Abolishing the IRS

January 18, 2011

By Michael LeMieux

Every year the tax freedom day, the day you stop working for the government to pay taxes, and
start working for yourself, moves further along the calendar. It is estimated that for most
American’s that day will be April 11th this year. That means from January 1st until April 11th
every penny you earn at your job will go to the government – and they LET you keep the rest.

The constitution, corroborated by the Supreme Court, guarantees that a persons’ “unalienable
rights” cannot be violated or infringed upon, with the exception of a tax on property that is direct
and apportioned among the many states. One of the greatest rights we have is the ability to
contract for our labor. Our labor is our property; and as of this writing’ Congress has not
imposed a direct tax on our labor, nor would it be constitutional. Article I, Section 10 of the
Constitution states: "No State shall pass any law impairing the obligation of contracts." In my
opinion, taxing the contract of labor is a definite impairment.

If you think it is just us old folk sitting around the kitchen table who are concerned with the
overstepping of taxation, read what Congressman Ron Paul (Texas) said: "Strictly speaking, it
probably is not necessary for the federal government to tax anyone directly – it could simply
print the money it needs. However, that would be too bold a stroke, for it would then be obvious
to all what kind of counterfeiting operation the government is running. The present system
combining taxation and inflation is akin to watering the milk: too much water and the people
catch on."

Congressional house records do not carry the weight of law, but they are useful to establish legal
finding in respect to a congressional position. House Congressional Record from March 27,
1943, pages 2579-2580 states: “The income tax is, therefore, 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 which they produce. The income is not the subject of the tax: it is the basis for
determining the amount of tax.” (Written by F. Morse Hubbard, former legislative draftsman in
the Treasury Department).

If income is not what is being taxed, but only the basis for determining the amount of tax, and it
is an excise tax, which is synonymous with a privilege tax, what then is the privilege that is being
taxed? Is it a privilege now to have a job and earn a living? Is this a breathing tax for the
privilege of being alive? Or maybe it’s a citizen tax for the privilege of just being an American.

The Second Plank of the Communist Manifesto, written by Karl Marx and Frederick Engels,
states: “A heavy progressive or graduated income tax.” It seems the farther we move away from
the enlightened guidance of our founders, the closer we get to a new world order where the
masses are controlled by the elite few

Did you know that the IRS has stated there are taxpayer and “non-taxpayers?” The code does not
address non-taxpayers as they are beyond the scope of the tax law. Now in order to really know
if you are in compliance with the tax code you would have to read the code and make sure.
Okay sure, we could trust some tax software, but in the end you are responsible for everything
that goes on that tax form and you are responsible to ensure which taxes you are liable for and
which ones you are not. And just to make it easier on you; for the next year if you just read 200
pages a day, every day, 7 days a week, by this time next year you would have read the tax code
(71,684 pages). But in all fairness you would find very quickly most of it does not apply to you.

The point of all this is to get you thinking about what is going on in our country. When we split
with King George we were fighting over taxes that ranged from 3-7 percent. Today, depending
on how involved you are, you could be taxed as high as 40 – 50 percent; including state and local
taxes, and the way things are going it is heading even higher.

For the first 150 years of our countries existence as a Constitutional Republic there was no
“personal” income tax. Income was a term, and still is, that equates to business and not to
individuals.

Congress passed the Income Tax Act of 1894, and it assessed taxes on “rents or income of real
estate.” Congress argued that it was used in business and therefore taxable. In 1895 the Supreme
Court ruled the act unconstitutional, as it was not significantly different from a tax on the
property itself. Therefore, it was a direct tax requiring apportionment among the several States.

In 1913 Congress passed the 16th Amendment which states: “The Congress shall have the 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.” A change to allow
income (corporate earnings) to be taxed from whatever source derived.

To complicate things a bit more, we need to determine exactly what income the 16th Amendment
is really talking about. We know that prior to this rents or income of real estate was said to be
direct taxes and must be apportioned; but is that all the 16th Amendment was concerned with?

The court ruled in Helvering v. Edison Bros. Stores, 133 F.2D 575 (1943), that “The Treasury
Department cannot, by interpretive regulations, make income out of that which is not income
within the meaning of the revenue acts of Congress, nor can Congress, without apportionment,
tax as income that which is not income within the meaning of the 16th Amendment." And this
was stated 30 years AFTER the 16th Amendment was passed.

We must try to determine what the 16th Amendment means by “income”. The IRS claims the
16th Amendment is their constitutional grant of income tax authority, so identification of the
income gives us the basis to understand WHO is made liable to pay the income tax. Since the
only income that can be taxed directly without apportionment is 16th Amendment income, let’s
examine what the law says.

In Corn v. Fort, 95 S.W.2d 620 (1936), the court ruled: "The individual, unlike the corporation,
cannot be taxed for the mere privilege of existing. The corporation is an artificial entity which
owes its existence and charter powers to the state; but the individuals' Right to live and own
property are natural rights for the enjoyment of which an excise cannot be imposed."
Aha! Remember what the Congressional record above stated – the income tax is an excise tax or
more properly a privilege tax. Now we know that the income tax can only apply to corporate
income as the individual’s right to live and own property cannot be taxed. We also now know
that there is a difference between ordinary income and 16th Amendment income, as the courts
have pointed out. And we also know, as the last court case shows, ordinary income/property
cannot be taxed as an excise.

What the government has done by allowing the IRS to impose taxation against those to whom it
does not apply is at the least complicit and at most criminal. Studies have shown that the federal
government can easily acquire the necessary funds to operate government through constitutional
means – such as indirect excise taxes -- like sales taxes and import fees. So why go through all
the trouble to tax the people directly? In a word control! They can manipulate behavior of large
portions of the population by offering tax incentives here or there to funnel funds wherever they
want them. Need to bolster the auto industry? Just add tax incentives and rebates to spur sales.
Need a favor paid to reward a political fund raiser? Create tax incentives in their industry for the
next 4 years – perhaps they can offer tax incentives for energy upgrade your house, for instance.

The entire tax structure is a scam designed not for income to the government, as Ron Paul stated
above they can just print the money, it is to control and manipulate the population to do the will
of the central bank and the Federal Reserve and it is time we pulled the plug.

Contact your representatives today and demand this criminal activity stop and let’s start building
real wealth in America by leaving the American people with more of the money they earned.
Let’s repeal the 16th Amendment and get rid of the IRS.