There is a growing body of people who question the validity of the Federal Income Tax, and the validity of Federal Reserve, a private central bank that conducts it’s business in secret. Critics argue that there is no law requiring citizens to pay a tax on personal wages, which is what the income tax is, a tax on your labor. They argue that we pay taxes on, property, licenses, tolls, gas, food, clothing, permits, and the list goes on… They also cite that labor is not taxable, and that our Constitution protects us from such a tax. In fact, there is a growing body of former IRS agents who have stopped paying their income taxes, and have proclaimed the income tax, and the IRS illegal entities. The film by the late Aaron Russo, ‘America: Freedom To Fascism’, portrays a chilling, and well documented case against the Federal Income Tax, and the Federal Reserve. I decided to do some of my own research and this is what I discovered.
Two things happened in 1913. The Federal Reserve Act, and the 16th Amendment to the United States Constitution. The 16th Amendment to the Constitution allowed the government to tax personal wages. Before this there was no tax on personal wages. In fact, our constitution protected us from such a tax. 1913 was not the first time this country had an income tax though. Abraham Lincoln used a income tax to help fund the Civil War, “In order to help pay for its war effort in the American Civil War, the US federal government imposed its first personal income tax, on August 5, 1861, as part of the Revenue Act of 1861 (3% of all incomes over US $800) ($20,693 in 2011 dollars).[verification needed] This tax was repealed and replaced by another income tax in 1862.[verification needed http://en.wikipedia.org/wiki/Income_tax Another case before the Supreme Court on Income tax, “Pollock v. Farmers' Loan & Trust Co., held a tax based on receipts from the use of property to be unconstitutional. The Court held that taxes on rents from real estate, on interest income from personal property and other income from personal property (which includes dividend income) were treated as direct taxes on property, and therefore had to be apportioned. Since apportionment of income taxes is impractical, this had the effect of prohibiting a federal tax on income from property. However, the Court affirmed that the Constitution did not deny Congress the power to impose a tax on real and personal property, and it affirmed that such would be a direct tax. Due to the political difficulties of taxing individual wages without taxing income from property, a federal income tax was impractical from the time of the Pollock decision until the time of ratification of the 16th Amendment in 1913.
Let’s take a look at taxes. The direct tax was apportioned. Apportion means to distribute proportionally from state to state. Our system of congress is apportioned. Each state is allowed so many representatives based on the population of each state. The same was true of taxes. Each state paid direct taxes, “In the United States, Article I, Section 2, Clause 3 of the Constitution requires that direct taxes imposed by the national government be apportioned among the states on the basis of population. After the 1895 Pollock ruling (essentially, that taxes on income from property should be treated as direct taxes), this provision made it difficult for Congress to impose a national income tax that applied to all forms of income until the 16th Amendment was ratified in 1913. After the Sixteenth Amendment, no Federal income taxes are required to be apportioned, regardless of whether they are direct taxes (taxes on income from property) or indirect taxes (all other income taxes).[10 http://en.wikipedia.org/wiki/Direct_tax
We no longer have a direct apportioned taxation system. Via the 16th Amendment, we have the Federal Income Tax. There is strong evidence that the 16th Amendment is not legal, because it was never ratified.
What does the income tax pay for? According to the Center On Budget and Policy Priorities we spend our taxes on, Defense, Social Security, Medicare, Safety Net Programs, Interest on Debt, Roads, Transportation, Scientific Research, and All others (whatever that is?). In 2011 the Federal Income Tax collected 2.2 trillion tax dollars, but the government spent 3.6 trillion dollars. Most of the taxes collected go for defense. Federal Income taxes paid, $718 billion dollars in taxes in 2011, about 20 percent of all money raised. The pattern that I see based on history is that war creates a need for taxation. In the post September 11th climate we have waged an endless war on terror. Yet we are not safer. We are in fact, less safe, poorer. War creates debt! We cannot call preemptive war defense. Preemptive means we strike first, that is not defense, that offense. We have a deficit so large that our children’s children will be paying for it. It is taxation without representation. We are a civilized people. Why doesn’t the justice system wage the war on terrorism? Whatever happened to the rule of law? Justice?
Now let’s look at the Federal Reserve. What is it? The Federal Reserve is a private central bank overseen by the congress. However, the Federal Reserve conducts it’s business in private, and congress has a token roll as overseer of the Fed’s business. The Federal Reserve hand picks it representatives and gives it to the president to appoint its leader, again a token act. Basically, the congress has no power over the Federal Reserve; rather it is the other way around. The Federal Reserve Bank serves no one but it’s own interests and profits. The Federal Reserve Act was made into law after a secret meeting on Jekyll Island. Woodrow Wilson signed the act into law in 1913. Later on before Woodrow Wilson died he stated, “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson.
What the Federal Reserve Act did was take the United States Government’s power over it’s own currency which was interest free, and handed it over to a private for profit bank for interest. No longer would the U.S Treasury print and oversee it’s money, the Federal Reserve would have that power. The Federal Reserve prints money and lends it at interest back to the government, and smaller banks! The Federal Reserve prints money it does not have, and thus causes inflation that depresses the economic spending power of the people. It’s like magic, they print money from thin air and make the American people pay in inflation, taxes, a dying dollar, and a lower quality of life. While they make huge profits! The Federal Reserve is no more Federal than Federal Express. The Federal Reserve holds all our gold in Fort Knox, but we do not know if our gold is still there? There has never been an audit of the Fed. Ron Paul recently pushed a bill through the House of Representatives to audit the fed, but the bill awaits the senate for approval. We as Americans must demand the repeal of the Federal Reserve act to restore our financial integrity. The recent economic down turn is a product of bad banking. Instead of bailouts we need to put these bankers on trial for treason! These are dire times… the Federal Reserve has just issued a decree that they will print more money to buy loans, and US bonds, to stimulate the economy. Print more Money? They do not have money to print. There is no gold standard to back the printing of money. There is nothing to back the printing of more money, but debt and interest. This will cause the dollar to crash! Who will pay the ultimate price? We the people will. It’s time we stop the madness. For the sake of our children we must get rid of the Federal Reserve and restore the United States Treasury’s power to oversee and print our money interest free. “I believe that banking institutions are more dangerous to our liberties than standing armies." Thomas Jefferson
So where do we go from here? Study history and know the law. That would be a good start. Be an active open-minded citizen. Seek truth… Stay informed and take action. It was a bit hard for me to write this article. Tax laws confuse me and there is a lot of double speak and legalese in the IRS, and the tax law. I do know this as fact, The Constitution and the Bill Of Rights are two small booklets, and the IRS tax code is over a thousand pages long. There is too much evidence to ignore the legality of the 16th Amendment, and the legitimacy of the Federal Reserve. Let us not forget our history. Liberty is not for the ignorant, or the lazy. Liberty requires an active citizenry ready to take action.