Posts Tagged ‘Treasury Department

15
Apr
09

What Income Taxes Really Are

There IS an Income Tax . . .

HOWEVER

“Everything” you earn
IS NOT
“Taxable Income”

Did YOU earn your money by:

WORKING FOR…

DOING BUSINESS WITH…

INVESTING IN…

THE FEDERAL GOVERNMENT ?

If not, then those earnings
ARE NOT “taxable income”

WWW.LOSTHORIZONS.COM

TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter B > PART I > § 63. Taxable income defined

(a) In general: Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction).

That’s not very helpful, what exactly IS “income” since THAT is what you are taxing…

US Supreme Court, US v. Ballard, 535 f2d 400, 404 (1976) “The general term ‘income’ is not defined in the Internal Revenue Code”

What does the Dictionary say “income” is?

in·come: The monetary payment received for goods or services, or from other sources, such as rents or investments.

OK, “income” is all that I earn from my work and investments…just what I thought…

US Supreme Court, Southern Pacific v. Lowe 247 U.S. 330 (1918): “We must reject the broad contention submitted in behalf of the government that all receipts, everything that comes in, are income…”

WHAT !?…….”income” is NOT “all” money that I receive !? What does the Constitution say about a DIRECT TAX upon my earnings?

US Constitution, Article 1 Section 9: “No capitation, or other direct, Tax shall be laid, unless in proportion to the Census or Enumeration herein before directed to be taken”

In response to the above Constitutional reference, your accountant or the IRS will probably refer to the 16th Amendment, commonly known as the “Income tax”. To which the Supreme Court would reply…

US Supreme Court, Stanton v. Baltic Mining Co. 240 U.S. 103 (1916): The provisions of the Sixteenth Amendment conferred no new power of taxation…

Additionally… Howard M. Zaritsky, Legislative Attorney, American Law Division of the Library of Congress Report No. 80-19A,“Some Constitutional Questions Regarding The Federal Income Tax Laws”:

Page CRS-5 (1979): “The Supreme Court, in a decision written by Chief Justice White [the Brushaber ruling], first noted that the Sixteenth Amendment did not authorize any new type of tax, nor did it repeal or revoke the tax clauses of Article I of the Constitution, quoted above. Direct taxes were, notwithstanding the advent of the Sixteenth Amendment, still subject to the rule of apportionment and indirect taxes were still subject to the rule of uniformity.”F. Morse Hubbard, Treasury Department Legislative draftsman. March, 27 1943 Page 2580.

The income tax is, therefore, is not a tax on income as such. It is an excise tax with respect to certain activities and privileges which is measured by reference to the income they produce. The income is not the subject of the tax: it is the basis for determining the amount of the tax.

The “PRIVILEGE” you must participate in to earn “taxable income” is working for, doing business with, or investing in businesses majority-owned by the Federal Government or “Federal Instrumentalities”. If you make your money having nothing to do with the Federal Government, then your earnings are not “taxable income”.

WWW.LOSTHORIZONS.COM

(original)

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12
Jan
09

The Fed Creates a Crisis and Hampers the Recovery

by William Anderson (Original here)

When Ron Paul made eliminating the Federal Reserve System a centerpiece of his presidential primary campaign last year, media pundits and others scratched their heads in amazement.  After all, they reasoned, is not the Fed a collection of “conservative, buttoned-down” public officials who are given the mission of providing prosperity?

Indeed, whenever Ben Bernanke and his predecessor, Alan Greenspan, have traveled to Capitol Hill to testify before congressional committees, they are treated as royalty, economic geniuses whose every word is treasured, even if Congress and the press cannot comprehend all of them.  If there is any criticism for these men, it is that they have not inflated enough.

However, in watching one exchange last year between Rep. Paul and Bernanke, I was struck not only by the lack of comprehension of economic logic that Bernanke possessed, but also his utterly wrong view of the actions of the Herbert Hoover administration.  In response to Rep. Paul’s criticism of the numerous Fed-oriented bailouts, Bernanke quoted Andrew Mellon, Hoover’s secretary of the treasury, who had advocated that the government permit weak businesses to go under in order to “purge the rottenness from our system.”

Unfortunately, Bernanke got it wrong.  After quoting Mellon, he assumed that Hoover had followed Mellon’s advice, which clearly is not what happened.  Instead, as Murray Rothbard conclusively pointed out in his classic America’s Great Depression, Hoover ignored Mellon and continued his attempts to bail out failing businesses and implement huge public works projects in order to “increase employment.”

The irony is that Hoover’s policies did “liquidate” the farmers, the bankers, and many others, despite the efforts of the government to keep it from happening.  Unfortunately, the liquidation was much worse than it would have been had Hoover done what his predecessors had done: not intervene into the economy during a downturn.  (President Warren G. Harding, although ridiculed by historians for his relative laissez-faire viewpoints, nonetheless understood the limitations of federal power in economic affairs and refused to intervene when the economy faced a serious downturn in 1921.)

Continue reading ‘The Fed Creates a Crisis and Hampers the Recovery’

02
Jan
09

Economic Freedom or Socialist Intervention?

The freedom to fail is an essential part of freedom. Government- provided financial security necessitates relinquishing the very essence of freedom. Last week, the big 3 American automakers came back to Capitol Hill with their hands out to the government. Congress spent this past week debating how much money to give them and what strings should be attached. Though the bailout plan for the auto industry has suffered what I would call a temporary setback in the Senate, other avenues for public funding are being explored through the Federal Reserve and the Treasury Department. I am afraid the American auto industry will soon learn that having billions rain down from Washington will not be the blessing one might expect.

The government, after it subsidizes an industry, tends to become a very demanding benefactor. Politicians may not have any real idea about how to build a car, run a bank, educate a child, heal the sick or build a road, but they are quite adept at using carrots and sticks to manipulate and threaten those who do. Most of the federal control over education, roads, healthcare, and now banking and soon auto manufacturing, is done through money, mandates and conditions. The bailout proposal we were considering would force automobile manufacturers to submit their business plans for the approval of a new federal “car czar.” This bureaucrat would have the authority to approve the automakers’ restructuring plan, monitor implementation of the plan, and even stop certain transactions he determines are inconsistent with the companies’ long-term viability.

One could argue that if billions of taxpayer dollars are going to flow into a failing industry, then representatives of those taxpayers have “bought” a say in how that industry is run – which is precisely why bailouts are such a bad idea for both the industry and the taxpayers. The federal government has neither the competence nor the Constitutional authority to tell private companies, such as automakers, how to run their businesses. I would have thought that failed experiments with central planning and government control of business that caused so much harm in the last century would have taught my colleagues the folly of making businesses obey politicians and bureaucrats instead of heeding the wishes of consumers, employees, and stockholders. But the auto industry is in danger of learning for themselves one of the oldest lessons in politics: he who pays the fiddler calls the tune.

It is not the job of government to sustain business. The government should get out of the way, and instead examine excessive regulations, tax policy and red tape that have been hostile to manufacturing in this country. We should get back on a sustainable economic course in this country, or we are doomed to collapse, as the Soviets did, under the crushing burden of big government and a strangled economy that can no longer pay for it.

(Reblogged. Original here)




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

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