Radio 3Fourteen - Cracking the Code_ The Truth About Taxation in America

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00:00:29.800 This is Radio 314 on the Red Ice Radio Network.

00:00:45.560 Hello, everyone. This is Lana.

00:00:47.220 I'm super thrilled to introduce you to my next guest, Peter Henriksen, the author of Cracking the Code.

00:00:52.920 If you want to crush and tear down the Matrix a whole lot more, keep listening.

00:00:56.300 You're about to hear about a complex combo of craft, bureaucratic incoherence and corruption

00:01:01.660 that has led the masses to inadvertently allow and participate in the legal transformation

00:01:06.120 of their untaxable earnings into taxable income.

00:01:09.800 You are being tricked into signing your money away.

00:01:12.740 The U.S. tax system is based on individual self-assessment and voluntary compliance.

00:01:18.080 The government will, of course, accept your money unless you inform it every year

00:01:21.680 that you are entitled to non-payment or to a refund of what you have paid.

00:01:26.480 Tens of thousands of readers of Cracking the Code have taken control of their own resources

00:01:30.700 in accordance with the law.

00:01:32.840 How can this be? Well, keep listening.

00:01:35.500 Welcome, Peter. I've really been looking forward to this interview, so thank you for being here today.

00:01:39.980 That's my great pleasure.

00:01:41.380 First off, tell us a bit about your background and how you first began digging into the mythical beast

00:01:45.660 that is the U.S. tax code.

00:01:48.360 Well, I don't have a background specifically in law, although at this point in my life I'm pretty thoroughly self-educated.

00:01:56.080 But the origin of my interest arose in 1976, which was the bicentennial of the American Revolution.

00:02:03.960 And in that year, in keeping with the spirit of the occasion, I re-read the Constitution,

00:02:12.760 something I hadn't done in a number of years at that point, nor viewed as something necessary to be real familiar with.

00:02:22.320 I was a young man at the time, and probably not a whole lot more interested in that sort of subject than anyone else of my age.

00:02:31.440 But I did read it then, and I was struck by an anomaly.

00:02:35.900 The Article I, Section 9 of the Constitution has a specification, a tax-related specification,

00:02:42.260 and it says that capitations and other direct taxes shall be apportioned.

00:02:47.080 And that's actually repeated in another spot in the Constitution.

00:02:50.200 It's the only thing that's actually in there twice.

00:02:54.440 And I looked up capitations, discovered what the mean of the constitutional meaning of capitations was,

00:03:01.780 which is, by the way, not what most people would imagine.

00:03:04.740 And people tend to think of that as a head tax and translate that into a poll tax.

00:03:11.440 And neither of those things is actually true.

00:03:15.540 Constitutionally, a capitation is a tax on undistinguished revenue.

00:03:19.080 It's not just general revenue.

00:03:21.540 And looking at that definition and looking at the income tax as it appears to be being administered,

00:03:28.280 it seemed to me that the income tax is a capitation.

00:03:31.220 It qualifies under that definition.

00:03:33.180 And, of course, it's not apportioned.

00:03:35.340 So I was struck by that, and it bothered me, and I began looking further into the subject of the income tax

00:03:41.380 because it really is a really big subject.

00:03:44.260 I mean, not a big subject in the sense of a massive study, although it is that too,

00:03:50.560 but it's a big subject in terms of its importance.

00:03:53.200 If you look at the significance of the income tax in American life,

00:04:00.120 it absorbs something on the order of maybe 35% to 45% of all the earnings of most every working American,

00:04:11.120 all their lives, all their adult lives.

00:04:13.460 It's a huge factor.

00:04:14.680 It's far and away the biggest single financial factor in anybody's life,

00:04:21.820 in any American's life, at least any American, until the last 10 years.

00:04:26.460 We'll get to that in a minute.

00:04:29.420 So it's the 800-pound gorilla in the living room.

00:04:32.360 It's a really big subject in that sense, in the sense of its importance.

00:04:37.540 It's also a big subject in the sense of being a grueling study.

00:04:40.800 And back in 1976 and in the years from there up through the turn of the century,

00:04:46.760 it was an impossible subject because the tax code alone is about 3.5 million words.

00:04:54.340 Jeez.

00:04:55.700 And that's intended to be a helpful condensation of the actual statutory language

00:05:02.100 that is reflected in the code, which is much larger, perhaps twice as big,

00:05:06.880 maybe 7 million words.

00:05:07.860 And on top of that, there is a regulatory body of associated material that's bigger still.

00:05:15.280 So if you add the volume necessary to pour through to really get an accurate understanding

00:05:23.320 of this subject of the law, you're talking perhaps 15 million words,

00:05:29.000 maybe 20 million words of text.

00:05:31.720 And not easy text, but the typical, confused, legalese jumble of apparent gibberish

00:05:40.420 requiring a lot of study and teasing out of meaning and so forth.

00:05:45.640 And during that period from 1976 to the turn of the century,

00:05:50.960 it was virtually impossible to make any sense of it.

00:05:53.420 If you think about that volume of material, you're talking about, you know,

00:05:58.660 not perhaps an entire library's worth of material, but a big chunk of a library.

00:06:02.900 And to study it and read through it, by the time anyone got any meaningful fraction,

00:06:09.800 or not even a meaningful fraction, just a slight fraction of the way through that volume,

00:06:14.160 it would be months that had gone by.

00:06:16.580 And it would be impossible to remember what you'd started seeing when you began the study.

00:06:20.500 So it's just impossible to really make proper sense of.

00:06:24.100 And no wonder then that, you know, everyone has always just kind of taken their accountant's word

00:06:29.000 for the obligations imposed by the code or the law or their tax attorneys or, you know, the IRS.

00:06:36.420 Most people just do what their mother or father told them to do in terms of activities.

00:06:45.160 So, again, up till the turn of the century, 2001 actually in my case,

00:06:51.160 it was impossible to make sense of this feast.

00:06:54.600 However, at that time, I was compelled to begin a new study of the subject,

00:07:00.820 having kind of prior to that decided that the best I could do was presume that the tax was simply being imposed

00:07:09.960 in defiance of the constitutional rules, in defiance of that portion of the rule that I referred to earlier,

00:07:15.860 which is, by the way, the distribution of an established tax total amongst the state governments.

00:07:24.420 And the portion tax is remitted by the state governments, not remitted by the citizens.

00:07:29.100 And the founders set things up so that the federal government never has direct access to citizens' resources.

00:07:37.060 There is no such thing as a tax structure under our federal system

00:07:42.060 in which the federal government can actually reach directly into a citizen's pocket.

00:07:46.140 So, in 2001, I was compelled to renew my study.

00:07:56.040 It had become kind of a relaxed take on the subject.

00:08:02.420 I was compelled to renew my study because, at that time, contrary to past practices,

00:08:07.960 an IRS official decided that the return that my wife and I had filed for the year 2000,

00:08:15.580 which had on it a disclaimer that was the same as what we had been putting on our returns

00:08:21.180 for all the time we had been filing them, which says that we stand by the numbers on the form

00:08:26.740 in terms of representative of our earnings, but we refused to declare those earnings

00:08:31.140 to qualify as income, as that term is meant in the context of the form.

00:08:37.000 Never had had a problem with that in the past.

00:08:38.880 No one had ever raised an eyebrow or taken any issue with it, but this time somebody did.

00:08:45.000 And they said that they'd be happy to process our form as long as we would remove that disclaimer.

00:08:52.540 Of course.

00:08:53.040 And they said, we have to endorse, my wife and I have to endorse, the characterization of our earnings

00:09:00.900 as income for the service to be able to process the return.

00:09:05.200 And I had a light go off when this got set.

00:09:08.700 Suddenly, you know, maybe as a consequence of the things I'd learned previously,

00:09:12.780 what little I'd been able to glean from looking at the hard copy material

00:09:17.140 and other people's studies of the subject.

00:09:19.780 The light bulb went off and said, and I said to myself, why does it matter whether we say

00:09:27.920 that this stuff qualifies as income or not?

00:09:31.160 If it does qualify, it wouldn't matter whether we said so or not.

00:09:35.020 We could disagree all day long, we could agree all day long, it wouldn't make any difference.

00:09:38.100 If it's an objective truth, it's objectively the case, then it doesn't matter what we say.

00:09:43.640 And I said that to them.

00:09:44.900 And they said, well, we've got to have you guys say that it's income.

00:09:48.140 And so, you know, the conclusion was fairly obvious.

00:09:52.600 There was something, it was not objectively income, or at least couldn't be taken to be

00:09:56.480 objectively income, and there was something really critical in the application of the tax

00:10:00.780 in the fashion that it is administered to our saying that our income qualified.

00:10:07.380 And that renewed my study, my interest, because I wasn't going to back down on this subject,

00:10:13.140 and the IRS indicated they weren't going to either.

00:10:17.160 And so I began studying again, and this time I had the benefit of the fact that the tax law

00:10:21.900 had been digitized, and I could actually tear into it with a computer.

00:10:25.400 Suddenly, that seven million words or more was searchable, you know, in seconds.

00:10:33.140 I could cross-reference terms.

00:10:35.200 One of the key things about the tax, the way the law is set up, it uses many terms of art,

00:10:42.200 which are homonyms for common words, but that have special statutorily provided meanings.

00:10:50.360 And in the study of the law, it's very critical to understand these things,

00:10:54.600 and when looking at the hard copy, this is one of the things that was most impossible

00:10:57.440 about trying to do this prior to digitalization.

00:11:00.440 One would encounter a term, not necessarily know it's a term, first of all,

00:11:05.440 because the definition would not appear at the same place as the term first appeared.

00:11:11.620 And maybe as many as 400,000 words later, you would come across the meaning that that term has

00:11:17.840 in the place that you first found it 400,000 words earlier.

00:11:22.060 And it's critical to understand that meaning.

00:11:25.140 In the intervening time, until you got to the definition,

00:11:27.720 you would have been presuming and letting, you know, percolate into your head

00:11:31.480 and, you know, become sort of a fixed picture, that the term has its normal meaning,

00:11:37.260 that it doesn't have a statutory definition.

00:11:38.960 Because, again, it will not have been presented as special at that point.

00:11:43.140 And when you finally learn it, it just becomes, it's impossible to integrate

00:11:48.700 and to sort out properly.

00:11:49.860 But having the digital version, suddenly these things can be addressed

00:11:55.040 and discovered immediately.

00:11:56.440 And once I discovered that these special terms were in use,

00:12:00.760 which was, you know, part of the light bulb moment when they said,

00:12:03.760 we have to use this term, we have to apply this term to our earnings

00:12:07.900 in order to move forward.

00:12:09.340 That told me that, you know, income is not the all that comes in

00:12:13.180 that we think of in common usage.

00:12:14.700 And it isn't, you know, a casual word or term in the law.

00:12:19.880 It's actually a really critical one.

00:12:21.200 And that suggests a special meaning.

00:12:22.540 So my study then began focusing on these terms of art.

00:12:27.660 And once those were sorted out and known, reading through the law,

00:12:33.100 suddenly it all made sense.

00:12:35.100 Every bit of it made sense.

00:12:37.040 And it all was coherent and harmonious and fully constitutional as well.

00:12:41.460 So I went from being perhaps the, you know,

00:12:45.860 one of the world's most vehement opponents of the income tax

00:12:51.140 and critics of it as an unconstitutional, you know, rogue government affair

00:12:55.100 to being perhaps its most articulate advocate

00:12:58.260 and the one best able to explain how and why it is indeed a fully constitutional tax,

00:13:06.080 not only fully constitutional, but a benign and actually beneficial tax.

00:13:10.440 It's a tax I would not be without at this point.

00:13:13.260 As much as I had disliked it, denounced it, and condemned it in the past,

00:13:23.380 over the last 10 years, I am its biggest fan.

00:13:27.520 So that's how it happened.

00:13:28.900 Interesting.

00:13:29.820 Now, if we back up a little bit,

00:13:31.900 what do you know about the origins of the income tax?

00:13:34.440 Well, it's quite different than the mythology that people are led to imagine.

00:13:41.240 The income tax did not begin in 1913.

00:13:44.720 Its origin has nothing whatsoever to do with the 16th Amendment.

00:13:48.240 It actually began, it literally began in 1861,

00:13:51.520 but was replaced in its entirety the following year.

00:13:54.700 So 1862 is the actual birth date of the income tax we know and loathe today.

00:13:59.900 It was a tax born during the war between the states.

00:14:09.140 Lincoln wanted a repeating revenue source,

00:14:14.900 and so he devised this structure,

00:14:19.500 which really is based on a similar tax,

00:14:24.660 King's Revenue Version No. 9 from the English system,

00:14:31.240 in which the king taxes privileged beneficiaries,

00:14:36.280 and with an excise tax.

00:14:39.660 Which is, you know, privilege tax, excise tax,

00:14:42.020 those are actually synonymous terms in tax law.

00:14:45.940 And that's exactly what the income tax is.

00:14:47.980 It's an excise.

00:14:49.160 It's a piece of the action on gains made from the use of federal stuff.

00:14:56.560 It's a privilege tax.

00:14:58.100 It's a tax on federal income.

