October 15, 2002
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| October 15, 2002 | ||
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The Report A Weekly Internet Publication - October 15, 2002 - The Constitutional Revival Movement's News Source
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UPDATES: - Gov't. Operated Churches to Remain Gagged NEWS: - Representative Favors Foreigners Over Citizens - Oh What A Tangled Web They Weave - IRS Revenue Officer Spills Guts INFORMATION: - Your Social Security Lock-Box is Broken
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UPDATES: - Government Operated Churches to Remain Gagged Hopes of liberating the harlequin tongues of 501(c)3 churches - those once faithful bodies of believers who have organized under the banner of 'Church, Inc.' and willingly exchanged their personal inalienable rights for the oxymoronic pottage of 'government benefits' will remain gagged - and rightly so. Any corporate officer of the State Church violating the rules found under section 501(c)3 is still in danger of having their Steeple Corporation liquidated. 'Free speech' protected by the First Amendment to share what's deemed politically incorrect words, suggestions, thoughts, or ideas when the faith is involved is not free for those whose master is the State. So says Congress in its recent vote to down the latest Bill supported by various Parrot Church Organizations [PCOs also 501(c)3 or 4]. The balance of power that these PCOs seek would no doubt provide them political power if the current Bill passed. A more apropos and dreaded Free Speech Bill in the future might come to the floor by them, such as: The Hell-Freezes-Over Bill, introduced as... 'Free the Whore's Tongue further so we can gossip about what a bad tipper the Government John is'. Remember the cliché about the snowball in hell? Any Bill that came remotely close to the real issue of free speech when tax exemption is the focus, and the rules associated with such a benefit has exactly the same chance. The Tax Freedom 101 Report must commend Congress by their skilled use of these PCOs, which are nothing less than controlled opposition for maintaining the smoke-n-mirrors illusion of the widely heralded mantra, Separation of Church and State. They've managed to pull-the-wool over the eyes of trusting sheep yet again as they condition them for their own slaughter. Routinely defeating this and other similar bogus Bills that will be brought before Congress will maintain the deception of a required tax exemption for new Churches, and the ribbon of servitude securely fastened around parishioners mouths. Being preoccupied with their suffocation the laity will look to the government puppets in the pulpits as they use their slight-of-hand to strip the white robes from that of the true Church. The scattered piles of wool left on the shearing room floor are good annual reminders for us all on the puffery required to place hope in the minds of an ignorant public that they truly have rights, but only as the State dictates. We shall remind our readers yet again - the Constitution already allows you to be tax and speech free. Learn if you are an unwitting accomplice to the same voluntary Socialism gagging the Churches today by enrolling in the Tax Freedom 101 home-study program! For the inside joke to the Parsons political cartoon add up the numbers on the Priest's forehead. House defeats effort to allow tax-free politics in churches AP, The Washington Times, October 3rd, 2002 - full story here. Related Item: Steeple Corporations Lobby for First Amendment Rights Last week's Tax Freedom 101 Report news story available here. Take Home 100% of Your Next Paycheck! What does the law say about those who refuse to fill out, or decide to terminate the voluntary withholding agreement W4? Learn how to present the proper paperwork to $top tax withholding in the workplace! Detailed 104 page report and audio here. NEWS: The very IRS Regulation this key lawmaker denounces is the very one put in place to protect the interests of everyday citizens. The story we cite is spun [or is a result of complete ignorance - take your pick] in such a way as to make the reader think that the Country as a whole is the one getting short changed. Nothing could be further from the truth when you learn the truth behind the income tax. In a nutshell the federal taxing scheme remains the same, and the intended plan can be summed up in just six simple words, which are: "Citizens abroad, and foreigners at home" with respect to the basic taxing scheme the Framers laid out in the Constitution, and as evidenced in notes from the Federal Convention of 1787.
