Statements of Fact
1. The united States Constitution is THE SUPREME LAW OF THE LAND.
(Article VI, Clause 2 )
2. Two classes of taxation permitted: DIRECT - subject to the rule of
apportionment among the states of the Union; (Article I, Section 9,
Clause 4) INDIRECT - imposts, duties and excises, subject to the rule
of uniformity. (Article I, Section 8, Clause 1)
3. The government is not allowed by either one of the above two
classifications to tax CITIZENS or PERMANENT RESIDENT ALIENS of the
united States of America DIRECTLY.
4. The CENSUS taken every 10 years is to determine the number of
representatives to be allotted to each state and the amount of direct
tax that may be apportioned to each state determined by the
percentage its number bears to the total membership in the House of
Representatives. (Article I, Section 2, Clause 3; Article I, Section
9, Clause 4)
5. The supreme Court has the power of "judicial review", i.e. the
power to declare laws passed by the U.S. Congress to be null and void
if such a law or laws was/is in violation of the Constitution.
6. INDIRECT taxes were intended to provide for the operating expenses
of the government.
7. Duties and Imposts are taxes laid by government on things imported
into the country from abroad, and are paid at the ports of entry.
8. Excises are taxes laid upon manufacture, sale or consumption of
commodities within the country, upon licenses to pursue certain
occupations and upon corporate privileges. (Flint v. Stone Tracy Co.,
220 US 107  )
9. In 1861, Congress passed an Act (law) to create an "Income Duty"
to help pay for the war between the States. A duty is an indirect tax
which the federal government cannot impose on citizens or residents
of a State having sources of income within a State of the Union.
10. Congress passed an Act in 1894 to impose a tax on the incomes of
citizens and resident aliens of the United States. The
constitutionality of the Act was challenged in 1895 and the supreme
Court said the law was UNCONSTITUTIONAL, because it was a DIRECT TAX
that was not apportioned as the constitution required. (Pollock v.
Farmer's Loan & Trust Co., 157 US 429  )
11. In 1909 congress passed the 16th Amendment to the Constitution
that was allegedly ratified by 3/4 of the States; it is known as "The
Income Tax Amendment".
12. Some officials within the Internal Revenue Service, along with
professors, politicians and some judges, have said, and are saying,
that the 16th Amendment changed the united States Constitution to
allow a DIRECT TAX without apportionment.
13. The above persons are not empowered to interpret the meaning of
the united States Constitution. As stated above (Fact #5), this
power is granted by the Constitution to the supreme Court, but
limited to the original intent. A change is only lawful per Article V.
14. The U.S. supreme Court said in 1916 that the 16th Amendment did
not change the Constitution because of the fact that Article 1
Section 2, Clause 3, and Article 1, Section 9, Clause 4, were not
repealed or altered; the Constitution cannot conflict with itself.
The Court also said that the 16th Amendment merely prevented
the "income duty" from being taken out of the category of INDIRECT
TAX and placed in the category of DIRECT TAX. (Brushaber v. Union
Pacific R.R. Co., 240 US, page 16).
15. The office of the Commissioner of Internal Revenue issued
Treasury Decision (Order) 2313 dated March 21, 1916; Vol. 18 January-
December, 1916, page 53. It states in part: ..."it is hereby held
that income accruing to non-resident aliens in the form of interest
from the bonds and dividends on the stock of domestic corporations
is subject to the income tax imposed by the Act of October 3, 1913."
16. In another supreme Court decision in 1916, the Court, in clear
language, settled the application of the 16th Amendment: ..."by the
previous ruling (Brushaber) it was settled that the provisions of the
Sixteenth Amendment conferred no new power of taxation, but simply
prohibited the previous complete and plenary (full) 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 ..." (Stanton v. Baltic Mining Co., 240 US 112).
17. The united States Constitution gives the national government the
exclusive authority to handle foreign affairs. Congress has the power
to pass laws concerning the direct or indirect taxation of foreigners
doing business in the U.S.of A. It has possessed this power from the
beginning, needing no "amendment" (change) to the U.S. Constitution
to authorize the exercise of it.
18. The DIRECT classification of taxation was intended for use when
unforeseenexpenses or emergencies arise. Congress, needing funds to
meet the emergency, can borrow money on the credit of the United
States (Article 1, Section 8, Clause 2). The Founding Fathers
intended that the budget of the United States be balanced and a
deficit be paid off quickly and in an orderly fashion. Through a
DIRECT tax, the tax bill is given to the States of the Union. The
bill is "apportioned" by the number of Representatives of each State
in Congress; therefore, each State is billed its apportioned share of
the DIRECT tax equal to the number of votes its Representatives could
employ to pass the tax. How the States raise the money to pay the
bill is not a federal concern. (Article 1, Section 2, Clause 3).
