We the People of the United States of America, tax payers, pray that the current Members of Congress Repeal Amendment XVI to the Constitution of the United States and Abolish Income Taxes forever! When our Congress votes to Abolish Income Taxes, 10% to 15% of all individual's money problems will disappear overnight; 760,000 homeless men, women and children will be off the streets; and 36.5 million people will no longer be living in poverty.
We tax payers believe that the income tax is indirectly responsible for the majority of problems America faces today. In a country as rich as ours, there should not be any poverty; no homelessness; no unemployment. Yet, the rich continue to get richer and the poor continue to get poorer.
We tax payers oppose income taxes for the same reason 56 men offered their Lives, Fortunes, and Honor for 222 years ago in the Declaration of Independence - "FOR imposing Taxes on us without our Consent:"
Income taxes are Capitation (direct) taxes. The Constitution of the United States says in Article 1, Section 2, Clause 3 "...direct taxes shall be apportioned among the several states". It also says in Article 1, Section 9, Clause 4 "No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken." Our State legislatures ratified Amendment XVI in 1913 which says "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census of enumeration.", BUT, Amendment XVI never repealed Article 1, Section 2, Clause 3, and never repealed Article 1, Section 9, Clause 4! We obviously have a choice if we want to pay income taxes or not according to The Constitution of the United States! "If Congress wanted you to pay income taxes, the Congress would have most certainly repealed Article 1, Section 9, Clause 4. The IRS (a federal government agency) is collecting for the Federal Reserve Bank (a private corporation) instead of the IRS collecting for Congress". Bob Barber, Philoeconopolist
The framers of the Constitution were concerned that the newly formed federal government may abuse its taxing power, that Article V put that notion to rest when they wrote: "...no Amendment which may be made prior to the Year One thousand eight hundred and eight shall in any Manner affect the first and fourth Clauses in the Ninth Section of the first Article;"
We tax payers believe that the Congress promoted a non-direct form of taxation in Article V in the Constitution of the United States until 1862 when President Lincoln imposed a temporary income tax that was later declared unconstitutional in 1895.
Another reason we tax payers oppose Income taxes is that the Corporate income tax of 1909 was a tax on "net profit". Individuals were taxed beginning in 1913 on the so called "income" tax also. But, how do individuals make a net profit? The not-for-profit organization may offer great services, but it doesn't pay any Federal Income Taxes because it is not in business to make a "profit". The U.S. Individual Income Tax doesn't even exist - individuals don't make a "profit" because individuals are not "corporations" unless individuals "incorporate"!
On April 15, 1997, Congressmen Dan Schaefer and Billy Tauzin stated "Americans spend more than 5.1 billion hours merely filling out income tax forms. None of this time is for productive enterprises that actually add to the social, economic, or moral well-being of our society. By some estimates, the cost of compliance exceeds $300 billion a year - that's in addition to the $600 billion a year Americans also pay in taxes. In effect, Americans are taxed twice by the IRS. They pay a federal tax on their income, and they pay what amounts to a hidden sales tax -- believed to be as high as 10 - 15 percent -- on all retail goods and services they purchase.
On September 23, 1997, in a Senate Finance Hearing, Congress accused the IRS of abusing taxpayers. On October 5th, Alan Greenspan, Chairman of the Federal Reserve announced he wanted to overhaul the federal banking laws. On October 10th, President Clinton offered IRS legislation and on October 20th Bill Archer, Chairman of the House Ways and Means Committee said he wanted to shift the burden of proof from the individual taxpayer to the IRS in tax court cases.
We are told by the federal government that income taxes are needed to provide services to United States Citizens, like building roads and bridges, and sending checks to those who are on social security, and giving money, food stamps and medical care to those who are on welfare. If that is true, and we are lead to believe that income taxes pay for those services exclusively, then why does the federal government borrow $2 trillion a year to run the federal government? And why does the federal government demand that your employer withhold those income taxes and social security taxes from your paycheck? Income taxes are not needed by the federal government at all. But, the federal government's IRS collected $900 billion in income taxes in 1996 that will never pay off the national debt in full because the federal government cannot afford to pay all of the principal and interest on the $5.5 trillion national debt all at once. In fact, the IRS in Fiscal Year 1996, collected approximately $1.5 trillion, processed more than 200 million tax returns, handled approximately 2 billion documents and assisted more than 118 million taxpayers.
