NoSSN - UPDATES:

July 31, 2001

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The Tax Freedom 101 Report
*Updates* - *News* - *Information*
http://www.taxfreedom101.com
The Constitutional Revival Movement's News Source
- July 31, 2001 -
This weekly HTML formatted e-newsletter contains:

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UPDATES:
* What to do with a Tax Prefund
* Pledge of Re-Allegiance

NEWS:
* The Two Step Side-Shuffle
* Explanation of Bush Taxpayer Payoff

INFORMATION:
Social Security is Not a Contract

Why The Tax Freedom 101 Report?
"An immense effect may be produced by small powers wisely and steadily directed."
- Noah Webster, Founding Father of American Education

Dear Netizen: Do you find the material in The Tax Freedom 101 Report interesting, useful, educational, or surprising? You do? Great! Then why don't you recommend this newsletter to a friend or two. They don't have to be a crazed liberty-lovin "radical" like you and me - even raging communists and everyone in between enjoys reading this newsletter! So spread the word... the forward button is just a click away...

Submit your own news story or articles for publication.
For details email: submissions@taxfreedom101.com with "submission info" in the subject line.

Subscription and advertising information for The Tax Freedom 101 Report is contained at the end of this on-line report. If you received this ezine in plain text format and would like to view it in HTML with all visible links visit the archive site:

http://www.nossn.com/tf101

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UPDATES:
* What to do with a Tax Prefund
Are you still a Taxpayer? What will you ever do with your tax "prefund"? Most people will be receiving $300 based upon a Taxpayer's 2000 return from the U.S. Treasury in advance of their filing a 2001 tax return. Why not put the prefund to good use? Spend it on our Tax Freedom 101 Program Option #1. It just happens to cost $300. How about that! Maybe next year you won't have to expect a prefund - you could rather just keep it all rather than send your "contribution" off to Washington - year after year hoping to get a little back. Think about it. Visit http://www.taxfreedom101.com/pages/e-options.htm for details.

* Pledge of Re-Allegiance
Maybe your children have never been given an adequate explanation of the Pledge of Allegiance. Do they still recite the Pledge in your school "system"? Some schools have removed it from their daily routine altogether. Why? So their students will be good global citizens for the coming one world government, which we assert is here defacto already.

We can parrot anything we're taught efficiently, but have we ever stopped and taken the time to think (i.e. learn) what the words we're reciting actually mean? Listen to what the comedic legend Red Skelton learned from his teacher about the Pledge of Allegiance. We need more teachers like what Red had in his day. Maybe have your children listen too. Click here for a quick education.

The Traffic Citation Discovery Package for the non-lawyer. Fight the tickets!
Are you tired of unwarranted traffic infractions which come with exorbitant fines
and insurance costs? You can take advantage of some of the legal procedures
available to you under the Rules of Civil Procedure and by doing so place the
burden of response upon the prosecution which is usually disproportionate
to any monetary gain it may make if the citation is successfully prosecuted.
To learn more visit www.taxfreedom101.com/products/tcdp.htm

NEWS:
* The Two Step Side-Shuffle
Just when you thought there might be a shred of integrity and honesty in government you get the rug pulled out from under you. Bob Schulz must be wondering why the DOJ waited nearly a week to get cold feet, even if Bob's press release was incorrect as to who would show, does that change the fact that someone from the DOJ and IRS is suppose to show?

DOJ/IRS backpedaling on WTP Capitol Hill Remonstrance Hearings, click here.

* Explanation of Bush Taxpayer Payoff
Many people are calling the Bush "tax-cut" a rebate, or refund. Actually it is better described as a prefund. The determination for the terminology came as Taxpayers (one word) started to question how this would effect their returns for 2001. Well the actual money determined to be sent in check form came based upon Taxpayers returns for last year, and they money is being applied based on this year's tax rate. Hint: That money they returned to Taxpayers is taxable next year. Of course non-taxpayers need not be concerned, but if you know someone who is concerned because they're still a Taxpayer, why not send them a copy of this report. They may just learn more about the tax "system" then they care to know.

Click here for the Taxpayer prefund story.

The Tax Research Compendium - It's All on One Compact Disk!
Students of Tax Freedom 101 - don't be without this gem. The TRC is the perfect
companion to the Tax Freedom 101 Home Study Course. TRC contains Legislative History
of the Internal Revenue Code,The Victory Tax Act, Complete 1939, 1954 and 1986 IRC, Plus
much, much more. Visit www.taxfreedom101.com/pages/TRC.htm for further details!

INFORMATION:
Social Security is Not a Contract
The following article by Attorney Lowell H. Becraft ran some time ago in a publication called Media Bypass. MB is perhaps one of the best printed alternative news sources available to citizens interested in the Constitutional Revival Movement. We would like to thank Media Bypass and Mr. Becraft for the work they have done to keep the public well informed about the news the main stream would rather just ignore. Please enjoy the article and share with others.

You can reach the Media Bypass web site by visiting: http://www.4bypass.com
You can visit Lowell Becraft's Dixieland Law Journal web site by visiting: http://home.hiwaay.net/~becraft/

[Begin Article]

Social Security is Not a Contract
by Lowell H. Becraft Jr, Attorney at Law

Article 1, Section 9, Clause 7 of the United States Constitution provides as follows:

"No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law."