00:14:59.920 And, you know, the name actually says the whole story.

00:15:03.520 The name describes exactly the nature of the income tax.

00:15:08.040 It is a tax on federal income.

00:15:11.740 And so, because it is a tax on federal income

00:15:14.420 and not income in the common sense of the word,

00:15:18.480 we have to, it has to be understood,

00:15:20.960 and I'm going to, you know,

00:15:21.920 hope that it will be understood going forward in this conversation

00:15:24.160 that when I use the expression income,

00:15:26.620 I'm using it with quote marks around it.

00:15:28.660 And I'm referring exclusively to the subclass of all that comes in

00:15:34.000 that represents the part of what comes in

00:15:37.040 or what might come in in any given budget or household

00:15:40.820 of the part from the use of the beneficial use of federal stuff.

00:15:45.820 And in most people's budgets and households, that's nothing.

00:15:51.200 Most people don't have anything that qualifies as income

00:15:54.900 within the context of the tax law

00:15:57.080 because most people don't use federal privileges

00:15:59.700 to make gains of any kind.

00:16:03.660 Those privileges are fairly specific.

00:16:05.700 The law is pretty explicit about what qualifies.

00:16:14.120 And really, it is within the range of what qualifies.

00:16:19.260 Pretty much all of it is subject to the tax,

00:16:21.520 although not literally all of it is actually taxed.

00:16:24.080 So, but while perhaps 30, maybe 40 million Americans

00:16:32.040 do have a taxable amount of this quote-unquote income,

00:16:38.620 270 million or so don't.

00:16:41.580 And so knowing this information is really,

00:16:43.920 really very important to anybody and everybody.

00:16:47.480 So the meaning of income according to the IRS,

00:16:49.660 is it the same meaning in the Supreme Court?

00:16:52.820 Absolutely.

00:16:53.260 Yeah, there's been complete consistency on the subject.

00:16:57.420 You know, court opinions have to be read

00:16:58.920 with a certain amount of care

00:16:59.900 because the courts only address the subjects

00:17:02.720 that are actually brought up by the litigators.

00:17:05.400 And so there are some, there's some case law

00:17:10.160 that may seem a little bit strange at first glance

00:17:13.580 until it's, the actual underlying cases are looked into

00:17:17.740 and it's discovered what actually is being argued about

00:17:20.680 and what isn't being argued about.

00:17:21.980 But, but they're 100% consistent.

00:17:25.260 But yet complying with the law is much different

00:17:26.740 than complying with the IRS, right?

00:17:29.140 Well, you know, the fact is the IRS doesn't cross the line,

00:17:34.140 or rarely anyway, crosses the line into violating

00:17:37.920 or being in compromise with the actual law.

00:17:41.800 They nurture a reputation of being this, you know, junkyard dog agency

00:17:50.300 and they like, I think, for people to imagine them

00:17:54.640 to skirt the law, to operate kind of outside the law,

00:17:58.560 to not be bound by law anyway.

00:18:00.980 But that really isn't true.

00:18:03.100 The structure of the law is set up so that,

00:18:05.880 just as was revealed in that light bulb moment that I had,

00:18:09.420 people are brought to impose the tax on themselves

00:18:17.320 when it doesn't actually apply

00:18:19.000 or wouldn't normally apply to their earnings.

00:18:22.340 The IRS doesn't do that to anybody.

00:18:24.300 They readily and happily exploit ignorance on any of these subjects

00:18:29.840 and they will, they will operate like a junkyard dog

00:18:32.940 when they are given a plausible reason to do so,

00:18:37.660 plausible pretext for doing so.

00:18:39.960 So if somebody, for instance,

00:18:42.120 the way the tax operates is this,

00:18:46.440 and this is also the way that it misoperates, so to speak.

00:18:49.640 Everybody in this country has been encouraged,

00:18:55.480 been trained, really, conditioned,

00:18:57.480 to imagine that there is a requirement

00:19:00.100 that every payment that gets made,

00:19:03.020 that they make from anybody else,

00:19:04.200 has to be reported to the government.

00:19:06.240 And just on its face, if you think about that,

00:19:08.060 you know, for an instant,

00:19:09.120 you know, it ought to raise an eyebrow

00:19:12.320 and cause one to think,

00:19:13.840 how could that possibly be?

00:19:15.460 But the conditioning is that this is what you do

00:19:18.060 and it's sort of a path of least resistance affair.

00:19:21.720 You know, your accountant will tell you that this is true,

00:19:23.860 your tax attorney will tell you that this is true,

00:19:26.440 certainly any tax agency person

00:19:28.440 will tell you that this is true.

00:19:30.000 What they won't tell you,

00:19:31.140 and the way they'll do it is,

00:19:32.480 they'll say you have to report

00:19:33.640 any income that you pay out to anybody.

00:19:37.700 If you pay anybody self-employment income,

00:19:39.380 you have to report it.

00:19:40.040 If you pay anybody wages, you have to report it.

00:19:41.900 If you pay anybody, you know,

00:19:44.240 in connection with your trade or business,

00:19:45.640 you have to report it.

00:19:46.440 What they don't tell you is that all of those things

00:19:48.680 I just mentioned,

00:19:50.260 wages, self-employment, income,

00:19:52.420 trade or business, for instance,

00:19:53.960 are all specially defined,

00:19:56.020 custom-defined terms in the law.

00:19:57.580 They don't mean what you think they mean.

00:20:00.620 And they won't tell you that these are,

00:20:02.140 by the way, these are all specially defined terms.

00:20:03.760 Go look them up before you do what I just told you.

00:20:05.920 No one's going to say that.

00:20:07.280 They'll just tell you,

00:20:08.100 you report all the wages paid,

00:20:09.300 you report all the trade or business payments made,

00:20:11.500 et cetera, et cetera.

00:20:12.660 And people do that.

00:20:13.640 And once they have done that,

00:20:15.120 what they actually are doing when they do that,

00:20:17.620 they do it in the form of information returns,

00:20:20.360 which are typically W-2s, 1099s, and K-1s.

00:20:23.600 Those are the kind most people see.

00:20:26.180 Those forms declare two different things.

00:20:29.900 They declare an amount paid,

00:20:32.320 and they declare a legal status of that amount.

00:20:35.560 There's an assertion made by the creator of the form

00:20:39.440 that the payment that's reported on it

00:20:41.680 was made in connection with federal privilege.

00:20:44.720 Those forms are only to be used for that kind of payment,

00:20:48.080 for a federal privilege payment.

00:20:50.320 And so when they get made,

00:20:52.840 a copy of it gets sent to the taxing authorities,

00:20:56.120 and a copy of it gets sent to the person

00:20:57.540 about whom the form is made.

00:21:00.060 And it is on the basis of that allegation,

00:21:03.040 that implicit allegation.

00:21:04.400 If you look at the language that dictates

00:21:06.860 what is to be reported on a W-2, for instance,

00:21:09.780 it does not say report how much you paid a worker.

00:21:13.760 What it does say is report how much was paid to a worker

00:21:16.460 that qualifies as wages in Sections 3121A

00:21:20.980 and Section 3401A of Subtitle C of Title 26.

00:21:26.600 That's what you're reporting

00:21:27.840 when you write down a number on the W-2.

00:21:31.860 Now, the person who's writing it down,

00:21:33.600 they have no idea that that's what it says

00:21:34.960 because they've never looked.

00:21:36.300 And if they did look, and even if they read that part,

00:21:38.360 they would assume that the definitions

00:21:40.580 that they would find if they went to the trouble

00:21:43.520 of looking them up would be just, you know,

00:21:46.740 what you paid the worker.

00:21:48.780 But that's not what they are.

00:21:50.880 So, but because those specifications exist,

00:21:55.440 when a W-2 shows up at the IRS,

00:21:59.200 it is taken as an allegation, a formal allegation,

00:22:02.540 that that worker, Joe Smith, whatever his name is,

00:22:06.560 was paid in connection with a federally privileged activity.

00:22:10.700 And they will then wait for Joe Smith

00:22:12.440 to respond to that allegation.

00:22:15.160 Joe, he got a copy of that W-2 also,

00:22:17.980 and it was not sent to him in order to help him

00:22:20.580 write the correct numbers down on his tax forms.

00:22:23.280 It was sent to him as notice, formal notice,

00:22:26.680 putting him on notice that an allegation was made,

00:22:29.180 that he did something upon which a liability

00:22:31.800 to the federal government will arise.

00:22:34.900 Now, Joe then has his option.

00:22:36.280 He can either stand silent,

00:22:38.940 and after a period of time,

00:22:40.160 that allegation will be taken as true

00:22:41.600 because Joe had his chance to rebut it,

00:22:43.460 and he didn't.

00:22:44.740 So it's taken that he agreed with it,

00:22:46.400 or he will agree with it,

00:22:48.320 maybe because it's true,

00:22:49.460 maybe because he doesn't know any better either,

00:22:51.140 or maybe he'll rebut it and correct it

00:22:53.940 and say, no, you know, actually,

00:22:55.180 I did get paid the amount,

00:22:56.780 but it was not in connection with the federal privilege,

00:22:59.480 so, you know, there actually were no wages paid at all,

00:23:02.980 meaning wages as defined in those sections of law.

00:23:05.960 And then people are participating,

00:23:07.620 like you were saying,

00:23:08.180 in the legal transformation of their untaxable earnings

00:23:10.580 into taxable income.

00:23:12.420 Exactly, and this is why I say the IRS

00:23:14.720 does not cross the line into doing something illegal.

00:23:16.960 In this case, they're not going to tell somebody,

00:23:18.900 you know, you have to write your earnings down

00:23:21.840 and call them wages or anything like that.

00:23:24.320 They simply will allow people

00:23:26.120 to make this mistake on their own,

00:23:28.000 to not know what they're doing,

00:23:29.860 make this mistake,

00:23:30.960 and once they've received a 1040

00:23:34.060 that has that W-2 amount written down on it

00:23:36.740 in the income section,

00:23:38.700 the legal contest is over at that point.

00:23:41.040 Okay, everybody's in agreement.

00:23:42.440 Joe Smith got paid wages, quote-unquote.

00:23:44.920 They have the quotes around them, too.

00:23:46.200 Again, it's a special customized term.

00:23:47.720 But he was paid wages,

00:23:49.120 therefore he owes us a chunk of it.

00:23:51.660 He owes us some money.

00:23:53.120 And they'll calculate the assessment

00:23:54.660 if Joe didn't already do it correctly,

00:23:56.520 and they'll send a bill

00:23:57.660 or keep whatever was withheld or what have you.

00:24:01.820 That's how it works.

00:24:03.480 Now, the real question is,

00:24:06.280 were Joe Smith's earnings wages

00:24:09.540 or income under any other subcategory?

00:24:13.120 Because the quote-unquote income

00:24:15.440 is itself subcategorized

00:24:17.940 in a variety of different ways,

00:24:19.820 wages being one of them,

00:24:21.020 self-employment income being another.

00:24:24.360 And there are several others.

00:24:26.780 Did his earnings actually qualify for that?

00:24:29.480 Well, if they didn't,

00:24:30.500 then Joe just made them do so

00:24:32.560 as far as the law is concerned.

00:24:34.580 He created the appearance

00:24:35.760 that he did indeed get paid

00:24:38.320 for engaging in federal privilege,

00:24:40.080 and the tax properly applied to him.

00:24:43.840 Joe had other options, though.

00:24:45.800 Had Joe known what he was doing

00:24:47.220 and known what was being said about him,

00:24:50.100 he could have rebutted those allegations

00:24:54.500 if they were not true

00:24:55.540 and sent in a 1040

00:24:57.700 with correct information.

00:25:00.740 And had he done so,

00:25:02.420 he would have received

00:25:03.840 a complete refund back

00:25:04.920 of anything that had been withheld,

00:25:06.040 including Social Security and Medicare,

00:25:07.480 just as tens of thousands of readers

00:25:10.840 of my books do every year,

00:25:13.060 and have been doing so for 10 years now,

00:25:15.080 without interruption,

00:25:15.880 from the federal and 33 state governments.

00:25:21.000 And he would have been

00:25:21.920 a much better off individual,

00:25:25.500 retained control of his own resources.

00:25:30.040 Many people would view that as a plus

00:25:31.920 simply because they were being kept

00:25:33.060 out of the hands of the federal government,

00:25:34.640 which a lot of people are unhappy

00:25:36.620 about how those resources are used.

00:25:39.480 In any event,

00:25:40.640 what happened to them

00:25:41.800 would have been Joe's call to make,

00:25:43.560 as opposed to them being

00:25:45.120 taken from him improperly,

00:25:48.100 and in many cases,

00:25:53.260 spent against his interests.

00:25:55.080 Now there's another important aspect of this.

00:25:56.780 I'm going to read a quote from your book

00:25:57.980 from Jerome Kurtz,

00:25:59.520 the IRS commissioner.

00:26:01.220 It says,

00:26:01.820 the IRS's primary task

00:26:03.700 is to collect taxes

00:26:04.820 under a voluntary compliance system.

00:26:07.740 They keep using this

00:26:08.560 voluntary compliance system.