Because of the income tax, American tax payers are collateral for the $5.5 trillion Public debt the federal government owes. How can Americans be held collateral? The federal government does not depend on income taxes for support !!!!! The federal government's Bureau of the Public Debt (BPD) borrows $2 trillion a year to operate the Federal Government and to account for the resulting debt by selling Treasury bills, notes, and bonds to foreign investors, corporations, banks, State and local governments, and private individuals. The BPD pays interest to investors, and, when the time comes to pay back the loans, the BPD redeems investors' securities. Every time the BPD borrows or pays back money, it affects the outstanding debt of the United States.
For 84 years our Congress has taxed us directly and the Public Debt has increased as a result. Our Debt! The federal government has spent our tax dollars without any accountability and will continue to do so until Congress votes to Abolish Income Taxes. Federal government direct taxation of the citizens of the several States MUST be abolished!
Who is the government indebted to?
1995 Debt held by the Public $3.7 Trillion
$1,683,500,000,000 Corp., finan. inst., and other 45.5%
$858,400,000,000 Foreign Investors 23.2%
$429,200,000,000 State and local governments 11.6%
$377,400,000,000 Federal Reserve Banks 10.2%
$351,500,000,000 Private Individuals 9.5%
Debt held by the government $1.4 Trillion
(I wonder what this is used for?)
GROSS DEBT $5.2 TRILLION !!!!!
To service foreign-owned debt, the U.S. government must send interest payments abroad, which adds to the income of citizens of other countries rather than U.S. citizens.
The reality of the whole matter of the national debt is - there is no national debt at all. In fact, the federal government's budget states that the combined wealth of the federal government and Citizens is $55 trillion. Since we as U.S. Citizens are the government, OUR national debt is only $5.5 trillion. With national assets of $55 trillion, and a national debt of only $5.5 trillion, we as Citizens of the United States have a net worth of $49.5 trillion! And yet, the federal government sent 6,798 American taxpayers to prison during the last 3 years because those Americans tried to defeat the income tax individually. Those Americans failed because they took the wrong approach to solving their income tax problems they should never of had in the first place! What we must do to defeat or get rid of income taxes is to go to the source of the problem - the U.S. Congress. Vote to Abolish Income Taxes!
The Public Debt and the Deficit are NOT the real economic factors that Congress leads you to believe are the two economic factors that affect our economy the most. The Public Debt and the Deficit are two important factors, but not the most important.
Why does the Congress allow deductions and exemptions on tax returns when all tax money is needed by the federal government? It doesn't make any sense, unless Congress is hiding something from American taxpayers. As long as the federal government can confuse you, the income tax will remain in place. The federal government wants to keep track of you via withholding and the tax return.
Why does the Congress allow wealthy people to hide their money in Foundations and give them a tax break to boot? I think that the wealthy people are the ones that buy Treasury securities and this is the way the federal government thanks these investors.
We tax payers believe that if you are an employee, you earn wages. The IRS has told employers to withhold income taxes from your paycheck. Your employer sends your hard-earned money directly to one of the 12 Federal Reserve Banks (FRB), (which are PRIVATE corporations and sometimes called the FED), 4 times a year. The IRS also deposits YOUR money into the FRB. The FRB is NOT a federal agency. In 1996, the Federal Reserve Bank of New York processed an average of nearly $1.6 trillion a day in funds and securities transfers. Aggregated to include all twelve Federal Reserve banks for the entire year, the Fed transferred approximately $418 trillion worth of funds and securities of which the Federal Reserve Bank of New York's portion was $279 trillion.
The income of the FRB is derived primarily from the interest on U.S. government securities, fees for check clearing, fees for funds transfers, and fees for automated clearinghouse operations. After it pays its expenses, the FRB takes its 5% cut of the $418 trillion in funds and securities transfers, and deposits the remaining 95% into the U.S. Treasury. Why does the IRS deposit YOUR money directly into the FRB? Isn't the IRS one of the eleven components of the Department of the Treasury, just as the BPD is? YES. Our income taxes pay the INTEREST COSTS !!!!!
