March 12, 2009

Constitutional Taxation

One or two of you may have noticed my comment under Tuesday's Quote of the Day. Fewer still may have followed any of the links. I got a chance to investigate futher today.

From a November 7, 2002 Press Release by Paul Andrew Mitchell, B.A., M.S., Counselor at Law, Federal Witness and Private Attorney General:

On a much broader scale, the absence of liability statutes raises the specter of widespread government fraud, going all the way back to the year 1913. And, there is no statute of limitations on fraud.

The main problem which the SUBPOENA seeks to solve is to confirm, once and for all, the apparent absence of any federal statutes which create a specific liability for income taxes imposed by subtitle A of the Internal Revenue Code.

(...)

The absence of any statutes creating a specific liability for subtitle A income taxes means, quite simply, that federal income taxes are totally and completely voluntary, in the common everyday meaning of that term. Liability only begins when Form 1040 is signed.

So it would seem that refusing to complete a tax return, or even completing it and refusing to sign it, may legally absolve an individual of any federal income tax liability. I met a man who actually adhered to this strategy in the early 1990's. At the time I thought he was a madman. Now I believe I've found his justification.

But what of that pesky federal witholding that AlexC lamented?

Further stunning proof that these taxes are truly voluntary can be found at IRC section 3402(n). Here, Congress has authorized a form called the “withholding exemption certificate” abbreviated “WEC”. The term “withholding exemption certificate” occurs a total of seventeen (17) times in that one statute alone.

However, the Internal Revenue Service (“IRS”) has never created an official form for the WEC.

I haven't yet found any information on the status of the legal action since the date of this press release. (Is there an honest judge left anywhere in the United States Federal Government?) Here, however, is Counselor Mitchell's brief essay "Let's Dismantle the IRS: This Racket is Busted"

Let’s Dismantle IRS:
This Racket is Busted

by

Paul Andrew Mitchell
Private Attorney General

All Rights Reserved without Prejudice


It’s time to dismantle the Internal Revenue Service. This organization has outlived its usefulness.

The hunt was on, several years ago, when activists like this writer confirmed that IRS was never created by any Act of Congress. It cannot be found in any of the laws which created the U.S. Department of the Treasury.

The U.S. Supreme Court quietly admitted as much, at footnote 23 in Chrysler Corp. v. Brown. In a nation governed by the rule of law, this omission is monumental.

The search for its real origins has taken this nation down many blind alleys, so convoluted and complicated are the statutes and regulations which govern its employees rarely, if ever.

The best explanation now favors its links to Prohibition, the ill-fated experiment in outlawing alcohol.

The Women’s Temperance Movement, we believe, was secretly underwritten by the petroleum cartel, to perfect a monopoly over automotive fuels. Once that monopoly was in place, Prohibition was repealed, leaving alcohol high and dry as the preferred fuel for cars and trucks, and leaving a federal police force inside the several States, to extort money from the American People.

All evidence indicates that IRS is an alias for the Federal Alcohol Administration (“FAA”), which was declared unconstitutional inside the several States by the U.S. Supreme Court in 1935. The result of the high Court’s decision in U.S. v. Constantine confined that FAA to federal territories, like Puerto Rico, where Congress is the “state” legislature.

Further confirmation can be found in a decision by the First Circuit Court of Appeals in Used Tire International, Inc. v. Manual Diaz-Saldana, which identified the latter as the real “Secretary of the Treasury.” The Code of Federal Regulations for Title 27 also identifies this other “Secretary” as an office in San Juan, Puerto Rico.

This is ominous data. It serves to suggest that IRS has no authority whatsoever to mail envelopes from the “Department of the Treasury.” Such obvious deception is prohibited by federal mail fraud statutes, and defined as a predicate to racketeering.

Moreover, the vagueness now proven to frequent the Internal Revenue Code forces a legal conclusion that the entire Code is necessarily void, read “no legal effect.” The high Court’s test for vagueness is obviously violated when men and women of common intelligence cannot agree on its correct meaning, its proper construction, or its territorial application.

Take, for instance, a statute at IRC section 7851. Here, Congress has said that all the enforcement provisions in subtitle F shall take effect on the day after the date “this title” is enacted. These provisions include, for example, filing requirements, penalties for failing to file, and tax evasion.

