Crack the Code © Peter E. Hendrickson
If We Would All Stick To The
Facts, We Could Win In A Month
http://www.commonlawvenue.com/FeaturedArticles/005-cccc.htm
I’ve had occasion recently to
be reminded of the wealth of talent, energy, and commitment which, while
sincerely dedicated to the rule of law in regard to the “income” tax, is
nonetheless squandered on misunderstandings for which absolutely no supporting
evidence exists, and which defy both the words of the law and the huge body of
evidence which DOES exist as to the true nature of the scheme. Masterful
legal pleadings, slick media presentations, and stirring, heartfelt rhetoric
are vigorously and sincerely deployed by a host of truly outstanding and
patriotic Americans addressing imagined elements and constructions of law which
have never made an appearance in a single prosecution or civil action in
connection with the tax, or anywhere else, for that matter.
Theories, such as that only
foreign (non-American) nationals are subject to the tax, or that only receipts
from non-American ‘sources’ are taxed under the law, are brilliantly promoted--
despite the fact that no American has ever faced an official assertion that his
or her receipts were taxable because of being from a non-American source, or
because (s)he was actually a foreign national.
Is it conceivable that this theory could be correct, yet no indictment or
information or civil claim has ever said, “John Smith, having received $xxx
in earnings from
The stubborn persistence of
these theories astonishes me, particularly in light of the wealth of
irrefutable evidence demonstrating the nature of the real "income"
tax scheme. An enormous, vigorous and highly visible program to ensure
that virtually every transaction in America is documented as having a
connection to the federal government is underway at all times, with the
resulting evidentiary documentation being relied upon in practically every
criminal and civil action involving the "income" tax.
The simple fact is, since 1862
there has been a tax upon federally-connected receipts. Looking, for
instance, at its application to work-related earnings, it was first enacted as this:
Sec.
86. And be it further enacted, That on and after
the first day of August, eighteen hundred and sixty-two, there shall be levied,
collected, and paid on all salaries of
officers, or payments 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 duty of three per centum on the excess above the said six hundred
dollars; and it shall be the duty of all paymasters, and all disbursing
officers, under the government of the United
States, or in the employ thereof, when making any payments to officers
and persons as aforesaid, or upon settling and adjusting the accounts of such
officers and persons, to deduct and withhold the aforesaid duty of three per
centum, and 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 duties;…
And then re-enacted (in
pertinent part) as this:
Gross
Income Defined:
Section
213. That for the purposes of this title (except as
otherwise provided in section 233 [Gross Income Of Corporations Defined -PH]) the term gross income-
(a) includes gains, profits, and income derived from
salaries, wages, and compensation for personal service (including in the case
of the President of the United States, the judges of the Supreme and inferior
courts of the United States, and all other officers and employees, whether
elected or appointed, of the United States, Alaska, Hawaii, or any political
subdivision thereof, or the District of Columbia, the compensation received as
such)…
Then it was re-enacted as
this:
SEC.
22. GROSS INCOME.
(a)
General definition.—"Gross income" includes gains, profits, and
income derived from salaries, wages, or
compensation for personal service, of whatever kind and in whatever form paid,...
and
ultimately this:
Sec.
61. - Gross income defined
(a)
General definition
Except
as otherwise provided in this subtitle, gross income means all income from
whatever source derived, including (but not limited to) the following items:
(1)
Compensation
for services, including fees, commissions, fringe benefits, and similar items;
...,
while subject to
the specifications in this law:
The term "department" means an executive
department of the United States Government, a
governmental establishment in the executive branch of the United States
Government which is not a part of an executive department, the municipal
government of the District of Columbia, the Botanic Garden, Library of
Congress, Library Building and Grounds, Government Printing Office, and the
Smithsonian Institution.
The
term "position" means a specific civilian office or
employment, whether occupied or vacant, in a department other than the
following: Offices or employments in the Postal Service; teachers, librarians,
school attendance officers, and employees of the community center department
under the Board of Education of the District of Columbia; officers and members
of the Metropolitan police, the fire department of the District of Columbia,
and the United States park police; and the commissioned personnel of the Coast
Guard, the Public Health Service, and the Coast and Geodetic Survey.
