Why Are We Being Taxed On Our Labor?

Political Resources. com | January 29 2007

The crime uncovered by Banister is summarized as follows.

As a fundamental starting point, it must be stipulated that the U.S. Constitution does not, and more importantly can not — authorize Congress to impose a direct tax on human labor.

If a 1% tax on a persons labor were to be held constitutional, a 100% tax on labor would also be constitutional, subject only to the whim of the political majority or the desire of government bureaucrats. In other words, the Constitution does not, and cannot, authorize Congress to use its limited taxing power to force the People to labor for the government.

In 1909, the meaning of the word “income” did not mean money received by a worker in direct exchange for that person’s human labor. It meant money derived from capital or labor or both, as, for example, money (profit) derived by Wal-Mart or Merrill Lynch from the labor of its workers. At the turn of the previous century, it was well understood that the legal term “income” did not mean the wages or salary earned by the worker for his own labor.

Today, due to the well-packaged web of lies that has been sold gradually to the masses over generations, most people today incorrectly believe “income” means not only money derived from someone else’s labor, but also money earned by workers in direct exchange for their own labor. 

In 1909, the U.S. Congress passed a proposed income tax Amendment to the U.S. Constitution, the purpose of which was simply to clarify the fact that Congress had the power under the existing clauses of the Constitution to tax income derived from real estate, stocks, bonds and other forms of capital, without apportioning the tax among the taxpayers — that is, without requiring every taxpayer to pay the exact same amount.

So far, so good. There was nothing untoward about Congress proposing an Amendment to the Constitution for clarification purposes. 

The crime and the cover-up began in 1913 with actions taken by both the Executive and Legislative branches.   

In 1913, just thirty days before he was set to leave office, the U.S. Secretary of State, Philander Knox, declared by his certification that the proposed Amendment had been legally and properly ratified by 3/4ths of the state legislatures, despite the well documented fact that he had been informed by his solicitor general that the Amendment had not come close to being ratified.  The Congress adopted the Amendment as the 16th Amendment to the U.S. Constitution.  

Within months of the fraudulent declaration by Knox, Congress crafted and passed the Income Tax Act of 1913, which included a definition of income, that stretched the meaning of the legal term income well beyond the constitutional meaning and well beyond the documented intent of the framers of the Amendment, as recorded in every official and professional document of the era: the Congressional Record, congressional committee reports, law reviews, journals of political science, newspapers of record and so forth.  

With its statutory, unconstitutional definition of income, Congress improperly broadened the definition of income to include money received by a person in direct exchange for that persons labor. In technical terms, Congress included a non-apportioned, direct tax on the salaries, wages and compensation of all American workers.

Even though the Act exempted from the tax those workers earning less than $4,000, the government soon began to receive so much money from the income tax that its revenue increased from about $380 million in 1914 to more than $3.7 billion by 1918. 

The Income Tax Act of 1913 also instituted withholding at the source and the tax return, Form 1040. 

With these features, the Income Tax Act of 1913 provided the government with a stream of revenue that enabled it to spend large amounts of money before it had it. The central government not only had much more money to spend, it could now do whatever it wanted to do, even if it did not have the money to do it.

At its heart, the Income Tax Act of 1913 enabled the government to pledge, as collateral, the labor of its citizens to secure its debt. The government could now guarantee the repayment of borrowed money by forcefully taking bread from the mouths of labor. Slavery has always been the ultimate form of lender security.

However, the still-standing Constitution prohibited a tax on labor. The Income Tax Act of 1913 was soon tested in Court. In 1916, the Supreme Court brought the unconstitutional labor tax to a screeching halt.

The Supreme Court ruled in Brushaber v. Union Pacific, 240 U.S.1 (and the cases bundled with it, including Stanton v Baltic Mining Co., 240 U.S. 103), that wages are not income within the meaning of the income tax Amendment to the Constitution, or any other provision of the Constitution.

The Supreme Court’s decision in Brushaber soundly rejected the government’s self-interested interpretation of the definition of “income” within the meaning of the Constitution, and specifically limited “to whom” and “where” the income tax could apply.

The Brushaber court explicitly concluded that the 16th Amendment gave Congress no new powers of taxation, meaning that direct taxes on wages, salaries and compensation received by workers in direct exchange for their labor fell outside of the meaning of the 16th Amendment, and still must satisfy the fundamental requirement of apportionment as a direct tax, if, indeed, the government could overcome the slavery issue.

