From the August 2002 Idaho Observer:

Money and Taxes: A Nexus to Destroy

by Hari Heath

No single subject in the vast array of government corruption, usurpation and tyranny, has received more attention by disgruntled Americans than the IRS and the income tax. Our country, after all, was born largely from the efforts of “tax protesters.” While other unconstitutional trepidations affect numbers of Americans that range from the few to the many, the IRS attempts to effect every single American with its controversial tax on wages.

Consequently, the all-encompassing “problem” of the federal taxation scheme has resulted in a myriad of “solutions.” There are so many provable reasons as to why the income tax and its enforcement agency is unconstitutional, illegal, contrary to its own rules, misapplied, undefined, voluntary, unenforceable and fraudulent that it would take the neophyte “tax protester” about a year of serious study just to know where to begin.

The Tax Honesty Movement

So many Americans have been defrauded out of their money and property by the IRS and its state equivalents that they have organized a movement -- the tax honesty movement. An army of citizen educators, researchers and litigators have been leaving no stone unturned in the quest to have the government come clean and honestly answer some pivotal questions about the income tax. So far, our government remains mute.

Bill Benson and others traveled to every state and Washington D.C. to collect certified copies of the ratification process for the 16th (Income Tax) Amendment. The extensive details were compiled into a two-volume set called “The Law That Never Was.” Bill and his friends have the irrefutable proof that the 16th Amendment was never ratified and the proclamation that it was ratified by the then Secretary of State, Philander Knox, was an intentional fraud.

What happened when Bill Benson presented all of his certified evidence to a court of law? It was taken, the case was sealed along with Bill's evidence and it was whisked away by government to the never-never land of truths to be avoided at all costs. The case still hasn't been heard. Bill was never convicted on tax charges while the government kept the lid on tax honesty.

Devvy Kidd and constitutional attorney Larry Becraft have spent years researching, publishing, presenting seminars and litigating the tax issue; they formed the Wallace Institute to promote the cause and; they have educated thousands of citizens and litigated countless cases. In spite of great effort and mountains of truth the government still refuses to come clean.

Irwin Schiff has made fighting IRS fraud a full time job. Author of numerous books, Irwin teaches his own method for keeping the IRS at bay and in court, with yet another effort to let the truth be told. But does the government listen? Not in its own corrupted courts where everything is controlled by a government paid judge -- who will personally come under the scrutiny of the dreaded IRS if the judge were to rule against them.

Just when many in the tax honesty movement thought every stone had been turned, Phil Hart has researched yet another angle. Just what is income anyway? His many trips into various national archives and extensive documentation lays a clear foundation for the fact that at the time of the purported ratification of the 16th Amendment, wages were not considered income.

His book, “Constitutional Income, Do You Have Any,” presents the compelling argument that wages are not income and even if they were, they could not constitutionally be taxed under the current IRS system. The courts so far have avoided the issues raised by Hart. He is currently petitioning to be heard by the U.S. Supreme Court.

Bob Schultz and the We The People Foundation have perhaps gone to the greatest lengths to get the government to answer to the facts. After exhausting every avenue and trying every legal method to put the truth on the table, Bob took the extraordinary approach of going on a hunger strike on the steps of the capitol last summer, vowing to starve himself to death if the government wouldn't meet publicly and answer some pertinent questions about the income tax.

Three weeks into Schulz's hunger strike, Congressman Bartlett managed to get the IRS and DOJ to agree to a televised public debate on our taxation system. It was to be held in late September of last year, but it was rescheduled since the aftermath of 9-11 would have buried the issues from view.

When it was rescheduled this spring, surprise, surprise, the government refused to participate and answer the questions that the tax honesty movement had prepared and given in advance to the participating agencies. Tax honesty supporters held their conference February 27-28 as scheduled -- without the government present. The conference was broadcast live on the Internet and is available on CD-ROM. The many well-researched and articulate presenters offered hours of clear and conclusive evidence that the federal income tax is unconstitutional at best. The government's refusal to come clean and answer their questions suggests a willingly perpetrated fraud that is now 89 years old.

The We The People Foundation and others in the tax honesty movement put the government in check, then the government moved out of check by walking off the board. We The People are organizing a convoy across the nation to put the government back in check with a major demonstration of high profile non-violent civil disobedience that culminates in a rally on the Mall in Washington, D.C. November 14. The hope is that the move will be “checkmate.”

Many have dedicated their lives to expose the truth about taxes. But in spite of the facts, there are thousands of Americans currently incarcerated on tax charges. Some, like Gary DeMott, were very knowledgeable about the tax issue and helped others avoid unconstitutional taxation. To put Gary and his organization out of business he was convicted on trumped up charges by a corrupt federal court. Gary is just one of many being incarcerated at government (taxpayer) expense so as to hide the truth about the tax scheme.

