NoSSN - UPDATES:

February 20, 2001

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The Tax Freedom 101 Report
*Updates* - *News* - *Information*
www.taxfreedom101.com
The Constitutional Revival Movement's News Source
- February 20, 2001 -
This weekly HTML formatted e-newsletter contains:

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UPDATES:
* Recent Web Broadcasts from Headquarters
* Comprehensive Annual Financial Reports - Web site
* The Constitutional Quiz Question of the Week!

NEWS:
* IBT Maintains Resolve
* Rate of All I.R.S. Audits Falls; Poor Face Intense Scrutiny
* Sodom Francisco - Taxpayer Funded Sex Changes

INFORMATION:
* The Liberty Tree - IRS Collections Still Down
* TRAC the IRS

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
Click here for our audio welcome message.

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 enjoy reading our newsletter! So spread the word... the forward button is just a click away...

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You Have Heard of the Rest. Now Learn About the Best!

Discover why America's workforce is converting to the many advantages of
non-covered employee contracting! No SSN's, No W2's, No 1099's, No withholding!
ACS can even take you on as their own at your current job. For more detailed
information click here. ACS has the answer for you!

UPDATES:
* Recent Web Broadcasts from Headquarters
If you would like to view the February 3rd class, click here. John Kotmair, founder and fiduciary of the fellowship picked up where he left off from the January 27th class as he continues to dissect the Internal Revenue Code.

Bill Huff of LexRex (Law is King) presents early writings of the Colonists at the founding of the Republic in the February 10th class. Before the ink was dry on the Constitution some Colonists were scheming on how to destroy the Republic in order to return to that of a Monarchy. Very interesting tactics and methods were being trotted out then to vilify the Republic as they are today by our modern politicians. Click here to load up your MS Media Player device to watch the archived broadcast.

* Comprehensive Annual Financial Reports - Web site
The Biggest Theft In American History - By Walter J. Burien, Jr.

Every city, county, state, and the federal government keeps a hidden, SECOND SET OF BOOKS which track the multi-TRILLION dollars in tangible wealth they have built up in these virtually hidden portfolios initially coming from investing YOUR tax money for over 50 years in everything from real estate to the stock market.

Your city, county, state, and federal governments have LIED TO YOU for decades. There is NO NEED FOR TAXES. Our governments are not broke, they are rich beyond measure with OUR money, and they are hiding it from the American taxpayer while pleading they are broke and need more taxes, bonds and levees to survive. This being done as they blindly justify their obscene growth. BS! There is enough aggregate wealth owned by our government agencies to abolish ALL property and income taxes TODAY. You are being conned, lied to, ripped off, and financially raped.

For the web site click here.

Past reports on CAFR as reported in The Tax Freedom 101 Report
July 25th, 2000 - NEWS: * Does the 5 Trillion Dollar Federal Debt Really Exist? - click here.
August 1st, 2000 - UPDATES: * Does the 5 Trillion Dollar Federal Debt Really Exist (Archived Radio Show) - click here.
August 8th, 2000 - UPDATES: * Walter J. Burien Interviewed by Geoff Metcalf of WorldNetDaily about CAFR's. - click here.

* Test Your Knowledge with: The Constitutional Quiz Question of the Week!

This week's question: What is found in the Constitution as a grant of power to Congress in Article 1, Section 8, Clause 15?

The answer to this question and many other intriguing and timely education material will be provided in the TAX FREEDOM 101 Alert Forum at: www.egroups.com/group/taxfreedom101

The Three Maxims for Tax Freedom!
Rule #1 - Protect Your Property and Earnings! Rule #2 - Get Educated! Rule #3 - Take Action!*
*Have you completed Rule # 1 first? Do you know how to properly protect your property and Income?
If you do know about asset protection and have not taken the steps to protect what is yours
what are you waiting for?! Learn about the "Three Maxims" for Tax Freedom here.