00:26:10.640 So talk about that.

00:26:12.100 I will.

00:26:12.700 You know,

00:26:12.980 first,

00:26:14.020 it's got to be borne in mind

00:26:14.940 that even people with fancy titles

00:26:17.100 like Jerome Kurtz's

00:26:18.180 at that time,

00:26:18.920 you know,

00:26:19.040 he was a,

00:26:19.520 you know,

00:26:19.740 basically,

00:26:20.160 it's a political appointee,

00:26:21.400 far and away,

00:26:21.920 not an expert

00:26:22.540 at the subject of the tax law

00:26:25.260 or anything else,

00:26:26.320 probably.

00:26:26.800 I don't know what he did

00:26:27.980 to get his position,

00:26:30.660 but it's the same sort of thing

00:26:31.640 that you do

00:26:32.080 to become an ambassador

00:26:32.960 to Belgium,

00:26:34.280 you know,

00:26:35.260 make the right political connections

00:26:36.680 and so forth.

00:26:37.460 But there is a thing

00:26:41.520 about the voluntary compliance concept.

00:26:44.020 We see it in a lot of places,

00:26:45.600 even some courts

00:26:46.200 that do know

00:26:46.640 what they're talking about.

00:26:47.720 And that is not all courts,

00:26:48.880 by the way.

00:26:49.640 Tax law is not understood

00:26:50.860 any more in courtrooms

00:26:54.860 than it is anywhere else.

00:26:55.780 But there is a voluntary component

00:26:59.120 and that is this.

00:27:00.880 Engaging in the privileged activities

00:27:02.880 upon which the tax actually falls

00:27:04.620 is completely voluntary.

00:27:06.760 No one is obliged to do it.

00:27:08.360 That's one of the reasons

00:27:09.460 why this tax survives

00:27:12.520 what otherwise would be

00:27:13.560 a constitutional problem

00:27:15.080 since capitations

00:27:16.920 and other direct taxes,

00:27:18.180 direct taxes being taxes

00:27:19.220 that are not voluntary,

00:27:20.280 taxes that can't be avoided,

00:27:22.240 have to be apportioned.

00:27:23.820 Well,

00:27:24.300 this one isn't

00:27:24.940 and how is that the case?

00:27:26.380 It's because no one

00:27:27.320 is obliged to engage

00:27:28.440 in the privileges

00:27:29.020 upon which the tax falls.

00:27:31.180 Now,

00:27:31.640 if someone does engage

00:27:32.800 in those privileges,

00:27:33.600 that tax becomes

00:27:34.320 as mandatory

00:27:34.820 as a heart attack.

00:27:36.240 There's no voluntary involved

00:27:38.240 at that point.

00:27:39.380 But

00:27:39.600 bringing the liability

00:27:42.060 into play

00:27:42.800 in the first place

00:27:43.580 by engaging

00:27:44.780 in the privileged activity,

00:27:45.940 100% voluntary.

00:27:46.840 and that's what's meant

00:27:48.680 by those

00:27:49.380 otherwise kind of

00:27:50.660 incongruous-sounding expressions.

00:27:53.200 Got it.

00:27:54.180 Now,

00:27:54.420 if someone finds themselves

00:27:55.340 in court,

00:27:55.920 as you did,

00:27:57.160 can the

00:27:57.620 you-can't-constitutionally-tax-me argument

00:28:00.100 hold any power?

00:28:02.460 Well,

00:28:03.640 it's a constitutional tax,

00:28:04.940 so no,

00:28:05.620 it can't.

00:28:06.140 And in fact,

00:28:10.580 one of the

00:28:12.780 gimmicks

00:28:15.620 that the tax division

00:28:18.000 of the DOJ

00:28:18.920 loves to run

00:28:19.700 is to try

00:28:20.420 and

00:28:20.960 characterize

00:28:22.840 arguments

00:28:25.960 against

00:28:26.520 in any particular

00:28:28.000 situation

00:28:28.680 in a courtroom

00:28:29.620 as being

00:28:31.180 some kind

00:28:31.660 of constitutional

00:28:32.440 argument.

00:28:33.840 But there isn't

00:28:34.500 a constitutional argument

00:28:35.440 with the tax.

00:28:36.140 You can

00:28:36.940 certainly make

00:28:37.800 the constitutional point

00:28:38.860 that the

00:28:40.040 apportionment requirement

00:28:41.580 applies to

00:28:43.760 capitations

00:28:44.480 and other direct taxes.

00:28:46.580 Therefore,

00:28:47.960 with the income tax

00:28:49.000 not being apportioned,

00:28:49.940 it is clear

00:28:50.480 that the income tax

00:28:51.260 is not a capitation

00:28:52.500 or other direct tax.

00:28:53.660 Therefore,

00:28:54.540 we look at what

00:28:55.100 a capitation falls on

00:28:56.360 and it's actually

00:28:56.900 very, very

00:28:57.580 elaborately laid out

00:28:59.060 a series of things

00:29:01.620 that qualifies

00:29:02.620 as capitation.

00:29:03.320 And therefore,

00:29:03.740 we can say

00:29:04.260 that whatever

00:29:05.080 the income tax is,

00:29:06.060 it can't be

00:29:06.580 any of these things.

00:29:08.500 And that

00:29:09.000 argument

00:29:09.700 can fly

00:29:11.180 and that is

00:29:12.000 more or less

00:29:12.540 a constitutional argument.

00:29:13.540 But normally,

00:29:14.700 because the tax

00:29:15.320 is constitutional,

00:29:16.440 there wouldn't be

00:29:16.820 no reason

00:29:17.160 to make

00:29:17.480 a constitutional argument.

00:29:19.500 The issue

00:29:21.280 that would arise

00:29:21.900 in a court case

00:29:22.600 is a matter

00:29:23.120 of what

00:29:23.640 allegations

00:29:24.260 have been made

00:29:25.140 about any

00:29:26.320 given earnings

00:29:27.060 being or not

00:29:27.900 being

00:29:28.620 actually taxable,

00:29:31.260 the taxable

00:29:32.620 distinguished character

00:29:33.700 and how

00:29:35.760 that evidence

00:29:36.280 has been treated.

00:29:36.980 Has it been

00:29:37.280 rebutted?

00:29:37.780 Has it been

00:29:38.060 agreed to?

00:29:39.520 Has it been

00:29:40.160 agreed to

00:29:40.580 by silence?

00:29:42.460 Those are the

00:29:43.140 issues.

00:29:43.980 And it's only

00:29:45.740 in the last

00:29:46.220 10 years

00:29:46.660 that people

00:29:48.320 have known

00:29:50.440 what's going

00:29:52.020 on here,

00:29:52.480 known the

00:29:52.980 subtext

00:29:54.040 issues,

00:29:55.620 and therefore

00:29:56.560 been equipped

00:29:57.500 to address

00:29:59.400 these problems.

00:30:02.580 There's been

00:30:03.220 very little

00:30:03.720 litigation

00:30:04.360 so far

00:30:06.360 involving

00:30:06.940 people educated

00:30:08.020 about this

00:30:08.540 subject,

00:30:09.000 and so we

00:30:09.360 don't have

00:30:09.740 a real

00:30:10.480 substantial

00:30:10.900 body of law.

00:30:11.520 What we

00:30:11.760 have seen

00:30:12.260 in the few

00:30:13.200 cases that

00:30:13.720 have gone

00:30:14.180 on are

00:30:15.040 really

00:30:16.740 almost

00:30:17.440 ludicrously

00:30:18.120 absurd

00:30:19.260 contortions

00:30:20.980 on the part

00:30:21.420 of the

00:30:21.620 government

00:30:21.880 to try

00:30:22.240 and evade

00:30:22.820 dealing

00:30:23.940 squarely

00:30:24.840 with people

00:30:25.320 who do

00:30:25.620 know what

00:30:25.920 they're doing

00:30:26.360 in these

00:30:27.160 situations.

00:30:27.920 And so

00:30:28.060 we've seen

00:30:29.220 truly

00:30:32.500 ridiculous

00:30:32.920 assertions.

00:30:35.560 People

00:30:36.040 have,

00:30:37.780 the argument

00:30:38.360 has been

00:30:38.620 brought up

00:30:39.140 in court

00:30:39.480 that a

00:30:40.760 zero on

00:30:41.380 a return

00:30:41.800 is an

00:30:42.120 impossibility.

00:30:43.540 It can't

00:30:43.940 be credited

00:30:44.680 as valid.

00:30:45.800 That's

00:30:46.240 ridiculous

00:30:47.000 on its

00:30:47.360 face.

00:30:47.600 If you

00:30:47.760 look at

00:30:48.000 any tax

00:30:48.800 table

00:30:49.200 that's

00:30:50.000 associated

00:30:50.380 with any

00:30:50.980 tax return

00:30:52.640 form for

00:30:53.220 any year

00:30:53.640 of your

00:30:54.540 life,

00:30:55.240 you'll

00:30:55.460 find the

00:30:55.800 very

00:30:55.960 first

00:30:56.240 entry

00:30:56.640 is

00:30:57.180 zero.

00:30:58.480 It suggests

00:30:59.480 that somehow

00:31:00.280 zero is

00:31:01.280 not a

00:31:01.720 viable or

00:31:02.840 legitimate

00:31:03.200 figure to

00:31:03.940 appear on

00:31:04.320 a tax

00:31:04.640 return is

00:31:05.060 on its

00:31:05.340 face absurd.

00:31:06.540 And yet

00:31:06.780 the DOJ

00:31:07.520 has made

00:31:07.840 these

00:31:08.020 arguments

00:31:08.360 because

00:31:09.280 it has

00:31:10.380 no other

00:31:10.740 arguments

00:31:11.060 to make.

00:31:11.520 It's

00:31:11.660 in a

00:31:11.940 state of

00:31:12.560 desperation.

00:31:14.080 Is an

00:31:15.400 educated

00:31:15.760 filer

00:31:16.240 just as

00:31:16.660 successful

00:31:17.340 today as

00:31:17.780 we're

00:31:17.980 back in

00:31:18.340 2005?

00:31:19.540 Or is

00:31:19.660 the IRS

00:31:19.940 becoming

00:31:20.340 more

00:31:20.660 effective

00:31:21.120 in

00:31:21.340 discouraging

00:31:21.840 or even

00:31:22.220 stopping

00:31:22.780 educated

00:31:23.440 filers from

00:31:24.120 doing the

00:31:24.480 same?

00:31:25.320 It's not

00:31:26.060 effective in

00:31:26.940 stopping

00:31:27.280 anyone.

00:31:28.520 As far as

00:31:29.000 discouraging is

00:31:29.680 concerned,

00:31:30.260 it's difficult

00:31:30.900 for me to

00:31:31.540 say.

00:31:34.120 Educated

00:31:34.680 filers continue

00:31:35.360 to get all

00:31:36.000 their money

00:31:36.260 back.

00:31:38.260 I don't

00:31:39.860 think that

00:31:40.220 you have

00:31:40.640 done a

00:31:41.300 regular

00:31:41.720 Lost

00:31:42.920 Horizons

00:31:43.520 visitor

00:31:45.080 much

00:31:46.620 distant

00:31:47.400 into the

00:31:47.860 past.

00:31:48.420 Maybe I'm

00:31:48.760 wrong about

00:31:49.140 that.

00:31:49.360 If you

00:31:50.900 have

00:31:51.100 been

00:31:51.240 recently,

00:31:51.760 you'll

00:31:51.920 have

00:31:52.040 seen

00:31:52.200 that I

00:31:52.460 continue

00:31:52.740 to

00:31:52.920 post

00:31:53.300 victories.

00:31:55.280 I call

00:31:55.940 them

00:31:56.060 victories.

00:31:56.460 They're

00:31:56.580 victories for

00:31:57.100 the rule

00:31:57.720 of law

00:31:58.060 in my

00:31:58.300 view.

00:31:58.900 When a

00:31:59.680 citizen

00:31:59.980 who has

00:32:00.460 become

00:32:00.780 educated

00:32:01.260 enforces

00:32:03.140 the law

00:32:03.580 by

00:32:03.920 standing

00:32:05.520 up and

00:32:06.300 introducing

00:32:07.700 their

00:32:07.960 accurate

00:32:08.280 testimony

00:32:08.700 and

00:32:09.520 standing

00:32:09.860 by it,

00:32:10.760 they win

00:32:11.280 a victory

00:32:11.620 when they

00:32:11.980 get that

00:32:12.380 refund

00:32:12.760 check or

00:32:13.380 that

00:32:13.620 zero

00:32:13.960 transcript

00:32:14.460 or that

00:32:15.440 notice of

00:32:16.440 deficiency

00:32:16.740 closing

00:32:17.200 notice or

00:32:17.760 the lien

00:32:18.120 release or

00:32:18.660 the levy

00:32:19.000 release or

00:32:19.460 what have

00:32:19.720 you.

00:32:20.100 That's a

00:32:20.460 victory for

00:32:20.920 the law.

00:32:22.480 They continue

00:32:23.720 to happen

00:32:24.180 every day.

00:32:27.820 What the

00:32:28.500 volume is,

00:32:29.340 that's

00:32:29.640 impossible for

00:32:30.640 me to

00:32:30.900 say.

