February 24, 2004
| <<Previous |
|
| February 24, 2004 | ||
|
|
The Report http://www.taxfreedom101.com An Internet Publication - February 24, 2004 - The Constitutional Revival Movement's News Source
|
UPDATES: - Happy 20th Birthday Save-A-Patriot Fellowship! - Letter to the Editor: "Insightful Commentary" NEWS: - February 3rd - February 24th, 2004 INFORMATION: - Social Security is Nothing but a Tax and Welfare Scheme Disguised as a Retirement Program
| | 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 The Tax Freedom 101 Report interesting, useful, educational, or surprising? You do? Great! Then why not recommend this newsletter to a friend or two. They don't have to be a crazed liberty-lovin' "radical", heck even raging communists and everyone in between enjoys reading this newsletter! So spread the word, your email 'forward' button is just a click away! If you can't forward this newsletter can you support this work? If you appreciate this newsletter and find the information contained herein important consider donating a Federal Reserve Note* or two to keep the information coming. * FRNs are commonly and erroneously referred to as dollars.
| ||||||
| | | ||||||
| UPDATES: - Happy 20th Birthday Save-A-Patriot Fellowship! Yes, today February 24th is the Save-A-Patriot Fellowship's 20th birthday! We will be celebrating 20 years of continual operation the first weekend of April. This is a celebration and convention you won't want to miss. The dates are the 2nd, 3rd, and 4th, and convention attendance is open to both members and nonmembers of the fellowship, however there's a limited number of seats available, and there is now less than five weeks left to register and secure a seat! For event information and registration for this Convention and Celebration please visit this event page. - Letter to the Editor: "Insightful Commentary" Piercing The Illusion Setting straight the misrepresentations that have in one way or another deprived American citizens of their Individual Liberties for the past one hundred and forty-one years. - Get the highly acclaimed book by John B. Kotmair The Tax Freedom 101 News Service powered by NEWS: State's new technology gathers information to find tax cheats [Boston Globe] February 19th, 2004 NEWS: Sound Money Bill - New Hampshire [Veritas Radio - Interview with Legislators] NEWS: A Slave for the IRS [Commentary - News for Taxpayers] NEWS: IRS Collects 170 Million Hidden Offshore [News for Taxpayers] NEWS: Open Letter to Judge John McBryde [Dick Simkanin] NEWS: Federal Court in Pennsylvania Enjoins Tax Scam Promoter [Thurston Bell] NEWS: Tax Protester Tells Federal Court That He Is Delusional [NY Times] NEWS: "Am I Liable?" In-The-Know Tax Attorneys Won't Answer That [American Radio] NEWS: Tax Truth Heroin Tells Her Story [Vernice Kuglin] NEWS: Secret Tax Truth Media Weapon Launching Soon [Larken Rose] NEWS: The tax trap of forgiven debt [Commentary - News for Taxpayers] Get the news faster! Subscribe to the TAXFREEDOM101 Alert and Discussion Forum. Get the news the moment it happens!
Elementary Catechism on the Constitution Become a Constitutional expert overnight - compared to the average 'citizen'. Easily explained, and arguably the most comprehensive literary device used to educate children and adults on the Constitution. Pick up a copy today. There couldn't be a better time to learn the law and your rights. More info here. INFORMATION: Social Security is Nothing but a Tax and Welfare Scheme Disguised as a Retirement Program by Robert Greenslade I recently watched, in disbelief, as two friends engaged in a screaming match in my kitchen over Social Security. One individual asserted there would not be any money left in his Social Security retirement account because President Bush was stealing the funds to pay for the war in Iraq. He claimed this is unconstitutional because the federal government is contractually obligated to pay him retirement benefits for all the money "contributed" to his account. The other individual countered that the President could not spend all his money because it is locked away in the Social Security Trust Fund. He stated the contributions he makes from his wages, which are matched by his employer, could only be spent to pay out Social Security benefits. Thus, the President could not spend Social Security contributions to pay for the war in Iraq. After five minutes of listening to the yelling and political barbs, I decided it was time to sit my friends down and attempt to interject some facts into their debate. When I told them that there is no retirement trust fund because their so-called contributions are actually additional income taxes that are deposited in the federal government's general fund, and Social Security is nothing but a federal welfare scheme disguised as a retirement program, you could have heard a pin drop. Since this was contrary to everything they had been told about Social Security, they demanded I substantiate my assertions. I showed them that immediately after going into effect in 1935, various parts of the Social Security Act were challenged as unconstitutional and reached the Supreme Court for decision in 1937. In Helvering v. Davis (301 US 619), the Court sustained the Act under Congress power to impose taxes. In its decision, the Court revealed some of the truths about Social