19. In the Brushaber and Stanton cases, the supreme Court said the
16th Amendment did not change income taxes to another classification.
So, if the INCOME TAX is an indirect EXCISE tax, then how is it
applied and collected ? According to the supreme Court, (See #8
above)..."the requirement to pay such taxes involves the exercise of
the privilege and if business is not done in the manner described no
tax is payable...it is the privilege which is the subject of the tax
and not the mere buying, selling or handling of goods." (Flint v.
Stone Tracy Co., 220 US, 110.)
QUESTION: If all RIGHTS come from GOD (citizens of the States
retained all RIGHTS except those surrendered as enumerated in the
united States Constitution), and PRIVILEGES are granted by government
after application; THEN what is the PRIVILEGE that the "income tax"
is applied against ?
ANSWER: As established in the U.S. Constitution, the federal
government cannot directly tax a citizen living within the States of
the Union. Citizens possess RIGHTS; these rights cannot be converted
to PRIVILEGES by government. The only individuals who would not have
these RIGHTS and liable to regulation by government are NONRESIDENT
ALIENS doing business and working within the United States or
receiving domestic source profits from investments, and United States
citizens working in a foreign country and taxable under TREATIES
between the two governments.
20. WITHHOLDING AGENTS withhold income taxes. The only section in the
Internal Revenue Code that defines this authority is section 7701(a)
21. Withholding of money for income tax purposes, according to
section 7701(a)(16), is only authorized for sections: 1441 -
NONRESIDENT ALIENS, 1442 - FOREIGN CORPORATIONS, 1443 - FOREIGN TAX-
EXEMPT ORGANIZATIONS, 1461 - WITHHOLDING AGENT LIABLE FOR WITHHELD
22. Internal Revenue Manual Chapter 1100 Organization and Staffing,
section 1132.75 states; The Criminal Investigation Division enforces
the criminal statutes applicable to income, estate, gift, employment,
and excise tax laws involving United States citizens residing in
foreign countries and non-resident aliens subject to Federal income
tax filing requirements...
23. The implementation of IRS Treasury Regulation 1.1441-5 is
explained in Publication 515 on page 2;
If an individual gives you [the domestic employer or withholding
agent] a written statement, in duplicate, stating that he or she is a
citizen or resident of the United States, and you do not know
otherwise, you may accept this statement and are relieved from the
duty of withholding the tax.
24. The ONLY way a United States citizen or permanent resident
alien, living and working within a State of the Union can have income
taxes deducted from his/her pay, is by voluntarily signing an IRS
Form W-4 to permit withholding of income and FICA taxes--"Form W-4
Employee's Withholding Allowance Certificate". That is why the IRS
pressures employers to obtain the voluntary execution of the IRS Form
immediately from all people being hired. However, no federal law or
regulation requires a worker's signature on a Form W-4 to qualify for
25. Karl Marx wrote in his COMMUNIST MANIFESTO, ten planks needed to
create a COMMUNIST state. The SECOND PLANK is: A HEAVY OR PROGRESSIVE
INCOME TAX, second only to the ABOLITION OF PRIVATE PROPERTY.
26. The attorney who successfully challenged the Income Tax Act of
1894, Joseph H. Choate, recognized the communist hand in the shadows.
He told the United States supreme Court: The act of Congress which we
are impugning [challenging as false] before you is communistic in its
purposes and tendencies, and is defended here upon principles as
communistic, socialistic -- what shall I call them -- populistic as
ever have been addressed to any political assembly in the world.
27. The supreme Court agreed; and Mr. Justice Field wrote the Court's
opinion, concluding wth these prophetic words: Here I close my
opinion. I could not say less in view of questions of such gravity
that go down to the very foundations of the government. If the
provisions of the Constitution can be set aside by an Act of
Congress, where is the course of usurpation to end ? The present
assault upon capital is but the beginning. It will be but the
stepping-stone to others, larger and more sweeping, till our
political contests will become a war of the poor against the rich; a
war growing in intensity and bitterness.
NEED WE SAY MORE ?
28. Internal Revenue Code Section 6654(e)(2)(C) states: "...no tax
liability...if, ...the individual was a citizen or resident of the
United States throughout the preceding taxable year." IRS contends
the success of the SELF-ASSESSMENT system depends on VOLUNTARY
COMPLIANCE -- Evidently so !!!