UPDATES: * Another Free Baby Entered the World
* George "Dubya" Bush - Mr. Gestapo - See and Hear It on the Net!
NEWS: * House Passes Marriage Tax Cut... big deal. A cheeky Tax Freedom 101 Commentary included.
INFORMATION: * Federal Tax Law Basics
- How is the tax law structured? - How is the law applied?
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UPDATES: * Another Free Baby Entered the World
The following email was received just shortly after we published our July 11th issue of The Tax Freedom 101 Report. Last weeks *Update* section covered: "How to Have a Free Baby - The Non-Enumeration at Birth Procedure".
[Begin email]
Friends:
My wife Meghan and I just successfully had a "free" baby, thanks in part to Inform America's "Having a Free Baby", audio cassette.
I would like to volunteer to help anyone else who would like to learn from our experience.
The exciting part came when the nurse-ignoramus came into our room and asked: "Have you filled out the Birth Certificate Request Form yet?".
To which I replied that we would not be filling out that form. Then she said, "But you have to, it is the law". I informed here that it was not the law that I have a requirement. I should have asked her if she was a lawyer, and if not why was she giving me legal advice. "Just trying to do her job", was of course her argument.
Of course the law in question, MGL 111, section 24b pertains to administration and requirements of GOVERNMENT. They can pass laws to legislate themselves, but can impose no requirements on ME, the CITIZEN to fill out requests for birth certificates and social
security numbers. She had not a clue. I was ready to show her the law.
Note how confusing it is until you ask "Who does the law pertain to?". It is always the government or its agents that have the requirement, not the parent!
So the nurse called 2 people at the state (who were also not lawyers) who confirmed that the form was certainly mandatory, and the child "may or will" have difficulties later in life if this crucial step was not taken. Also interesting was their assertion "no religious exemptions". What gall!
We prevailed, but overall were not happy with mount auburn hospital. Thanks Gordon! This is part of the reason why the AMA and the state are trying to put midwives out of business.
After this experience, I am painfully aware of the tactics used in the hospital to get new parents to divulge this information, and to persuade them to get birth certificates and SSNs. The nurse (and all nurses) did not understand the law or the role they played in this process. They seemed to neither understand nor care. It is still the responsibility of the citizen to understand and stand up for rights. I can show you all the forms, if anyone is interested. Thanks again Gordon.
....thanks......Jim G.
[end email]
* George "Dubya" Bush - Mr. Gestapo
Ever wondered what the world would be like if you could ask the questions (uncensored) of political candidates instead of just allowing the typical Manchurian media mouthpieces? This news reporter obviously asked the wrong questions and provided some undaunting comments for the ear of Presidential candidate George "W" Bush. The following is an excerpt from the video clip "George W. Bush - Mr. Gestapo" produced by Alex Jones, a reporter in Texas. The end of this clip shows Alex Jones asking "Dubya" about the Federal Reserve and "CFR" (Council On Foreign Relations). A brave thing to do. Bush then starts to lose his composure and gestures (stares) towards his personal secret service commander to remove the fearless news reporter. He is immediately escorted from the room and interrogated by the commander as he is held face and body pressed firmly against a glass wall while being searched by local police. This is all caught on film by Alex's trusty and persistent cameraman.
Liberty Works Radio Networkwrote: [We posted this] video clip ... on the free republic (www.freerepublic.com). Within 4 hours of its post, over 1500 people viewed it and it spawned one of the hottest threads the site had seen for months. To date it has had nearly 1800 "views" with more in the offing. (Note: the original video tape itself was pretty lousy so what we put on the internet isn't any better but you can adjust the picture quality contrast/brightness etc., of the windows media player from the "view" menu, "settings" option, then choose the MPEG4 "decompresser" ...just set the brightness to 67 and the contrast to 57 and the picture will look pretty good even over a 28K connection and even though the original media was substandard). The subject matter is great and the audio alone is pretty powerful.
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NEWS: * House Passes Marriage Tax Cut... big deal
The following news story provided by the Associated Press regarding the Marriage Tax which was implemented early on in the Clinton Administration is now up for a tax cut. We have included our Tax Freedom 101 Commentary in bold italics. This is our "read between the lines" approach. We hope you enjoy it.
