PROOF THAT I.R.C. SUBTITLE A IS A FEDERAL EMPLOYEE KICKBACK AND NOT A "TAX"
Some government documents I obtained in 1994 shows that the first income tax of 1861 had to have certain sections amended, specifically section 210 of the first Income Tax Act This was due to the fact Lincoln wanted to tax the people and those living were incensed that what they fought for in 1776 was again about to be placed on the people. So the second income tax act removed the people and only taxed government employees for the privilege of working for government from which the Treasury paid them. For this they needed to pay a kick back or a return of money for that privilege. Frank Kowalik stated this in his book IRS Humbug, and this is the proof to support his book. All my research has proven this to be so in my books and other writings on atgpress. Rather than go into explanation, which you will draw from the following 5 pages, I let you come to your own conclusions. I will put in red what I think you need to dwell on and hopefully some myths will be dispelled. This takes careful reading to understand. These 5 pages following, was the result of the clerks of the Postmaster asking why they were paying a tax when the clerks of the IRS were not. Now remember the "clerks" are today's IRS agents, revenooers, and the like. So the Postmaster drafted a letter to find out why his people were paying taxes and certain IRS people were not. In the case of Diversified Metals the Justice Department admitted on the record that IRS employees are NOT U.S. Government employees. The following proves it beyond any shadow of doubt. Now you might ask why did I not bring this out before? I have but only to people that asked. There was no need to as most people are readers and not doers. I only gave it to doers. Now I decided to let it out and see how many people are doers. By that I mean take this and use it. There is so much info here that it boggles the mind. You will learn why it is called an "internal tax", why only no others are mentioned in section 165 to have the income tax collected from and why mechanics and laborers were not taxed. You will also see that when IRS employees did not pay the tax , neither did any American not working for government.
A resolution of the House of the
12th of February, relative to salary tax upon
February 20, 1867.--Referred to the Committee of
Ways and Means and ordered to be
February 15, 1867
Sir: The Secretary of the Treasury has the honor to
acknowledge the receipt of the
"February 12, 1867.
"Resolved, That the Secretary of the Treasury be, and is
hereby, requested to inform this house whether the various postmasters
throughout the United States are required to account for and pay a
salary tax upon the salaries of clerks employed by them where such
salary is not fixed by law, but is paid out of funds furnished by the
government; also, that he be requested to furnish a copy of the
regulations and circulars of said department, if any such exist,
requiring such payment; also, whether any such tax is collected or
required to be accounted for from clerks of assessors of internal
revenue, and, if any discrimination is made between said two classes of
clerks in respect to said tax, why such discrimination is made.
2 SALARY TAX UPON CLERK8 TO POSTMASTER
The receipts of such clerks constitute vouchers in the accounts of the postmaster acting as disbursing agents and in the settlements made with them by the Sixth Auditor. In all the foregoing transactions the postmaster acts not as a principal, but as an agent of the United States, and the clerks are not in his private employment, but in the public employment of the United States. Such being the facts, these clerks are subjected to and required to account for and pay the salary tax, imposed by the one hundred and twenty-third section of the internal revenue act of June 30, 1864, as amended by the ninth section of the internal revenue act of July 13, 1866, upon payments for services to persons in the civil employment or service of the United States.
Copies of the regulations under which such salary taxes are withheld and paid into the treasury to the credit of internal revenue collection account are herewith transmitted, marked A, B, and C. Clerks to assessors of internal revenue are appointed by the assessors. Neither law nor regulations require them to take an oath of office, because, as the law at present stands, they are not in the public service of the United States, through the agency of the assessor, but are in the private personal service of the assessor, as a principal, who employs them.
The salaries of such clerks are neither fixed in amount by law, nor are they regulated by any officer of the Treasury Department, except by the assessors by whom they are employed.
The only control exercised by the Treasury Department over the clerk hire of assessors is to prescribe a necessary and reasonable amount which shall not be exceeded in reimbursing the assessors for this item of their expenses.