Coconspirators maintaining the illusion of what this Representative deems as unjust taxation are the following organizations: The Heritage Foundation, the CATO Institute, and The Center for Freedom and Prosperity. Surprisingly the IRS is right on point with the law as written and deserves credit in this case to apply it correctly! Now if they would just apply it correctly to citizens living here... Key Lawmaker Condemns IRS Regulation: Florida Banks are Ultimate Target
Struggling IRS At The Mercy Of Politicians
Radio interview with former IRS Revenue Officer John Turner Windows Media Player Version Real Player Version MAXIM #1: SAFEGUARD YOUR PROPERTY AND EARNINGS Investigate asset protection, estate and business planning secrets. Prevent "bad-guys" from taking assets; regain financial privacy; avoid probate; lower business tax liability!!! Do it today! Learn more here. INFORMATION: So You Think You’ve Got a Trust Fund With Your Uncle Sam . . . by John Attarian, reprinted with permission One of Social Security’s greatest myths is that benefits are paid from a trust fund accumulated from taxes held in trust. True, there exist an "Old-Age and Survivors Insurance Trust Fund" and a "Disability Insurance Trust Fund," usually referred to together as "the Social Security Trust Fund." Sure it’s a trust fund. Why, it says so right here on the label! Or is it? The original Social Security Act created an "Old-Age Reserve Account" in the Treasury. Each year, an amount deemed sufficient to pay that year’s benefits would be appropriated to the Account. Appropriations unneeded for benefits would be invested in federal debt, including unmarketable debt issued for this purpose, earning 3 percent. Social Security’s tax rate was to rise gradually, to create a reserve big enough so its interest would help defray future costs. Tax collections would begin in 1937; benefit payouts, in 1942; thus the fund would start accumulating. Criticism arose. Winthrop Aldrich of Chase National Bank argued that the reserve would be a fiction; the government would just be issuing itself promissory notes. In his famous Milwaukee speech on Social Security during the 1936 presidential campaign, "Alf" Landon likened the reserve to a father taking deductions from his kids’ wages to invest for their old age, "investing" them in "his own IOU," and spending the money, leaving his kids nothing but IOUs, making Social Security’s forced savings "a cruel hoax." Social Security tax dollars, President Franklin Roosevelt retorted, "are held in a Government trust fund solely for the social security of the workers." After the election, the attacks kept coming. General Hugh Johnson, former head of the National Recovery Administration, and journalist John T. Flynn, pointed out that unlike insurance companies, which invest their premiums to build a reserve to pay claims by their insured, the government was only issuing itself IOUs. So the reserve was worthless. To pay future benefits, Americans would have to be taxed again. Defenders responded that the IOU talk was misleading; aren’t all private instruments, such as stocks and bonds, really IOUs, their value depending on the resources and ethics of the issuing firms? In 1939 FDR proposed amending Social Security. In the ensuing congressional hearings and debates, the reserve controversy exploded. Critics accused the Administration of "embezzlement" and reiterated that the reserve was just IOUs, so Americans would be taxed twice. No, no, no, defenders shot back; no embezzlement was happening, there wouldn’t be any double taxation, and the IOUs were the safest investment there was – government bonds. By now three years old, the acrimonious controversy was hurting Social Security’s prestige. The 1939 Amendments created an "Old-Age and Survivors Insurance Trust Fund" at the Treasury. The record is clear that this was done to end the reserve fund wrangle. Testifying before the Senate Finance Committee on the Amendments, Social Security Board chairman Arthur Altmeyer, when asked what the purpose of the trust fund was, stated, "to allay the unwarranted fears of some people who thought that Uncle Sam was embezzling the money." Moreover, the texts of the original Social Security Act regarding the Reserve Account and of the 1939 Amendments regarding the Trust Fund are virtually identical. Section 201 of the original Act, "Old-Age Reserve Account," was replaced by a new Section 201, "Federal Old-Age and Survivors Insurance Trust Fund." The only real change was the elimination of the specific annual appropriation