Do I HAVE to pay taxes???

The income tax of the Civil War was eventually declared unconstitutional. That’s why there was a constitutional amendment (which was passed a year before WWI started, and four years before we entered it). Hard to believe, but income tax was a very popular measure when it was passed, since it made taxes more equitable.

As far as whether you can avoid paying taxes, let’s use a little logic:

  1. The government makes most of its money from income taxes.
  2. The government makes the tax laws.

Now, given those facts, if there truly were a way to legally avoid paying taxes, don’t you think the government would close that loophole in about five seconds?

A friend of mine once belonged to a group that had looked up in the massive tax code of the US a specific paragraph. It basically said that US citizens are exempt from paying income tax. But it was some obscure paragraph, and I never saw the parent sections, so it may have been only talking about some specific foreign corporation income tax.

> 1. The government makes most of its money from income taxes.

Not true. About 1/3 of the revenue is from income taxes.

The reason the tax may have been popular at first was that hardly anyone made enough to pay it, & those who did paid a very low rate, something like 1%. Make the rate 1% now, & I’ll never complain about it again.

If I’m reading these Congressional Budget Office numbers right, individual income taxes accounted for about 48% of federal government revenues in 1999, with corporate income taxes accounting for another 10%; social insurance taxes account for about a third, and other sources for about 8%. So, income taxes, individual and corporate, make up “most” (over half) of the U.S. federal government’s revenues.

As has been mentioned already, all these theories as to why people don’t have to pay their taxes are crap. What I can never understand is how anybody can really think “Hey, income taxes are totally illegal. The lawyers for the Rockefellers haven’t been able to figure this out, but I, on the strength of being someone who people pretend not to see when I walk into a bar, have the Straight Dope.” The power of crankiness is truly awesome.

What, you think the Rockefellers pay income tax?

For a nice glimpse into what a tax naysayer thinks, check out Pendency at the following thread:

http://boards.straightdope.com/sdmb/showthread.php?threadid=42191

ruadh wrote:

Dammit, ruadh, you beat me to it!

Daniel B. Evans’ Tax Protestor FAQ (the site ruadh linked to above) is one of the best sites on the entire web in any category. So is The Militia Watchdog.

Incidentally, I wrote an article a while ago about one particular “patriot sovereign-citizen” argument, entitled Debunking “The Story of the Buck Act”. I actually had one “patriot” e-mail me to complain that my article sounded too much like Dan Evans!

*Note: I emailed Boston T. Party, author of the classic (and superb) “Good-Bye April 15th!” book, regarding this thread. He emailed his response. *Here it is:
From author Boston T. Party:

At Crafter_Man’s behest, I read your thread concerning the IRS, income taxes, etc. and offer a few comments.

I challenge any skeptic to quote the Internal Revenue Code Section which unequivocably requires us to pay income taxes on our private-sector wages.

Look, here’s the short spiel. We got tricked into surrendering away specific rights and “voluntarily” entering a tax jurisdiction which otherwise wouldn’t affect us. Through the IRS’s cunning (mis)use of certain words and phrases (e.g., “employee, wages,
U.S., income,” etc.) we imagine their conversational meanings and act accordingly.

Your private-sector remuneration CAN be (under Section 3402§) treated as IF they were IRC Section 3401 “wages” (i.e., from government employment) if you file a Form W-4 (“which constitutes a request for withholding.”) Section 3402§ is titled, by the way, VOLUNTARY WITHHOLDING AGREEMENTS. (Evans, of the Tax Protestor FAQ, ignores this crucial IRC Section.)

Former IRS Special Agent Joseph Bannister resigned after learning the truth about the income tax fraud (which his IRS superiors never condescended to refute). Bannister is now a leading national speaker on the subject.

Now, some specific comments to particular authors:

Danielinthewolvesden & johnson: My book “Good-Bye April 15th!” does not reinvent the “square wheel” with failed tax protestor arguments.

Untaxation, properly done, is successful at the “administrative” level within the IRS, and no court battles have been necessary. Often, the IRS itself issues the untaxer his/her “walking papers.”

By the IRS’s own estimates, there are now as many as 40-60 million non-filers. Amongst them are my own readers, many of whom have sent me photocopies of their new paycheck stubs which reflect zero withholding (including FICA!) from their wages. This was accomplished after their employers contacted the IRS for clarification.

Furthermore, there is an IRS form letter which says, “Based on the information you provided, we agree that you are no longer required to file a Form 1040.” Many successful untaxers have received this letter, and I’ve seen many reader copies. The letter’s number is, if memory serves me, 9879 (though I’ll look it up in my book, wherein I show a copy of one).

