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Why is Taxation Theft?

Last updated on August 30, 2020

Why is Taxation Theft?

I’m not suggesting you stop paying taxes.

In fact, when a collective paradigm is so deeply ingrained in a society (such as taxes) it’s impossible to introduce alternatives.

Can you imagine walking into Plato’s cave and trying to convince those people that the shadows on the wall weren’t real?

They would never believe you!

In communist countries, there are reports of starving citizens actually crying when the regime fell. They had become so comfortable in their misery that they were scared of change.

So no, I’m not naive enough to suggest anyone stop paying taxes.

But would it be alright to discuss the possibility?

Why Does The Government Collect Taxes?  

The government collects taxes to fund public services (police, public schools, roads, etc.) as well as pay the salaries of government workers.

However, when you analyze the actual Federal budget, much of our money is going towards programs and initiatives the public don’t support:

What is a basic bitch

Do you see how 27% of the budget goes towards Medicare and Health? And yet America has the worst healthcare system in the world…..

Why does 16% go to the military? (Google Military Industrial Complex to find out.)

And look at how the interest we pay on loans — because the government spends more than it collects — is more than what we spend on Science, Environment, Housing, and Transportation combined?

Who are these people?

The failed redistribution of wealth in America is so depressing that we have no choice but to laugh about it:

Perhaps the intention behind collecting taxes to pay for public services is good but the reality is our government cannot execute anything.

The waste, corruption and mismanagement of public funds in a country where millions of people don’t have enough to eat, a place to call home or even access to medical attention — is worth your attention.

Related Reading: Why Occupy Wall Street Failed

A Quick History of America’s Income Tax

Before 1861, Americans only paid taxes in the form of tariffs and excise taxes. However, when the Civil War broke out, President Lincoln realized these taxes weren’t bringing in enough money to fund the war.

His solution was to apply a temporary flat 3% income tax on anyone making over $800 ($22,000 today).

The tax was lifted as soon as the war ended and Congress was disappointed. In fact, they spent several decades trying to figure out how to bring it back. Their problem? The Supreme Court ruled it unconstitutional.

But no big deal.

In 1913, Congress simply added the 16th Amendment which said the income tax was now Constitutional and could be enforced.

Related Reading: The Dirty History of Student Loans

Is Income Tax Legal?

But wait. Not everyone could be fooled. The truth is the U.S. Constitution’s taxing clauses do not authorize an income tax. Therefore, it was unconstitutional for Congress to pass the 16th Amendment.

Several lawsuits were filed and income tax protesters fought the government all over the country.

One prominent income tax protester was Irwin Schiff, born in 1928. Schiff made the following arguments:

  1. The taxing clauses of the U.S. Constitution do not authorize income tax
  2. The IRS tax code says citizens shall report income on a “voluntary” basis and no tax assessment can be made until a tax return has been voluntarily filed
  3. The United States Tax Court is not a legal court, but is instead a part of the IRS and therefore unjust
  4. The word “income” is described as profits, and does not include wages paid to an individual in exchange for their time

Here’s a clip of Schiff in his own words:

Schiff presented his case in several court battles and became somewhat famous. Starting in the late 1970’s, he held seminars, wrote books and gave TV interviews on how Americans could legally stop paying income tax.

That said, in 2005, at the age of 78, the government sent Irwin Schiff to prison where he died in 2015.

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IRS Agents Speak Out

Just one year after Schiff was sent to prison, a Hollywood film director by the name of Aaron Russo — famous for movies like Trading Spaces and The Rose — released a documentary that asked if the income tax was legal. The documentary is titled, America: Freedom to Fascism:

To answer this simple question, Russo interviewed dozens of tax experts, including former IRS agents. They all came to the same conclusion that the income tax in America is being illegally enforced.

Joe Banister

Joe worked as a Special Agent for the Criminal Investigation Division of the IRS. In the mid-90’s, he heard a radio talk show host challenge his audience to prove that federal income taxes were legitimately enforced.

Having no doubts, Joe accepted the challenge.

For two solid years, he used the research library at the IRS and every other resource available to him, but could not prove that income tax was legally enforceable. Since he was still a devoted IRS employee, Joe assumed there was an explanation for this so he compiled a list of questions for management. Here’s a sample of Joe’s questions:

  • Why does the law only define income as “gains” derived from capital?
    • This would indicate that wages earned by most Americans, in exchange for their time, are not subject to income tax.
  • Why does the law say only Americans liable for the income tax are required to file a tax return?
    • This indicates the IRS has misled Americans to think they must file a return, even though most are not liable to pay income tax, due to how income is defined.
  • Why is the legal function of my division (Criminal Investigation Division) to investigate non-resident aliens, Americans receiving foreign income, and Americans working abroad?
    • In all my years working here, I have only been assigned Americans living in the U.S. earning U.S. wages.

Want to guess what happened? Joe was asked to resign and a few years later, they indicted him. The United States Government indicted Special Agent to the IRS, Joe Banister, for asking questions about the IRS tax code.

Sherry Peel Jackson

Sherry audited churches for the IRS for 7 years.

