Posts Tagged ‘Internal Revenue Service

11
Apr
10

The Sixteenth Amendment Did Not Allow the Government to Tax You!

So guess what time it is – TAX TIME! For many of you it is a viewed as a time to “get a refund.” Of course, this completely ignores the fact that the government has been taking your money, interest free mind you, for the entire year. That money never even hit your wallet (or purse for you ladies) so it never really seemed like yours in the first place.

But, what is the justification for the government to take 20 or so percent of your paycheck? If you listen to the Internal Revenue Service (IRS) then they will tell you that they do.

The Law: The constitutionality of the Sixteenth Amendment has invariably been upheld when challenged. And numerous courts have both implicitly and explicitly recognized that the Sixteenth Amendment authorizes a non‑apportioned direct income tax on United States citizens and that the federal tax laws as applied are valid. In United States v. Collins, 920 F.2d 619, 629 (10th Cir. 1990), cert. denied, 500 U.S. 920 (1991), the court cited to Brushaber v. Union Pac. R.R., 240 U.S. 1, 12-19 (1916), and noted that the U.S. Supreme Court has recognized that the “sixteenth amendment authorizes a direct nonapportioned tax upon United States citizens throughout the nation.” (link)

So POOF there you have it – the courts have undoubtedly recognized that the Sixteenth Amendment allows a direct income tax on [all] United States citizens. If you are a United States citizen, then you are taxable.

United States v. Collins, 920 F.2d 619, 629 (10th Cir. 1990), cert. denied, 500 U.S. 950 (1991)

the court found defendant’s argument that the Sixteenth Amendment does not authorize a direct, non-apportioned tax on United States citizens similarly to be “devoid of any arguable basis in law.”

Broughton v. United States, 632 F.2d 706 (8th Cir. 1980), cert. denied, 450 U.S. 930 (1981)

the court rejected a refund suit, stating that the Sixteenth Amendment authorizes imposition of an income tax without apportionment among the states.

United States v. Hockensmith, 104 A.F.T.R.2d 2009-5133, 2009 WL 1883521 (M.D. Pa. Jun. 30, 2009)

the court rejected the taxpayer’s arguments that no law created an income tax and that the taxpayer was outside the government’s taxing authority. The court held that the Sixteenth Amendment allows for the taxation of income and eliminates the requirement for apportionment among the states.

IRS Publication 2105 entitled “Why Do I Have to Pay Taxes” also states,

Congress used the power granted by the Constitution and Sixteenth Amendment, and made laws requiring all individuals to pay tax.

So there you have it. There is nothing unconstitutional about the Sixteenth Amendment so you are taxable. The Sixteenth Amendment reads as follows.

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

But wait…

The Sixteenth Amendment was ratified on February 3, 1913, so if it is what allowed the government to tax “incomes, from whatever source derived” then we should have an influx of people start filing starting around 1913 or 1914. Please review the chart below as I have compiled a list of the number of returns from 1913 to 2005 as well as a corresponding population. I have also added a category of the percentage of the American public filing as well as a percent increase of filings from the previous year.

