Wednesday, May 23, 2007

H.R.25 DOES NOT END TAXES CALCULATED FROM INCOMES!

1). The alleged fair tax does not repeal all taxes which Congress may calculate from profits, gains salaries, and other “incomes”.


2) The alleged fair tax does not propose to get rid of all taxes which Congress may calculate from profits, gains, salaries and other “incomes”.


3) None of the co-sponsors of H.R. 25, at this point in time, propose to get rid of all taxes which Congress may calculate from profits, gains salaries and other “incomes”.

The architects of H.R. 25 have left a very clever loophole in the language of H.R. 25 allowing Congress to continue calculating taxes from profits, gains, salaries and other “incomes“. This of course would also allow a continuance of the existing misery of record keeping under taxes which are now laid upon “incomes“, and such misery would be in addition to the new rules and regulations of the alleged fair tax.

H.R.25 stipulates the following:

SEC. 101. INCOME TAXES REPEALED.
SEC. 102. PAYROLL TAXES REPEALED.
SEC. 103. ESTATE AND GIFT TAXES REPEALED.


But, there is no language in H.R. 25 suggesting to repeal all taxes which may be calculated from profits, gains, salaries and other “incomes”! Why is this pertinent and ought to cause alarm? To understand this one must study FLINT v. STONE TRACY CO., 220 U.S. 107 (1911), a case decided prior to the adoption of the 16th Amendment! The Court upheld an excise tax, the corporation tax law of 1909, which was laid upon the privilege of being a Corporation, and the amount of tax to be paid was calculated from profits and gains realized under the corporate charter granted by government. Although such a tax looks like and quacks like an “income tax”, it is not a generic “income tax” and is not even suggested to be repealed by the language of H.R. 25!

If H.R. 25 were adopted and our socialist Congress needed additional revenue, would they really have difficulty gaining public support to use their “excise” taxing power to enact an excise tax on the “windfall profits” of those evil corporations so the 23 percent sales tax would not have to be increased to fund federal expenditures? Or, how about our socialist Congress laying a windfall profits excise tax on those evil and wealthy scoundrels in America who make millions of dollars a year in profits by bleeding the poor working people, such as was alleged about Leona Helmsley who they sent to jail for an alleged tax fraud, but who actually contributed more in federal taxes than any twenty average working people in New York? Would she be free from the grip of a socialist Congress?

If the architects of H.R. 25 were really sincere and determined about ending taxes calculated from income, then they would have said so in crystal clear language such as:

“The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money”

But as it turns out, not one of the co-sponsors of H.R.25 have proposed a companion bill to H.R. 25 with specific language proposing a constitutional amendment to forbid Congress from calculating any tax or burden from “profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money”, when such wording is absolutely necessary to end the misery now suffered under “income taxation”. What has been proposed is the following:


109th CONGRESS
1st Session
H. J. RES. 16

Proposing an amendment to the Constitution of the United States to repeal the sixteenth article of amendment.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled (two-thirds of each House concurring therein), That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:

`Article --
`The sixteenth article of amendment to the Constitution of the United States is hereby repealed.'.


But as we have learned from the FLINT CASE, the 16th Amendment was not needed to lay an excise tax calculated from “incomes”. And so, repealing the 16 Amendment with the above stated language, is meaningless!

And what do the architects of H.R. 25 propose within the language of H.R. 25? The language of H.R. 25 merely says that the 16th Amendment “should be repealed”.

But if H.R. 25 were adopted, and 10 or 15 years down the road the 16th Amendment by some remote chance is finally repealed by the above proposed language in H. J. RES. 16, Congress still maintains the power to calculate taxes from profits, gains, salaries and other “incomes” under its excise taxing powers, and, the SCOTUS has already upheld such a tax in the FLINT CASE mentioned above!

H.R. 25, if adopted and enforced, would expand Congress’s taxing power to reach property, real and personal, with a 23 percent tax, while keeping alive Congress’s power to lay and collect taxes calculated from profits, gains and other “incomes”.

H.R.25 also appears to be designed to divide the people and distract them from real tax reform such as:

“The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money”

The above wording would bring us back to our FOUNDING FATHER’S ORIGINAL TAX PLAN which was created by tax rebels and designed to control the actions of Congress, rather than having Congress control the people.

Regards,

JWK