No money is advanced by the United States for the payment of such salaries, nor do the assessors perform the duties of disbursing agents of the United States in paying their clerks. The entire amount allowed is paid directly to the assessor, and he is not accountable to the United States for its payment to his clerks, for the reason that he has paid them in advance, out of his own funds, and this is a reimbursement to him of such amount as the department decides to be reasonable. No salary tax is therefore collected, or required by the Treasury Department to be accounted for, or paid, on account of payments to assessors clerks, as the United States pays no such clerks nor has them in its employ or service, and they do not come within the provisions of existing laws imposing such a tax.
Perhaps no better illustration of the difference between the status of Postmasters' clerks and that of assessors' clerks can be given than the following: A postmaster became a defaulter, without paying his clerks; his successor received from the Postmaster General a new remittance for paying them; and if, at any time, the clerks in a post office do not receive their salaries, by reason of the death, resignation or removal of a postmaster, the new appointee authorized by the regulations of the Post Office Department to pay them out of the proceeds of the office; and should there be no funds in his hands belonging to the department, a draft is issued to place money in his hands for that purpose. If an assessor had not paid his clerks, they would have no legal claim the treasury for their salaries. A discrimination is made between postmasters' clerks and assessors' clerks to the extent and for the reasons hereinbefore set forth.
I have the honor to be, very respectfully, your obedient servant,
Hon. Schuyler Colfax,
TREASURY DEPARTMENT, JULY 16, 1866.
Whereas the second section of the act of Congress approved September
Secretary of the Treasury
TREASURY DEPARTMENT, July 18,1866
Sir: Herewith I transmit, for your information and guidance, a copy of an order of the Secretary of the Treasury, dated July 16,1866; regulating the
4 SALARY TAX UPON CLERKS TO POSTMASTERS
manner of collecting and paying into the treasury internal revenue
taxes on salaries.
J. F. HARTLEY,
Hon. ISAAC N. ARNOLD
Auditor of the Treasury for the Post Office Department
OFFICE OF THE AUDITOR OF THE
Sir: An order from the Secretary of the Treasury, under date of
July 17, 1866, changes entirely the present system of collecting the
revenue tax upon the salaries of postmasters and other employees of the
Post Office Department.
5 SALARY TAX UPON CLERKS TO POSTMASTERS.
The following section of the act approved July 13, 1866, provides for
the payment on the salaries of persons in the
civil, military, or naval service of the United States, when
exceeding six hundred dollars per annum, of a tax of 5 percent, on
the excess above said six hundred dollars.
Section 165. That there shall be levied, collected, and paid on all salaries of officers, or payment for services to persons in the civil, military, naval, or other employment or service of the United States, including senators and representatives and delegates in Congress, when exceeding the rate of six hundred dollars per annum, a tax of five per centum on the excess above the said six hundred dollars, and a tax of ten per centum on the excess over five thousand dollars; and it shall be the duty of all paymasters and all disbursing officers under the government of the United States, or persons in the employ thereof, when making any payment to any officers or persons aforesaid, or upon settling and adjusting the accounts of such officers or persons, to deduct and withhold the aforesaid tax; and they shall, at the same time, make a certificate stating the name of the officer or person from whom such deduction was made, and the amount thereof, which shall be transmitted to the office of the Commissioner of Internal Revenue, and entered as part of the internal tax; and the pay-roll receipts, or account of officers or persons paying such tax as aforesaid be made to exhibit the fact of such payment. And it shall be the duty of the several Auditors of the Treasury Department, when auditing the accounts of any paymaster or disbursing officer, or any officer withholding his salary from moneys received by him, or when settling or adjusting the accounts of any such officer, to require evidence that the taxes mentioned in this section have been deducted and paid over to the Commissioner of Internal Revenue, or other officer authorized to receive the same: Provided, That payments of prize money shall be regarded as income from salaries, and the tax thereon shall be adjusted and collected in like manner: Provided further, That this section shall not apply to payments made to mechanics or laborers employed upon, public work.
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