After leaving the agency, she was contacted by a pastor from one of the churches she had audited. The woman wanted to ask Sherry about the legality of income tax and Sherry dismissed her. Then, a couple months later (year 2000), Sherry saw an ad in USA Today for an organization called We The People. They were offering $50,000 to anyone who could prove income tax was legal….

Over the next few years, Sherry tirelessly researched only to confirm the American people were being lied to. She went public with the information, stopped filing income taxes, and the government sentenced her to to 3 years in jail.

Larken Rose

Another expert Russo interviewed in his documentary was a man named Larken Rose.

Remember how Joe Banister asked his superiors why the legal function of his department was to investigate 1) non-resident aliens, 2) foreign income Americans receive, and 3) Americans living abroad?

Joe couldn’t figure out why he was investigating Americans on American soil earning U.S. dollars….if his department was tasked to investigate foreign affairs.

Larken Rose found the answer in Section 861 of the IRS code.

Section 861 of the IRS tax code lists what types of income are subject to income tax: foreign income received by U.S. citizens, income earned by foreign corporations, and income earned in certain federal possessions.

It does not say income earned by an American living and working in America is subject to federal income tax. The IRS was using Joe Banister to illegally investigate Americans in the United States. And instead of answering his questions, they actually indicted him on frivolous charges (that the court quickly dismissed).

Unbelievable, right?

Similarly, Larken reported his findings, got into a nasty battle with the Feds, and spent 15 months in jail.

The Lack of Transparency 

The question I have about all this is: Where is the money going?

It’s bad enough our government is unconstitutionally taxing us, but why do they need so much money?

As you know, Congress directs taxpayer funds using earmarks (money set aside for future use). The problem is Congress doesn’t vote on individual earmarks. Instead, the earmarks are packaged into enormous 1000+ page bills that are impossible to read.

So if a congressman supports earmarking $1 million for a project, his only way to secure that funding is to vote yes on a bill that includes hundreds of other earmarks that he may not support.

What’s more, no one knows in advance how much to ask for, so they ask for as much as possible. This is why, year after year, decade after decade, Congress spends more than it brings in. And somehow this money never results in improving the lives of individual citizens.

A watchdog group called CAGW (Citizens Against Government Waste) analyzes the Federal Budget each year and here’s a snapshot of what got funded in 2020:

is taxation theft     Army Corps of Engineers      F-35 aircraft       Health and Disease research

No matter who the President is or who controls the Senate, Congress is one part of a larger system that requires more money every year from the taxpayer. Every bill, every committee, and every earmark needs more money than was received the year prior.

That’s just the way Congress works.

Is this why they unconstitutionally passed the 16th Amendment to enforce an income tax? Because they knew the other taxes we pay weren’t going to cut it?

Or is there something more nefarious going on….

It seems the enormous bills with hundreds of earmarks are designed to confuse and distract even our congressmen from where the money is going.

Related Reading: What is Anarcho Capitalism?

Why is Taxation Theft?

It’s frustrating that government demands total financial transparency from the public, but refuses to be transparent with us.

Why did it take over 30 years for the Pentagon to agree to an audit? And where is the public outrage that the Pentagon couldn’t account for trillions of dollars missing?

Congresswoman Alexandria Ocasio-Cortez tweeted: $21 trillion of Pentagon financial transactions could not be traced, documented, or explained.

The story got plenty of attention and several outlets covered the scandal….yet no word from the Pentagon.

The Nation investigated the matter and reported:

For decades, the Department of Defense’s leaders and accountants have been perpetrating a gigantic, unconstitutional accounting fraud, deliberately cooking the books to mislead the Congress and drive the DoD’s budgets ever higher, regardless of military necessity.

DoD has literally been making up numbers in its annual financial reports to Congress — representing trillions of dollars’ worth of nonexistent transactions — knowing that Congress would rely on those misleading reports when deciding how much money to give the DoD the following year.

In other words, Congress is just as in the dark as we are.

You would be thrown in jail for not paying your measly taxes. Meanwhile, the Federal Reserve, U.S. Treasury and IRS are shuffling trillions of dollars between themselves, funding projects the public isn’t worthy enough to know exist.

I dare you to try and wrap your head around this 30 minute lesson on how money flows in America:

So is taxation theft? You decide.

Our Founding Fathers detailed what kinds of taxes were permitted to be collected and they did not include an income tax.

In 1913, Congress passed the 16th Amendment — under questionable circumstances —  to overrule the Founding Fathers. Interestingly, the Federal Reserve was founded that same year.

Take a minute to think about this. The Federal Reserve prints trillions of dollars to pay for bailouts, stimulus packages and quantitative easing. If money is this easy to come by, why would they allow anyone to suffer? Are taxes even necessary?

Taxation is a symptom of a larger problem plaguing humanity, which is the anonymous global elite controlling us and the system in which we’re enmeshed. 

Early settlers fled to America to escape tyranny and fought the Revolutionary War over taxes. But if you know anything about history, that war was about so much more than just taxes.

Maybe it’s time for another war?

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