So, Dan, what do all these people know that you don’t (or vice versa!). If you want to remain a wage slave (who pays a higher rate than the serfs’ 25%), then keep on filing!

ruadh: I’ve downloaded Evans’s site and will go through it when I’ve the time. (Meanwhile, I’ll forward it on to a colleague of mine who focuses on untaxation.)

Regarding the “U.S. doesn’t always mean the U.S.A.” issue (which is fairly pivotal for untaxation), I noticed that Evans never mentions the highly-illuminating 1945 decision of Hooven v. U.S.

Evans also utterly fails to recount the full history of the 16th Amendment, which was to unquestionably “constitutionalize” the Corporation Excise Tax Act of 1909 (a crucial Act also never mentioned by Evans). “Income” meant, and still means, corporate profit (which was then seen as being under-taxed, to the unfairness to the working man who primarily supported the USG through excises and duties). Why else would the States have (ostensibly) ratified the 16th, if not to “get at the fat cats”? In fact, the Congress of the day explicitly assured the public that the common man’s wage would NOT be affected. (Read Senator Ira Borah’s (R-ID) remarks to the Senate in 1910, for example.)

Finally (for now), Evans places far too much faith in the scholarly objectivity of Federal judges and Justices. These are men and women, paid by the USG, who naturally wish to uphold the effective status quo of income taxation. Just because a Federal court has ruled against a “tax protest” argument does not mean that the ruling was actually correct. To assume the courts’ 100% integrity would be like justifying the Holocaust because the Nazi courts ruled that Jews were “nonpersons” under the law.

On a related point, there have been no recent and significant rulings (in any meaningful numbers) to limit (much less rollback) the USG. So, according to Evans, the USG can do no wrong and never violates the Constitution? Gee.

Are there fatuous tax protest arguments out there? Certainly!

HOWEVER, is it possible (or even likely) that ALL tax protest arguments, developed and refined by thousands of dedicated (and often extremely intelligent) people, are fatuous? No, it is not.

Somewhere, at least occasionally, the tax protestors have valid points. But Evans would claim that they NEVER do. So, who’s the extremist here?

“Hear the other side.” – ancient Chinese proverb

Remarks such as “all those arguments are crap” dilute the purpose of a message board: to exchange actual ideas and challenge presumptions. Blathering on about what one supposedly “knows” is symptomatic of intellectual bigotry, and isn’t there already quite enough of that?

I pass along the above merely as obiter dicta, and do not wish to create another thread from there. I will, however, reply to questions and comments from actual readers of “Good-Bye April 15th!”.

Thank you all for your attention,

Boston T. Party
http://www.javelinpress.com

Thank you for your very enlightening response to what many believe to be a ridiculous question. As I had stated early I really wasn’t trying to get out of paying my taxes but was hoping to get an answer to help out a discussion I was having at work. I got just that.

Due to your effort Crafter_man I believe that Mr Party will have a new reader. Thank you again.

Moderator’s note:

This message board affords anonymity to those who choose it. Therefore, we cannot be sure that the comments above actually came from “Boston T. Party.”

This is not a slam at ** Crafter_Man** or anyone else, but rather a statement about sourcing.

If I have time, I will have some non-moderator comments to make later.

I don’t have the inclination to go into all the silliness of the tax “avoiders.” Essentially, they rely on twisted semantics and long-abandoned legal theories to demonstrate their case. That’s OK – there are too many people in prison for simple drug offenses, and I have no objection if a few tax resisters want to go keep them company in Club Fed.

Here’s one that stands out in particular:

(bolding added)

Actually, unless and until a decision by a Federal Court is overturned by a higher court or contramanded by legislation, the ruling is exactly correct in the district where the judgement is rendered. This is how the law works. The fact that Congress has left intrepretation of the IRC largely to the courts does not make those intrepretations any less legally binding.

If you have a beef with how a court has intrepreted a provision of the Internal Revenue Code, call your Congressman. Do not simply believe it to be wrong and act accordingly and think you are complying with the law. You are not.

Well, this is a ridiculous question, and it is a load of crap. It is truly the height of ignorance to believe any of this.

Would that there were any “actual ideas” here.

Glad you were enlightened, pezpunk. Great to see the SDMB continues its good work!

What it comes down to is this: You can believe whatever you want about income tax. It may even be true that it ought to be legal to not pay it. However, the bottom line is that if you do, in fact, try to get away without paying taxes, you will end up in jail. It’s that simple.

I know someone who quit paying his income taxes several years ago. He has a wife and several kids. What’s he going to tell his family when he gets his butt thrown in jail? What’s going to happen to them when their primary source of income is behind bars?

a) “Honey, I didn’t pay my taxes. Sorry my stupid decision’s left you holding the fort for a year or two.”

b) They’ll go on welfare, funded by all the civic-minded citizens who paid their taxes and didn’t get taken in by this bunk.