[Begin Article]
House Passes Marriage Tax Cut
Jul 12, 2000 4:37 PM
WASHINGTON (AP) - The House again passed Republican legislation Wednesday to cut taxes for millions of married couples, setting up a showdown in the Senate and a late July, pre-GOP convention confrontation with President Clinton.
TF101 >> As we quoted last week... "In politics, nothing happens by accident. If it happens, it was planned that way". - FDR
Senate Republicans, meanwhile, reached agreement with Democrats to remove parliamentary roadblocks and finish debate this week on a House-passed bill to abolish inheritance taxes, another GOP priority that Clinton has threatened to veto.
TF101 >> If you missed the July 11th issue on - The "Death Tax" Shell Game regarding the inheritance tax you learned that we predicted in our commentary that the political opposition to the measure by the President was planned so as to push through what will appear to be a compromise later aimed at taking more from the pockets of citizens.
The 269-169 vote by which the House passed the 10-year, $182 billion "marriage penalty'' tax cut was a virtual mirror image of a February vote on the same bill. The move was necessary because Senate Democrats filibustered the first bill, forcing GOP leaders to pass it again under budget rules that limit debate and amendments.
``We did it once, but it was held up in the Senate,'' said House Speaker Dennis Hastert, R-Ill. "It's something we've promised the American people, and we'll get it done.''
TF101 >> Our heroes. Tongue planted firmly in cheek.
The bill is aimed at the estimated 25 million two-income married couples who pay higher income taxes than they would if single, but it also gives a tax cut to virtually all married people who file joint tax returns. It would gradually expand the bottom 15 percent income tax bracket so that by 2007 it is double the bracket for two single people and would boost the standard deduction to twice that of singles in 2001.
TF101 >> For those who are considering getting married in the future and continue to file returns the easiest way to avoid the "penalty" is to not get married to the state, (i.e. do not apply for a marriage license) just marry each other then file separately. Then when the domestic partner laws get passed you will not have to worry about receiving benefits from your state sponsored private work force employer either. By the way, the benefits side of the equation is the real agenda of same sex marriage crowd. They can just marry each other now if they wish, but would like recognition from their god, the state, to receive all the goodies - benefits currently provided to state recognized heterosexuals.
The measure also would raise the income cap to allow more lower-income couples to claim the earned income tax credit and would ensure that couples who claim certain personal credits, such as the $500 per-child credit, do not run afoul of the complex alternative minimum tax.
TF101 >> Huh? I'm sure glad I stopped filing years ago. Why don't you claim the blind deduction while your at it. Here is one example that a reader sent us on how to "claim the blind deduction" if you are not blind. (not recommended - but kinda funny) This animation and web site has been rated R by the Tax Freedom 101 Staff - you have been forewarned!
The Senate intends to take up its 10-year, $248 billion version of the bill later this week. A House-Senate conference committee would be named to work out differences, which mainly center on how the next-highest 28 percent tax bracket is treated.
Republicans are rushing to get the bill to Clinton before the start of the Republican National Convention on July 31, calculating that a veto gives them a popular issue to exploit. If the president were to sign the measure, the GOP could use that to fight Vice President Al Gore's claim that Republicans are running a "do-nothing'' Congress.
TF101 >> "Do nothing" Congress? When has that been a bad thing?
Democrats charged that the measure was nothing but "a political statement,'' in the words of Rep. Charles Rangel, D-N.Y. They tried to force Republicans to attach a government-run Medicare prescription drug benefit that Clinton has made a condition of signing the tax cut into law. But that effort was rejected by a 230-197 vote.
TF101 >> "Ohhh gee a government-run Medicare prescription drug benefit program. The democrats/republicans real agenda? Compromise anyone?
"I don't think there's a nexus between marriage penalty and prescription drugs,'' Hastert said. "They're at risk of being do-nothing Democrats.''
TF101 >> That sure sounds good Mr. Hasert - we shall see what garbage actually gets attached to the bill.