Year Number of Returns Population % of Population Filing % Increase
1913 358,000 97,225,000 0.37% NULL
1914 358,000 99,111,000 0.36% 0.00%
1915 337,000 100,546,000 0.34% -5.87%
1916 437,000 101,961,000 0.43% 29.67%
1917 3,473,000 103,268,000 3.36% 694.74%
1918 4,425,000 103,208,000 4.29% 27.41%
1919 5,333,000 104,514,000 5.10% 20.52%
1920 7,260,000 106,461,000 6.82% 36.13%
1921 6,662,000 108,538,000 6.14% -8.24%
1922 6,787,000 110,049,000 6.17% 1.88%
1923 7,698,000 111,947,000 6.88% 13.42%
1924 7,370,000 114,109,000 6.46% -4.26%
1925 4,171,000 115,829,000 3.60% -43.41%
1926 4,138,000 117,397,000 3.52% -0.79%
1927 4,102,000 119,035,000 3.45% -0.87%
1928 4,144,000 120,509,000 3.44% 1.02%
1929 4,133,000 121,767,000 3.39% -0.27%
1930 3,852,000 123,076,741 3.13% -6.80%
1931 3,411,000 124,039,648 2.75% -11.45%
1932 4,083,000 124,840,471 3.27% 19.70%
1933 3,892,000 125,578,763 3.10% -4.68%
1934 4,198,000 126,373,773 3.32% 7.86%
1935 4,670,000 127,250,232 3.67% 11.24%
1936 5,486,000 128,053,180 4.28% 17.47%
1937 6,350,000 128,824,829 4.93% 15.75%
1938 6,251,000 129,824,939 4.81% -1.56%
1939 7,652,000 130,879,718 5.85% 22.41%
1940 14,711,000 132,122,446 11.13% 92.25%
1941 25,870,000 133,402,471 19.39% 75.85%
1942 36,619,000 134,859,553 27.15% 41.55%
1943 43,722,000 136,739,353 31.97% 19.40%
1944 47,111,000 138,397,345 34.04% 7.75%
1945 49,932,000 139,928,165 35.68% 5.99%
1946 52,817,000 141,388,566 37.36% 5.78%
1947 55,099,000 144,126,071 38.23% 4.32%
1948 52,072,000 146,631,302 35.51% -5.49%
1949 51,814,000 149,188,130 34.73% -0.50%
1950 53,060,000 152,271,417 34.85% 2.40%
1951 55,447,000 154,877,889 35.80% 4.50%
1952 56,529,000 157,552,740 35.88% 1.95%
1953 57,838,000 160,184,192 36.11% 2.32%
1954 56,747,000 163,025,854 34.81% -1.89%
1955 58,250,000 165,931,202 35.10% 2.65%
1956 59,197,000 168,903,031 35.05% 1.63%
1957 59,825,000 171,984,130 34.79% 1.06%
1958 59,085,000 174,881,904 33.79% -1.24%
1959 60,271,000 177,829,628 33.89% 2.01%
1960 61,028,000 180,671,158 33.78% 1.26%
1961 61,499,000 183,691,481 33.48% 0.77%
1962 62,712,000 186,537,737 33.62% 1.97%
1963 63,943,000 189,241,798 33.79% 1.96%
1964 65,376,000 191,888,791 34.07% 2.24%
1965 67,596,000 194,302,963 34.79% 3.40%
1966 70,160,000 196,560,338 35.69% 3.79%
1967 71,651,000 198,712,056 36.06% 2.13%
1968 73,729,000 200,706,052 36.73% 2.90%
1969 75,834,000 202,676,946 37.42% 2.86%
1970 74,280,000 205,052,174 36.22% -2.05%
1971 74,576,000 207,660,677 35.91% 0.40%
1972 77,573,000 209,896,021 36.96% 4.02%
1973 80,693,000 211,908,788 38.08% 4.02%
1974 83,340,000 213,853,928 38.97% 3.28%
1975 82,229,000 215,973,199 38.07% -1.33%
1976 84,670,000 218,035,164 38.83% 2.97%
1977 86,635,000 220,239,425 39.34% 2.32%
1978 89,772,000 222,584,545 40.33% 3.62%
1979 92,694,000 225,055,487 41.19% 3.25%
1980 93,902,000 227,224,681 41.33% 1.30%
1981 95,396,000 229,465,714 41.57% 1.59%
1982 95,337,000 231,664,458 41.15% -0.06%
1983 96,321,000 233,791,994 41.20% 1.03%
1984 99,439,000 235,824,902 42.17% 3.24%
1985 101,660,000 237,923,795 42.73% 2.23%
1986 103,045,000 240,132,887 42.91% 1.36%
1987 106,996,000 242,288,918 44.16% 3.83%
1988 109,708,000 244,498,982 44.87% 2.53%
1989 112,136,000 246,819,230 45.43% 2.21%
1990 113,717,000 249,438,712 45.59% 1.41%
1991 114,730,000 252,127,402 45.50% 0.89%
1992 113,605,000 254,994,517 44.55% -0.98%
1993 114,602,000 257,746,103 44.46% 0.88%
1994 115,943,000 260,289,237 44.54% 1.17%
1995 118,218,000 262,764,948 44.99% 1.96%
1996 120,351,000 265,189,794 45.38% 1.80%
1997 122,422,000 267,743,595 45.72% 1.72%
1998 124,771,000 270,298,524 46.16% 1.92%
1999 127,075,000 272,690,813 46.60% 1.85%
2000 129,374,000 281,421,906 45.97% 1.81%
2001 130,255,000 285,081,556 45.69% 0.68%
2002 130,076,000 287,803,914 45.20% -0.14%
2003 130,424,000 290,326,418 44.92% 0.27%
2004 132,226,000 290,045,739 45.59% 1.38%
2005 134,373,000 295,753,151 45.43% 1.62%