transferring revenues to the Reserve Fund. Instead, a sum equivalent to Social security tax receipts "is hereby appropriated" to the Trust Fund for the fiscal year ending June 30, 1941, "and for each fiscal year thereafter." In other words, the money now goes into the Fund automatically. The only other new features were a Board of Trustees (Secretary of the Treasury, Secretary of Labor, and Chairman of the Social Security Board) to manage the Fund; replacement of 3 percent interest with the average rate on interest-bearing federal debt; and paying money from the Fund to the Treasury to defray Social Security administrative expenses. Otherwise, the Trust Fund operated just like the Reserve Account. In fact it was the Reserve Account; the latter’s assets as of January 1, 1940 were transferred to the Trust Fund. The Account was, according to the Act, "an account in the Treasury," and the Trust Fund, per the Amendments, was "on the books of the Treasury," making the transfer a formality. Essentially, a shoebox full of bonds just got relabeled. The evidence is clear: Social Security’s Trust Fund is a Treasury account, nothing more. The "trust fund" label was a public relations ploy to reassure the public that Social Security was trustworthy. It worked. The reserve controversy faded away. Is the Trust Fund the real McCoy? Let’s see. A trust fund is money or other property held in a trust, a trust being "A fiduciary relationship with respect to property, subjecting the person by whom the property is held to equitable duties to deal with the property for the benefit of another person, which arises as a result of a manifestation of an intention to create it." A trust must have a "settlor," who creates the trust and puts property into it; a "trustee" who manages it and holds legal title to the property; a "beneficiary," who has equitable title to the property, and for whom the trustee manages it; "terms of trust," spelling out the trust’s purpose, the duties and powers of the trustee(s); and, of course, property. (Charles E. Rounds, Jr. and Eric Hayes, Loring: A Trustee’s Handbook,) 8th ed., pp. 1–2, 5, 79; Gilbert Thomas Stephenson, Estates and Trusts, 4th ed., pp. 63–66). Social Security’s trust fund does not have these defining features. Congress is not the settlor. A settlor puts his own property into the trust, which Congress did not do. And Section 201 of the Amendments did not even mention the Board of Trustees having legal title to any property. Down go two characteristics of a trust. Also, Section 201 said nothing about property – because there isn’t any. In Flemming v. Nestor, the Supreme Court ruled that there are no accrued property rights to benefits. If you have no property right to benefits, how can you have property in the trust fund which supposedly pays them? Property in the trust fund implies a property right to benefits, and vice versa. A trust manages property on someone’s behalf. No property, no trust. Suffolk University law professor and trust expert Charles Rounds aptly summed up: "Despite the term ‘trust,’ the Social Security system contains nothing that remotely resembles the common law trust. There is no segregation of assets, no equitable property rights, no private right of enforcement (all characteristics of the common law trust). It is merely a system of taxation and appropriation sprinkled with trust terms to hide its true nature." Finally, consider how the Trust Fund operates. Social Security revenues go into Treasury general revenue and are credited to the Fund as unmarketable Treasury bonds. The Treasury pays benefits with general revenue, debiting the Trust Fund an equivalent value of bonds. Any remaining revenue finances general government, with an equivalent value of bonds in the Trust Fund as Social Security’s "surplus." (House Ways and Means Committee, 1998 Green Book, pp. 73, 75, 77). That’s a Treasury account in action, not a trust fund. Social Security’s Trust Fund is bogus. Meaning the "robbing the trust fund" issue is phony, too. Yet seniors buy it. Last night one of my friends told me he’d tried to straighten out his 77-year-old uncle, but the old boy just wouldn’t believe him. Even my Mom fell for that "robbing the trust fund" baloney. Social Security’s propagandists have programmed many Americans, especially seniors, like Moonies. Deprogramming is imperative. Related item: How much truth do you know about Social Security? Find out here. Wishing you a tax-free day, The Tax Freedom 101 Staff | | |||||||
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