222 lines
11 KiB
Plaintext
222 lines
11 KiB
Plaintext
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Tax resistance primer - How to beat the IRS...
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Copyright ©1998 Lee Adams. All rights reserved. NOTE - Spy & CounterSpy does not
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endorse, condone, or encourage any illegal act. The material in this article is
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presented for information, research, entertainment, and education purposes only.
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The words "you" and "your" are used in this article for ease of readability
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only.
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You probably don't realize that big government sticks its hand in your pocket
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and takes half of everything it finds there. Every time money change hands,
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government bureaucrats skim their cut off the top.
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A growing doubt. Across America, more and more citizens are losing confidence
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in their government. Common, decent folk are losing faith - they look around
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them and see unresponsive elected officials, national ID cards, gun
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registration, militarized police, property confiscation, rampant surveillance, a
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cashless society, a tethered news media. They remember Vickie Weaver. They
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remember Waco.
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Decent Americans are beginning to see the effects of no-knock warrants, coerced
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informants, illegal arrests, rigged trials.
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At the international level, more and more Americans are troubled by a foreign
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policy indistinguishable from terrorism - and a disgraced (but still arrogant)
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national leadership.
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The list goes on and on.
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These hard-working, decent Americans no longer believe their government
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represents them. These citizens no longer accept that the government has any
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moral right to take their hard-earned money.
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These patriotic, otherwise law-abiding citizens are rallying to the same cry
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that stirred the heroes and heroines of the American Revolution - no taxation
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without representation.
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How the world really works. Stop for a moment and consider this scenario. If
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you earn a hundred dollars the government grabs 35% as income tax. That leaves
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you with $65.00 in your pocket. If you wanted to buy $100.00 worth of groceries
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you'd actually need to earn $155.00 just to have $100.00 left in your pocket.
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But it doesn't stop there. When you go to pay for your $100.00 groceries, the
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seller tacks on the sales tax. Between state tax, county tax, local tax, hidden
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manufacturing taxes, licensing fees, permits, excise, duty, etc. etc. etc. in
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many cases the sales tax exceeds 15%. So now you're paying $115.00 for $100.00
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worth of groceries. To get that $115.00 you need to earn $180.00.
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NOTE - In all fairness, we're playing loose and fast with figures here in order
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to get our point across. Other taxes, rebates, exemptions, licensing fees,
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permits, and surcharges apply, but they only serve to complicate the issue -
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these factors don't alter the fundamentals of the racket being foisted on us by
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the gangsters... err, we mean the government.
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What you'll learn here...
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This article teaches you a method of tax resistance that allows both parties in
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a transaction to keep every dollar they earn.
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This system is already being successfully used in the USA by individuals and
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small businesses. The IRS doesn't want you to know about this method because
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they don't know how to stop it. Simply stated, this article shows you how to
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beat the IRS.
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IMPORTANT NOTE - Spy & CounterSpy does not condone any illegal act. Tax evasion
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is a crime. Don't do it. You shouldn't let your judgment be clouded by the fact
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that IRS "inspection agents" routinely carry concealed handguns in direct
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violation of federal and state law. Just because the IRS routinely breaks the
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law doesn't mean you should too. Remember, the material in this article is
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presented for information, research, entertainment, and education purposes only.
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Lesson 1: How to guarantee you'll continue to be fleeced by the government...
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Let's consider a simple deal in which I agree to buy an item from you for
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$100.00.
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Sales tax. You must collect the sales tax from me. Let's assume it's 15%
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(federal, state, county, and local all added together). That means I actually
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pay $115.00 (not $100.00) for the $100.00 item I've agreed to buy from you.
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Government gets the $15.00. As the buyer, I pay the sales tax under threat of
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imprisonment.
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Forced labor. You as the seller, meanwhile, are forced to do the government's
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paperwork - you must calculate the tax, collect it from me, and remit it to the
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government. You as the seller do all this work for free, again under threat of
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imprisonment.
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Income tax. You, as the seller, receive $100.00 for the item. Let's assume your
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wholesale cost is $50.00. That means your real earnings are $50.00 (for your
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labor, etc.). Let's assume an income tax rate of 30% (it's often higher). When
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you fill out your income tax form next spring you're going to find that you must
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pay the government $15.00 on the $50.00 you earned. So you as the seller really
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make only $35.00 on a $100.00 transaction. As the seller, you pay your income
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tax under threat of imprisonment.
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The bottom line. In the simple example given here, the government skimmed
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$30.00 off a $100.00 transaction. They took $15.00 from me, the buyer. They took
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another $15.00 from you, the seller.
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In actual practise, however, the government takes a lot more than this. We
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haven't considered the wholesaler or the manufacturer, who will each be paying
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30% income tax on their revenue too. Nor have we considered that the buyer needs
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to earn $155.00 in order to have $100.00 in his/her pocket. If all parties are
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considered, the government skims more than 50% off each and every transaction
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every day in America. All under threat of imprisonment, of course.
