income taxes

Is The American Dream Lost?

The American Dream has already been lost to many within 50% of the U.S. population that pays little-to-no income taxes. The American Dream will also disappear for the middle-to-upper classes if drastic changes are not made.  To recapture the American Dream, we must first understand our inalienable rights:

1. All Americans have the inalienable right to self-defense and should be able to have the weapons of their choice to protect their lives, their family, and their property. Individuals have the right to keep, carry, and bear arms without the Second Amendment; and, if the State denies this right, it should become responsible and financially liable to protect its’ citizens, residents, and their property.

2. Economic freedom is just as important to Americans as religious freedom, freedom of speech, freedom of the press, voting, etc. but, the power elites and branches of government have purposely reinterpreted the Constitution, granting government more and more power at the expense of individual freedom. Without economic freedom, we are all slaves.

3. The income tax is a slave tax as understood by the Founders of the United States and there was no income tax while our Founders were alive. The government created by the Founders in 1787 is best described by Thomas Jefferson, “. . . a wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circles of our felicities.” As explained by Thomas Jefferson, the Founders did not anticipate government regulation of economic activity nor a direct tax on labor, i.e., they considered an income tax on wages to be tantamount to slavery. In spite of the Bill of Rights–the first ten Amendments to the Constitution–being unchanged, Americans are saddled with extensive regulation with respect to their economic activity, along with a permanent and progressive income tax. Although the Sixteenth Amendment allows Congress to “lay and collect taxes on incomes, from whatever source derived,” it did not amend, modify, or replace the Fourth Amendment (the right to be secure in one’s papers and effects), or the Fifth Amendment (the right not to be compelled to be a witness against oneself). Therefore, the administration and collection of the income tax is unconstitutional. However, do not stop filing your tax returns and paying your taxes; the IRS will destroy you if you do not follow the law as they understand it to be. Instead, spread the word. The more people that understand this fraud perpetrated on the American public, the greater the likelihood a consumption or national sales tax will be strongly considered as a replacement for the income (slave) tax. Forget the flat tax, it will still require enforcement by the IRS and violations of our 4th and 5th Amendment rights; and, it is still a slave tax whether flat or progressive.

How did this happen? Our Founders started us on the road to individual freedom but, somewhere along the way, we Americans took the wrong turn and have reversed course. James Madison warned the Colonists that “. . . there are more instances of the abridgment of freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.” Thomas Jefferson wrote, “The natural progress of things is for liberty to yield and government to gain ground.” Jefferson continued, “Experience hath shewn, that even under the best forms of government, those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”

What better way to control the masses than by government-controlled compulsory schooling. The clergy, which controlled much of the education of the masses up through the 18th century, has been replaced by government-controlled compulsory schooling. The new religion being taught is democracy and the need for greater government power to solve America’s problems.

Democracy has been described as two wolves and a lamb deciding what’s for dinner; freedom is a well-armed lamb contesting the vote. Former President Ronald Reagan rightly stated, “Government is not the solution to our problem government is the problem.”  Although the power-elites controlling government would like us to believe we live in a democracy,  and that democracy is a good thing, America was intended to be a Constitutional Republic, with a limited government whose only responsibility was to protect the inalienable rights of individuals.

Understand your rights, educate those around you (family, friends & associates), be prepared for disasters (e.g., hurricanes, riots), become self-sufficient and financially independent; be able to get away from your home, if necessary, especially if you live in any major metropolitan area (New York, Chicago, St. Louis, etc.).  If Americans become knowledgeable on these issues and wake up to the realization that big government is not the answer,  we can begin to recapture the American Dream.

 

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Tax Day, The Day We Waive Our Rights

On this infamous day each year, every United States citizen and resident, who has taxable income, is required to file their individual income tax return with the Internal Revenue Service (our version of the Gestapo), pay any taxes that still may be due, or, at the very least, request an extension of time to file it.

Unbeknownst to the average person, including most attorneys and accountants, when we file our tax returns and disclose the preponderance of information required, which keeps growing each and every year, we are waiving our right to be secure in our papers and effects (4th Amendment) and our right not to be compelled to be a witness against ourselves (5th Amendment).   And, to add insult-to-injury, we have to sign the return under penalties of perjury.

Real criminals (e.g., those that commit robbery and murder) are usually subject to less harsh punishment than taxpayers who use aggressive tax-shelters to protect their property.   Real criminals receive a Miranda warning explaining their rights.   We (taxpayers) are not explained our rights and are purposely lied to.

