The Truth of the Story

April 14, 2008
Vol. 5 No. 15

Tax Privileges, Not Rights

It is tax season, and, thus, time for those little annual friendly
government reminders that we are obligated (voluntarily, mind you) to pony
up and pay our taxes.

In announcing a major initiative to crack down on tax cheats last week, U.S.
Assistant Attorney General Nathan Hochman said: "With the privileges that
this country gives you, we have both obligations and responsibilities to
give back." Then he added, "Taxes are the lifeblood of the American
civilized society." While his latter point is correct only if the definition
of "American civilized society" is the US government, on the first point,
Hochman is completely correct: government has every legal right to tax its
citizens for the privileges that government gives them.

Nobody has done a better job of explaining how this applies to the income
tax than retired federal judge George Mercier (pen name):

****Google "Invisible Contracts" for the whole dissertation.

(There is a) private agreement (that) you continue to maintain with the
Secretary of the Treasury (which agreement places you into a written, equity
relationship with the United States)….

(P)rivate agreements will always overrule the Constitution and the Bill of
Rights. Thus, specific agreements governing individual circumstances will
always overrule broad general clauses found in the Constitution. …In other
words, one does not get to use the Bill of Rights to weasel out of private
agreements, while retaining the gain that the agreement gave him in the
first place. …

You probably have heard it said that Federal Judges will tell defendants and
counsel in Section 7203 – Willful Failure To File criminal trials that "..
the Constitution does not apply here."

That statement shocks most people up a wall – but it is an accurate and
correct statement. The Judge will never tell you why, though. …(It) is
because the Judge is merely enforcing private agreements the defendant
signed with the Secretary of the Treasury. …The agreement the Judge has in
front of him is not the defendant's 1040 or the defendant's W-2/4; those are
merely declarations of facts and no profit or gain is experienced by them.

…(B)anks are instrumentalities of the Congress. In other words, the
interstate system of banks is the private property of the King. This means
that any profit or gain anyone experienced by … any regulated financial
institution carries with it – as an operation of law – the identical same
full force and effect as if the King himself created the gain. So as an
operation of law, anyone who has a depository relationship, or a credit
relationship, with a bank, such as checking, savings, CD's, charge cards,
car loan, real estate mortgages, etc., is experiencing profit and gain
created by the King – so says the Supreme Court.

…In the words of Supreme Court Justice Felix Frankfurter: "Equity is brutal
" but we are merely enforcing agreements.

…If you would go back to your bank and ask the manager to show you your
signature card again, in small print you will see the words: "The
undersigned hereby agrees to abide by all of the Rules of this Bank."

Have you ever asked to see a copy of the bank rules? If you have, you will
read and find out that you agreed to abide by all of the administrative
rulings of the Secretary of the Treasury, among many other things.

…(T)he Judge is operating on the penal clause to a civil contract.

…(T)he King creates a "juristic personality" at the time you open your bank
account. And it is that juristic personality (its income and assets) that
the King's Agents are "excising" back to the King. But in any event, the
taxing power of the Congress attaches by contract or use of the King's
property. The Congress does not have the jurisdiction to use the police
powers to raise revenue.

That is the … procedure by which Federal Judges are enforcing the law – not
by ruling over Gestapo Star Chambers.

…(I)f the 16th Amendment were somehow repealed tomorrow morning at 9:00 a.m.
– it would not change a single thing (other than the IRS would have to start
giving people a correct presentation of the law to justify the taxes). The
IRS and the excise tax on juristic persons would continue on as usual.

…(Y)ou are in written contractual equity with the King.

When you trace back the genealogy of your signature on your bank card, you
will find that you agreed to be bound by Title 26….

…The IRS handles this "bank account = equity relationship" on a military
style "need-to-know" only type basis. …This type of equity jurisdiction
always attaches by written consent.

…(Y)ou are in an equity relationship with the King – and private agreements
overrule the Bill of Rights.

USAAG Hoffman says, "If you owe taxes, you must pay them. Period." On
privileged activity, absolutely; the Constitution agrees. Privileged
activity is taxable. On the other hand, government cannot tax us for the
exercise of our rights, or they are no longer truly rights.

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