We will notice that there are a few years where there was a big jump over the previous year. The biggest one is from 1916 to 1917 going from 437000 returns filed to 3,473,000 returns filed respectively. The second big jump is from 1939 to 1940 with 7,652,000 and 14,711,000 returns filed respectively. For the first example, 1916 to 1917 there was a whopping 3,036,000 extra returns filed for a total jump of nearly 695%. Why in the world would we have that big of a jump and later a 92% jump in 1939 to 1940? If the Sixteenth Amendment was what made us liable, then what happened in 1913, 1914, 1915, and 1916 where less than 0.43% of the American public filed? Was the government (IRS) so inept that it couldn’t wrangle in millions of righteous returns? Please… give me a break.

Take a minute and think about all your friends and family. Who files? If my life, everyone I know files (with the exception of children). I would venture to say that this is true for you as well. But look at the above table. Up until 1939 less than 6% of the public filed! For our purposes we will say that only 45% of the people file taxes today – the rest are underage or wholy exempt. By using this logic we still have a gap of 39% of the public not filing. That means that almost 4 of 10 people never filed up until 1939. And when I say they didn’t file, I mean they didn’t even fill out and sign a 1040 and of course didn’t pay taxes.

WHY!?

If you are more of a visual person let’s take a look at a graph. (Click on the graphic to see full view).

This graph was made from data from the IRS SOI report found here. The population data was found from Census.gov or other websites that derived their data from the Census Bureau. All data from the above table also was derived from these sites.

So seriously. Check that graph out. The part in orange is the number of returns filed and the yellow part is the population. Why is it that up until 1939 the number of returns generally did not change? But after about 1946 the amount of returns filed tracked with the population?

Look, it is pounded into our heads that we have to pay taxes. People always have and always have ever since the conception of government. This is true and I do not question this. Tax law has been around in America since it was founded – it is in the Constitution. However, America was founded on a unique idea that there were to be rules for how people were to be taxed. You know, the whole no tax without representation? No longer was it the will of the king or queen or dictator for what they wanted. No, for the first time the We the People were to have a say in how we were to be taxed.

Along the line something changed in America. I don’t know exactly what happened but I can speculate. I do know a few things though. The Sixteenth Amendment that was passed in 1913 did not make it so that I was taxable. If it was, then how do you explain the less than 6% of the population filing before 1939? Did it really take 26 years for them to finally enforce the Sixteenth Amendment? Certainly not the IRS I know.

The better answer is that in 1939 World War II started with the United States of America entering on December 8, 1941. Later in 1942 the American government signed into law what was called the Victory Tax of 1942. What it did was “There shall be levied, collected, and paid for each taxable year beginning after December 31, 1942, a victory tax of 5 per centum upon the victory tax net income of every individual (other than a nonresident alien subject to the tax imposed by section 211(a)).” So if you wern’t paying taxes before, then you were now. This was later repealed by the Income Tax Act of 1944. But alas, two years was enough for people to get used to the government mandating that they have money taken out of their paycheck to give to the “good of the government,” which at the time of the bill was to fight the Axis of Evil.

But this still doesn’t explain why we had massive increases in people filing from 1939 to 1942 – 7,652,000 to 36,619,000 filings respectively. I have a theory but I believe it was because of the Social Security Act of 1935. Prior to this America had gone through the Great Depression – 1929 to 1939. During these times people’s lives were ruined. Their savings depleted and many were looking for help. The government has always take care of it’s people with retirement plans, unemployment benefits, temporary assistance, and other programs to help its workers out. Essentially what the Social Security Act of 1935 did was open up these programs to the general public, even if they were not working for the government. In other words, people could purchase “insurance” through the government.

