INCOME TAX
IS DESTROYING
Income tax is the second plank of the
Communist Manifesto. As long as we
here in America accept and continue to use a defacto communistic application
and practice of the federal income tax, instead of a dejure application of the
written federal law, in order to legitimately fund our federal government under all of
the provisions of the Constitution of the United States of America as
they were actually upheld by the U.S. Supreme Court in 1916, we doom ourselves
to an ever increasing invasion and destruction of our personal liberties,
rights, and freedoms, by an ever-more intrusive federal government; as it
becomes more and more invasive and destructive of our individual rights in
order to secure ever increasing revenues
to fund its ever expanding needs and desires; made certain by an ever-expanding
national debt; made certain by the fiat paper money system of the fractional
reserve banking system run by the federal reserve bank money monopolists who
ensure that every penny of currency in existence can only be borrowed into
existence from them, thus always creating more debt for the American people to
service. Today, the federal reserve bank
possesses an unlawful, unconstitutional monopoly on and over our money. This (what we are practicing) is not capitalism. This is socialism, specifically
communism. The federal income tax must
end in order to begin addressing these critical underlying, foundational causes
for our national economic crises.
As long as
America has only federal reserve notes (and bank issued credits) circulating as
the exclusive form of currency in place of sound and real money, there will
of course be a resulting insurmountable amount of debt created for the nation’s
people to service, as a result of the monopolistic creation of those paper and
credit “currencies” by the
banksters. Of course, the more national
debts there are to service, the greater the degree of service, in the form of
ever-greater taxation of the people, will be necessary to sustain the
increasing debt levels of the government resultant from its unconstitutionally
borrowing money into existence from a private monopoly at the people’s expense. The ever greater the income tax rates we choose
to suffer as a people, the closer we become to a pure communist socialist state
without private property, individual rights, or personal liberties, which must
all inevitably fall by the wayside in order to sustain the solvency and
viability of the socialist state and its communistic redistributive
operations. You see the Federal Reserve
bank, with its monopoly on currency and credit is the fifth plank of the
Communist Manifesto, and between the two mechanisms (the two planks), income
tax and the federal reserve bank, we have nearly completely destroyed the
constitutional systems of sound money and private property upon which the
nation was founded, and upon which our
Constitution and its recognized rights, freedoms, and liberties are dependent
and hinged, and have thereby nearly converted ourselves into a true total
socialist democracy, as opposed to the Constitutional Republic we rightfully
should be.
Through the
adoption and dependence on these two mechanisms we have destroyed the systems
of private property, individual liberty, and in fact, capitalism itself, that
the constitution is itself predicated and founded upon. For the last near 100 years,
The
constitutionally recognized and established systems of private property,
written law, and free enterprise that comprise the true system of “capitalism”, are of course, almost
immediately destroyed as soon as a nation takes up the communistic practice
of taxing “income”, as America has done for the last (near) 100 years. And we, as a nation, need look no further
than this communistic tax in order to understand, identify, and expose the root
cause of the national economic dilemmas of insufficient revenues,
insurmountable debts, divisive and non-representative laws and government
spending priorities, political and corporate institutional corruption, etc.,
etc., etc. It all begins with the
Federal Reserve bank’s unconstitutional monopoly to print fiat paper “notes” as money and an unauthorized “legal tender” (see Article 1, § 10, cl.
1), and ends with the enslavement of the People to the government through the
unconstitutional application against the people, by the government, of a direct
communistic income tax, necessary in order to repay the banksters for the “notes” borrowed from them into
circulation as “money” in place of
the real constitutional currencies.
Thus the
taxation of income enables, and becomes, the
destruction of capitalism and the
capitalist system. Thus, what we are
now witnessing, is not the collapse
of Capitalism, because this (what we are practicing in
Today of
course, this situation does not exist
because of the corporate income tax. Since 1913 and the adoption of the income tax
under the 16th Amendment, companies have been operating in a manner NOT to make profits to deliver to their
shareholders, but instead, to avoid
showing any profits at all at
the end of the accounting year, in order
to AVOID PAYING ANY corporate INCOME TAX to the federal government. Thus there is rarely much profit, if any, for
the corporations to distribute at the end of the year to their shareholders,
because it has all been expensed away to avoid paying federal income tax. Thus there is no meaningful return of capital
made to the shareholders, regularly or annually, and thus there is very little
apparent incentive for any average person to invest their money in any
business, new or old, rather than just spend it on themselves, which is what we
now seem to be witnessing in
Furthermore,
this near total loss to the government of corporate tax revenue, expensed and
deducted away from the depleted profits of the corporation through its year-end
accounting manipulations, results in insufficient tax revenues for the
government to operate, and thus compels the government to fraudulently shift
more and more of the tax burden of the federal income tax from the intended corporate subjects, to the backs of We the People, the labor class, thus directly taking from the mouth of labor the
bread it has earned, in a very un-American
taxing system, that effectively transforms America from the constitutional free
nation based on private property, written law and capitalism that it is supposed to be, into a socialist state based
on the communistic taxation and redistribution of wealth proscribed in the
Communist Manifesto, that does not actually share the national wealth, but
instead destroys it, both its existence and creation, by transferring control
over it from the hands that earned it and understand it, into the hands of the
wasteful and corrupt politicians and government bureaucrats who will only
expend and destroy it because they neither understand it, nor honestly deserve
to be allowed to spend it, because they did not (and probably could not) earn
it themselves as businessmen. The socialist taxation of income thus
insidiously destroys the capitalist system, and “capitalism” within a nation, by nearly completely destroying the
corporate motivation to show profit.