00:32:33.160 I can't

00:32:33.680 say whether

00:32:34.060 or not

00:32:34.320 it's more

00:32:34.920 or less

00:32:35.440 than at

00:32:35.880 any other

00:32:36.220 time.

00:32:38.160 Judging

00:32:38.640 from the

00:32:38.960 ongoing

00:32:39.300 contortions

00:32:39.940 by the

00:32:40.540 IRS,

00:32:41.080 which

00:32:41.180 just

00:32:41.680 recently,

00:32:44.120 maybe

00:32:45.260 three or

00:32:46.120 four months

00:32:46.480 ago,

00:32:47.800 a

00:32:48.320 massive

00:32:49.160 hoax

00:32:49.620 on the

00:32:50.240 part of

00:32:50.440 the IRS

00:32:50.820 where

00:32:51.060 they're

00:32:51.300 actually

00:32:52.020 misrepresenting

00:32:53.040 a formal

00:32:55.880 statute-based

00:32:58.220 notice structure

00:33:00.760 on their

00:33:01.540 website.

00:33:02.280 They're

00:33:02.600 actually lying

00:33:03.300 outright about

00:33:04.120 the inclusion

00:33:05.980 of a

00:33:06.960 provision in

00:33:08.780 that formal

00:33:09.360 notice,

00:33:10.360 saying that

00:33:11.020 there is

00:33:11.340 one when

00:33:12.020 there actually

00:33:12.480 is not.

00:33:13.200 And the

00:33:13.460 one that

00:33:13.720 they're saying

00:33:14.200 is there

00:33:14.640 is a

00:33:15.480 made-up

00:33:15.960 characterization

00:33:18.900 of an

00:33:20.040 educated

00:33:20.820 filing as

00:33:21.400 being frivolous.

00:33:22.800 On their

00:33:23.220 website,

00:33:23.640 they are

00:33:23.820 saying that

00:33:24.320 in the

00:33:24.780 formal notice

00:33:25.360 that the

00:33:25.760 secretary is

00:33:26.240 mandated to

00:33:26.840 issue,

00:33:28.180 such filings

00:33:28.860 are declared

00:33:29.900 as a frivolous

00:33:30.840 thing,

00:33:31.440 and they

00:33:31.760 actually are

00:33:32.200 not in

00:33:33.100 that formal

00:33:33.600 notice,

00:33:34.080 because of

00:33:34.440 course,

00:33:34.620 they're not

00:33:34.860 frivolous.

00:33:35.780 But the

00:33:36.120 IRS is

00:33:37.960 compelled to

00:33:38.900 pretend that

00:33:40.080 they are

00:33:40.480 and to

00:33:41.120 perpetrate

00:33:42.460 this hoax

00:33:43.120 because

00:33:44.640 they're

00:33:46.000 trying to

00:33:46.620 discourage

00:33:47.140 educated

00:33:47.760 filers from

00:33:48.760 securing

00:33:51.660 these victories.

00:33:52.720 So the

00:33:53.520 evidence suggests

00:33:54.240 that Americans

00:33:58.080 continue to

00:33:58.740 stand up

00:33:59.240 in large,

00:34:01.760 significant

00:34:02.120 numbers,

00:34:03.100 and I

00:34:03.600 believe in

00:34:03.960 growing numbers.

00:34:05.120 Now, when

00:34:05.460 you file,

00:34:05.920 do you have

00:34:06.160 to address

00:34:06.560 some of

00:34:06.820 these issues

00:34:07.280 with them

00:34:07.620 over and

00:34:07.960 over?

00:34:08.240 Do you

00:34:08.400 always get

00:34:08.840 notice of

00:34:09.320 intent to

00:34:09.780 levy or

00:34:10.460 frivolous

00:34:11.280 letters or

00:34:11.960 proposed

00:34:12.380 changes to

00:34:12.920 your return?

00:34:14.040 Most

00:34:14.400 educated

00:34:15.400 filers get

00:34:16.100 nothing but

00:34:16.460 a check.

00:34:18.520 There are

00:34:20.160 very, very

00:34:20.600 few, a

00:34:21.360 tiny minority

00:34:22.020 that get

00:34:22.480 any kind

00:34:22.880 of hassle.

00:34:24.620 And those

00:34:24.780 cases, though,

00:34:25.980 are actually

00:34:26.480 the most

00:34:27.020 interesting of

00:34:27.540 all.

00:34:28.220 I have a

00:34:28.640 number of

00:34:28.980 them posted,

00:34:29.560 about, I

00:34:30.700 think, 45

00:34:31.520 or 46

00:34:32.140 individual

00:34:32.700 cases,

00:34:33.980 in great

00:34:35.140 depth,

00:34:35.700 and then

00:34:35.940 another 20

00:34:37.380 or 30

00:34:37.840 in somewhat

00:34:39.200 lesser depth.

00:34:40.580 They're

00:34:40.820 fully

00:34:41.060 documented

00:34:41.560 cases in

00:34:42.200 which the

00:34:43.260 IRS and

00:34:45.420 or state

00:34:46.520 tax agency

00:34:47.880 attempted to

00:34:48.520 resist an

00:34:49.820 educated

00:34:50.220 filer's

00:34:50.740 claims.

00:34:52.180 And in

00:34:52.540 these cases,

00:34:53.840 these

00:34:55.200 resistance

00:34:55.920 efforts are

00:34:57.200 sometimes fairly

00:34:59.040 protracted.

00:34:59.720 They can go

00:35:00.060 on for as

00:35:00.460 long as a

00:35:00.880 year and a

00:35:01.160 half or two

00:35:01.600 years.

00:35:02.500 Usually, it's a

00:35:03.260 lot less time

00:35:03.860 than that that

00:35:04.320 can go that

00:35:04.940 long.

00:35:06.000 And they

00:35:06.400 involve a

00:35:07.160 great deal

00:35:07.720 of very

00:35:08.800 close agency

00:35:10.440 provision of

00:35:11.600 the circumstance.

00:35:13.100 A lot of

00:35:13.580 phone calls,

00:35:14.440 letters,

00:35:15.200 sometimes personal

00:35:16.080 visits, all

00:35:18.700 of which take

00:35:19.500 place with

00:35:20.380 apparent

00:35:22.260 complete

00:35:22.680 seriousness and

00:35:23.660 drama and

00:35:25.000 stern and

00:35:25.860 drang, and

00:35:27.220 then in the

00:35:27.660 end, the

00:35:28.080 check issues

00:35:28.680 to the

00:35:29.220 claimant.

00:35:29.700 They're the

00:35:31.160 cases I like

00:35:31.780 posting the

00:35:32.300 best because

00:35:32.860 even now,

00:35:34.800 10 years

00:35:35.280 into this

00:35:38.180 long train

00:35:39.740 of victories

00:35:41.040 and the

00:35:42.440 enormous body

00:35:43.260 of evidence,

00:35:44.560 both of

00:35:45.040 authority and

00:35:45.640 of concrete

00:35:46.120 examples like

00:35:46.780 the kind we're

00:35:47.080 talking about,

00:35:48.020 there are still

00:35:48.460 people out

00:35:48.940 there that

00:35:49.340 kind of

00:35:50.460 mindlessly

00:35:51.640 try to

00:35:53.660 suggest that

00:35:54.400 these victories

00:35:55.500 somehow slips

00:35:56.740 through the

00:35:57.140 cracks of

00:35:58.100 some sort.

00:35:59.040 Yeah, I've

00:35:59.380 heard that.

00:36:00.540 And, you

00:36:01.160 know, 10

00:36:01.680 years down

00:36:02.080 the road,

00:36:02.500 that's just,

00:36:03.040 you know,

00:36:03.460 absurd.

00:36:04.160 It's just

00:36:04.600 absolutely

00:36:05.220 absurd.

00:36:06.540 But these

00:36:07.260 particular

00:36:07.740 incidents,

00:36:08.500 these cases

00:36:09.180 where there

00:36:09.760 was this

00:36:10.240 elaborate effort

00:36:12.020 to resist

00:36:12.640 put the

00:36:14.280 wrong to

00:36:16.560 that very

00:36:18.280 dramatically and

00:36:19.020 unmistakably.

00:36:20.020 I mean, it's

00:36:20.420 just ridiculous

00:36:21.120 to suggest.

00:36:22.160 It's ridiculous

00:36:22.680 to suggest 10

00:36:23.460 years down

00:36:23.800 the road that

00:36:24.160 even the

00:36:25.020 routine variety

00:36:25.820 that don't

00:36:26.200 have any

00:36:26.800 back-and-forth

00:36:27.440 contact are

00:36:28.840 still slipping

00:36:29.380 slips through

00:36:29.960 the cracks

00:36:30.520 in their

00:36:31.140 tens of

00:36:31.600 thousands,

00:36:32.880 but it's

00:36:33.720 impossible to

00:36:34.340 say it about

00:36:34.840 those in

00:36:35.300 which they

00:36:36.320 had elaborate

00:36:37.760 direct supervision

00:36:39.340 from live

00:36:39.880 people who

00:36:40.700 were struggling

00:36:43.160 to keep from

00:36:43.820 writing that

00:36:44.300 check and

00:36:44.760 then ultimately

00:36:45.300 had to do

00:36:45.900 it.

00:36:48.660 There's simply

00:36:49.320 no, there

00:36:52.280 isn't any

00:36:52.880 answer to

00:36:53.360 that.

00:36:53.740 So how

00:36:54.040 has the

00:36:54.380 IRS been

00:36:55.280 able to

00:36:55.620 maintain such

00:36:56.200 power spewing

00:36:57.200 this misinformation

00:36:58.060 withholding the

00:36:58.980 truth?

00:36:59.440 Do people

00:36:59.900 working in the

00:37:00.800 IRS know

00:37:01.360 these concepts?

00:37:02.880 I think most

00:37:03.700 people in the

00:37:04.160 IRS don't have

00:37:04.880 any idea

00:37:05.340 whatsoever.

00:37:06.240 I like to

00:37:07.100 think that

00:37:07.540 more of them

00:37:08.480 know more

00:37:09.260 over the

00:37:10.260 course of

00:37:10.600 time because

00:37:12.780 they're citizens

00:37:13.740 just like any

00:37:14.320 others and

00:37:14.760 they have

00:37:15.400 access to

00:37:15.960 information.

00:37:16.640 They are

00:37:16.960 probably trained

00:37:18.480 and conditioned

00:37:19.880 to have a

00:37:22.420 lot of

00:37:22.680 reflexive

00:37:23.840 blind spots

00:37:25.620 and blinders

00:37:28.040 that keep

00:37:28.580 them from

00:37:28.900 taking information

00:37:30.460 that's sort of

00:37:30.920 contrary to

00:37:31.540 their mission

00:37:31.980 statement in

00:37:32.840 very readily,

00:37:33.880 but they're

00:37:34.520 people and

00:37:35.400 citizens and

00:37:36.340 so I think

00:37:37.000 some of them

00:37:37.940 are learning.

00:37:39.200 But the

00:37:39.560 IRS is

00:37:40.440 an institution

00:37:45.300 that has

00:37:46.200 benefited from

00:37:47.420 a huge

00:37:50.300 focused

00:37:52.600 constituency

00:37:53.560 of interest.

00:37:54.940 There is a

00:37:55.300 massive industry

00:37:56.400 of service

00:37:58.860 providers alone

00:37:59.700 that relies

00:38:01.180 on the

00:38:01.560 mythology that

00:38:02.300 the agency

00:38:03.900 exploits.

00:38:05.300 And then of

00:38:05.520 course there

00:38:05.880 are substantial

00:38:07.120 political interests

00:38:08.800 in the country

00:38:09.880 that view

00:38:11.960 their bread

00:38:12.500 as being

00:38:12.880 buttered or

00:38:13.480 their interests

00:38:14.040 being furthered

00:38:14.940 by this

00:38:16.340 massive tax

00:38:17.040 structure.

00:38:17.400 We didn't

00:38:18.000 end up getting

00:38:18.800 the misapplication

00:38:20.080 of the tax

00:38:20.760 by accident.

00:38:22.080 We got it

00:38:22.440 because there

00:38:22.900 was a campaign

00:38:24.420 on to

00:38:25.720 encourage

00:38:26.280 misunderstanding.

00:38:27.600 The misunderstanding

00:38:28.140 didn't actually

00:38:28.940 take effect in

00:38:30.240 any meaningful

00:38:30.760 way until the

00:38:31.420 mid-1940s in

00:38:32.580 the midst of

00:38:33.000 World War II.

00:38:34.300 Prior to that

00:38:34.940 time,

00:38:36.420 the largest

00:38:38.240 percentage of

00:38:39.340 American households

00:38:40.260 that had ever

00:38:40.900 filed tax

00:38:41.500 return prior

00:38:42.480 to 1942

00:38:43.760 was 17%.

00:38:45.440 That was during

00:38:45.940 the peak of

00:38:46.460 World War I

00:38:47.540 when there

00:38:48.820 were a lot

00:38:49.480 more federally

00:38:50.980 connected

00:38:51.420 payments going

00:38:54.340 on.