I would assume that the support grew quite rapidly in the following years for the program. After all, people had just got done starving on the streets and living in the gutter – they wanted help. Of course, good old Uncle Sam was there to lend them a helping hand! In 1940 the government did a major overhaul to the tax law. The major addition was the Subtitle C taxes, called employment taxes. The language of Subtitle C of the Internal Revenue Act of 1940 is almost, if not, word for word taken from the Social Security act of the 1935. What am I saying here? I am saying that if you wanted to participate in Social Security then you had to be treated in a different manner than you were before so you could be eligible. This is why there was an increase in taxes filed from 1935 to 1939. Look at the filings from 1925 to 1935. In general the amount of people filing is 4 million. There is very little deviating in these ten years. However when Social Security became an option (1935) about 1 million people voluntarily signed up every year until 1939 – then it was coded into law and then concreted into people’s minds that their “employer” took out money via the Victory Tax. It became commonplace. It became expected.

I am not really sure if I am making sense here. We will never know exactly how or what happened with the history of taxes. I do hope that by this table and chart that I have made you DO question what the government says about “why you must pay” though. They cite the Sixteenth Amendment as the precedent for being able to tax you but it can be clearly seen that it did not. Less than 6% of people filed taxes, much less paid taxes, before 1939.

Why? Why? WHY?!

Nothing has changed with laws. If you were not taxable back in 1920 then you are not taxable today. The Code has not changed in substance, only structure of how it was written. The courts, including the Supreme Court and Tax Court, have ruled that the Sixteenth did not expand the taxation power of the government.

Stanton v. Baltic Mining Co. , 240 U.S. 103 (1916)

it was settled that the provisions of the 16th Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged, and being placed [240 U.S. 103, 113]in the category of direct taxation subject to apportionment by a consideration of the sources from which the income was derived,-that is, by testing the tax not by what it was, a tax on income, but by a mistaken theory deduced from the origin or source of the income taxed. (link)

Brushaber v. Union Pacific R. Co. 240 U.S. 1 (1916)

The various propositions are so intermingled as to cause it to be difficult to classify them. We are of opinion, however, that the confusion is not inherent, but rather arises from the conclusion that the Sixteenth Amendment provides for a hitherto unknown power of taxation — that is, a power to levy an income tax which, although direct, should not be subject to the regulation of apportionment applicable to all other direct taxes.

[…]

…they would result in bringing the provisions of the Amendment exempting a direct tax from apportionment into irreconcilable conflict with the general requirement that all direct taxes be apportioned. Moreover, the tax authorized by the Amendment, being direct, would not come under the rule of uniformity applicable under the Constitution to other than direct taxes, and thus it would come to pass that the result of the Amendment would be to authorize a particular direct tax not subject either to apportionment or to the rule of geographical uniformity, thus giving power to impose a different tax in one state or states than was levied in another state or states. This result, instead of simplifying the situation and making clear the limitations on the taxing power, which obviously the Amendment must have been intended to accomplish, would create radical and destructive changes in our constitutional system and multiply confusion.” (link)

Eisner v. Macomber 252 U.S. 189 (1920)

Afterwards, and evidently in recognition of the limitation upon the taxing power of Congress thus determined, the Sixteenth Amendment was adopted, in words lucidly expressing the object to be accomplished:

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states and without regard to any census or enumeration.”

As repeatedly held, this did not extend the taxing power to new subjects, but merely removed the necessity which otherwise might exist for an apportionment among the states of taxes laid on income. Brushaber v. Union Pacific R. Co., 240 U. S. 1, 240 U. S. 17-19; Stanton v. Baltic Mining Co., 240 U. S. 103, 240 U. S. 112 et seq.; Peck & Co. v. Lowe, 247 U. S. 165, 247 U. S. 172-173. (link)

Bowers v. Kerbaugh-Empire Co., 271 U.S. 170 (1926)

The Sixteenth Amendment declares that Congress shall have power to levy and collect taxes on income, ‘from whatever source derived’ without apportionment among the several states, and without regard to any census or enumeration. It was not the purpose or effect of that amendment to bring any new subject within the taxing power. (link)

Penn Mutual Indemnity Co. v. Commissioner, 32 T.C. 653 at 659 (1959), aff’d, 277 F.2d 16, 60-1 U.S. Tax Cas

In dealing with the scope of the taxing power the question has sometimes been framed in terms of whether something can be taxed as income under the Sixteenth Amendment. This is an inaccurate formulation [ . . . ] and has led to much loose thinking on the subject. The source of the taxing power is not the Sixteenth Amendment; it is Article I, Section 8, of the Constitution. (link, sorry I had to use wiki as I could not find a free link to the TC case)

Emphasis mine. So what is it besides the fear of the IRS that makes you eligible for taxes? Is it really the 16th like the government tells us? I’d like to know your thoughts.

