Just wondering if people know a simple little fact about the federal income tax...?

Question

Does the American public realize:
- That the income tax pays for interest on the dollar loaned out by the privately owned Federal Reserve?
(Source: The Reagan Administration's study of where 100% of the income tax dollar goes)
- That the income tax bill was never ratified by a sufficient amount of states in order to become an amendment?
(Source: U.S. District Judge James C. Fox)
- That there is NO LAW requiring you to pay a Federal Income Tax?
(Source: Code of the Internal Revenue Service, Former IRS Agents)
- That, according to the Constitution of the United States of America, the income tax is, in fact, simply unconstitutional.
(Source: The Constitution)
- That IF the income tax does indeed pay for services to the public... how in the world did we pay for services to the public before 1913 when the IRS income tax bill was pushed through Congress?
(Source: American History)

Answer 1

Best Answer - Chosen by Asker

I actually did know all of that! That's why April 15 isn't of much consequence to me. : )

I also encourage people to read the definition of the word 'income' in the 13th Amendment itself, and as it pertains to the paying of an income tax.

Asker's Rating:

Asker's Comment:

well thought out
:)

Answer 2

Thanks dude.

Answer 3

Someone has been watching Internet videos.

Re: Income tax pays interest on the dollar loaned out by the Federal Reserve.

This is wrong and a misquote from the Grace Commission study. What the Grace Commission said was that at the time the study was performed, that revenue collected by as individual income taxes went to pay the interest on the debt. This is because, at the time, the interest rate was very high and the IRS did a poor job collecting the taxes. To the best of my knowledge, the Federal Reserve was not even mentioned.

Times have changed since that report was done. First, the interest rate on the debt has dropped significantly. When the report was done, the interest rate was close to 12%. Currently, the interest on the debt is 5%. Second, significantly less revenue was collected via the income tax, even though tax rates were higher.

Let's look at current data. In 2007, the IRS collected approximately $1.16 trillion in individual income taxes.
http://www.taxpolicycenter.org/taxfacts/…
The interest on the debt in 2007 was approximately $430 billion.
http://www.treasurydirect.gov/govt/repor…
Obviously, there is more income tax collected than the interest on the debt.

As far as the Federal Reserve is concerned, the Federal Reserve does not loan money to the U.S. Government. The U.S. Government borrows money by issuing securities. These are T-Bills, T-Notes, and T-Bonds. These Treasury securities are sold at auction and anyone can buy these securities, even you. The Federal Reserve does not buy securities at auction. The Federal Reserve does hold about $900 billion in Treasury securities, but it gets these on the open market. The open market is where holders of Treasury securities trade them. The U.S. Government won't redeem a Treasury security until it reaches its maturity date. If a person wants to get their cash before the maturity date, they have to sell it on the open market.

In 2006, the Federal Reserve collected approximately $36.5 billion in interest on the U.S. Government debt that it holds. However, AS REQUIRED BY LAW, it returned to the U.S. Treasury, excess earnings. In 2006, approximately $29.1 billion was returned to the Treasury. This can clearly be seen on the independently audited financial statements of the Federal Reserve.
http://www.federalreserve.gov/boarddocs/…
http://www.federalreserve.gov/boarddocs/…
I bet that movie told you the Federal Reserve had never been audited.

Re: The 16th amendment and Judge Fox.
Judge Fox's statement was in the context of giving an example. He was not making a statement of fact. The comments made by Judge Fox were made in passing, without judicial review, and in a case that had nothing to do with the 16th amendment. In the end, the Judge also said that he didn't think any court would ever set it aside.

Additionally, every court that has ever heard the issue has upheld the validity of the 16th amendment. You can read more about arguments that the 16th was never ratified at http://evans-legal.com/dan/tpfaq.html#ra…

Re: There is no law require a Federal Income Tax.
B.S. There are laws concerning income taxes and they are codified as Title 26 of the U.S. Code. The sections that apply to most people are 1, 61, 62, 63, 3402, 6011 and 6012. Section 1 - Tax imposed
"There is hereby imposed on the taxable income of..." married individuals, heads of households, single individuals, etc.

You can read it at http://www.law.cornell.edu/uscode/26/usc… or at http://uscode.house.gov/download/title_2…

Title 26 is known as prima facie law or evidence of the actual laws passed by Congress. To read the actual laws passed by Congress, you have to look at the U.S. Statutes at Large. For the most part, these are not available online. However, you can read them at most Federal Depository Libraries or most law libraries. You can find a Federal Depository Library in your state at http://catalog.gpo.gov/fdlpdir/FDLPdir.j…

To read the Internal Revenue Laws, start with Volume 68A, beginning on page 3. This will be the Internal Revenue Act of 1954. Then go to Volume 100, on page 2085 and you will find the Tax Reform Act of 1986. These two laws form the basic structure of our current income tax laws. Various modifications to those laws have been passed through the years and are available in later volumes.

The IRS employs thousands of people. In every organization, there is bound to be a few idiots. One of the idiots that you probably saw was Sherry Peel Jackson. She was recently convicted by a jury on four counts of failure to file tax returns. She is currently on her second month of her four year sentence.

Re: The income tax is unconstitutional.
You need to read the Constitution and learn about history.
http://www.senate.gov/civics/constitutio…
The income tax is constitutional because income taxes are INDIRECT and always have been. The first income tax in America was enacted in 1861. Congress allowed it to lapse in 1872. In 1880, the Supreme Court upheld the application of the income tax of 1865 against an individual finding that income taxes was a duty or excise tax and not a direct tax.

In Stanton v. Baltic Mining Co., 240 U.S. 103 (1916), the Supreme Court stated, "...by the previous ruling [in Brushaber] it was settled that the provisions of the 16th Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of INDIRECT taxation to which it inherently belonged..."

Re: How did we pay for services before 1913.
Simple answer is the government was a lot smaller. The military wasn't as large. Many government agencies did not exist, for example, U.S. EPA. Also, there were a lot more excise taxes.

Answer 4

I don't think most people do know this.