Security. First, employees are not making contributions into a retirement program, but are, in reality, paying a special income tax which is deducted from their wages and paid to the federal government by the employer. This special income tax is imposed on the employee for the so-called privilege of being employed by an employer. Third, there is no retirement trust fund. The Court stated: [t]he proceeds of both taxes are to be paid into the Treasury like internal-revenue taxes generally, and are not earmarked in any way. Neither of the taxes are set aside to pay Social Security benefits. Both are general fund income taxes, which are used to pay the everyday expenditures of the federal government. Since one of my friends is self-employed, I told him that he is paying at least 3 different federal income taxes. One on his so-called income and two under Social Security. Two he asked? Yes I replied because for tax purposes, you are treated as the employee and the employer all in one. This means, if you read between the lines, that you are paying one tax for the privilege of being employed by yourself as the employee, and the other for the privilege of employing yourself as the employer. At this point, my friends were outraged and wanted to know why Social Security is a tax scheme as opposed to a legitimate retirement program. I told them the answer is basically two-fold. Since the federal government was never granted the constitutional authority to force the American people to participate or contribute to a retirement program, the only way Congress could extract the money was through taxation. The second reason is it's a covert way to tax the American people. Since Social Security is a tax scheme disguised as a retirement program, Congress can structure the rates so the federal government collects more money in taxes than it pays out in benefits without enraging the people. Congress can then pat itself on the back and announce to the nation that there is a Social Security surplus for the year. This projects the illusion that Congress is fiscally responsible and doing a wonderful job protecting the retirement of seniors. In 1999 for example, then Senate Majority Leader Trent Lott stated that the projected federal budget surplus was $110 billion all from Social Security taxes. Translation: Social Security taxes in 1999 generated approximately $110 billion more than was paid out in so-called benefits. And, since these were general fund dollars that were not earmarked in any way, Congress was free to spend the money as it saw fit. My friends were now seething with anger and wanted to know why individuals who have not paid a penny in Social Security taxes can receive various benefits under the program. I told them the answer is quite simple. Social Security is nothing but a government welfare or assistance program. The Founders would have classified it as a form of poor relief. In 1960, in Flemming v. Nestor (363 US 603), the Supreme Court stated: ...eligibility for benefits...[does] not in any true sense depend on contribution through the payment of taxes. If Social Security was a legitimate retirement program, only those individuals who had contributed to the program would be eligible for benefits. But, since Social Security is a tax and social welfare scheme, Congress has total discretion to determine the qualifications for receiving various benefits under the program. If Social Security is a welfare program, one of my friends asked, does that mean the federal government is not contractually obligated to pay out promised benefits even though he had paid into the program for 40 years? That's correct I replied. The Supreme Court, in the Nestor case, ruled that individuals paying Social Security taxes do not acquire any property or contractual rights, as they would in an insurance or annuity plan. In addition, the Court stated: Congress included in the original Act, and has since retained, a claim expressly reserving to it "[t]he right to alter, amend, or repeal any provision" of the Act. The truth about Social Security was finally beginning to sink in. One of my friends asked if he could take a stab at explaining Social Security. I told him to go ahead. Social Security, he said, is nothing but a tax and welfare scheme masquerading as a legitimate retirement program. Payroll deductions are not retirement contributions and do not guarantee the receipt of any benefits. They merely qualify the individual for consideration in a federal charity program that can be modified at any time. If Congress decided to abolish Social Security, the American people would not have any legal claim for promised benefits. You've got it I replied! At the conclusion of the discussion, my friends were finally in agreement Social Security is one of the biggest scams ever perpetrated on the American people and nothing but a tax and welfare scheme disguised as a retirement program.
Wishing you a tax-free day! The Tax Freedom 101 Staff | | |||||||
To subscribe: Simply fill in the email address you wish to receive the newsletter at in the "enter email address" below and then hit the purple "Join Now" button. A confirmation notice will be sent to you shortly afterwards asking you to confirm your subscription by reply email.
| | |||||||
|
| |||
  | |||
| |||
| 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. | |||
 | |||