Why does the government go to such great lengths to hide the truth? What are they protecting? Will they ever come clean? Does the tax honesty movement fully understand the gravity of the situation they are promoting? Is there some other issue here that we are failing to consider?

Consider the FRAUD

One would think that the reason the government refuses to come clean is because it wants to keep on taxing us and doesn't want to lose the revenue from the income tax. Under the belief that taxes collected by the IRS go to the government, this would be logical. But that's not how the system works.

The IRS collects taxes for the Federal Reserve Bank (FED). There is good evidence that neither the FED nor the IRS are actually part of the government.

The FED is a consortium of private banks that were unconstitutionally authorized to take over our nation's monetary supply by an act of Congress in 1913. Most of the founding member banks which formed the FED were foreign. Several court rulings declare the FED to be a private entity and not part of the federal government.

Curiously, both the Federal Reserve Act and the 16th Amendment were “passed” in the same year -- 1913. A nexus? We'll see.

Just what is a dollar today?

The “Federal Reserve Notes” that pass as money are not really “money” in the literal sense. In fact they aren't even notes. A note, by definition, is a promise to pay something at a certain time. Once gold and silver were stripped from the equation of our monetary system, there were no more promises to pay and no more “notes.”

We continue to use paper with green ink on it as if it were money because our real money was stolen by the FED with the help of FDR and Congress back in 1933. The best description I have heard of our current currency is the Federal Reserve Accounting Unit Dollar (FRAUD) because that's all “money” is anymore.

So what does this have to do with taxes?

In The Idaho Observer (June 2002, page 6) a reconstructed conversation between FED public information officer Ron Supinski and Ron Hicks was published. The conversation explained our fiat (faith based) monetary system.

Mr. Supinski explained that FED notes (FRAUD's) are backed, “by the assets of the Federal Reserve but primarily by the power of Congress to lay tax on the people.”

The FED of course has very few “assets” relative to the amount of FRAUDs in circulation and on the books. Sure, Congress gave them our old treasury buildings and our nation's gold supply, but that is mostly gone now.

Instead, FRAUDs are printed by the Bureau of Engraving and purchased for less than three cents each by the privately held FED. The FRAUDs are then “loaned” into circulation when the Treasury Department issues Treasury Notes to the FED to “back” them.

It puts a whole new meaning to the word “fraudulent.” Think of it as a FRAUD-U-LENT. You (U) loaned a FRAUD into circulation when you, through the agency of government, specifically the Treasury Department, issued a Treasury Note as a promise to pay back the FRAUD in future taxes.

This, of course is only how we get the actual printed FRAUDs in circulation. Many more FRAUDs are “created” by bankers moving numbers among themselves based on “loans” made by the FED to its member banks. These FRAUDs only exist on the cooked books of FED member banks.

Since 1913, we have allowed a fraud to be perpetrated across our land and now the globe. Almost everything we do is touched by the fraud of the FRAUDs. Understandably, many people in the tax honesty movement simply want to live without an oppressive, unconstitutional tax system. But most of us fail to comprehend that we live and occasionally prosper under an oppressive and unconstitutional economic system based on the FRAUD. You can't have one without the other.

So What Does It All Mean?

What makes our “dollar” a “dollar” is the ability to tax. The full faith and “credit” of the American people is what backs each FRAUD. “Credit” being that which we will pay later -- in taxes. Our blind faith in green paper and ink and the ability to tax are the basis of our economy. Take away the ability to tax and what do you have? A collapsed economy.

If the tax honesty movement ever succeeds in getting the truth told, the economic world as we know it will fall back into the great void of the derivative FRAUDs from which it came. Our modern banking system will implode. The global economy will evaporate and become another greenhouse gas. The Dow Jones roller coaster will flatline. And all those wonderful goods and services we have grown accustomed to will no longer be available simply by tossing a wad of FRAUDs in the direction of their purveyor.

It has been said that the power to tax is the power to destroy. It can equally be said that the power to create a FRAUD-U-LENT economy from thin air and attach its value to everything that moves or stands still is the ultimate power to destroy. That is the nexus of the FED and the IRS. To create all from nothing and then destroy at will. A nexus to destroy.

But then, if the tax honesty movement succeeds and the FED/IRS nexus is disemboweled, corporations will no longer own and operate government. The unaccountable regulators who poke and prod into every nook and cranny of our lives will no longer get a paycheck. The engines of tyranny and oppression will have run out of fuel -- the FRAUD.

Honest toil can again bear honest fruit. Oil monopolies, energy cartels, pharmaceutical conglomerates, centralized banking and many corporate industrial infrastructures currently dominate our lives. Positive alternatives to the centralized power structures could achieve their potential once their suppression is unfunded. The unholy alliance of the IRS and the FED is a nexus to destroy.