How do we know there is no law making the average
working American liable for income tax?
Every tax law must clearly and plainly identify three things: The subject of the tax; the amount of the tax; and the persons or entities that are liable for the tax. Even a cursory review of other tax laws, including all other federal tax laws, makes it obvious that these three elements of any tax law must be present.
The income tax law, however, is the only instance where there is no clear liability provision. The only clear liability provision is § 1461, which assigns liability for the tax to those required to withhold taxes on Nonresident Aliens! In fact, the term "Individual", as in "a tax is hereby imposed upon the taxable income of [married, single, etc.] individuals," is defined in 26 C.F.R. § 1.1441-1(c)(3) as a nonresident alien.
While 26 U.S.C. § 3403, which is not part of the income tax law, does require employers to withhold income tax owed by their employees, there is no law that makes the employee liable for the tax. It is not by accident that the term "employee" applicable to § 3403 only includes government employees and officers (not employees) of corporations.
Thus, there is no law making the average working American liable for any income tax.
How has this glaring hole in the law escaped detection for so long?
When the income tax started out it was considered voluntary. During WWII it was called the "victory tax" and was purely voluntary, but after WWII the IRS, capitalizing on the consensus that to refuse to file was unpatriotic, started demanding the tax from everyone. In 1954 the code was rewritten to edit out all references to constitutional exemptions and to the limited Constitutional definition of "income" (profits, gains).
But the hole in the law has not escaped detection, although that discovery has been suppressed by the government and the media. For many years, now, thousands have asked the IRS to show them the law that made them liable for the tax, but the IRS cannot produce one statute to that effect. That is because there is no such law they can produce.
Is this deception intentional and, if so, who is in on it?
The deception is, without doubt, intentional. The income tax law is carefully drafted to "appear" to tax everyone and everything, and the provisions of the law that admit that neither everyone nor everything is subject to the tax are hidden deep within regulations and carefully worded to avoid disclosing exactly what income "cannot" be included as income and what income is exempt. In both cases they only tell you what "can" be included as income and what is not exempt.
The average, street-grade IRS agent, who can't read his GED certificate without moving his lips, is probably incapable of understanding that he is carrying out a deception and is more likely motivated by his need to compensate for feelings of inadequacy and inferiority by abusing and dominating others. But with that exception, all of those involved are aware of the fact that the income tax law, as applied to personal earnings, is not only unauthorized by the law, but is prohibited by the Constitution.
Exceptions to that general rule would be the number of IRS agents and officials who, upon learning of the deception, refused to continue in the fraud. People of principle, like Joseph R. Banister, a CPA and former IRS-CID Special Agent; Clifton Beale, CEP, A.S., B.S., MS-Taxation and former IRS Revenue Agent and Appeals Officer; Paul Chappell, Attorney and former U.S. Tax Court Clerk and IRS Chief Counsel; Sherry P. Jackson, CPA, CFE and former IRS Revenue Agent; and John Turner, E.A. and former IRS Revenue Officer. All sacrificed their careers rather than participate in the fraudulent taking of hard-earned personal wages and salaries. All have been relentlessly pursued and punished by the IRS for their honesty.
Congress' cunning draftsmanship, deceiving through omission and misdirection, the treasury department's and IRS's refusal to answer questions about the law and the refusal by federal judges, both district and appellate, to even read, much less apply, the law, clearly implicate all as accomplices and accessories to theft by fraud and extortion.
Why does the income tax law omit liability of the
average working American?
The income tax law omits liability because the Constitution does not permit the federal government to tax personal earnings. In other words, it would have if it could have, but it couldn't so it didn't. The Constitution prohibits the federal government from taxing property or person without apportionment among the States. By taxing 100% of personal earnings, the tax is being applied not only to the profit, if any, (income) derived from wages and salaries, but also taxing the human capital (your effort, knowledge, skill, energy and labor), which the Supreme Court says is your PROPERTY, that you invested in order to receive the wage or salary.
"Income" is not what "comes in", but only the profit, or gain. The IRS does not contend that any other gross receipts are income, only that portion of gross receipts that are above and beyond the investment required to receive them. For example, if one purchases property for $100 and sells it for $150, the IRS taxes only the profit. If it taxed more than the profit it would be taxing the $100 investment, called the "basis", for the property, and that would be an unconstitutional property tax.
As for your personal earnings, however, the IRS contends that your basis in those wages is "$0", making your personal earnings 100% profit or income. If you believe that you give and invest absolutely nothing to deserve your pay, then you would agree with the IRS. If, however, you believe that you have invested a part of your life span, a part of your limited work life span, your energy, your labor, skill and knowledge, all of which are your PROPERTY, then you can only conclude that the IRS is taxing your property, a tax prohibited by the Constitution.