The
term "employee" means any person temporarily or permanently
in a position.
The
term "service" means the broadest division of related offices
and employments.
The
term "compensation" means any salary, wage, fee, allowance, or
other emolument paid to an employee for service in a position.
So, the compensations of
federal workers ("employees") are clearly and uniquely classified in
the law as being gross "income", and are taxed (after being distilled
down to taxable "income" by the claiming of available deductions,
etc.).
Now look at the specifications
for creating the 100 million or so W-2’s stridently demanded from every company
every year (1099’s amount to the same thing for contractors and others, by a
different statutory scheme, which we will not explore here):
Sec.
6051. - Receipts for employees
(a)
Requirement
Every
person required to deduct and withhold from an employee... ...shall
furnish to each such employee…a written statement showing the following:
(1) the name of such person,
(2)
the name of the employee (and his social security account number if wages as
defined in section 3121(a) have been paid),
(3) the total amount of wages as defined in section 3401(a),
...
and at
what “wages as defined in section 3401(a)” are. (3121(a)’s
definition is similar, but too complicated to go through for purposes of this
summary):
Sec.
3401. - Definitions
(a) Wages
For
purposes of this chapter, the term ''wages'' means all remuneration (other than
fees paid to a public official) for services performed by an employee
for his employer,…
c) Employee
For purposes of this chapter, the term ''employee''
includes an officer, employee, or elected official of the
THE TRUTH IS SIMPLE AND
STRAIGHTFORWARD. THE PURPOSE OF W-2’S (AND 1099’S) IS TO RECORD AND
REPORT PAYMENTS MADE TO FEDERAL WORKERS. THE CREATION OF ONE OF THESE
FORMS ABOUT ANY GIVEN AMERICAN CONSTITUTES A LEGAL DECLARATION THAT HE OR SHE
IS A FEDERAL WORKER AND HAS BEEN PAID TAXABLE FEDERAL COMPENSATION. THAT’S
WHY AMERICANS ARE ALLEGED TO BE TAXABLE AND TAXED. THAT’S WHY
EVERY COMPANY IN AMERICA IS BROWBEATEN OR FOOLED INTO ISSUING W-2’S AGAINST
THEIR WORKERS, AND 1099’S AGAINST THEIR CONTRACTORS, GENERATING A VERITABLE
BLIZZARD OF EVIDENCE AS TO THE TRUE NATURE OF THE SCHEME! There is, on
the other hand, no effort of any kind to cause the creation of evidence that
every company is connected with a non-American country, or that every worker is
a corporate shareholder (or even that every company is a corporation), or
anything of either sort-- because the theories involving these things are
simply wrong.
There IS a
tax on corporations-- an "income" tax on those corporations chartered
as federal or federally-controlled entities, but it has nothing
to do with (and is not applied to) natural persons (who are taxed on their
"income" by other means, such as that discussed
above). There IS a distinction drawn in the law between
"income" from ‘foreign-located sources’ and "income" from
‘domestically-located sources’ in the case of "non-resident aliens"
(and a few others), but these terms do
not mean what the advocates of the foreign source argument understand them to
mean, and the tax scheme does not rely upon the distinction at all, in the
sense that those advocates suggest.
It is a great pity that the
talent and energy that is devoted to these errors is thus wasted. It is
worse still that many who are introduced to the idea of freedom from a
wrongfully applied and hugely destructive tax for the first time thanks to the
admirable and accomplished outreach efforts of these mistaken theorists will,
upon perceiving the errors in those theories, simply be lost to the cause-- as
once burned, twice warned.
I know that over the course of
time the real nature of the "income" tax scheme will come to be understood
by all, but it could happen a lot faster if overcoming misunderstanding was
unnecessary. And think how quickly that time could come if all of the
polished, practiced, and dedicated advocates presently defending the
indefensible turned their prodigious talents toward spreading that
understanding. We could win by April 16th.
Crack the Code © Peter E. Hendrickson