Guess what?

Title 26 has never been enacted into positive law, rendering every single section in subtitle F a big pile of spaghetti, with no teeth whatsoever. Throughout most federal laws, the consistent legislative practice is to use the term “this title” to refer to a Title of the United States Code.

To make matters worse, conscientious courts (an endangered species) have ruled that taxes cannot be imposed without statutes assigning a specific liability to certain parties.

There are no statutes creating a specific liability for taxes imposed by subtitle A of the Internal Revenue Code. This is the set of statutes that impose the federal income tax.

Look at it this way: if Congress imposed a tax on chickens, would that necessarily mean that the chickens are liable for the tax?

Obviously not! Congress would also need to define the farmer, or the consumer, or the wholesaler, as the party liable for paying that tax. Chickens, where are your tax returns?

Without a liability statute, there can be no liability.

This now opens another, deeper layer in this can of rotting worms. If IRS is really using fear tactics to extort an unlawful debt, then it qualifies for careful scrutiny, and prosecution, under the Racketeer-Influenced and Corrupt Organizations Act aka “RICO”.

How fitting, and how ironic, that IRS is legally domiciled in Puerto RICO.

When we get down to brass tacks, we find that Congress encourages private Citizens to investigate and bust rackets, mainly because it perceived a shortage of public prosecutors talented enough to enforce RICO statutes against organized crime syndicates.

This shortage is the real reason why the RICO statute at 18 U.S.C. 1964 awards triple damages to any party who prevails, using the civil remedies it provides. And, happily, State courts like the Superior Court of California also enjoy original jurisdiction to litigate and issue these remedies.

All of this would approach comedy in the extreme, were it not also the case that IRS launders huge sums of money, every day, into foreign banks chiefly owned by the families that founded the Federal Reserve system.

Did you think the Federal Reserve was federal government? Guess again!

One of the biggest shocks of the last century was an admission by President Reagan’s Grace Commission, that none of the income taxes collected by IRS goes to pay for any federal government services.

Those taxes are paying interest to these foreign banks, and benefit payments to recipients of entitlement programs, like federal pension funds.

So, the next time your neighbors accuse you of being unpatriotic for challenging the IRS, we recommend that you demand from them proof that IRS is really funding any federal government services, like air traffic control, the Pentagon, the Congress, the Courts, or the White House.

Don’t hold your breath.

Honestly, when all the facts are put on a level table top, there is not a single reason why America should put up with this massive fiscal fraud for one more day.

It’s now time to dismantle the Internal Revenue Service.

Keeping all those laundered funds inside this country will result in economic prosperity without precedent in our nation’s history.

Let’s bury IRS beneath the Titanic, where it can rust in peace forever along with the rest of the planet’s jellyfish.

America deserves to be a living, thriving Republic, not another victim of Plank Number Two in the Communist Manifesto.

About the Author:

Paul Andrew Mitchell is a Private Attorney General and
Webmaster of the Supreme Law Library on the Internet:

http://www.supremelaw.org

See also:

“U.S. Secretary of the Treasury Falls Silent in Face of SUBPOENA for Tax Liability Statutes”

“31 Questions and Answers about the IRS”

“What Is the Federal Income Tax?”

“Electronic Censors Found at U.C. Berkeley’s Law School”

“Private Attorney General Backs UCB’s Graduate Instructors”

“Paul Mitchell Blasts Clinton, Rubin for Racketeering”

“Paul Mitchell Applauds House Vote to Kill IRC”

“Paul Mitchell Urges Nation to Boycott IRS”

“The Kick-Back Racket: PMRS”

“Congresswoman Suspected of Income Tax Evasion”

“Our Proposal to Save Social Security”

“Charitable Contributions by the Federal Reserve”

“Legal Notice in re Withholding Exemption Certificates”

“A Cogent Summary of Federal Jurisdictions”

“BATF/IRS -- Criminal Fraud”

“Income Taxes and Government Fraud”

“A Monologue on Federal Fiscal Fraud”

“Miscellaneous Letters of Correspondence”

# # #

America, F*ck Yeah! Freedom on the March Government History SCOTUS Posted by JohnGalt at March 12, 2009 3:06 PM

SupraConstitutional behavior by the Wilson Administration? NO! Could not be!