00:38:55.940 Otherwise,

00:38:56.900 the average

00:38:57.540 from 1862

00:38:59.300 through 1942

00:39:01.020 ran about

00:39:02.020 8.9%

00:39:03.160 of households

00:39:04.340 that filed

00:39:04.880 tax returns

00:39:05.840 because most

00:39:07.400 Americans

00:39:07.780 understood

00:39:08.220 the limits

00:39:09.180 of the

00:39:09.400 tax.

00:39:09.800 They knew

00:39:10.080 what the

00:39:10.420 tax was.

00:39:11.680 It wasn't

00:39:12.160 until the

00:39:12.780 mid-1940s

00:39:13.840 when that

00:39:14.780 number,

00:39:16.060 the 8.9%

00:39:17.480 neighborhood,

00:39:19.020 jumped within

00:39:19.960 a course of

00:39:20.500 three or four

00:39:20.940 years to

00:39:21.800 93%, and it

00:39:23.320 has stayed

00:39:23.740 there ever

00:39:24.140 since.

00:39:25.480 It was a

00:39:26.140 combination of

00:39:26.880 a number of

00:39:27.820 factors.

00:39:28.180 Too much to

00:39:28.920 elaborate on

00:39:30.000 right now,

00:39:30.720 although I have

00:39:31.740 them all

00:39:32.300 posted.

00:39:32.980 If it's

00:39:33.740 possible to

00:39:35.020 give a

00:39:35.260 URL, go to

00:39:38.760 losthorizons.com

00:39:39.840 slash documents

00:39:41.080 with a

00:39:41.540 capital D

00:39:42.180 slash the

00:39:43.680 16th.htm.

00:39:46.640 At that

00:39:47.280 page will

00:39:48.580 be found

00:39:49.140 an in-depth

00:39:52.660 but very

00:39:53.100 accessible

00:39:53.620 study of

00:39:56.480 the history

00:39:57.460 of the

00:39:57.680 tax and

00:39:58.580 its

00:39:59.280 transformation

00:40:02.400 from the

00:40:03.980 tax that

00:40:05.580 it really

00:40:06.000 is written

00:40:06.520 as to

00:40:07.900 the

00:40:08.400 kind of

00:40:09.320 behemoth

00:40:09.940 apparent

00:40:12.020 capitation

00:40:13.260 sort of

00:40:13.660 thing that

00:40:13.940 we have

00:40:14.280 today,

00:40:14.820 all of

00:40:15.360 which took

00:40:15.780 place during

00:40:17.020 the course

00:40:17.540 of about

00:40:19.480 10 years

00:40:20.260 middle of

00:40:21.180 the last

00:40:21.560 century and

00:40:22.760 has stuck

00:40:23.240 with us

00:40:23.600 ever since

00:40:24.140 up till

00:40:25.260 2003 when

00:40:26.500 Cracking the

00:40:27.020 Code was

00:40:27.460 first published.

00:40:28.600 I hope

00:40:33.220 people will

00:40:33.900 go to

00:40:34.720 that site

00:40:35.040 and read

00:40:35.280 that.

00:40:35.640 Learning the

00:40:36.240 truth about

00:40:36.640 these things

00:40:37.060 is earth

00:40:39.460 shaking to

00:40:40.240 an individual

00:40:40.980 and it's

00:40:42.080 really important

00:40:43.120 to the

00:40:44.060 future of

00:40:45.320 this country.

00:40:46.700 The founders

00:40:47.140 relied on

00:40:47.900 people knowing

00:40:48.680 this information

00:40:49.400 and acting on

00:40:50.220 this kind of

00:40:50.640 information.

00:40:51.220 They wrote a

00:40:52.560 constitution but

00:40:53.280 the constitution

00:40:55.140 doesn't enforce

00:40:55.900 itself.

00:40:56.300 it requires

00:40:57.860 individual

00:40:58.500 Americans to

00:40:59.220 act on

00:40:59.920 its behalf

00:41:00.480 to look

00:41:01.440 out for

00:41:01.720 their own

00:41:02.100 interests both

00:41:02.880 as to the

00:41:04.120 preservation of

00:41:04.820 the rule of

00:41:05.260 law and

00:41:06.280 also look out

00:41:06.880 for their own

00:41:07.280 interests in a

00:41:07.920 purely practical

00:41:09.420 financial way

00:41:11.620 and in so

00:41:12.660 doing automatically

00:41:14.120 act as a

00:41:15.920 restraint on

00:41:17.140 the state

00:41:17.680 which is what

00:41:18.480 the founders

00:41:18.960 had in mind.

00:41:20.220 They created a

00:41:21.060 limited government.

00:41:21.900 They intended

00:41:22.200 the government

00:41:22.940 to be small,

00:41:25.020 efficient,

00:41:25.500 government,

00:41:27.100 not lumbering

00:41:27.840 around the

00:41:28.240 world,

00:41:30.560 working its

00:41:31.360 will on

00:41:31.780 behalf of

00:41:33.080 corporate

00:41:33.920 interests or

00:41:35.060 political

00:41:36.160 factions or

00:41:37.020 what have

00:41:37.380 you.

00:41:39.760 It was

00:41:40.320 friendship with

00:41:41.980 all and

00:41:42.380 tangleing

00:41:42.720 alliances with

00:41:43.440 none as

00:41:43.940 Washington

00:41:44.340 famously said

00:41:45.140 in its

00:41:45.380 farewell address.

00:41:46.980 That was

00:41:47.340 the idea.

00:41:49.680 Small

00:41:50.060 government.

00:41:50.560 For the

00:41:50.760 first 140

00:41:51.960 years or so

00:41:52.760 of our

00:41:53.040 history,

00:41:53.420 the total

00:41:55.340 impact that

00:41:59.480 government at

00:42:00.160 all levels

00:42:01.100 had on

00:42:02.120 citizens in

00:42:02.800 this country

00:42:03.200 was below

00:42:04.280 10% of

00:42:05.060 GDP.

00:42:05.480 That was

00:42:05.700 state,

00:42:06.200 federal,

00:42:06.540 local,

00:42:06.900 all combined

00:42:07.620 averaged below

00:42:09.680 10% of

00:42:10.840 GDP.

00:42:12.240 Right now

00:42:13.040 the feds

00:42:14.060 alone are in

00:42:14.600 the 40%

00:42:15.200 neighborhood

00:42:15.560 when you

00:42:16.300 total it

00:42:16.980 all up.

00:42:19.020 It's a

00:42:20.220 dramatic change

00:42:21.020 and not a

00:42:21.440 good change.

00:42:22.360 We've gone

00:42:22.940 from a

00:42:23.340 situation where

00:42:24.080 we were

00:42:24.700 prosperous and

00:42:25.600 free to a

00:42:26.760 situation where

00:42:27.540 we're neither

00:42:28.020 and going to

00:42:30.540 get worse.

00:42:31.300 Well now you

00:42:31.620 also have the

00:42:32.260 private sector

00:42:33.060 businesses who

00:42:33.760 are basically

00:42:34.140 helping to

00:42:34.700 facilitate elements

00:42:35.780 of this scheme.

00:42:36.820 They're profiting,

00:42:37.480 right?

00:42:38.040 Absolutely.

00:42:38.720 That's what I

00:42:39.240 meant about a

00:42:39.640 constituency of

00:42:40.340 interest.

00:42:41.180 The tax

00:42:42.440 professions, the

00:42:43.300 accounting

00:42:43.600 professions, the

00:42:44.420 human resource

00:42:45.100 professions,

00:42:46.060 everything from

00:42:49.280 H&R Block to

00:42:50.500 the Human

00:42:52.520 Resources

00:42:52.920 Department at

00:42:53.500 GM, has

00:42:55.660 something of

00:42:57.320 an interest or

00:42:58.040 at least imagines

00:42:59.080 itself to have

00:42:59.640 an interest in

00:43:00.760 this subject.

00:43:02.540 In addition to

00:43:03.620 that, again,

00:43:04.340 it's the

00:43:05.080 political interests

00:43:07.180 that are the

00:43:08.180 beneficiaries of

00:43:08.960 the money.

00:43:10.400 Congress takes

00:43:11.320 in this huge

00:43:12.160 volume of

00:43:13.380 funds without

00:43:15.380 any meaningful

00:43:16.200 political check.

00:43:17.300 Once the tax

00:43:18.760 rate is established

00:43:19.740 at the particular

00:43:21.180 rate that it's

00:43:21.780 at, the money

00:43:22.920 just comes in.

00:43:23.700 They don't need

00:43:24.120 to do anything.

00:43:24.660 They don't need

00:43:24.920 to vote on it.

00:43:25.500 They don't need

00:43:25.860 to take

00:43:27.600 accountability for

00:43:28.420 it.

00:43:28.520 All they have

00:43:28.860 to do is figure

00:43:29.320 out what

00:43:29.580 they're going

00:43:29.820 to spend it

00:43:30.240 on.

00:43:31.040 There are

00:43:31.700 these substantial

00:43:32.840 interests,

00:43:35.100 beneficiaries,

00:43:36.460 that also are

00:43:38.020 not exactly

00:43:38.880 interested in

00:43:39.800 rocking that

00:43:40.320 boat or

00:43:40.720 upsetting that

00:43:41.260 status quo

00:43:41.780 because they

00:43:42.740 are part of

00:43:44.440 the

00:43:44.680 benefit gain.

00:43:48.440 So it's a

00:43:50.100 conspiracy of

00:43:50.840 interest that

00:43:51.500 is a soft

00:43:52.240 conspiracy.

00:43:52.960 It's not a

00:43:53.280 deliberate

00:43:53.620 conspiracy.

00:43:55.000 It's not

00:43:55.220 something where

00:43:56.860 people in a

00:43:57.580 smoke-filled

00:43:58.400 back room

00:43:59.160 plan this out

00:44:01.080 and rub

00:44:02.440 their hands

00:44:03.000 and go out

00:44:03.900 into the

00:44:04.220 world like

00:44:06.360 the Illuminati

00:44:07.780 or something.

00:44:08.720 It's a lot

00:44:09.620 of interests

00:44:10.160 that coincide,

00:44:11.820 that serve

00:44:12.740 each other's

00:44:13.560 purposes and

00:44:15.300 every one of

00:44:16.900 them looking

00:44:17.380 out for

00:44:17.720 themselves the

00:44:18.340 way the

00:44:18.620 founders intended

00:44:19.260 each of us to

00:44:19.920 look out for

00:44:20.360 themselves succeeds

00:44:23.000 in helping

00:44:23.980 maintain this

00:44:25.560 huge fiction and

00:44:27.500 this mythology

00:44:28.200 by which the

00:44:30.420 rest of us

00:44:30.960 basically are

00:44:31.920 fleeced for a

00:44:32.860 huge portion of

00:44:33.680 our earnings.

00:44:34.840 There's another

00:44:35.660 interesting element

00:44:36.740 to this is the

00:44:37.920 paper money we

00:44:38.720 use.

00:44:39.680 It's IOU.

00:44:40.500 It's debt

00:44:40.820 instruments.

00:44:41.540 Is that even

00:44:42.140 income?

00:44:44.180 It is because

00:44:45.440 despite the fact

00:44:46.720 that an IOU is

00:44:48.240 a debt instrument

00:44:49.960 as you say,

00:44:51.260 you still can get

00:44:52.420 your grocer to

00:44:53.040 take it in

00:44:53.620 exchange for

00:44:54.160 groceries.

00:44:54.900 So it would be

00:44:55.460 impossible to

00:44:56.280 argue that a

00:44:57.360 gain was not

00:44:58.000 being had by

00:44:59.660 receiving it.

00:45:00.180 But more than

00:45:01.020 that, the actual

00:45:02.400 definitions in the

00:45:04.040 tax law say that

00:45:05.440 it doesn't matter

00:45:05.960 what you get paid

00:45:06.680 in.

00:45:06.860 It could be in

00:45:09.900 federal reserve

00:45:10.940 notes.

00:45:11.440 It could be in

00:45:12.420 livestock.

00:45:14.160 It could be in

00:45:15.160 shares of

00:45:16.720 ownership.

00:45:18.260 It could be in

00:45:19.140 whatever, tobacco

00:45:20.320 leaves.

00:45:21.240 And it still

00:45:21.780 qualifies as the

00:45:23.720 thing subject to

00:45:24.460 the tax.

00:45:24.900 the fact that

00:45:34.060 one's being

00:45:34.720 paid in a

00:45:35.240 devalued,

00:45:36.960 inflation-prone

00:45:39.280 fiat currency is

00:45:41.740 not an escape

00:45:42.880 from the

00:45:43.480 application of

00:45:44.240 the tax.

00:45:46.620 So let's talk

00:45:47.520 about this tax

00:45:48.320 code because most

00:45:48.960 people, they just

00:45:49.940 shut down just

00:45:51.000 from the energy

00:45:51.720 of it.

00:45:52.020 they can't

00:45:52.380 even go there

00:45:53.320 and they live

00:45:54.080 in fear of

00:45:54.800 the IRS.

00:45:55.980 What is it

00:45:56.680 about this tax

00:45:57.540 code that makes

00:45:58.240 people so turned

00:45:59.180 off?