This perversion of the capitalist system has resulted in the American
companies expending all their profits on
themselves, thus growing into huge impersonal wealthy bureaucratic
monoliths that act more like an extension of the government and its agencies’
bureaucracies than as the private property and fiduciary agent of the people
owning the company, the shareholders.
Inevitably under this scenario we see the fascist merger of the wealth
of the corporate bureaucracy with the
political power of the government bureaucracy, which always inevitably
tramples the rights and takes the private property of the individuals, in the
name of the so-called betterment of
the collective society. Thus, completely effecting the perverse conversion of
So, ever since
1916, when Congress was misled into taxing “income”,
instead of corporate revenues (like a 3% flat tax), the intended corporate subjects
of the federal income tax have been living high on the hog, generating
needless and excessive business expenses, in order to reduce or eliminate
nearly all of the corporate profit, and “income”,
so as to avoid paying any (or very much) federal (and state) income tax on the
company’s business. Because of this
Congressional communistic (see the 2nd plank of the Communist Manifesto) mistake made by Congress in 1916, very few of the intended corporate
subjects today actually serve as a meaningful revenue stream to the U.S.
government, because there are no meaningful corporate profits left to tax after
all of the inflated corporate expenses are deducted (and the bonuses are passed
out, and new cars are perked, and the paid trips to conventions in Hawaii,
China, Paris, Rome, Las Vegas, and Cannes are all accounted for, etc., etc.); and the government is therein forced to
unconstitutionally (and unlawfully) extract
by extortion its revenue funding from the Sovereign, We the People, rather
than being able to survive on the tax revenues of its lawful subjects – the
corporations and foreign parties present in the U.S.
The U.S.
Supreme court ruled in 1916, in Stanton
v Baltic Mining Co., 240 U.S. 103 (1916), that the income of the
corporations operating in the United States of America is subject to federal
taxation (i.e.: the federal income tax).
It ruled that this corporate subjectivity was established NOT under the taxing power of the new
16th Amendment, but under the pre-existing powers granted by Article
I, Section 8, Clause 1 of the U.S. Constitution. The court ruled that corporations were (and are) subject
to the federal power to indirectly tax by excise, the earnings,
activities, and income of the corporations. It had previously been held by the Court in Flint
v. Stone Tracy Co., 220 U.S. 107 (1911), that the power to tax
by excise, granted by Article I, Section 8, Clause 1 allowed the government to
tax federally granted “privilege”. The court held that the doing of business in the corporate form is the identified “privilege”, sufficient to serve as the
necessary legal constitutional basis for the application of an indirect “excise” tax to be imposed on any and all
of the income (or earnings) derived from the business conducted under any corporate
banner. No such tax can be applied
to the citizen’s exercise of his or her constitutional right to work, as rights cannot be taxed by Congress, even as “income”, because they are
not corporations.
However, just
as Congress is constitutionally authorized to tax the income of the corporations on this indirect excise basis, they are also constitutionally authorized
to tax the earnings or total revenues of
the corporations on this basis as well.
However, they are not legitimately authorized to tax the “income” of the American citizens,
derived from an exercise of their right to work, on this basis. If the
government dropped the “income” tax entirely, both personal
and corporate, and instead just flat
taxed all corporate revenues at the rate of 3 %, without regard for any expenses, everything in this country could be changed and fixed in three months, without further un-constitutionally
directly taxing the American people a single dime. With this simple change, everything can be
changed in the twinkling of an eye.
Every company in the nation,
instead of being able, and allowed, to entirely avoid paying any federal tax at
all, would instead, immediately, all become a meaningful revenue stream to the
U.S. government on a monthly basis, who should then be required to live
within its available monthly budget.
If we
terminate, in its entirety, the unlawful direct taxation of the income of the American People that we
currently engage in, and if the American people were suddenly allowed today to
keep and take home 100% of their earned pay, as the founding fathers of course
envisioned, it would immediately
jump-start the economy of every single town, city, county, and state in the
nation. The American people could
finally pay-up (and pay-off) their bills and mortgages, and thus keep their
homes and possessions; or, help their family, friends, and neighbors do the
same. Also, a certain number of citizens would certainly finally be able to
take a chance at starting a new small business of their own. Being finally allowed to keep their own
business profits would further motivate them to try. American spending and consumption would
resume and increase, adn most importantly, popular interest in investing in our companies would reappear again within the population
and businesses would once again begin to grow and expand. Our personal debts would begin to be paid
off, a new national productivity would begin almost immediately, and we would
again have economic growth through sustainable expansion. All this is easily attainable in a short
period of time, BUT ONLY IF the
American People are allowed to keep for themselves and enjoy the fruits of
their own labors, as intended by our Founding Fathers, rather than be forced to
pay a communistic income tax (again, see the 2nd plank of the
Communist Manifesto) under a defacto I.R.S. operation that in fact blatantly
violates the written statutes, as well as the
Supreme Law of the land, our Constitution (as identified and stated by
the U.S. Supreme Court in Brushaber v. Union Pacific R. Co.,
240 U.S. 1 (1916).
THE TRUTH
WILL SET YOU
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by: Thomas Freed