The U.S. individual income tax, as administered today, is unconstitutional.   If you do not believe this, please read The U.S. Individual Income Tax is Incompatible with a Free Society; it is available at www.jeffersoniangroup.com, Amazon.com, and Barnes & Noble.   If you believe the arguments are sound, please encourage family members, friends, neighbors, and associates to read and distribute copies of this book.

In order to restore the experiment in freedom started by our founders, we must get past the propaganda and require truth in politics.

Dum spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard, Jr., J.D., LL.M., C.G.M.A., C.P.A.

Another Fraud On The Public – The Corporate Income Tax

Recently the Citizens for Tax Justice (CTJ), or, as I like to refer to them as, Citizens for Tax INJUSTICE, conducted a study of 288 Fortune 500 companies and stated that 26 of them paid no federal income tax in a 5-year period.   Reuters jumped on this and stated, “Many of the most profitable U.S. corporations paid little or no federal income tax from 2008 to 2012, according to a five-year study issued . . . by a . . . tax activist group.”   To Reuters credit, they did mention the fact that several of the companies singled out disputed the CTJ study.   The spokesman for General Electric stated that the CTJ “inaccurately uses the current tax provision—a book accounting number—to make definitive statements about our U.S. income taxes.  This is not the same as the cash income tax that we pay for a given year.”   According to the spokesman, “For each year cited by [CTJ], GE paid income taxes in the U.S., as well as billions in other state, local and federal taxes in the U.S.”

Ignoring the fact that the CTJ’s study may be flawed, as indicated by the GE example, this study is being used by the CTJ, at least several large media organizations, and some politicians, arguing that many U.S. corporations are not paying their fair share of taxes.   In 2007, one of Candidate Hilary Clinton’s proposals included a “strategic energy fund” which would be funded “by taking away the tax break for the oil companies.”   At least one Democratic Senator is on the record stating, “It’s time for the big corporations to pay their fair share [of income taxes].”

Before proceeding to the real fraud perpetrated on the public, it is easy to dispute the broad conclusions reached by these individuals and groups.   When these socialists state that many of the most profitable corporations paid little to no federal income taxes, this seems to suggest that at least most of the Fortune 500 companies fall into this category.   The CTJ study singled-out 26 companies, which represents about 5% of the Fortune 500 or 9% of the 288 companies studied.   To be considered many or most, I would suggest that the typical person might envision at least 80%-to-90% fall into this category, not less than 10%.   In addition, we also know that at least one company (General Electric) should be removed from the 26 companies singled-out, further reducing many, to a few.

And, in spite of what many politicians have said, the major oil companies (e.g., ExxonMobil and Chevron) do not receive any additional tax breaks greater than most other businesses; and, they pay more income taxes than most other corporations.

The real fraud perpetrated on the public is that Americans are led to believe that corporations actually pay income taxes in the first place.   Think about it, how can property or an inanimate object pay taxes?

In the February 22, 2014 issue of The Economist, far from a conservative or libertarian magazine, they stated: “The big question is whether it makes sense to tax corporate profits at all.  A company is a legal entity; if it is taxed, it must pass it on.”   Corporations do not pay taxes, only individuals pay taxes.   When a corporation is taxed, either: (1) the stockholders absorb the tax, through a reduction of dividends and/or company value; (2) employees are penalized, by cancelling raises or bonuses and not hiring new workers; and/or (3) customers pay the tax through an increase in the cost of the products or services purchased from the corporation.   Contrary to what we hear from the media, academia, and the politicians, it is the middle-class and poor that suffer from taxes imposed upon corporate profits.

The Economist has even taken the position that “the rich world needs to cut red tape to encourage business.”   The cost of government regulationrepresents another tax or fee ultimately absorbed by the middle-class and poor.   The regulatory and tax environment that exists today keeps the middle-class and poor from being able to start new businesses; they are unable to compete with the entrenched large corporations who have huge armies of attorneys and accountants, which are necessary in today’s over-regulated and over-taxed environment.

Only consumers, workers, and investors pay taxes, not corporations.   The corporate income tax and regulatory environment is a hidden stealth tax that negatively impacts poor and middle-class Americans.

If enough people begin to understand this fraud, the politicians expounding these types of untruths, whether they are outright lying or just plain ignorant, may be voted out of office.

Dum spiro, spero—While I breathe I hope.

-Robert G. Beard, Jr., J.D., LL.M., C.P.A.