NEWS:
* IBT Maintains Resolve
The Indianapolis Baptist Temple has maintained their resolve and maintained their faith. Yes their building may be gone, but the Church still remains!

Temple still plans to ignore IRS rules - Experts are perplexed by church's refusal to withhold taxes from employees' paychecks.
By Doug Sword - Indianapolis Star - February 14, 2001

All bills came due Tuesday when federal marshals seized the Indianapolis Baptist Temple, the final battle in a 17-year war between the church and the Internal Revenue Service.

"They collected today," a sorrowful Ron Pollard said, motioning toward the federal agents manning a barricade that separated church members from what used to be their property.

Like others in the temple's flock, Pollard saw the seizure as irreligious and contrary to lessons from the Bible.

"The lesson is what is God's is God's," he said. "Tithes and offerings are God's."

For the rest of the article, click here.

U.S. seizes a church
Joseph Farah - Between the Lines - WorldNetDaily

The U.S. government seized a church in Indianapolis this week.

Sadly, most Americans watched this event on television -- witnessing a pastor being forcibly removed from his church and its property turned over to the Internal Revenue Service -- and collectively yawned.

"Ho hum," they said. "Must be one of those nasty, dangerous tax protesters. I'm sure the government wouldn't take away a church from its flock without good reason."

And most Americans would be dead wrong.

The Indianapolis Baptist Temple was illegally seized by the federal government not because, as many news reports suggested, it hadn't paid taxes. Churches aren't required to pay taxes in America. The church was seized because it refused to deduct withholding and payroll taxes from employees' paychecks. The church's reason was very sound: It did not want to submit to regulations by the federal government.

In other words, the federal government didn't lose a penny of revenue because of the actions of the church. There isn't even any allegation by the government that it did. Employees of the church paid taxes individually -- just as millions of other employees and independent contractors do every year.

So, why did Washington send in the goons?

Because the federal government wants to send you and me a message -- and the Indianapolis Baptist Temple was, it figured, a good way to do it.
For the rest of the commentary, click here.

* Rate of All I.R.S. Audits Falls; Poor Face Intense Scrutiny

"Audits and I.R.S. computers only catch cheating by those who operate within the tax system and are known to the government. A small number of businesses have stopped withholding taxes from their workers' paychecks and have stopped filing reports with the I.R.S."
By David Cay Johnston - NY Times February 16, 2001

Audits of tax returns by the Internal Revenue Service, already at a record low in 1999, fell almost 50 percent last year.

The chance of an individual tax return's being audited last year was less than one in 200, down from one in 112 in 1999 and one in 60 in 1996, new data and revised figures for last year show.

Even those figures significantly overstate the risk of an audit for most taxpayers. That is because, under orders from Congress, the I.R.S. is giving particular attention to returns filed by the working poor who apply for a special tax credit. Such returns accounted for 44 percent of all audits.

Among taxpayers who did not apply for that credit, the audit rate last year was just one in 370.

For taxpayers who make more than $100,000, and who pay 62 percent of all individual income taxes, the audit rate last year was slightly less than one in 100, down from one in 50 in 1998 and down from one in 9 in 1988.

Audits of corporations also fell, by nearly 13 percent from the record low in 1999. The I.R.S. did not release data on audits of the largest corporations, with more than $250 million of assets, which pay more than 80 percent of corporate income taxes.

Commissioner Charles O. Rossotti, disclosing the new figures yesterday, attributed the decline in audit rates to the shrinking of the I.R.S. auditing staff even as the number of tax returns grew, and to the diversion of I.R.S. employees to other functions as required by several new laws aimed at protecting taxpayers from abuses.

For the rest of the mainline propaganda, click here.

* Sodom Francisco - Taxpayer Funded Sex Changes
San Francisco is about to embark on another first in the nation: providing health care benefits for city workers undergoing sex-change procedures.