00:46:00.500 Well, the IRS

00:46:01.120 has cultivated a

00:46:02.500 reputation of

00:46:05.120 fearsomeness.

00:46:07.860 It likes to

00:46:09.040 have itself

00:46:11.640 characterized as

00:46:12.440 the scariest

00:46:13.920 agency of the

00:46:14.880 federal government.

00:46:16.100 I've actually

00:46:16.880 seen plaques

00:46:17.760 posted in

00:46:19.620 IRS offices

00:46:21.040 that say things

00:46:21.800 kind of want

00:46:22.300 on that line.

00:46:23.420 It does that,

00:46:24.100 I believe,

00:46:24.800 for two reasons.

00:46:25.740 One, there's

00:46:26.180 this certain

00:46:27.080 kind of adolescent

00:46:28.500 locker room

00:46:29.460 thing that

00:46:30.760 satisfies some

00:46:32.960 juvenile egos.

00:46:34.660 But more

00:46:35.360 importantly, I

00:46:36.000 think it's

00:46:36.300 because the

00:46:37.800 system actually

00:46:39.980 benefits from

00:46:41.000 people being

00:46:41.440 afraid of it.

00:46:42.560 When people are

00:46:43.160 afraid of things,

00:46:43.840 they don't look

00:46:44.300 closely at them.

00:46:45.060 and the tax

00:46:47.940 code is an

00:46:49.060 area that the

00:46:50.040 IRS would love

00:46:50.840 people to view

00:46:51.880 as kind of a

00:46:52.620 dark alley that

00:46:53.860 you have to hurry

00:46:54.600 past and not

00:46:55.700 look closely into

00:46:56.640 because, you

00:46:57.600 know, for fear of

00:46:58.160 what you might see

00:46:58.840 and you just don't

00:46:59.860 want to be paying

00:47:00.300 it that much

00:47:00.740 attention because

00:47:01.280 you don't want it

00:47:01.740 to notice you

00:47:02.320 either.

00:47:03.780 And so people

00:47:04.860 don't look and

00:47:05.980 that works just

00:47:07.340 perfectly for the

00:47:08.780 folks that want

00:47:10.720 ignorance to rule

00:47:12.560 the day.

00:47:14.140 There is a

00:47:15.160 quote that I

00:47:16.600 came across.

00:47:19.200 I actually had a

00:47:19.880 reader send me

00:47:21.220 this and I

00:47:23.140 really love it.

00:47:23.820 This is from

00:47:24.400 Jack Warren Wade

00:47:25.380 Jr. who was an

00:47:27.000 IRS officer in

00:47:28.060 charge of the

00:47:29.260 IRS's Nationwide

00:47:30.280 Revenue Officer

00:47:31.000 Training Program

00:47:31.780 who wrote a

00:47:32.280 book after leaving

00:47:33.940 the service called

00:47:35.260 When You Owe

00:47:35.740 the IRS.

00:47:36.440 And here's one of

00:47:37.360 the things he has

00:47:37.860 to say in it.

00:47:39.540 He says,

00:47:40.340 the tax code

00:47:41.260 represents the

00:47:42.240 genius of legal

00:47:43.380 fiction.

00:47:44.580 The IRS has

00:47:45.380 never really known

00:47:46.280 why people pay

00:47:46.980 the income tax.

00:47:48.420 The IRS encourages

00:47:49.520 voluntary compliance

00:47:50.760 through fear.

00:47:54.640 That's it.

00:47:55.520 They do.

00:47:56.340 They rely a lot

00:47:57.540 on people being

00:47:58.240 afraid and

00:47:58.760 therefore not

00:47:59.500 knowing.

00:48:00.220 People are

00:48:00.640 afraid and

00:48:01.140 therefore they

00:48:01.800 won't look.

00:48:02.900 They don't

00:48:03.240 examine.

00:48:03.780 They don't

00:48:04.100 want to look

00:48:04.720 at it.

00:48:05.940 This is not

00:48:06.600 because it's

00:48:07.020 complicated law.

00:48:08.800 People have

00:48:09.380 lawyers look at

00:48:10.840 complicated law

00:48:11.920 all the time.

00:48:13.120 It's because

00:48:14.120 this structure

00:48:15.300 has encouraged

00:48:16.360 this impression

00:48:17.460 of scariness.

00:48:21.020 And, you

00:48:23.340 know, it's a

00:48:23.640 terrible thing

00:48:24.220 that an American

00:48:25.280 citizen should

00:48:26.140 find themselves

00:48:27.580 in a state of

00:48:28.500 anxiety over a

00:48:31.140 body of their

00:48:31.900 own law.

00:48:33.000 Our structure

00:48:33.820 is what it is.

00:48:34.540 This is our law.

00:48:35.380 Everything that

00:48:35.900 goes on in this

00:48:36.680 country is ours.

00:48:38.460 And yet, that's

00:48:41.060 just how it is.

00:48:42.160 The other

00:48:42.600 disgusting thing

00:48:43.580 here is, what

00:48:44.140 is it, about 60%

00:48:45.200 of taxes goes to

00:48:46.220 fund the war?

00:48:46.940 And then I'd say

00:48:47.480 probably the other

00:48:48.220 40% goes to fund

00:48:49.840 the building of

00:48:50.500 our own prison

00:48:51.140 right here in

00:48:51.860 America.

00:48:53.260 Yeah, there's a

00:48:53.840 lot of truth in

00:48:54.380 that.

00:48:54.540 Well, I alluded

00:48:55.440 to that earlier

00:48:56.100 when I said that

00:48:56.800 Joe Smith agrees

00:48:59.420 to the notion

00:49:01.240 that his earnings

00:49:01.900 are the taxable

00:49:03.660 stuff.

00:49:04.080 and even

00:49:06.480 though it's

00:49:07.040 going to get

00:49:07.360 used to a

00:49:08.600 great degree,

00:49:09.520 what's going to

00:49:10.380 get taken from

00:49:11.000 him is going to

00:49:11.420 get used against

00:49:12.160 his interest.

00:49:12.760 Not only is it

00:49:13.240 against his

00:49:13.660 interest to lose

00:49:14.240 the money in

00:49:14.640 the first place,

00:49:15.580 but it's going

00:49:15.980 to get spent

00:49:16.520 on things that

00:49:17.640 he would not

00:49:18.140 approve of and

00:49:18.900 that will ultimately

00:49:20.340 possibly be a

00:49:21.780 direct harm to

00:49:22.540 him.

00:49:24.480 Yeah, it's a

00:49:25.040 terrible thing.

00:49:25.840 That money gets

00:49:26.560 used to buy the

00:49:28.340 bullets that make

00:49:31.200 widows and

00:49:31.880 orphans and

00:49:32.920 lifelong enemies

00:49:34.140 of all Americans

00:49:35.820 in other countries

00:49:36.900 in service to

00:49:38.740 who knows what

00:49:40.500 interests, but

00:49:41.420 certainly not that

00:49:42.140 of most Americans.

00:49:43.820 It is used to

00:49:45.200 finance the

00:49:46.220 DOJ attorneys

00:49:47.960 that harass

00:49:49.240 people for

00:49:50.220 failing to

00:49:51.280 package their

00:49:53.660 imported lobsters

00:49:54.700 properly and

00:49:55.960 send them off

00:49:57.000 to prison for

00:49:57.600 a few years.

00:49:58.220 and all the

00:50:00.400 huge host of

00:50:03.340 nanny state

00:50:06.120 abuses to

00:50:08.380 which Americans

00:50:09.140 are subject

00:50:10.340 these days.

00:50:11.380 It's a terrible

00:50:12.100 scourge.

00:50:12.880 And now you have

00:50:13.280 these companies

00:50:13.820 that are all part

00:50:14.740 of this snitch

00:50:15.300 culture.

00:50:15.840 You have now,

00:50:16.380 what is it,

00:50:16.940 PayPal,

00:50:17.920 all these payment

00:50:18.760 gateway systems.

00:50:19.940 They all have to

00:50:20.700 go report what

00:50:22.060 you're making to

00:50:22.780 the IRS now.

00:50:24.120 Well, they think

00:50:24.620 they do.

00:50:24.960 They think they

00:50:25.840 do in the same

00:50:26.420 way that everyone

00:50:27.760 thinks that they

00:50:28.520 have to write

00:50:28.980 those W-2s and

00:50:30.160 those 1099s and

00:50:31.260 so forth about

00:50:32.180 payments that they

00:50:32.940 make.

00:50:34.240 And, yeah,

00:50:35.660 we had the

00:50:37.200 credit card

00:50:38.000 reporting,

00:50:41.320 transaction

00:50:42.080 reporting,

00:50:42.920 added to the

00:50:44.320 tax law structure

00:50:45.420 last year.

00:50:47.140 And yet, if you

00:50:48.200 look at that,

00:50:48.980 the language of

00:50:49.900 that law, that

00:50:50.700 section of law,

00:50:51.340 you find that it's

00:50:51.920 exactly the same as

00:50:52.880 the other sections.

00:50:53.720 It does not

00:50:54.140 actually apply to

00:50:55.040 any credit card

00:50:56.300 transaction done

00:50:57.280 by anybody,

00:50:58.020 any place.

00:50:58.940 It applies only to

00:50:59.840 a very narrow

00:51:00.380 subset of credit

00:51:02.120 card transactions.

00:51:03.140 You know, the

00:51:03.340 government agencies

00:51:04.300 use credit cards

00:51:05.100 too.

00:51:06.420 And the law is

00:51:09.380 actually very

00:51:09.940 clear.

00:51:10.300 It's actually more

00:51:11.300 clear in that new

00:51:13.260 body of law than

00:51:14.040 a lot of the

00:51:15.080 older versions or

00:51:17.060 older portions

00:51:18.160 where other kinds

00:51:20.200 of reporting forms

00:51:21.200 are spelled out

00:51:22.380 and introduced.

00:51:25.000 I have on my

00:51:25.980 website an

00:51:28.420 analysis of that

00:51:29.580 credit card

00:51:30.820 transaction reporting

00:51:31.720 requirement.

00:51:32.340 Anybody that is

00:51:33.220 being subjected

00:51:33.880 to that, I

00:51:34.440 strongly encourage

00:51:35.920 a look at that

00:51:37.940 law.

00:51:38.500 It'll be very

00:51:39.240 uplifting and

00:51:40.800 reassuring to you.

00:51:42.440 Yeah, thanks for

00:51:43.000 that.

00:51:43.580 Another question

00:51:44.120 for you.

00:51:44.400 What about

00:51:44.760 property taxes

00:51:45.640 when you get the

00:51:46.460 bill for your

00:51:47.160 car or your

00:51:47.920 boat or your

00:51:48.600 house?

00:51:49.720 What do you do?

00:51:50.240 Not the same

00:51:51.540 thing.

00:51:52.080 Property taxes

00:51:52.660 are under an

00:51:53.300 entirely different

00:51:54.060 structure.

00:51:55.080 Property taxes

00:51:55.680 are local,

00:51:56.980 they're state-based

00:51:59.460 taxes.

00:52:00.480 States don't have

00:52:01.260 the same

00:52:01.820 constitutional

00:52:02.420 restrictions that

00:52:03.360 the federal

00:52:04.180 system does

00:52:04.920 necessarily.

00:52:07.440 Some states

00:52:07.860 have varying

00:52:10.300 types of

00:52:10.900 restrictions, but

00:52:12.060 none automatically

00:52:13.160 has the same

00:52:13.900 apportionment

00:52:15.080 requirement for

00:52:15.760 direct tax and

00:52:16.420 what have you.

00:52:16.760 It's actually

00:52:18.100 informative to

00:52:19.860 think about what

00:52:20.780 happens with a

00:52:21.420 property tax bill.

00:52:22.740 You don't get

00:52:23.720 pejoled into

00:52:26.620 creating some

00:52:27.660 kind of a

00:52:28.160 document declaring

00:52:30.380 your property tax

00:52:31.300 bill and asking

00:52:33.060 you to sign at

00:52:33.880 the bottom under

00:52:34.540 penalty of perjury

00:52:35.540 making the

00:52:37.660 declaration as to

00:52:38.520 what it is you're

00:52:39.060 talking about.

00:52:40.160 It doesn't work

00:52:40.760 that way.

00:52:41.100 You just get an

00:52:41.600 invoice.

00:52:42.680 That's all that

00:52:43.160 happens with a

00:52:43.600 property tax bill.

00:52:44.320 You get an

00:52:44.620 invoice because that

00:52:46.300 is a direct tax

00:52:47.180 and it's a tax

00:52:48.200 that is not

00:52:48.900 there's no

00:52:50.780 flim-flam going

00:52:52.560 on in that tax.

00:52:53.860 There's no effort

00:52:54.540 to get you to

00:52:55.380 agree that your

00:52:56.280 property is subject

00:52:57.680 to the tax or

00:52:58.500 anything like that.

00:52:59.340 It's just very

00:53:00.060 straightforward.