The increasing interest costs of $355.7 billion overshadows the declining deficit of $22 billion by a margin of almost 11 to 1. Even if there was no deficit, the dollar amount of the gross debt of $5.5 trillion must be reduced to create a surplus to reduce the national debt, but that may not be possible because the interest costs are increasing. Interest costs will eventually be equal to the national receipts of $1.5 trillion in a few years. Interest costs MUST be curtailed by controlling federal spending, borrowing less and financing business startups with non-foreign money.
15 cents out of every federal budget dollar spent is used to pay interest on the debt rather than to finance other public priorities.
The following report is the Financial Management Service's (FMS) "1997 Financial Report to the Citizens". Receipts, Spending and Annual Budget Deficit
TOTAL SPENDING, 1997: $1.601 TRILLION
Major Spending by Category
Billion %
Social Security $365.3 22.8
Other expenses 300.6 18.8
National defense 270.5 16.9
Interest* 244.0 15.2
Medicare 190.0 11.9
Unemployment, disability, and
other income security payments 135.3 8.4
Medicaid 95.6 6.0
* Net "Interest" is the gross interest paid on the
Public Debt less (1) interest received on
investments of government accounts in federal
securities, and (2) interest received on loans
made by the government.
TOTAL RECEIPTS, 1997: 1.579 TRILLION
Receipts by Source Billion %
Individual income taxes $737.5 46.7
Social insurance taxes
& contributions 539.4 34.1
Corporate income taxes 182.3 11.5
Other receipts 62.9 3.9
Excise taxes 56.9 3.6
ACTUAL RESULTS COMPARED TO BUDGET
2/97 1997
In billions of dollars Budget Actual
Total receipts $1,505 $1,579
Total spending 1,631 1,601
----- -----
Total deficit $126 $22
==== ====
The Public Debt and Deficit are Congressional Budget smokescreens promulgated by Congress and the Media to hide the REAL economic culprit -- INTEREST COSTS.
What I want to know is where is $111.7 billion in interest payments going?
1997 Interest per BPD $355.7 billion
1997 Interest per FMS $244.0 billion
=============
$111.7 billion
Who is this going to?
The only way to stop the spiraling interest costs is to Abolish Income Taxes which will result in an increase in a worker's take-home pay which will benefit the economy by increasing revenue.
Who is the IRS collecting for? American taxpayers are not dumb. The IRS should be called the "Foreign Revenue Service". Who is the Federal Reserve Bank really owned by? Take a guess. Now you can see why Corporations control our Congress! Here's another question I have: The BPD borrows $2 trillion, and the IRS collects $1.5 trillion. Where does the remaining $500 billion go?
BPD $2,000,000,000,000
IRS $1,500,000,000,000
=======================
$ 500,000,000,000
Where is this going to?
My guess is that this money pays
the redemption of securities.
If people read Adam Smith's "Wealth of Nations", income taxes will disappear in America !!!!! Mr. Smith wrote - "The sole use of money is to circulate consumable goods". That is one secret Mr. Smith reveals in his classic book published in 1776. Unfortunately, most of the 36.5 million Americans who live in poverty today do not know that.
We tax payers will run for Congress and represent our district as an elected U.S. Representative or U.S. Senator in the next election to Abolish Income Taxes if you don't vote to get rid of income taxes.
We tax payers concur with The Philoeconopolist Party's purposes:
"Our primary purposes are to
1) Abolish Income Taxes;
2) draft a tax bill to replace income taxes
with The Barber Plan and submit to Congress
by April 15, 1998;
3) establish a private corporation for the
homeless, welfare recipients and needy families
to plan, produce, market and sell products and
services to compete in the international
marketplace;
4) teach the philosophy, economics and politics of
necessary taxation and teach the principles
contained in Adam Smith's book "Wealth of Nations";
5) promote controlled federal spending;
6) promote a controlled growth rate of the federal
government;
7) promote State Sovereignty;
8) provide for the care of the elderly, care for
single women with children who need assistance,
and for U.S. citizens who need immediate
assistance; and
9) make our nation the leader in promoting health,
education, general welfare, national defense,
human rights, caring for animals and taking care
of our environment and limited natural resources."
We tax payers know that to Abolish Income Taxes and pass new tax legislation it will take a required 2/3rds vote in both the House and the Senate. Congress - you can do it !!!