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Four hundred years ago we had a name for people who did things like this. We
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called them robber barons.
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NOTE - Government bureaucrats need an efficient money-raising system like this
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if they're going to keep buying $600.00 hammers and $400.00 screwdrivers for
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their departments. If you ever need a good laugh, consider looking through the
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auditors' reports on how these idiots waste our tax dollars. They often spend
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money just for the sake of spending it - in order to ensure their department
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gets a bigger budget next fiscal year. It's insanity, but that's
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business-as-usual for the government.
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Lesson 2: How to pretend you're not being fleeced by the government...
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Let's assume you agree to have some electrical work done in your office for
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$100.00.
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Suppose the electrician is a tax resister. He might wink at you and say, "If
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you'll pay me cash, I won't charge you any sales tax."
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(No nasty email please. We've got nothing against electricians, most of whom are
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good people.)
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You, being somewhat of a rube at the tax resister game, agree to this
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conspiracy. After all, you figure you're saving the 15% sales tax. And you don't
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need a receipt.
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Unfortunately, however, things aren't that simple. One of you is still getting
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fleeced.
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The buyer's dilemma. If you're in business, you can't claim what you spent as
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an expense - because you didn't get a receipt. So you're still stuck in the
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position of needing to earn $155.00 in order to be able to spend $100.00. Of
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course, these calculations are hidden and the stark reality doesn't really
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confront you until next spring when you're filling out your income tax forms.
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The seller's situation. The electrician did okay. Because he issued no receipt
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to you, there is no record of the cash transaction. So he might be tempted not
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to declare the money as revenue. In that case the seller pays no income tax. So
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he gets to keep the full $50.00 he earned ($100 minus his wholesales costs of
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$50.00).
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The seller is a happy camper. But once you figure out what's happened to you,
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you're unlikely to fall for the no-sales-tax ploy a second time. That's because
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the seller is beating the IRS, but it's at the buyer's expense. In other words,
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he beat the IRS but you didn't.
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You're probably asking yourself, "Gee, there must be a better way, where both
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buyer and seller come out ahead of the IRS."
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And there is.
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Lesson 3: How to beat the tax man...
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The key to a successful, audit-proof, tax resistance strategy is the receipt.
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Pay attention. Here's how tax resisters across America beat the IRS every day.
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The seller winks and says, "If you'll pay me in cash, Mr. Buyer, I won't charge
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you the sales tax."
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The buyer replies, "Sure, I'd be glad to, but I'll still need a receipt for
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income tax purposes."
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"Of course," says the seller, who proceeds to make out a receipt for the buyer
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under the name of a non-existent firm.
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Both parties win. Here's why...
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The buyer is happy. The buyer saves 15% off the top. He doesn't pay any sales
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tax on the transaction. Plus, he gets to claim his purchase as a legitimate
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expense because he's got a receipt to staple to his tax form next spring. So he
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only needs to earn $100.00 in order to be able to spend $100.00.
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The seller is happy. The seller saves 30% income tax on his earnings. It's a
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cash transaction so there's no record of the sale. So he doesn't declare the
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income. The preprinted receipt he gave the buyer is under the name of a
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non-existent company that cannot be traced to the seller.
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Criminal conspiracy. Let's be frank. What we're describing in this article is
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criminal conspiracy and collusion. The IRS has found that, if both parties keep
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quiet about what they've done, this method of tax resistance is audit-proof,
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provided that the method isn't flagrantly overused.
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SECURITY NOTICE - The "inspection agents" of the IRS will, however, open your
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mail, bug your home or office, and put you under surveillance in their attempts
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to get you. Whistleblowers at the IRS have told Spy & CounterSpy that these
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goons carry guns - in direct violation of federal and state law, of course.
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Thousands of transactions are conducted across America every day using this
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method of tax resistance. Yes, it's illegal. Yes, it's criminal fraud. Yes, it's
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tax evasion. Don't do it. Simply put, it would be unlawful for Spy &
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CounterSpy to encourage you to join the thousands of Americans who already
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practise tax resistance because they have lost faith in their government.
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Summary. The receipt is what makes this method of tax resistance successful.
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The IRS doesn't want you to know about it because they don't know how to stop
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it.
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NOTE - Spy & CounterSpy does not endorse, condone, or encourage any illegal act.
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Tax evasion is a criminal offense. Don't do it. The material in this article is
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presented for information, research, entertainment, and education purposes only.
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The words "you" and "your" are used in this article for ease of readability
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only.
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WARNING - Tax evasion is a criminal offense. Don't do it. The material in this
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article is presented for information, research, entertainment, & education
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purposes only.
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--original by: spy&counterspy, conversion: mrf |