00:53:00.920 If the income

00:53:01.520 tax actually fell

00:53:02.900 on what the

00:53:04.020 IRS would like

00:53:06.280 everyone to

00:53:06.720 imagine that it

00:53:07.380 does, that's how

00:53:08.340 it would work

00:53:08.900 too.

00:53:10.040 It's very

00:53:10.460 instructive to

00:53:11.280 recognize that it

00:53:12.720 doesn't work that

00:53:13.380 way and there's a

00:53:13.920 reason for that.

00:53:14.520 Now what do you

00:53:15.660 say to all the

00:53:16.140 conspiracy folks

00:53:16.960 who say, it's

00:53:17.960 just better to

00:53:18.420 not send in or

00:53:19.120 sign any forms

00:53:19.900 to the IRS

00:53:20.380 because it's

00:53:21.020 going to make

00:53:21.360 me part of

00:53:21.880 the system?

00:53:23.080 I say you're

00:53:23.620 crazy.

00:53:24.260 I say what

00:53:24.860 would you do

00:53:25.520 if someone went

00:53:28.000 down to the

00:53:28.420 local police

00:53:28.940 station and

00:53:29.520 filed an

00:53:29.960 affidavit

00:53:30.540 declaring that

00:53:31.620 you were

00:53:32.660 illegally parked

00:53:33.480 last night?

00:53:34.380 Would you

00:53:34.700 just not do

00:53:36.020 anything at

00:53:36.540 all and wait

00:53:37.820 for the ticket

00:53:38.300 to show up?

00:53:39.160 No, you'd

00:53:40.120 get noticed

00:53:40.660 of that

00:53:41.620 allegation and

00:53:42.540 you'd stalk

00:53:43.160 down to a

00:53:44.140 police station

00:53:44.640 and you'd

00:53:44.840 say, hell

00:53:45.240 no, I

00:53:46.260 was not

00:53:46.680 illegally

00:53:47.160 parked and

00:53:47.600 here's my

00:53:47.980 affidavit making

00:53:49.120 clear that I

00:53:49.940 was not.

00:53:51.660 That's what you

00:53:52.320 would do.

00:53:52.760 And that's to

00:53:53.620 stand silent in

00:53:54.740 the case of an

00:53:56.260 allegation being

00:53:56.940 made against

00:53:57.420 you.

00:53:57.780 If no

00:53:58.260 allegations are

00:53:59.020 being made,

00:53:59.920 if nobody's

00:54:00.560 creating W-2s or

00:54:01.820 1099s or other

00:54:02.800 information returns

00:54:03.700 reporting, alleging

00:54:05.400 that you earned

00:54:06.840 or received

00:54:07.900 taxable earnings,

00:54:10.920 then there isn't

00:54:11.440 any reason to

00:54:12.240 say anything.

00:54:13.160 But very few

00:54:14.500 people that are

00:54:15.000 in that situation,

00:54:16.160 most people do

00:54:18.080 get paid by

00:54:18.680 someone who

00:54:19.140 does create

00:54:19.760 these things.

00:54:20.340 That's the real

00:54:20.940 tragedy of the

00:54:21.560 situation.

00:54:22.480 The 1099s.

00:54:24.300 Yeah, the

00:54:24.660 information returns

00:54:25.400 that are being

00:54:25.800 created by people

00:54:26.580 who are completely

00:54:27.560 ignorant about what

00:54:28.280 they're saying.

00:54:29.220 And they're only

00:54:29.620 doing it because

00:54:30.180 they think they

00:54:30.680 have to.

00:54:31.460 That's the real

00:54:32.020 tragedy.

00:54:32.340 If that were to

00:54:32.900 stop, everything

00:54:34.840 else would stop

00:54:35.500 too.

00:54:36.440 And no one

00:54:37.220 would have to

00:54:37.600 file anything.

00:54:38.540 No one would,

00:54:39.280 you know.

00:54:39.620 Well, these

00:54:39.900 companies would

00:54:40.420 save money too

00:54:41.100 because they have

00:54:41.440 to have all

00:54:41.900 these extra

00:54:42.420 accountants just

00:54:43.300 to prepare all

00:54:44.260 this stuff.

00:54:44.540 They would save a

00:54:45.480 huge amount of

00:54:45.980 money.

00:54:46.200 And it isn't just

00:54:46.740 that.

00:54:47.540 As I mentioned

00:54:48.220 earlier, Social

00:54:48.740 Security and

00:54:49.240 Medicare, those

00:54:49.740 are just income

00:54:50.280 taxes too.

00:54:51.620 And yet these

00:54:52.080 companies that

00:54:53.080 create these W-2s

00:54:55.380 and so forth,

00:54:56.380 they're paying

00:54:56.960 7.65% of their

00:54:58.740 payroll for these

00:55:00.720 taxes.

00:55:01.080 They're not obliged

00:55:01.760 to pay those

00:55:02.280 taxes either.

00:55:02.920 Those are no more

00:55:03.740 legitimate on

00:55:05.200 non-federally

00:55:06.140 connected earnings

00:55:07.180 than any other.

00:55:08.080 And so these

00:55:09.580 companies have

00:55:10.200 that much at

00:55:10.800 least at stake

00:55:11.780 in addition to

00:55:12.360 what you said

00:55:12.800 about the

00:55:13.280 compliance costs

00:55:15.060 which are

00:55:16.040 indeed substantial.

00:55:18.440 So I have

00:55:19.520 the statistics,

00:55:20.160 someplace in

00:55:20.860 cracking the

00:55:21.380 code I have

00:55:21.800 the statistic

00:55:22.680 as to the

00:55:24.460 compliance costs

00:55:25.380 at the time

00:55:25.920 of writing

00:55:26.400 which is in

00:55:26.860 2003.

00:55:28.480 And it was

00:55:28.900 a huge amount.

00:55:30.700 There are more

00:55:31.280 hours spent on

00:55:32.580 the accountancy

00:55:34.300 associated with

00:55:35.340 paying the income

00:55:36.000 tax than were

00:55:37.240 spent back then

00:55:38.200 on all

00:55:39.220 manufacturing

00:55:39.980 activities in

00:55:40.720 this country.

00:55:43.260 We've lost

00:55:44.200 some manufacturing

00:55:44.820 capacity since

00:55:45.620 then so that

00:55:46.160 number, the

00:55:46.620 differential is

00:55:47.240 probably considerably

00:55:48.300 higher at this

00:55:48.960 point but that's

00:55:49.520 still a very

00:55:50.800 telling figure.

00:55:52.800 There's a huge

00:55:53.300 compliance cost

00:55:54.060 associated with it.

00:55:55.280 Now do the

00:55:56.180 elite know of

00:55:57.040 what we've been

00:55:57.540 discussing here?

00:55:58.220 Are they paying

00:55:58.760 taxes?

00:55:59.660 Is Mr. Rockefeller

00:56:00.500 paying taxes?

00:56:01.880 I'm sure some

00:56:02.420 of them know it.

00:56:03.320 Well Mr. Rockefeller

00:56:04.200 sees one of those

00:56:05.220 guys that would be

00:56:05.740 a privileged

00:56:06.120 beneficiary probably

00:56:07.220 he probably does

00:56:08.640 make a notable

00:56:11.200 amount of

00:56:11.760 income, quote

00:56:12.840 unquote income.

00:56:14.120 And the fact is

00:56:14.680 this is one of the

00:56:15.180 reasons I mentioned

00:56:15.780 earlier that I

00:56:16.560 view the tax as a

00:56:17.460 beneficial affair.

00:56:19.600 I'm happy with this

00:56:20.280 tax, I wouldn't be

00:56:20.900 without it.

00:56:21.380 The reason for that

00:56:22.100 is because of its

00:56:22.720 real nature.

00:56:24.000 This is a tax

00:56:24.760 that's intended to

00:56:25.840 recover for the

00:56:27.560 public purse some

00:56:29.440 portion of the

00:56:30.760 private benefits that

00:56:32.400 are had by people

00:56:33.620 using public

00:56:34.640 property to make

00:56:35.820 money.

00:56:36.120 and that

00:56:37.800 specifically falls

00:56:39.640 on things like

00:56:41.300 the national

00:56:41.740 railroads,

00:56:42.420 national banks,

00:56:43.240 the federal reserve

00:56:43.980 system, armaments

00:56:45.060 manufacturers, the

00:56:47.180 very well paid

00:56:48.360 federal workforce,

00:56:50.240 investors in

00:56:51.500 federal corporations

00:56:52.780 which tend to do

00:56:54.140 very well.

00:56:56.800 These are

00:56:57.240 privileged activities

00:56:58.060 and it's privileged

00:56:59.400 beneficiaries that are

00:57:00.460 the ones that owe

00:57:00.980 this tax, people like

00:57:02.100 Rockefeller.

00:57:03.860 And so we all

00:57:06.340 should be completely

00:57:07.760 enthused about this

00:57:08.800 tax being applied the

00:57:09.960 way it ought to be.

00:57:11.560 The only thing to be

00:57:12.780 not enthused about is

00:57:13.700 when it is misimplied

00:57:15.620 and that's a

00:57:16.800 consequence of an

00:57:18.020 individual's own

00:57:18.680 ignorance to a

00:57:20.120 fortunate degree.

00:57:21.620 But no, that's one

00:57:23.200 of the beauties of

00:57:24.200 the thing.

00:57:24.460 Rockefeller, yeah, he

00:57:26.140 may very well know

00:57:27.340 these truths but he

00:57:29.020 doesn't be able to

00:57:29.900 benefit from them.

00:57:30.620 Here's how he does

00:57:31.260 benefit though.

00:57:33.100 By having helped

00:57:35.480 promote the

00:57:36.060 mythology to

00:57:37.140 whatever degree he

00:57:37.800 may have, that the

00:57:39.600 tax is far broader

00:57:41.840 in its legitimate

00:57:43.760 application than it

00:57:44.500 really is, the pain

00:57:46.620 of ginning up the

00:57:48.920 $2.7 trillion

00:57:50.220 that it produces

00:57:52.100 these days is spread

00:57:54.940 over virtually the

00:57:57.740 entire population,

00:57:58.560 the entire working

00:57:59.100 population of the

00:57:59.840 country.

00:58:00.140 whereas if people

00:58:01.680 understood the

00:58:02.400 realities of this

00:58:03.120 tax and what it

00:58:03.940 really applies to,

00:58:05.420 that pain would be

00:58:06.220 spread over only that

00:58:07.200 little privileged

00:58:07.800 beneficiary group and

00:58:09.260 that privileged

00:58:09.720 beneficiary group would

00:58:10.820 be paying a whole lot

00:58:11.760 more than what they're

00:58:12.980 paying right now.

00:58:14.600 So Rockefeller does

00:58:16.300 benefit from the

00:58:17.320 mythology.

00:58:18.480 He doesn't benefit

00:58:19.100 from the truth about

00:58:20.760 the tax.

00:58:21.580 He benefits from

00:58:22.200 people misunderstanding

00:58:23.560 the tax because he

00:58:25.280 only pays his little

00:58:26.460 bit and the middle

00:58:27.980 class pays this huge

00:58:29.560 portion of it as well.

00:58:30.960 Now, the differential

00:58:32.060 between what the

00:58:32.780 extremely wealthy pay

00:58:34.280 and what the average

00:58:35.640 middle class person

00:58:36.340 pays, in hard

00:58:38.520 numbers, the wealthy

00:58:40.120 pay a great deal

00:58:40.980 more.

00:58:42.020 But overall, the

00:58:45.040 middle class is

00:58:46.480 sparing the privileged

00:58:48.040 class an awful lot

00:58:50.020 of burden.

00:58:50.880 while they're trying

00:58:51.680 to kill the middle

00:58:52.260 class in this

00:58:52.820 country.

00:58:54.220 There seems to be a

00:58:56.180 serious failure to

00:59:00.080 recognize the

00:59:00.960 importance of the

00:59:01.580 middle class and to

00:59:02.660 nurture it.

00:59:03.480 Yeah, absolutely.

00:59:04.600 I don't know that

00:59:05.120 anyone is deliberately

00:59:06.200 looking to kill that

00:59:07.920 goose that lays the

00:59:09.240 golden eggs, but

00:59:10.000 because the middle

00:59:10.900 class tends to be the

00:59:11.760 productive class.

00:59:14.260 But certainly there is

00:59:15.960 precious little

00:59:16.760 nurturing of what the

00:59:19.100 middle class needs to

00:59:20.220 survive and thrive, and

00:59:22.060 so it is definitely

00:59:22.940 dying off, yes.

00:59:24.200 We're seeing a split

00:59:26.620 in what is an

00:59:27.960 increasingly large

00:59:28.820 underclass and an

00:59:30.080 increasingly large

00:59:31.100 and increasingly elite

00:59:34.300 kind of 1% class.

00:59:37.200 Well, it's like in a

00:59:37.880 socialist society.

00:59:40.440 Yeah, yeah, very much.

00:59:41.940 There's an oligarchic

00:59:43.060 structure and there's

00:59:44.460 the serfs.

00:59:46.100 Hey, you know, in

00:59:46.660 Sweden, since you have

00:59:47.500 a Swedish background, I

00:59:48.280 thought this would be

00:59:48.800 kind of fun, the cash

00:59:49.900 registers of the

00:59:50.700 businesses are wired

00:59:51.800 straight to the tax

00:59:52.720 office.