Starting July 1, if the plan gets the expected approval from the Board of Supervisors and Mayor Willie Brown, the city's health plan will cover sex- change operations, hormone treatment and related medical needs for city employees changing from male to female or female to male.

San Francisco's Health Service System board quietly approved the new benefit earlier this month, nearly five years after activists began pushing for the coverage. An OK from the mayor and supervisors is the final step.

"This is very much a civil rights issue," said Supervisor Mark Leno. "This is about equal benefits for equal work."

The move comes as there is more public recognition of rights for transgender people. And the city workers health insurance fund, once financially shaky, is now flush enough to take a chance with an untested benefits program.

For the full sickening story, click here.

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:
The Liberty Tree - IRS Collections Still Down

In December of 2000, Save-A-Patriot Fellowship members received this article in the Liberty Tree via the Members Assistance Program.

THE LIBERTY TREE
Vol. 4 Number 2 - February 2001

IRS Collections Still Down
by Jim Kerr, staff paralegal

IRS audits and enforcement actions to collect back taxes have plummeted since the passage of IRS reform legislation, which became Public Law 105-206 when Clinton signed it on July 22, 1998. It is commonly called the "Taxpayers' Bill of Rights." According to Owen Ullmann of USA Today, from 1997 to 1999, property seizures fell 98%; "levy" actions were down 86%; "liens" were down 69%; and face-to-face audits fell 40%. Commissioner Rossotti blamed the 1998 reforms for this, along with a 16% reduction in its workforce since 1992. Due to Congressional budget cuts, the IRS has about 98,000 employees, now. Moreover, many employees were diverted from other jobs to put the reforms into effect. Apparently, the IRS is being pressured to abide by the law in their collection efforts, and this is creating problems (for them).

IRS abuses, affecting millions of citizens every year, has created quite an outcry from the public. Even the ordinarily docile couch potatoes have been complaining. This resulted in substantial pressure upon Congress to do something to curb these abuses, hence the hearings that resulted in the new legislation.

There's nothing new about these hearings. Every so many years, when the clamor of IRS victims becomes inconveniently loud, Congress conducts these hearings. Of course, they are merely dog and pony shows meant placate irate Taxpayers for a time. Congress does not really want to change anything. If they were sincere about meaningful change, they would begin by getting rid of the Anti-Injunction Act (§ 7421). Nevertheless, much to chagrin of Congress and Clinton, this time, the reforms actually did have an effect!

In all probability, Congress never had any intention to allow unlawful collection enforcement to drop so radically. Indeed, Democratic Louisiana Senator John Breaux expressed the sentiments of his colleagues rather succinctly with his remark, "This is alarming! Can we take [the legislation] back? Clearly Congress is unlikely to permit the slow-down in unlawful collection efforts to persist. They can't; it's all about money, plunder, and their greed.

Here is the root of it. The national debt, at the time this was written (January 30, 2001), was about $5,684,598,483,402. The National Debt has continued to increase an average of $123 million per day since September 15, 1999, with no end in sight. "But I thought we had a budget surplus? Clinton said so, and he wouldn't lie about a thing like that ... would he?" Facts are stubborn things. With the estimated population of the United States at 274,558,821, each citizen's share of this debt is $20,554.75. You can verify this yourself at, http://www.brillig.com/debt_clock. No intellectually honest person knowing this could deny that our economy is teetering on the brink of disaster; and you can be certain that these politicians are fully aware of this and scared to death that the inevitable crash will occur on their watch. Therefore, they are strongly motivated to keep the economy afloat for now by increasing the rate of the debt, with the looming specter of hyperinflation ahead.

As of today the debt clock reads:

U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 14 Feb 2001 at 01:56:08 PM PST is:

The estimated population of the United States is 276,648,127
so each citizen's share of this debt is $20,554.86.

The National Debt has continued to increase an average of
$123 million per day since September 15, 1999!
Concerned?