In addition, the Supreme Court has repeatedly held that your right to earn a living for yourself and your family is a God-given fundamental right, just like your freedom of speech and your right to worship as you choose. The federal government cannot tax any fundamental right because if it could tax that right it can restrict and even destroy it. Personal earnings are, therefore, exempt from federal taxation.
If the income tax law identified those whose income can be taxed, it would have to reveal those whose "incomes" cannot be taxed. That is why the income tax law does not include the average working American as one who is liable for the tax. For the same reason the tax, limited to taxable income, and admitting that it taxes neither exempt income nor income that is not profit or gain, does not impose any tax on personal earnings.
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What other effects has the misapplication of the income tax had on our country?
Any time part of the Constitution is injured, the rest of the Constitution feels the pain. In this instance, the Founding Fathers intentionally restricted the taxing powers of the new federal government as a measure of restraint on its size. By exceeding that limited taxing authority the federal government has been able to obtain resources beyond its intended reach, and that money has enabled the federal government to exceed its authority in many more ways.
Although the Constitution did not empower the federal government to regulate education in any way, shape or form, it not only does so, the Department of Education is a cabinet position. Environmental regulation, regulation of employment, manufacturing, agriculture and personal welfare are all areas reserved to the States that the federal government has usurped and now rules to the most minute detail.
In addition, the income tax has reduced funds available for the States, requiring them to beg back some of the money the federal government has hijacked from their economies. When these funds are given back to the states for schools, roads or other projects, they have strings attached. The State legislatures are required to ignore the will of the people and pass laws according the dictates of a federal bureaucrat. Speed limits, school curricula, seat belt laws, drinking age, the number and size of lights at each intersection and even school lunch menus.
By violating the taxing limitations imposed by the Constitution, the federal government has not only been enabled to expand far beyond its limited role, but has used its ill-gotten gains to kidnap our state legislatures. Only by cutting off the enabling funding can we expect to force the federal government back into its box.
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How will the government pay its expenses without the tax on labor?
The government is spending huge amounts of money on activities and kibitzing in areas it has no authority to spend. 56% of the current budget is spent on agencies and bureaus the federal government has no authority to create, much less fund and operate. Agencies like the Department of Education, Department of Labor, Agriculture Department are all functions of the States.
The tax on labor represents only a portion of government revenues, but it is enough to permit the government to make many of these unauthorized expenditures. There is more than sufficient money to fund any and all legitimate, Constitutionally sanctioned activities of the federal government.
Should the need arise, however, for more funding, Congress can pass a tax on property or person, such as the tax on labor, so long as it follows the Constitution and apportions the tax among the states, assessing each state, not the citizens, with its share. The federal government may need to learn some humility, since it would consider asking the States for money to be demeaning, but it is about time it is reminded that it serves, not rules, the States and the People who created it.
If working men and women were to divert half of what the federal government is stealing from them each year to their respective States, that would be far more than the States are now receiving, with strings attached, from the federal government. Roads and highways would improve immensely. Schools would not only be better equipped and staffed, they would be run the way we choose to run them, not as some bureaucrat in Washington, D.C., thinks. More importantly, our state legislatures would answer to us, not to Washington.
The other half would go to benefit the family, providing a better standard of living, spending money and creating jobs in their communities and spurring their own economies to prosperity. Such a surge in commerce would produce an enormous increase in legitimate income tax revenues, reducing the loss of stolen labor. Thus, everyone would be better off, including the federal government, which would be free to do a better job of meeting its real assigned duties of defense (to include securing our borders) and foreign relations.
I've heard some strange claims by some, are they true?
It is true that there is no law making most Americans liable for the tax. It is also true that the law does not tax income that is beyond the limited taxing authority of the federal government under the Constitution. And it is also true that not all that "comes in" is "income" within the meaning of the Sixteenth Amendment and cannot be taxed without apportionment among the states. To learn and understand more about these truths, you can begin by downloading and reading a memorandum covering and explaining the laws as they are written and the Constitutional law according to the Supreme Court.
There are, however, a number of "theorists" and "experts" touting and selling gimmicks and strange distortions of history and the law. These snake oil peddlers have conned millions of dollars out of many well-intended Patriots and left a trail of broken lives in their wake. Generally referred to as the "tin foil hat brigade", these charlatans should be avoided, not only because they will lead you to bankruptcy and prison, but because by association they discredit those who are telling the truth. Many of these "theories" and "silver bullets" are likely the product of the IRS and intended to divert our attention from the truth.
The Truth Attack has assembled a committee of the most qualified and knowledgeable attorneys and legal experts in the country who are compiling a list of false and misleading "theories", but until then you can find a detailed listing of many of those false idols and scam artists and stories of the devastation they have caused at Becraft Briefs.