tax would get Big Brother out of the private financial affairs of every American worker, a big step forward.'

GORDON: Oh, really? The IRS has stated that they intend to do away with the 1040 form by the year 2010 or so. And why, pray tell, would they do that? Because in a cashless society there will be no more need for individually prepared (and sworn) financial confessions. The Treasury will have knowledge of ALL financial transactions, as they occur, in real-time. Bar press for a few FRN's at a local ATM and the government will make note of the amount exuding from the slot. Oops. Unit THX1138, you are exceeding your average daily withdrawal compared to the same period a year ago, indicating a higher level of consumption. Your debt/credit relationship vis-a-vis the Central Computer will now be readjusted, Comrade, to note whether the value of your productivity is worth the amount of credit allowed to be dispensed to you today. A NST would move an all-electronic money system a huge step in this direction. Has AUTHOR considered that fact?

AUTHOR: 'Ending the filing of 1040s for the average American will free a vast amount of human time and talent now being wasted on paperwork and take away a big source of fear of govt.' 

GORDON: Perhaps AUTHOR files returns, and seeks the 'relief' he proposes. I don't know. Speaking for myself, I woke up in 1991 and decided to live the truth -- I haven't performed a 1040 financial proctoscopy since. How will I and MILLIONS of others who no longer file personally benefit by 'Ending the filing of 1040s'? As for 'tak[ing] away a big source of fear of govt', is that a GOOD thing or BAD thing? Wasn't it George Washington who said that ALL government is inherently DANGEROUS and that government should be watched every minute, by every free person, like a hawk? Is moving in a social direction where the people become MORE complacent about the role of government a GOOD thing or a BAD thing? And what does AUTHOR imagine that our fellow citizens would do with all their increased 'free' time, once liberated from the non-existent bondage of 'paperwork' -- study the Constitution, or watch reruns of 'Survivor'?

AUTHOR: 'The ugly fact is that the UNinformed Americans are going to make life miserable for the non-taxpayer as long as they think the income tax is legit, so the first step is to force the govt to stop demanding the filing of income tax returns.'

GORDON: I disagree. I think that the longer the public is peeved, angered and even outraged over the intrusion into their lives caused by the present misapplication of the tax laws (and other acts of tyranny), the more opportunity we have to awaken large numbers of them, ensnare their minds in the truth, and add to our cause. AUTHOR would have everybody become placidly content overnight. Which would lead to MORE constitutional education or LESS constitutional education?

AUTHOR: 'The slave class is not going to stop demanding, and the ruling class is not going to stop spending vast quantities of money on socialist programs any time soon, so when the income tax is proven illegitimate (as applied) another funding source must be found. There aren't many options: application of the income tax to the few lawful subjects (a possibility), direct taxation apportioned to the states (unlikely), indirect taxation as provided in the Constitution, or increased federal borrowing resulting in a skyrocketing national debt and runaway inflation. Hopefully Congress will begin to transfer revenue raising to duties, imposts, and excises as per original intent while the patriot community continues to educate the great unwashed about the evils of socialism and empire building, but it is simply unrealistic to think that Congress will immediately end its long history of unconstitutional spending. Let's fix one thing at a time. We'll get to where we want to be eventually.'

GORDON: So to summarize the above arguments, since the unwashed will continue to demand their free cheese, we should (A) begin placing a tax burden on patriots everywhere who have learned the truth, opted for the righteous high road, and now live a tax-free life as the Framers intended, thereby hamstringing their efforts to continue educating others, while (B) simultaneously 'hoping' (wishing) that the Congress, which consists of candidates elected from the exact same pool of vast unwashed ignorance based on promises to distribute more free cheese, will suddenly awaken and adhere to the Constitution. In the meantime, we need to give up the fight started by Vivian Kellems and her generation in the 1950's, toss all progress made since into the ash can of history, and go with the lesser of two evils, a NST. I don't buy it. By the way, no direct taxes were imposed during the entire 1900's. Not a single one. I've decided to file the above under 'Wishful Thinking'.

*** PUBLIUS RIDES AGAIN! ***

Now, let's move on and review what Publius had to say last year. This is a powerful piece worth repeating. Shortly after Bob Schulz published his Internet 'Remonstrance', Publius published this piece anonymously to several discussion groups on July 4, 2000 and then circulated widely. It sails a cruise missile right into the heart of Bob's 'We The People Foundation, Incorporated (501(c)(3))'. Bob never replied, a pattern now well-established. In fact, there was a curious silence on the part of prestigious Internet tax luminaries everywhere. I found that curiously interesting. 

So without further ado, I give you, Publius.

* * *

UNWITTING TOOLS OR ERRANT FOOLS? - by Publius

4 July, 2000

Misguided Patriots Furthering the Bankers' Original Agenda 

'A PETITION TITLED a 'Remonstrance' has been widely circulated of late on the Internet, urged to be signed by good Americans everywhere, and to be presented ceremoniously to the Congress, demanding that the 16th Amendment to the Constitution -- provably never properly ratified -- now be repealed forthwith, the objective being the ostensible 'relief' of the People from the allegedly onerous income tax.