Advertisements
07
Aug
09

How the Criminal IRS works

If someone accuses you of something, the burden of proof is on them, right?

For instance, if someone accuses me of murdering someone via a gun they need to prove this fact beyond a doubt. They need to provide video surveillance of me doing the deed, the weapon I used and my fingerprints on it, ballistics, witnesses, and so on. What they cannot do, at least not in America, is to say that I committed 1st degree murder and then throw me in the slammer (that is what happens commonplace in Communist countries, of which, unfortunately, we are quickly becoming). They also cannot show generic data and say that it proves me guilty – such as saying that I own a gun and therefore I shoot people or that I was in the same city at the time of the murder therefore I did it.

If that is indeed the case, then why is the IRS allowed to provide evidence against you which doesn’t even include my name, my SSN, or any of my specific account data? If you have no idea what I am talking about, check these two pictures out below.

Federal2007_RACS006_1

Federal2007_RACS006_2

I know the documents are small but please notate that I didn’t black out anything on these forms. This is a RACS006 (aka, Summary Record of Assessments or RACS Report 006) that the Internal Revenue Service (IRS) gave to me to “prove” that I filed my 2007 tax year return in a frivolous (incorrect and unlawful) manner.

So how is it that my guilt is being proven by a form which does not even mention me in any way? What this form IS, is a computer printout of thousands of returns that were processed that day. If you look at the first page on the first full line and you should be able to see that 337,122 items were processed for withholding for a total of $22,002,348,789.51 in tax.

So again, obviously since this is dealing with billions of dollars, where is MY information? Where are MY specifics on what I did wrong? Where is MY guilt? Of course, I’ve asked for my specifics and they state that they are right there in the RACS006. So if anyone can find my data and my guilt and my liability in the above documents, I will send you money via Paypal for your concerted efforts (no joke).

Let’s face it folks. When your government takes your money and then accuses you of being a fraud and won’t tell you how they came to that determination, you are living in a power-hungry Communist State. A place where freedom is shunned and the State has the right and the privledge to call its citizens (aka, slaves) to whatever it wants and do whatever it wants for the “betterment of the State.” Only in a freedom loving State is the government responsible for doing what not only is lawful, but what can be understood by it’s people. Only in a freedom loving State are the citizens innocent until proven guilty – even if the big bag government or the scary IRS says something negative against them.

I don’t like the income tax. Every time we talk about these taxes we get around to the idea of ‘from each according to his capacity and to each according to his needs’. That’s socialism. It’s written into the Communist Manifesto. Maybe we ought to see that every person who gets a tax return receives a copy of the Communist Manifesto with it so he can see what’s happening to him. – T. Coleman Andrews, Comissioner of the IRS from 1953 to 1955 who resigned after coming into opposition to the income taxes as we know it.

Of course, along with the RACS006 report, I asked for the evidence that was used to support their claim. I was sent a form (which I am not going to post due to too much sensitive data) that now shows my name and that they are assessing a penalty against me. It says nothing of how much I actually owed or how I should have filled out my 1040. All it says is that I have been penalized. The equivalent of this for the murder example scenario above would be the official document that has been pencil whipped saying that you have been determined as the murderer, but has no evidence to incriminate you.

So again, where is it that you get my liability, Uncle Sam? And for you people out there, when are you going to wake up and learn the truth about the IRS and start reclaiming your property like these people here ($10M returned to it’s owners who decided to find out what the tax laws said)?




Quotes:

"We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it." - Patrick Henry

"Politicians and diapers both need to be changed, and for the same reason." - Anonymous

"Right is right, even if everyone is against it, and wrong is wrong, even if everyone is for it." - William Penn

"Naturally the common people don't want war; neither in Russia, nor in England, nor in America, nor in Germany. That is understood. But after all, it is the leaders of the country who determine policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in any country" - Hermann Goering

"I know that nothing good lives in me, that is, in my sinful nature. For I have the desire to do what is good, but I cannot carry it out. For what I do is not the good I want to do; no, the evil I do not want to do this I keep on doing." - Romans 7:18-19

"Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." - Mark Twain

Categories

Advertisements