Hyperinflation presages any economic crash. In order to prevent or forestall hyperinflation, it is necessary to siphon off excess currency from the economy. This "excess currency", of course, comes from the government. through the Federal Reserve. All it has to do is create new money through a process called "monetizing" debt. Most of the money the government now spends is obtained that way. This is how most inflation is generated, and is most certainly a tax much as any other. But because it is a hidden tax, few Americans understand how it works, and so it is far easier to collect than a tax that is out in the open.

The ignorant might wonder, "If the government can tax people via inflation, why does the federal government bother with taxes at all? Why not just operate on monetized debt?" Indeed, as Beardsley Ruml, then chairman of the Federal Reserve Bank of New York, in the January 1946 issue of American Affairs stated, "the thesis is that given control of a central banking system and an incontrovertible currency [a currency not backed by gold], a sovereign national government is finally free of money worries and need no longer levy taxes for the purpose of providing itself with revenue." Nevertheless, the government must resort to overt taxation for at least two reasons: if the government did raise their revenues this way, people would begin to wonder where the money was coming from, and that might cause them to wake up to the reality that inflation is a tax. But more importantly, taxation keeps inflation from getting out of control.

Nevertheless, government officials and their special interest clients promote inflation and protect the bankers' fractional reserve racket because they profit from it, at the expense of we the people. This profit arises largely from monetizing debt, i.e., borrowing newly created "money" using new government debt. This is how it works. Assume that banks are allowed to have only 10% in reserves to cover their loans, and the Federal Reserve wants to generate new reserves to allow banks to buy 100 billion dollars worth of new Treasury bonds. All the Federal Reserve has to do is to buy 10 billion dollars worth of old treasury bonds with newly printed federal reserve notes, creating 10 billion in new reserves. Then the private banks can pyramid this sum to the 100 billion of new government bonds, because they are required to have only 10% reserves. This way, the government has obtained 100 billion dollars in purchasing power, and 100 billion has been added to the total money supply, causing inflation. In the process, we are taxed twice: once, by being saddled with the interest payments; and secondly, through inflation, the hidden tax.

Today, federal taxation (not counting inflation) does not even cover the interest in our national debt. Yet, as with any Ponzi scheme, there must be a day of reckoning, and the politicians know this. Eventually, inflation will collapse the system, the people will wake up to the currency debasement scheme and turn to money of intrinsic value. This happened repeatedly over history, one dramatic example being Germany in 1923. Fiat currency systems have existed since the dawn of history, and have never been sustainable. The result is always the same: plunder of the people culminating in a crash. "There is nothing new under the sun."

Having established that the national debt is so large that we cannot even pay the interest on it; the government wants to keep the economy afloat for as long as possible; that Congress must limit the inflation tax; and that money must be siphoned from the economy by non-inflation taxation; we can see that the government has a problem with this new Act. Congress wasn't expecting the agents to react as they did. All they wanted was for the public to cool down some. Now it's over-cooled (from their perspective). So clearly, IRS enforcement cannot possibly remain at these low levels; and SAPF has not become obsolete. Congress will probably go back to alter the Taxpayers' Bill of Rights to restore the old levels of unlawful enforcement activity - if they can get away with it. But in the meantime, IRS agents are dodging the effect of this Act upon them by buying liability insurance to protect themselves from the personal financial repercussions of their unlawful activities. Even judges who have been upholding these illegal acts for so many years are concerned; they too, are buying liability insurance. There is quite a run on it.

In the meantime, however, we need to press the advantage. Now, more than ever, people need to organize and support the effort. It is the only way it can be done. We have to organize, and we have to support one another. We need to act collectively, in the way of offense and defense, and Save-A-Patriot Fellowship is the best, if not the only means of achieving this that exists in America today. SAPF has probably had the largest impact upon IRS tyranny of any grassroots group to date. Our name appears in the Internal Revenue Manual at least three times, so they must really appreciate us. SAPF is designed not to fight just some facet or social ill, but to overcome this march to world government and the destruction of individual liberties. While Save-A-Patriot is not the only patriotic group in the country (thank God) it is the only one that has insurance-like protection against losses of property or the unlawfully incarcerated. We educate the people as to the law, minus the patriot mythology which, sadly, abounds in this movement. We're also a full service fellowship, with caseworker and paralegal departments that even lawyers utilize. Due to many years of hard effort, we are everything that a fellowship ought to be. It didn't just happen overnight.