'THE 16TH AMENDMENT, a superb bit of sophistry intended to affix the approbation of the supreme Court on the newly introduced tax on incomes (Tax Act of 1913) -­ as well as a clever tool of mass mind-engineering designed to seduce the public into acceptance of a tax meant only to 'soak the rich' -- actually changed NOTHING, as stated by the high Court itself in the Stanton v. Baltic Mining decision wherein the 16th is explicitly
confirmed to have conferred 'no new power of taxation'.

'SEE ALSO the 1979 Congressional Research Service report titled 'Some Constitutional Questions On The Federal Income Tax' in which the Congress confirms that the income tax is NOT a direct tax but an indirect tax, prohibited by the 16th Amendment from being taken OUT of the category of indirect taxes to which it inherently belonged from the beginning and placed INTO the category of direct taxation, thereby subject to the rule of apportionment.

'THIS CALL for 'repeal' is but a fool's errand. Cannot today's patriots read English? Direct taxes must still be apportioned to the States under Article 1, Section 2, Clause 3 and Article 1, Section 9, Clause 4. Never has there been any constitutional Authority whatsoever given to Congress to directly tax the property -- including the labors -- of the Citizen living and working within the several union States. This was true as of the very moment the ink had dried on the 16th, and remains true to this day. Could it be that the advocates of this 'Remonstrance' were all government-schooled?

'THE INCOME TAX imposed under subtitle A of the Internal Revenue Code is an exaction which does not touch Americans living and working with the several union States for it taxes FOREIGN and NOT domestic sources of taxable income. No amendment to the Constitution was required to tax resident aliens. Here's your sign!

'NOR IS IT 'voluntary' as these addlepated missionaries also assert, but is limited in its application (as is all law, making the assertion of a 'voluntary' law entirely ludicrous on its face) solely to those who are made liable for the tax, i.e., the domestic withholding agents of foreigners doing business within the union States (see 26 U.S.C. Section 1461).

'THIS FEDERAL TAXING scheme, whereby foreigners were (and are) to be taxed (via excise tariffs, duties and imposts on imports) on the privilege of selling into America's vast markets while leaving the citizen free of all internal taxation, was envisioned by the Framers of the Constitution and can be summarized in the simple phrase: 'Citizens abroad and Foreigners here at home'. This same constitutional scheme has been in place, since Washington first took office.

'NO Citizen who has never withheld from foreigners nor ever enjoyed foreign source income has ever paid so much as a dime in federal income tax. He has paid employment taxes which have nothing whatsoever to do with income tax. So much for 'freeing' 'tax-burdened' Americans. Ah, the price of ignorance!

'INDEED, a careful reading of the tax laws proves the Framers' principles to still ring true as evidenced by the fact that the tax code remains one-hundred percent constitutional in its lawful application, with or without the16th Amendment.

'BANQUETS are held and eloquent luminaries in the 'tax movement' brought forth to stir up the anger of an ignorant public and to foment support for this specious non-issue. 'Repeal the 16th!' 'Abolish the IRS!' 'Rip the code out by the roots and throw it away!' Many noble trees are sacrificed in their youth to paper the nation with this tripe. Why repeal a nullity?

'WHY Abolish a perfectly lawful agency, charged with the duty of collecting internal revenue from the proper subjects of taxation? Why throw out subtitle A when it taxes no Citizen on domestic source income? Why not slay Santa Clause and the Tooth Fairy while we're at it?

'FAILED attempts at C-Span coverage are railed against. Full page ads are run in national publications, guaranteed to awaken and arouse -- and eventually perplex and mislead (some over the cliff) -- entire legions of still dozing Americans. Who will go back and correct the egregious error introduced into these millions of dazzled minds? The irresponsibility of it all.

'ALL of which efforts, ostensibly intended to beg a whoring and seditious legislature to 'please give us back our labors', disgust the mind of serious constitutionalists everywhere. Have our would-be saviors of the working class never read the Internal Revenue Code? Or the Constitution?

'IN 1913, the ancient occult Monarchies of Europe who continue to back and control the Bankers to the present day, after failing to conquer the Colonies through martial force, achieved their dream of installing permanent central banking in America, called the Federal Reserve System.

'IN the early 1900's, their puppet Anglophile shills on Wall Street (J.P. Morgan, etc.) had conveyed their vast holdings into trusts and foundations, all the while methodically buying up controlling interest in the major newspapers of the day, which they then used as propaganda vehicles to argue incessantly for an income tax to 'soak the rich' -- i.e., themselves.

'IN 1909, the Congress, thoroughly bought and controlled by the International Bankers, proposed the 16th Amendment to the States for ratification. For four years, a naive and trusting American People were told repeatedly in the Banker's own newspapers -- the only media of the day -- that 'the income tax is coming', but that 'no one will pay it but the very rich'. Let us 'soak the rich!'