00:59:53.180 Can you believe that?

00:59:54.280 No kidding.

00:59:55.320 So, yeah, even the

00:59:56.380 coffee, the girl that

00:59:57.320 was doing my heroin, she

00:59:58.420 was afraid, you know, to

00:59:59.200 open up the cash register

01:00:00.080 to get some money out to

01:00:01.340 get some coffee.

01:00:03.100 Oh, no, the tax office is

01:00:04.400 going to know I opened it

01:00:05.260 and didn't put anything

01:00:05.980 in, I took it out.

01:00:07.620 Yeah, yeah, that's a

01:00:09.300 country that unfortunately

01:00:10.460 is, has a storied and

01:00:13.480 noble history in many

01:00:14.540 ways and yet has kind of

01:00:16.320 gone way down the road to

01:00:18.020 a socialist disaster.

01:00:19.920 Oh, yeah.

01:00:20.640 Oh, yeah.

01:00:21.360 So, what should people

01:00:22.340 be prepared for when

01:00:23.200 they choose to stand up

01:00:24.220 in accordance with the

01:00:25.100 truth here?

01:00:26.460 A lot more money in

01:00:27.500 their pockets and a lot

01:00:29.460 more dignity in their

01:00:30.500 hearts.

01:00:32.380 That's the one

01:00:33.820 completely consistent

01:00:35.100 consequence of learning

01:00:38.820 this truth.

01:00:40.800 It's very empowering and

01:00:43.000 that empowerment is not

01:00:44.540 only, you know, of a

01:00:46.360 legal character but of a

01:00:49.780 spiritual character.

01:00:52.780 The, you know, prior to

01:00:53.840 knowing how this all works,

01:00:56.000 one is, you know, kind of

01:00:57.200 just being pushed around by

01:00:58.540 the system and being

01:01:00.840 pushed around in a daze

01:01:03.940 almost.

01:01:04.720 And that doesn't mean that

01:01:05.460 everybody is, you know,

01:01:06.460 walking around, you know,

01:01:07.580 blank face wondering what's

01:01:09.900 going on.

01:01:10.400 But when you learn what you

01:01:11.840 didn't know, you will

01:01:13.360 realize that for all

01:01:14.660 practical purposes you

01:01:15.660 were very much that way

01:01:16.800 even though, you know, you

01:01:17.960 were carrying on your life

01:01:19.020 and, you know, maybe were

01:01:20.180 the coolest thing on the

01:01:21.040 block.

01:01:22.060 But you now know you're

01:01:27.240 empowered in the kind of

01:01:29.000 the same way that the

01:01:30.020 revolutionary generation was

01:01:32.120 of which it was remarked

01:01:34.380 during that revolutionary

01:01:36.180 period when England was,

01:01:38.360 you know, Parliament was

01:01:39.000 discussing, you know, what

01:01:40.300 would be the next

01:01:40.960 draconian assault on

01:01:44.920 the colonists.

01:01:45.980 Edmund Burke got up and

01:01:47.120 he said, you guys, just

01:01:48.340 hang it up.

01:01:48.860 He said, don't bother.

01:01:50.400 Those will never conquer

01:01:51.500 those people.

01:01:52.000 You will never subjugate

01:01:52.880 those people into

01:01:53.800 colonists again.

01:01:54.860 They've been reading the

01:01:55.780 law.

01:01:57.440 And he was right.

01:01:59.280 That's what it took.

01:02:00.560 It takes people

01:02:01.500 understanding the nature

01:02:02.540 of law.

01:02:03.680 When you learn this truth

01:02:05.040 about the tax law, you

01:02:06.660 discover that the federal

01:02:07.720 structure is actually a

01:02:09.500 whole different thing

01:02:10.200 than what you imagined it

01:02:11.200 was.

01:02:11.520 There's a lot of scamming

01:02:12.960 going on.

01:02:13.560 There's a lot of

01:02:14.180 exploitation of ignorance.

01:02:16.120 But it is not nearly the

01:02:18.320 rogue, you know, out of

01:02:23.640 control monstrosity that it

01:02:26.340 appears to be.

01:02:27.080 It's getting there, but it's

01:02:28.400 getting there now for two

01:02:30.420 reasons.

01:02:32.140 One, because there were some

01:02:33.900 pretexts that, you know,

01:02:35.720 allowed for some political

01:02:37.040 push behind some dramatic

01:02:38.720 things like the Patriot Act

01:02:39.980 and so forth.

01:02:41.060 But it's also getting there

01:02:42.580 because the longer that

01:02:47.520 certain kinds of excesses are

01:02:50.220 allowed to go on, the more

01:02:51.800 they become routinized and

01:02:55.060 institutionalized.

01:02:57.280 And so we definitely have a

01:02:58.900 fear right now, a legitimate

01:03:00.200 fear that, you know, it's going

01:03:01.860 to, you know, turn south in a

01:03:04.560 big way.

01:03:06.180 You know, it's well on the

01:03:07.760 road to that.

01:03:08.520 And a lot of the tools of a

01:03:11.260 truly dangerous turning south

01:03:14.280 are being put into place and

01:03:16.020 allowed to just accumulate

01:03:17.620 because people are ignorant about

01:03:20.200 the realities of the federal

01:03:23.840 structure.

01:03:24.240 But it's well within our reach

01:03:27.220 to reverse this process if

01:03:29.340 people will get educated about

01:03:34.400 the real relationship between

01:03:36.440 government and citizens and the

01:03:39.320 real manner in which things

01:03:41.640 go on.

01:03:41.880 For instance, you know, just to

01:03:43.900 take an example that is another

01:03:45.560 big player in the public policy

01:03:47.460 scene, drug laws.

01:03:49.560 Big, big factor in a lot of

01:03:52.420 people's lives, not because, you

01:03:53.820 know, necessarily, you know,

01:03:54.880 people are drug users or drug

01:03:57.840 dealers, you know, or drug

01:04:00.000 enforcers, but we're all

01:04:01.560 affected in some ways by that.

01:04:03.320 Arguably, the assaults on the

01:04:05.340 Fourth Amendment have been more

01:04:07.880 at the hands of the drug

01:04:10.400 warriors than they have at the

01:04:11.880 hands of the NSA and the

01:04:13.840 surveillance state.

01:04:15.280 They're kind of Johnny-come-latelys

01:04:16.880 on that front.

01:04:18.740 And even, you know, all of

01:04:19.500 Edward Snowden's recent

01:04:20.440 revelations, some of the

01:04:23.800 some of them suddenly took sort

01:04:25.640 of a back step when it was

01:04:26.800 revealed that the DEA, the Drug

01:04:29.600 Enforcement Administration, had

01:04:30.600 been doing these same things for

01:04:31.780 many, many years.

01:04:33.600 And they're sharing data and so

01:04:36.180 forth.

01:04:37.040 And yet, the drug laws are all

01:04:38.500 based on the Commerce Clause.

01:04:41.100 There is no actual federal, you

01:04:45.280 know, constitutional structure that

01:04:47.140 allows the feds to dictate what

01:04:48.800 people put in their bodies or what

01:04:50.180 kind of things they buy and sell.

01:04:51.980 Any more than there is for

01:04:53.880 alcohol.

01:04:54.980 We know there had to be a

01:04:55.920 constitutional amendment for

01:04:57.260 alcohol prohibition to go into

01:04:58.460 effect.

01:04:59.600 There would need to be one for

01:05:00.860 drug prohibition to go into

01:05:02.240 effect, the drug prohibition of the

01:05:03.940 sort that people imagine there is

01:05:05.300 right now.

01:05:05.640 But what there actually is, is it all

01:05:07.580 goes back to the Pure Food and

01:05:09.060 Drug Act of 1908, I think it was, or

01:05:11.500 07, when drug labeling was being

01:05:16.580 taken control of to a certain degree

01:05:19.420 by the feds and only for drugs to

01:05:21.680 cross state lines.

01:05:23.400 And from that, the entire drug

01:05:27.620 interdiction and prohibition structure

01:05:30.280 in this country rests on that act and

01:05:34.040 its Commerce Clause citation of

01:05:36.040 interstate commerce and the Pure Food

01:05:39.700 Drug Act and the labeling component.

01:05:43.280 It isn't at all what people imagine

01:05:44.720 it to be.

01:05:45.880 And if you understand the way

01:05:47.800 federal law actually works, you learn

01:05:49.900 how to study, how to look into these

01:05:51.500 things, do research on these

01:05:52.680 subjects, and you discover that all

01:05:55.360 the federal law that we find so

01:05:56.960 problematic today actually has some

01:06:00.380 kind of benign origin that has been

01:06:06.380 allowed to become contorted and

01:06:08.940 distorted into something threatening to

01:06:12.580 us by virtue of ambition on the part

01:06:17.060 of the executive branch, people

01:06:20.100 responsible for it, ignorance on the

01:06:23.280 part of the American public,

01:06:24.980 sensationalizing on the part of the

01:06:26.560 media, and a few other factors.

01:06:28.380 But when you get down to the heart of

01:06:30.800 all of it, it's actually a very

01:06:32.560 manageable thing.

01:06:33.740 It just requires exposing what it really

01:06:37.660 rests on, and it's kind of like Alice and

01:06:40.900 the cards in Alice in Wonderland at the

01:06:45.160 end, it's all packed cards, she said, and

01:06:47.400 she then grew back into the big human that

01:06:52.780 was capable of disregarding these little

01:06:56.780 annoyances that the people who had been

01:07:00.780 threatening her suddenly were revealed to be.

01:07:04.520 So it falls to all of us to learn these

01:07:07.580 things and become responsible grown-up Americans

01:07:10.520 again, looking out for our interests from a

01:07:14.280 standpoint of knowledge.

01:07:16.020 That's right.

01:07:16.340 It seems like the relationship between government

01:07:18.040 and citizen today is much different than perhaps

01:07:20.860 what our founding fathers envisioned.

01:07:22.960 Maybe they weren't such bad guys after all, huh?

01:07:25.500 Yeah, not at all.

01:07:26.720 Not at all.

01:07:27.920 Well, whoever was responsible for writing the

01:07:29.480 tax code was brilliantly cunning, deceitful, and

01:07:31.660 deliberately confusing, but you, Peter, are even

01:07:33.940 more brilliant and victorious for cracking this

01:07:35.700 code and deconstructing the lie, so I thank you

01:07:37.680 for all your hard work and your courage to come

01:07:40.000 out and speak out.

01:07:40.700 We need more men like you.

01:07:42.320 Well, thank you very much, and it's been a great

01:07:43.940 pleasure speaking with you, Lana.

01:07:45.540 I encourage all of you listening to visit Peter's

01:07:47.640 website, LostHorizons.com, and please purchase

01:07:50.220 his book, Cracking the Code.

01:07:51.600 There's also a CD that explains the form

01:07:53.240 process. This is not a bunch of BS

01:07:55.240 or a sales gimmick. His research gets

01:07:57.100 results, and results are what we need right

01:07:59.300 now more than anything. Do yourself

01:08:01.320 justice. Stop paying the crooks, thieves, and

01:08:03.540 murderers who are building your prison.

01:08:05.620 Those who lie and use force and coercion.

01:08:07.980 Choose to govern yourself and govern your own

01:08:10.100 resources. This matrix stays intact through

01:08:12.820 widespread ignorance and fear.

01:08:15.000 One more thing. Some fear that if enough people

01:08:17.040 began filing educated returns, the powers that

01:08:19.480 be would simply change constitutional law since

01:08:21.980 they already disregard it and do what they want

01:08:23.620 anyway. But the key thing here is us, the

01:08:26.040 people. We're the ones that allow or don't

01:08:28.320 allow these crooks to operate outside the

01:08:30.360 original true framework put in place when

01:08:32.380 this country was founded. The original

01:08:34.240 jurisprudence, the U.S. Constitution, which

01:08:37.020 is much better than what we have today. The

01:08:39.180 price of freedom is eternal vigilance because

01:08:41.200 the jaws of power are always open to devour,

01:08:43.740 whether done by law or outside of it. Take care.

01:08:46.580 Take care.

01:08:48.580 Take care.

01:08:50.580 Take care.

01:08:52.580 Take care.

01:08:54.580 Take care.

01:08:56.580 Take care.

01:08:58.580 Take care.

01:09:02.220 Take care.

01:09:04.580 Take care.

01:09:05.500 Take care.

01:09:06.420 Take care.

01:09:08.520 Take care.

01:09:14.180 Bye.

01:09:15.600 Bye.

01:09:18.580 Bye.

01:09:19.000 Bye.

01:09:22.300 Bye.

01:09:23.200 Thank you.

01:09:53.200 Thank you.

01:10:23.200 Thank you.

01:10:53.200 Thank you.

01:11:23.200 Thank you.

01:11:53.200 Thank you.

01:12:23.200 Thank you.

01:12:53.200 Thank you.

01:13:23.200 Thank you.

01:13:53.200 Thank you.

Radio 3Fourteen - October 23, 2013

Cracking the Code_ The Truth About Taxation in America

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