Before we get entangled in the doublespeak of the Internal Revenue Service Code and rulings, we need to consider that the whole Orwellian nightmare is a sham imposed by the police power of the State on a gullible people.
Actually the income tax has a dual purpose, and neither is to pay taxes to the government. Its first purpose is to control and redistribute the volume of money. James A. Garfield, the 20th President of the United States said, “Whoever controls the volume of money in any country is absolute master of all industry and commerce.”
The second reason the income tax system exists is to keep a dossier on all citizens. The 1040 tax return is your personal profile.
So-called income taxes, as defined and used by the Socialist State, lead the people into a swamp of confusion as it is designed to do. Socialism attracts corruption and corruption attracts Socialism.
Income tax systems go hand-in-hand with fiat paper money systems. The money creators cannot create wealth but they can transfer wealth with depreciating (inflating) paper money.
Governments make war on their own citizens by depreciating the currency. As the currency is depreciated (inflated) the people are impoverished. There is no way to protect financial assets with a fiat paper money system except as paper money is converted to gold and silver.
Depreciating paper money is not a store of wealth. Gold and silver are. One can bury paper money and the money creators and tax collectors do not know where it is. Yet the State can steal the purchasing power of paper money by creating more paper money and diluting the buried paper money.
The transfer of wealth from the producers and savers to the government is a simple process of increasing the quantity of money. This fact eliminates the need for income taxes.
Using words spoken by Beardsley Ruml, chairman of the New York Federal Reserve from 1941 to 1946, we can dispel the widely believed myth that income taxes are needed for government income. Income taxes have nothing to do with providing income to the government.
In a famous speech he read before the American Bar Association during the last year of World War II, titled Taxes for Revenue Are Obsolete, Ruml said, “The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government.”
The speech was originally printed in American Affairs in the January, 1946 issue. The editor of American Affairs wrote: “His (Ruml’s) thesis is that given (1) control of a central banking system and (2)an inconvertible currency, a sovereign national government is finally free of money worries and need no longer levy taxes for the purpose of providing itself with revenue. All taxation, therefore,should be regarded from the point of view of social and economic consequences.”
To read the entire speech, go here. It is very valuable information to reveal the fraud of income taxes as Americans understand it.