Remember the tale of The Emperor's New Clothes? If you do, you might not remember how it ended. Hans Christian Anderson wrote (translation from the German),

"And all the people standing by, and those at the windows cried out, 'Oh! How beautiful our Emperor's new clothes are! What a magnificent train! And how neatly it fits!' Certainly, none of the Emperor's various suits had ever made so great an impression as this invisible one.

"But the Emperor has on nothing at all!" said a little child.

"Just listen to what the innocent says!" exclaimed her father, and what the child had said was whispered from one to another. "He has nothing on at all,' cried out all the people together, and the emperor was angry and ashamed for he knew suddenly that they were right. 'But I will have to go through with the procession, " he said to himself, so he drew himself up and the lords in waiting tightened their hold on his imaginary mantle and stalked on. "

We see that the Emperor's tolerance to embarrassment is higher than what we would think. He doesn't attempt to cover himself and run home; he just pretends that everything is okay, and carries on with his parade. Clinton and the rest of the government too, shamelessly pushed this great nation further toward the abyss of economic ruin, pretending that everything is just fine, even though they know differently. The Emperor's subjects marveled at his fine finery, even though they plainly saw that he was naked. Similarly, America's couch potatoes say we have a budget surplus, when clearly, we don't. In the fable, one child creates quite a ripple. I would think a hundred would create quite a splash.

To those who say you can't fight city hall, I would say they are wrong. Our politicians are not impervious to the pressure we the people are exerting. We need to keep chipping away. The only way the government can be forced to abide by the law that created it, is to educate the public so that they can elect statesmen instead of crooked demagogues who constantly hold power and plunder the people. We have seen that Congress was forced to make these changes because of the demands of the public. And remember, SAPF is not one child creating a ripple by speaking the truth; we're thousands of voices, and our collective voice (SAPF and Liberty Works Radio Network) is heard around the world. The dishonest politicians are scared to death of that.

We the people need Save-A-Patriot more than ever. Save-A-Patriot, while a formidable force for lawful reform, needs to become larger, and this means we need new members to join. If SAPF becomes large enough, it will become a voice against tyranny that the demagogues in public office will be unable to ignore. Imagine if we had 100,000 members! That would be end-game for the current socialist and globalist regime. Imagine loosing a $100,000 home to an unlawful IRS foreclosure, and each of 100,000 members send you $10; you'd be a millionaire! Instead of feeling very low about it, you and your family loosing the home you worked hard for all your lives, you'd feel pretty good about the whole thing! Robbing the power of the IRS to unlawfully ruin our membership financially would render them impotent. Word would get out, and membership would sky-rocket from there. End-game!

We are making more progress in this respect than most members might know. Most of our recent members putting in for assessments received substantially more than they lost. We are the only fellowship of its kind that can make that claim.

Encourage friends and family to join SAPF. Even if you never need to make an assessment, you will sleep better at night knowing that you are doing something useful to safeguard the legacy of our children. Remember, "We must all hang together, or, assuredly, we shall all hang separately."

* TRAC the IRS
Here is a web site that will allow you to obtain information and track the IRS and its: Recent Audit History, National Profile & Trends Over Time, Taxpayer Burdens and Responsibilities, District Enforcement, New Findings and The IRS At Work. Provided by the University of Syracuse, Transactional Records Access Clearinghouse is a wealth of information for the American Taxpayer - which we know many of the subscribers to this ezine are not, but we just thought you might like to take a look since most of the information is very encouraging - click here.

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

www.taxfreedom101.com
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