Before taking up the marriage tax cut, the Senate intends to begin serious debate on the 10-year, $104 billion Republican bill that would gradually scrap federal estate taxes by 2010. Passage could come as early as Thursday evening, or possibly Friday.
Democrats plan to offer a series of amendments, including a Medicare prescription drug benefit, along with an estate tax alternative that increases exemptions for family farms and small businesses that suffer most from the tax. Clinton has endorsed the Democratic approach, saying complete repeal is unnecessary and would mainly help the wealthiest people in America.
TF101 >> So there it is... "The Medicare prescription drug benefit". We told you last week that there would be compromise later on the "Death Tax" agenda aimed at taking more from the pockets of citizens, I mean Taxpayers.
``It's staggering to see what the Republicans will do in the name of tax reduction, benefiting the very, very wealthiest in this country,'' said Senate Minority Leader Tom Daschle, D-S.D.
TF101 >> Duh... yeah, thanks Mr. Daschle for putting it into plain english for me, sincerely Mr. Joe Six-pack.
----
The marriage penalty bill is H.R. 4810.
The estate tax bill is H.R. 8.
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much, much more. Visit www.taxfreedom101.com/pages/TRC.htm for further details!
INFORMATION: * Federal Tax Law Basics - How is the tax law structured? - How is the law applied?
The Internal revenue laws are limited in application.
The Internal Revenue Code encompasses more than just "income tax."
The Code is divided into 11 subtitles. The first 5 subtitles each deal with different categories of taxation. The last 6 pertain to "Procedure and Administration" (subtitle F), "Joint Committee On Taxation" (subtitle G), "Financing The Presidential Election Campaign" (subtitle H), the "Trust Fund Code" (subtitle I), "Coal Industry Health Benefits" (subtitle J), and "Group Health Plan Portability" (subtitle K).
Subtitle "A" is income tax.
Subtitle "C" is employment tax or social security tax.
Subtitle "A" is in no way related to subtitle C.
The W-2 and 1099 "wage" information commonly reported by employers is a function of the tax on wages under subtitle C (not income tax) for the purpose of building credits towards social security. The tax on wages has absolutely nothing to do with the tax on income under subtitle A.
The "income tax" under subtitle A is an "indirect" tax in the form of an "excise" imposed on certain "activities" or "occupations" and a liability to pay the tax must arise from statute.
The only statute under subtitle A (income tax) making anyone liable is section 1461 which applies to withholding agents who are required to withhold only from foreign entities like nonresident aliens and foreign corporations.
The only requirement for an individual to file a return under subtitle A (income tax) is section 6012(a). The Internal Revenue Service identifies the imposition of the income tax and the type of income that is considered "taxable income" for the purpose of this filing requirement in their request to the U.S. government's Office of Management and Budget (OMB) which must "approve" the administration and enforcement of the applicable regulations. Taxable income for the purpose of this section is limited to certain income that has been "earned" while living and working in certain "foreign" countries or territories. According to the OMB, the return that is required under this section of the Internal Revenue Code is Form 2555 (not the 1040) and it is entitled "Foreign Earned Income." According to the regulations, 26 CFR part 600 to end, the 1040 return is merely a supplemental return or worksheet for the required Form 2555.
Treasury Decision 2313 clarifies that the Form 1040 individual income tax return is appropriate for any person acting as a fiduciary for a nonresident alien and receiving interest and/or dividends from the stock of domestic (US) corporations on behalf of that alien.
The income tax under subtitle A is mandatory for those mentioned above (but only for those to whom it applies). It is NOT voluntary as some have asserted. Since the law is limited in application, the question of whether it is mandatory or voluntary is superfluous. The question is: to whom, and under what circumstances is the law applied?
Certain legal requirements with regard to the wage tax under subtitle C may also be considered mandatory, but only for the payor of the wages (the employer) and even then, only if both the employer and the employee have voluntarily agreed (via application) to participate in the entitlement program. Since neither can be compelled to participate, compliance is said to be voluntary.
The foregoing statements are NOT legal advice. They are merely factual statements about the law.
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