'THE RICH SUCCEEDED. In 1913, the game was won. The 16th Amendment was declared 'ratified', although later investigation in the 1980's proved the Fraud behind the Scheme. The banker's 1913 trifecta was achieved: 1) the 16th was 'ratified'; 2) the Tax Act of 1913 (which taxed imports of foreign investment income) was passed, and; 3) the Federal Reserve Act was passed.

'THIS scheme, long since perfected in European central banks (all owned by the elite money power), whereby monies levied on the incomes of working Americans, through the deliberate misapplication of tax laws, lawfully to be aimed only at resident alien foreigners would be continuously removed from circulation, has now achieved the necessary regulatory recapture mechanism ­- the protection of the buying power of an eternally depreciating, fiat, paper 'money'.

'Beardsley Ruml, former Chairman of the Federal Reserve Bank of New York and the Alan Redspan of his day, confirmed these facts in his 1942 paper titled 'Taxes For Revenue Are Obsolete' which he read before an amazed American Bar Association.

'The current misguided agitation to repeal the 16thAmendment will, if successful, validate increased pressures being placed on Congress to 'do something, anything!' by a Treasury Department now reeling under the growing mass of non-filers as 'voluntary compliance' continues to plummet.

'The Bankers' Dream of a new and alternative form of taxation, one which will placate an awakening public and allow them to go harmlessly back to sleep; a new and 'convenient' taxing scheme that will march America sharply forward towards the National Sales Tax (NST) [NESARA includes a National Sale Tax] the Bankers so badly want, mirroring as it would the same mechanism by which proprietors in those states which levy state sales tax collect and pass the withheld tax in to the state treasuries, reporting the collections on the equivalent of a simple postcard.

'THESE Monopoly Bankers and their European handlers drool and rub their hands over the prospects of a totally cashless society, one in which all monetary transactions down to the smallest retail purchase will be known to them while actually occurring, in so-called 'real-time' (rent the video 'THX1138').

'They dream of this 'postcard payment' scheme operating on the national level, knowing that the businesses which would withhold the NST would be mandated to pay it via electronic transmission, the 'e-filing' mechanism the elite so eagerly seek and which has yet to be adopted by a wary public

'MEANWHILE, our foolish present-day petitioners in effect do nothing more than further the Bankers' original campaign of mass manipulation of the Public Mind, thereby enabling the elite's original program of psycho-political engineering designed, not to liberate, but to further enslave the People with their own 'money'.

'LET THE NAIVE take note: The withholding of Social Security employment (wage) tax under subtitle C of the Internal Revenue Code will NEVER be relinquished by Congress for it is the very River of Milk which flows weekly from the labors of the People straight into the International Monetary Fund.

'THE BANKERS, through the introduction of a NST to replace the present subtitle A income tax, would achieve a perfected bilevel system of regulated recapture of and control over the engineered emission and velocity of credit and paper -- namely, an employment tax ceiling above and a NST floor below, the rates of each to be adjusted over time to perfect and fine-tune the ploy, with the People trapped and suffocated in between.

'MEANWHILE, TAX COMPLIANCE enforcement efforts directed against just a few million businesses as opposed to one-hundred million potential Citizen non-filers will allow truly draconian enforcement measures to proliferate and succeed.

'A public conditioned to 'think' in such short bursts of non-rational, emotional mentation so as to avoid a drain on its limited attention span, always gravitates to the most simply digested arguments, and becomes fodder for tyranny.

'THE Fact that so much accurate and substantive education is now available, as to the true nature of the lawful, constitutional scheme of federal taxation, as well as its deliberate and willful misapplication by the IRS, makes the misguided efforts of our 'tax saviours' all the more reprehensible.

'INDEED, these are the Times that try educated Men's souls. The Tyrants in government stand before us and the flag-bearers of a Fool's Army behind. Of the two, the Army to our rear presents the greater danger. 

'The Summer Soldier and the Sunshine Patriot will, in this crisis, shrink from the service of their country and continue to tithe income taxes to the tyranny that overtakes them; but He or She that stands now and supports the Truth, deserves the love and thanks of every Man, Woman, and Child in America.

'TAX TYRANNY, like Hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap in meretricious 'relief', we esteem too lightly: it is dearness only that gives security its appearance of value. Heaven knows how to put a Proper Price upon Liberty; and it would be strange indeed if so Celestial an article, as true tax freedom should not be highly rated.

'THIS is our situation, and who will, may know it. By perseverance and fortitude we have the prospect of a glorious issue; by cowardice, submission and foolish ignorance, the sad choice of a variety of evils ... Look on this picture and weep over it! And if there yet remains one thoughtless wretch who believes it not, let him suffer it unlamented.

With all due regards and apologies to Jay, Hamilton and Madison.'