No, jg, I read your comment with interest, as I always do, but I did only a minor amount of link chasing. Sorry but I see no future in this.

Certainly, our brave 535 Constitutional Scholars in chief would not act to remedy it, whatever was proven. In the screamingly unlikely event that SCOTUS forced them, they would re-ratify a new Amendment before the noon recess and more than three-quarters of the States, more than three-quarters addicted to Federal Jack, would fly into Reagan on private jets to ratify it so that no "stimulus" funds were delayed a minute.

Posted by: jk at March 12, 2009 4:33 PM

Very well then, let us see that spectacle. As you say, more likely that the government will just continue the "see no evil, hear no evil" routine that's been going on since 1913. (I wonder what they're holding over the judges heads?)

But Congress does not need to act to "remedy" the 16th amendment. If actually ruled on in a courtroom it just - goes away. How many times do you think you'll need to tell taxpayers that the income tax is illegal before they stop paying it?

Posted by: johngalt at March 13, 2009 12:22 AM

I s'pose. I know a guy (and I think you do, too) who makes an impassioned and reasonable sounding case that he does not have to pay taxes because of a non-capitalized 's' in State in the 14th Amendment.

So, that works just fine until he gets a job and has to explain it to HR that "he doesn't need to fill out a W-4 because he is a sovereign citizen of the State of Colorado." I just think this will land you in the same (rhymes with 'jackpot') place.

The sad part of my disbelief, though, is the alacrity with which our State and Federal legislators would rectify any situation that threatened incoming revenue. I don't think that a Congress that just passed a trillion or two in spending last month would allow a return to 19th Century funding.

Posted by: jk at March 13, 2009 10:38 AM

I gave a few minutes thought to the consequences of a tax that everyone has to pay. Since one can't get blood from a turnip and government spending can't stop on a dime, the deficit would be monumental until outflows could be made to match inflows. It would be chaotic - perhaps even disastrous (particularly in urban areas.) But it would be RIGHT.

Posted by: johngalt at March 13, 2009 11:30 AM

Stop me if I'm just being argumentative. But I think you're falling into the Libertarian trap of "misoverestimating" your electoral support.

Again I suggest that your most optimistic scenario is realized. Justice Ginsberg, writing the concurrent opinion of the court's 8-0 majority (Associate Justice Scalia was hunting with Dick Cheney) vacates the 16th Amendment.

You and I would cheer; Rep Ron Paul and Jeff Flake would jockey for position; The Fair-taxers would fill SPAM-filters everywhere...

...and the rest of the world would act as quickly as it could to overcome this little procedural obstacle. This could threaten health care to children! The AARP would mobilize 60 million hotel-discount card holders with a TV blitz. In the end a crushing majority would line up to get back to the status quo ante before their checks were delayed.

Sad, perhaps, but I cannot look at any recent election cycles and see a desire for a do-over (maybe on "Dancing with the Stars...")

Posted by: jk at March 13, 2009 2:31 PM

"... this little procedural obstacle."

Are you suggesting that the Constitution of the United States could be amended by an act of congress, or of the president?

I suppose you have cause there because that's what's been done in the case of the 16th amendment, and others. I'm afraid the constitution has become nothing more than a rallying cry for freedom-loving Americans. It sure doesn't stop our government from doing what it damn pleases.

Posted by: johngalt at March 17, 2009 1:26 PM

I'm suggesting that they'll do whatever it takes. If they can ignore it they will, but if they have to, they will break the world land speed record in ratifying a new amendment. They could do it in three days, with very little objection.

Posted by: jk at March 17, 2009 1:54 PM

Maybe I'm just a rube. Two-thirds of the members of both houses of congress, then majority vote by legislatures of three-fourths of the states seems a tall order to me. Three days? Really?

And a separate question: You really don't think we could muster 34 senators OR 145 congressmen to keep America as the world's sole Republic?

http://www.usconstitution.net/constam.html

Posted by: johngalt at March 17, 2009 6:08 PM | What do you think? [8]