We tax payers know that the only way Congress will Abolish Income Taxes is for the replacement taxation system to be Revenue-Neutral. Revenue-Neutral means that the tax system that replaces the income tax must generate the same amount of tax revenues that the income tax generates. The Philoeconopolist Party has a plan that provides a revenue-neutral Fee On Transfers and/or Apportioned PPR tax instead of a Flat Tax or National Retail Sales Tax (NRST). Flat Tax requires you to file a tax return. The NRST requires you to file a tax return if you claim deductions. No tax return or deductions or exemptions are needed with Fee On Transfers or Apportioned PPR.
We tax payers propose to replace the present income tax system our federal government uses with two simple tax methods, 1) a small fee on the money which the Federal Reserve Bank handles for the federal government called the "Fee On Transfers" tax, and 2) a small purchase percentage rate of 1% to 15% tax on most goods and services, a smaller tax on the least product price, and a higher tax on luxury items, to be collected from all States according to the population in each State, known as "Apportioned PPR". The two simple taxes are discussed in "The Barber Plan":
"The Barber Plan
Part A - Fee on Transfers
A1. One half of one percent is collected on the FRB's daily
total of funds and securities transfers.
A2. One half of one percent is collected on ALL monetary
transfers except on loans from the government (not
including loans from Government Sponsored Enterprises
(GSEs). GSEs pay the fees.
A3. One half of one percent is collected on ALL State's
daily Gaming and Lottery monies wagered.
Part A should do it. Or at least half of the budget.
If not, then we implement Part B.
Part B - Apportioned PPR
B1. The federal government determines fiscal budgeted
tax requirements.
B2. People and businesses give voluntarily to the State
government anonymously to reduce apportioned tax
requirement to the several States.
Since there will be no federal income taxation, this
step will offer the underground economy, individuals
and businesses to contribute as much as they desire
to the State to reduce the federal tax liability to
the State.
B3. The federal tax liability balance is apportioned
among the several States.
What does Apportioned mean? Both the Constitution
for the united States Of America and The Federalist
Papers discuss apportionment concerning taxation.
Apportionment under The Barber Plan means that the
balance of revenues needed after Social Security,
Unemployment Insurance, Payroll Taxes and donations
have been subtracted from the federal tax requirement
until 2004, are allocated to each State according to
population. After 2004, apportionment under The
Barber Plan means that the balance of revenues needed
after donations have been subtracted from the federal
tax requirement, are allocated to each State according
to population.
Phase I - Abolish Federal Income Taxes
Individual and Corporate (1999)
Phase II - Abolish Unemployment and Payroll
Taxes(2001)
Phase III - Abolish Social Security Taxes (2003)
B4. A Purchase Percentage Rate (PPR) is collected at
the State level.
What is PPR ? PPR is Purchase Percentage Rate.
The PPR may be variable and change at a moments
notice. The PPR is taxed on price and not on the
total sale as is currently being done with sales
taxes. The PPR tax is collected until a State has
meet the allocated apportioned amount of revenue
needed from that State. The federal government and
States may collect SURPLUS monies using the PPR
tax method.
Example PPR Chart
Purchase Price %
$.01 - $3 0
$3.01 - $10 1
$10.01 - $25 2
$25.01 - $50 3
$50.01 - $100 4
$100.01 - $250 5
$250.01 - $5,000 6
$5,000.01 - $10,000 7
$10,000.01 - $20,000 8
$20,000.01 - $30,000 9
$30,000.01 - $40,000 10
$40,000.01 - $50,000 11
$50,000.01 - $100,000 12
$100,000.01 - 500,000 13
$500,000.01 - 1,000,000 14
$1,000,000.01 and over 15"
by Robert M. Barber
Philoeconopolist
223 E. 10th St.,#117
New York, NY 10003
https://members.tripod.com/~Philoeconopolist/index.html
philoeconopolist@hotmail.com
(212) 726-0432
The Barber Plan will work. The Barber Plan is fair and will help our Country get out of the big economic mess it is currently in.
We Pray that the Congress Repeal Amendment XVI to the Constitution of the United States and Abolish Income Taxes forever!
X_________________________________________ Robert M. Barber 223 E. 10th St., #117 New York, NY 10003 (212) 726-0432 Party affiliation: The Philoeconopolist Party(Replace my name, address, phone number and party affiliation with yours and send this Petition to your Congress(wo)man ASAP!).