“People have been brainwashed. People have been told that you need this income tax system to fund government, which is absolutely ridiculous. My question is that if that is true, then how did we fund government from 1776 to 1913.” – Peter Gibbons, Tax Attorney.

I can’t even count the number of false arguments I have heard to defend the federal governments collection of federal income tax.  Among them….

“Who’s going to pay for the highway system?”

“What about our public schools?”

“We have to support our military!”

“What about traffic lights and stop signs, and street signs”

Let’s just pretend for a minute that all of these are constitutional programs that the federal government has the authority to fund.  Doing some research I found that…

Schools are paid for by property tax.

Highways are paid for by gasoline tax.

Military is paid for by corporate tax.

Sales taxes pay for an array of local needs, including traffic signals.

Incidentally, the program that most conservatives critique, the federal welfare program, is paid for by Social Security tax.  One unconstitutional program, paying for another.

Let’s examine history for a moment and find out why our federal income tax is so high, and how it became so out of control.

In the early 1900’s, the prominent banking families in America were the Morgan’s, the Rockefeller’s, and the European Rothschild’s, who had been doing business in America since the 18th century. The Rothschild’s had been involved in three previous, privately owned central banks that charged immoral interest rates to lend money. They were also active in controlling the central bank of England, and banks in most European countries, for over 300 years. America had recovered from most of the bad effects of its civil war and was rapidly becoming the most prosperous and industrial country on earth. The investment bankers knew they had to quickly get control of this monster before it became too powerful.

The investment bankers used their money and power to help elect Woodrow Wilson in 1912, and he thanked them by promising to support the Federal Reserve System Act. Two days before Christmas eve, 1913, the Act was passed by both houses of Congress. It was a long-standing political courtesy that important legislation would not be acted upon during the week before Christmas, but this tradition was rudely shattered in order to slide the Federal Reserve Act, through, unbeknownst to the American people. Some of the act’s most vocal critics had already departed Washington in order to reach home before Christmas. It was a scumbag named Paul Warburg who got credit for the bill’s passage.

Congressmen Charles Lindbergh opposed the bill and said on the floor of the House of Representatives

“This Act establishes the most gigantic trust on earth. When the president signs this bill, the invisible government by the monetary power will be legalized.”

History actually shows the federal income tax is technically illegal because of the flawed ratification process of the 16th Amendment.

“The Congress shall have 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.”

It was never legally ratified by the necessary 36 states needed for a 3/4 vote.

In 1984, a regular citizen named Bill Benson began a research project, never before performed, to investigate the process of ratification of the 16th Amendment. After traveling to the capitols of the New England states and reviewing the journals of the state legislative bodies, he saw that many states had not ratified. He continued his research at the National Archives in Washington, D.C.; it was here that Bill found his key.

These four states are among the thirty-eight from which Philander Knox claimed ratification:

California: The legislature never recorded any vote on any proposal to adopt the amendment proposed by Congress.

Kentucky: The Senate voted on the resolution, but rejected it by a vote of nine in favor and twenty-two opposed.

Minnesota: The State sent nothing to the Secretary of State in Washington.

Oklahoma: The Senate amended the language of the 16th Amendment to have a precisely opposite meaning.

When his project was finished at the end of 1984, Bill had visited the capitol of every state that was in the Union in 1913 and knew that not a single one had actually and legally ratified the proposal to amend the U.S. Constitution. Thirty-three state legislatures actually engaged in unauthorized activity, altering the language of an amendment proposed by Congress. The states  do not possess this authority.

Since thirty-six states were needed for ratification, the failure of thirteen to ratify was fatal to the Amendment. This occurs within the major (first three) defects tabulated in Defects in Ratification of the 16th Amendment. Even if we were to ignore defects of spelling, capitalization and punctuation, we would still have only two states which successfully ratified.

On January 10, 2008, the Federal District Court in Chicago issued a permanent injunction against Bill Benson on the grounds that by offering information demonstrating that the 16th Amendment was not legally ratified, he was promoting an abusive tax shelter. The Court then refused to look at the government-certified documentary evidence, deciding instead that the facts necessary to prove his statements true were “irrelevant.”

Big surprise there!

“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.”
-Franklin Delano Roosevelt

Income taxes pay  interest to foreign banks for money “lent” to our U.S. Treasury.  This enables the treasury to print money out of thin air.  Our government is in perpetual debt to foreign banks. Citizens perpetually work/owe money to foreign banks for a system that is NOT required in order for our market and economy to work.

The Federal Reserve – which is owned by private, mostly foreign banks, receives 100 percent of individual income tax.  The process happens like this…

  • Congress votes to increase the Federal debt limit by $2 billion.
  • The U.S. Treasury then creates $2 billion of interest-bearing bonds out of thin air and sells them to the Fed Reserve (with the taxpayers income tax as collateral)
  • The Fed Reserve “buys” the bonds by making a “book keeping entry” for $2 billion dollars to the U.S. Treasury’s checking account.
  • The Treasury can now write checks from their checking account to all the banks in America .
  • Our banks send these checks they got from the U.S. Treasury, to the Fed Reserve.
  • The Fed Reserve “credits” our banks and “debits” the U.S. Treasury.
  • These Fed Reserve “credits” to our banks increase our banks money and ability to lend us money and keep our accounts open, earning interest on various things. (bank reserves)

The U.S. Treasury only prints the principal, not the interest owed.  Therefore – The U.S. Treasury can NEVER pay back the full amount owed to the Federal Reserve. We are forever in debt to the Federal Reserve Bank because of this.

So considering the lack of a federal income tax doesn’t; disable our free market, cause the collapse of our roads and schools, or leave our loved ones stranded overseas…why do we continue to support all of the federal governments unconstitutional programs?  I’m not telling you to stop paying your income tax, after all the President just might come detain you indefinitely  based on the NDAA of 2012, as he now claims the power to do this without trial or even evidence.

Possibly after reading this though, you may re-consider the Doctrine of Nullification.  It is the rightful way to handle unconstitutional federal actions.  Maybe a Nullification of the 16th amendment is necessary,  after all, do you keep giving your friend or relative money on the premise of paying their bills when all they do is blow it on new clothes, alcohol, and expensive nights out for them and their friends?

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
-Henry Ford


John Michaels
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