While this constitutional provision does not of itself place a maximum ceiling upon the amount of debt which can be created by Congress, it does hold that appropriating legislation is required in order to incur debts. This is aptly demonstrated by the federal cases which have construed this part of the Constitution. In Cummings v. Hardee. 102 F.2d 622 (1939), and Maryland Casualty Co. v. United States, 155 F.2d 823 (1946), it was held that officers of the United States lacked all power to pay any claim against the United States in the absence of an appropriation from Congress to pay such claim. This principle was more fully explained in Hughes Aircraft Co. v. United States, 534 F.2d 889, 906 (1976), where that court declared:

"The second principle is that before any expenditure of public funds can be made, there must be an act of Congress appropriating the funds and defining the purpose for such appropriation. Thus, no officer of the Federal Government is authorized to pay a debt due from the U.S., whether or not reduced to a judgment, unless an appropriation has been made for that purpose."

See also Reeside v. Walker, 52 U.S. (11 How.) 272 (1850), Cincinnati Soap Co. v. United States, 301 U.S. 308, 57 S. Ct. 764 (1937); and Office of Personnel Management v. Richmond, 496 U.S. 414, 110 S.Ct. 2465, 2471 (1990). In National Association of Regional Councils v. Costle, 564 F.2d 583, 586 (1977), that Court elucidated this principle by stating:

"Government agencies may only enter into obligation to pay money if they have been granted such authority by Congress. Amounts so authorized by Congress are termed collectively 'budget authority' and can be subdivided into three conceptually distinct categories - appropriations, contract authority, and borrowing authority. Appropriations permit an agency to incur obligations and to make payments on obligations. Contract authority is legislative authorization for an agency to create obligations in advance of an appropriation. It requires a subsequent appropriation or some other source of funds before the obligation incurred may actually be liquidated by the outlay of monies. Borrowing authority permits an agency to spend debt receipts."

Thus, it is quite apparent that in order for the federal government to incur debt, it must adopt legislation authorizing a specific amount of federal obligations to be incurred.

It is easy to demonstrate the operation of this provision of the Constitution and its application to government contracts. Suppose the feds desired to build a new courthouse at a cost of $200 million. An agency in charge of such a project could theoretically "contract' with a construction company to build this structure. However, until Congress actually appropriates money to pay for construction, there is no contract. Even if the contractor in this example incurred lots of costs preparing to build this courthouse which ultimately does not get built because of lack of funds, he-has no claim against Uncle Sam for breach of contract. The same principle applies to every other government contractor whether aero space, military, etc. Government contracts are unique and and different from private sector contracts due to this constitutional limitation upon the power to contract.

Is Social Security a contract? A private insurance policy is clearly a contract because the policyholder makes a promise to pay money to the insurance company, which in turn agrees to likewise pay the policyholder if certain contingencies arise. These "promise to pay" elements are essential for a contract, but they simply are not present with Social Security. First, Social Security 'payments' are not premium payments, but are taxes instead. Secondly, there is no corresponding and enforceable "promise to pay" from the Social Security Administration to its 'beneficiaries". As noted above, government contracts are very special and require an appropriation from Congress before money can be expended and a contract made. Regarding Social S

ecurity, the only 'beneficiaries' who have any claim against the public treasury are those for whom Congress has already made an appropriation, which can last no longer than a year. The rest of the Social Security claimants in America have no enforceable claim on public funds, and all they possess is a "political promise," upon which Congress can renege at any moment. If Congress decided tomorrow to cut off all Social Security, nobody would have any claim for payment. Thus, Social Security has never been and is not now a contract.
[end article]

Related item: The Social Security Research Compendium - A fantastic education and research tool to confirm that "Socialism in America is truly 100% Voluntary!" For a complete list of items contained on this extensive research compendium please visit: http://www.taxfreedom101.com/products/ssrc.htm

[The home pictured on the CD is that of Charles Ponzi. If you do not know the story of Charles Ponzi you need this CD!]

Wishing you a tax-free day,
The Tax Freedom 101 Staff

http://www.taxfreedom101.com
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Dear Netizen: Do you find the material in The Tax Freedom 101 Report interesting, useful, educational, or surprising? You do? Great! Then why don't you recommend this newsletter to a friend or two. They don't have to be a crazed liberty-lovin "radical" like you and me - even raging communists and everyone in between enjoys reading this newsletter! So spread the word... the forward button is just a click away...

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"The IRS is an extraordinary example of the end justifying the means. The means of this agency is growth. It is interesting that the revenue officers
within the IRS refer to taxpayers as 'inventory'. The IRS embodies the political realities of the selfish human desire to dominate others. Thus the end of this gigantic pretense of officialdom is power, pure and simple. The meek may inherit the earth, but they will never receive a promotion in an agency where efficiency is measured by the number of seizures of taxpayers' property and by the number of citizens and businesses driven into bankruptcy." -- George Hansen, Congressman and author of "To Harass Our People"

DISCLAIMER: The data on this website is the collaborative experience, contributions, and research of various websites, legal books, tax documents, researchers, associates, attorneys, CPA's, etc. and does not constitute legal advice. The primary purpose of this site is education. We do not advocate any specific course of action. What you do with this information and any course of action you decide to take, if any, is entirely your responsibility.

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