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TO A FRIEND
Abolish Illegal Income Tax,
'Death' Tax,
Capital Gains Tax !
October 27, 2005
By Gordon Bishop
The federal income tax, the estate "death" tax and capital gains tax are all unconstitutional, "illegal" taxes.
Why? Because none of these taxes, or "entitlements," can be found anywhere in the Constitution of the United States of America.
That's right, folks! Our nation's founders never envisioned these "entitlements" when they wrote the Constitution for a Republic based on freedom, liberty and opportunity for all Americans.
Let's look at the federal income tax.
In 1913, then Secretary of State Philander Knox ''committed fraud'' when he declared the 16th Amendment (the income tax) had been ''legally ratified'' by the states.
It was never ''legally ratified'' with ''evidence to prove it, according to the We The People Foundation for Constitutional Education.
In 1913, there were 38 States in the Union. There is no legal documentation that the majority of the 38 States ratified the 16th Amendment in the exact wording submitted to the States by Secretary of State Philander Knox, according to the People Foundation.
The Foundation put these issues before the White House and Congress on April 13, 2000 - two days before the filing of federal income taxes on April 15 (Tax Day).
The Foundation challenged the President of the United States, the U.S. Treasurer and the Internal Revenue Service (IRS) Commissioner to produce ''the evidence'' from the 38 States that the 16th Amendment was legally ratified.
Our highest elected and appointed federal officials have failed to produce ''the evidence'' for the United States Supreme Court, which also refuses to hear the Foundation's case.
Yes, our government is guilty of extortion of America's workers through an illegal tax system.
Without the income tax, the federal government would have to shut down.
Conclusion: Failing to produce ''the evidence,'' America’s top fiscal officials are covering up the biggest financial fraud in the history of our nation.
So much for law and order at the highest levels of government.
The Estate or 'Death' Tax
A business friend of mine sent a letter to the two U.S. Senators representing his home State of New Jersey. The topic: ''Permanent Repeal of the Death Tax.''
My friend, who owns supermarkets, informed Senators Frank Lautenberg and Jon Corzine, both liberal Democrats, that 60 percent or more of the assets of a supermarket –the highest of any other industry sector - are not liquid assets, so the death of an owner creates a serious obstacle to continuation of business. The Death Tax requires spending millions of dollars on attorneys, accountants, planners and insurance policies.
The future of small business in America is in the hands of the United States Senate. I hope you and your colleagues do the right thing and protect America's entrepreneurial spirit so vital to our nation's economy, especially small businesses, which are the backbone of America's economic system.
Here's what Senator Lautenberg responded to my friend's letter:
''Supports of the estate tax argue that it provides progressivitiy in the federal tax system, provides a backdrop to the individual income tax (which is ''illegal'') and appropriately targets assets that are bestowed on their heirs rather than assets earned through their hard work and effort. The one-year revenue cost of permanent repeal of the estate (death) tax has been estimated at $48 billion to $58 billion for fiscal year 2012.
''Critics argue that the tax discourages savings, harms small businesses and farms by making it more difficult to pass them on to the next generation, and adds to the complexity of the tax system. However, the effect on savings is uncertain, and most farms and small businesses do not pay the tax. Currently, estates up to $2 million are exempted. By 2009, estates of up to $3.5 million will be completely exempted. Fewer than 1 percent of all farms would be subject to estate tax at that point.''
The bottom line is that the federal government will continue taxing small and medium businesses "to death." That's why it's called the ''Death Tax."
Capital Gains Tax
America has the lowest savings rate of any nation in the industrialized world. Our savings rate is a flat zero!
The reason is simple. Why save your hard-earned money when your government taxes your savings and investments.
The capital gains tax is a double tax. First, you work and get a paycheck. That's your gross income. Then government imposes the income tax. What you have left is your "net income." That’s what you need to survive: Food, shelter, clothing, education, religious donations, transportation, medical and other necessities.
If you are fortunate enough to have any “net income” left, you can take your spouse out to dinner or movie, or buy presents for your children or grandchildren.
Should you be able to set aside a few dollars for your savings account or investment portfolio (your 'nest egg' for retirement), then you really get hit with the capital gains tax.
So you're paying taxes on both your gross income and your net income.
That's illegal, simply because it is not in the United States Constitution. It's an illegal tax imposed by Congress and the Administration and accepted by the United States Supreme Court.
Now you know why America's savings rate is ZERO. Why save and by wiped out by taxes and double-taxes?
So much for the U.S Constitution - and our freedoms, liberties and opportunities in the so-called "greatest country" the world has ever seen.
Karl Marx, the icon of tax-and-spend liberals/socialists, has won the war against religion and capitalism.
God and the free enterprise system have lost the war.
This is America's Tax Trap: No Way Out.
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