The Brushaber decision forced Congress to consider changing the statutory definition of “income,” to bring it in line with the Constitution.

However, true to form and consistent with the nature of governmental power, the government was loathe to relinquish the spoils and booty that flowed from its direct tax on labor, and the power and control that came with the tax (and its enforcement mechanisms).

The crime continued in the halls of Congress and in the White House with the adoption of the Income Tax Act of 1916 (amended in 1917).  Although the 1916 Act ended withholding of wages, salaries and compensation, and ordered the money that had been withheld from workers to be returned to those workers, and the Treasury Secretary issued Treasury Directive 2635, and saw to it that the money withheld was returned, the 1916 Act failed to define the legal term “income.”

While the act carried over the definition of “income” from the 1913 Act, Congress specifically qualified in Section 25 of the Act that the “income” subject to the 1913 Act was not the same “income” to be taxed under the 1916 Act. No further explanation was provided in the Act.

In other words, after the Supreme Court’s explicit ruling in Brushaber, the government adopted a revised tax law that said, in effect, “the meaning of the word ‘income’ has changed, but we are not going to tell you how.”

Confused or ignorant of the law, and too patriotic and engaged with World War I to question their government, workers toiling above the $4,000 exemption level kept sending in their Form 1040’s and paying a tax on money earned by them in direct exchange for their own labor. As the years went on, the tax rates went up, the exemptions dropped, and more Americans succumbed to the popular belief that the law required them to file and pay.

During the great Depression, the crime deepened.

While the more wealthy workers were unwittingly continuing to pay a tax on money earned in direct exchange for their labor, not just on their passive income, Congress and the President, again acted without constitutional authority, and in defiance of the now numerous (and consistent) rulings of the United States Supreme Court (the latest ruling coming in 1920 in Eisner v Macomber, 252 U.S. 189).

In 1933 the government adopted a law forcing all workers to pay an “income” tax by another name, on money earned in direct exchange for their own labor. The new labor tax was called a “Social Security” tax. Along with this new unconstitutional labor tax, withholding was re-instituted in America.

During World War II, the crime deepened further.

Once again, in defiance of the Constitution and the rulings of the Supreme Court, the Congress and the President instituted still another labor tax on all Americans, not just the wealthy, calling it a, “Victory Tax.” Along with the “Victory Tax” came withholding of the “Victory Tax” at the source.

Drunk with power, taking advantage of the People during times of strife, the government was “piling on” one direct labor tax after another, calling them “income” taxes, without ever statutorily defining the term “income.” The “Victory Tax” was a tax on the money people earned in direct exchange for their own labor. The People were told that “Victory Tax” would expire with the conclusion of the War. It didn’t. Neither did withholding. The Victory Tax continued unabated, becoming the Federal Income Tax of today.

In 1965, the crime deepened even further.

Once again, in defiance of the Constitution and the rulings of the Supreme Court, the Congress and the President piled on yet another direct tax on the labor of all working men and women, calling it a “Medicare Tax.” Along with the “Medicare Tax” came withholding of the “Medicare Tax” at the source.

The Bottom Line

Since 1916, Congress and the Executive, with the cooperation of the lesser courts, have been relentlessly tightening the yoke of slavery on all Americans as they have imposed, and enforced an increasing number of unconstitutional direct taxes on the salaries, wages and compensation.

Beyond this, our institutions of government have, by duplicity, threat and force,  coerced the businesses of America into collecting these labor taxes by withholding them at the source i.e., from the paychecks of American workers.

As the final interpreter of the Constitution, we, the People believe the Supreme Court got it right – a tax on labor – regardless of its label or beneficent intent — is a “slave tax,” and is a violation of not only fundamental, human Rights, it is patently unconstitutional.

Most Americans, covered with a blanket of propaganda, believe they are free as they pledge allegiance to their country, a Republic, but follow the dictates of a government run by elected and appointed officials whose first allegiance is to their Party.

Make no mistake: money earned in direct exchange for labor is being seized by the government, without rightful authority, from the workers of America by force — that is, by violence — to be distributed, with its opportunities for profit, influence and corruption among our elected and appointed public officials — political henchmen and party workers, and those that seek to keep them in office for their own benefit.


One Response to “Why Are We Being Taxed On Our Labor?”

  1. You have an interesting blog here. Some of the things people put are kind of strange. Another cool site is a site that is about personal finance stuf Click https://zhoutest.wordpress.com/

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