by Art Helms
Have you ever been hornswoggled into a boondoggle, by a master bamboozler? Well of course you have, if you are an American taxpayer.
On March 4th, 1913, President Elect Woodrow Wilson began his inaugural address: “There has been a change of government. It began two years ago, when the House of Representatives became Democratic by a decisive majority. It has now been completed. The Senate about to assemble will also be Democratic. The offices of President and Vice- President have been put into the hands of Democrats. What does the change mean? That is the question that is uppermost in our minds today.” Within President Wilson’s closing statements, he said “Men’s hearts wait upon us; men’s lives hang in the balance . . .”
1913 was the year President Wilson signed the 16th Amendment (the Income Tax Amendment) and the Federal Reserve Act into law. That was the year that you were hornswoggled. That was the year the Republic was changed to a Democracy. That was the year our boondoggle began; the year the flim-flam men took control.
With the passage of these two bills into law, Congressman Charles A. Lindbergh Sr. warned “From now on, depressions will be scientifically created.” Certain historic dots can be connected to show that he was correct in his assessment. “The modern bourgeois society that has sprouted from the ruins of feudal society has not done away with class antagonisms. It has but established new classes, new conditions of oppression, new forms of struggle in place of the old ones.” (Manifesto of the Communist Party – By Karl Marx and Fredrick Engels – February, 1848 – Translated by Samuel Moore in cooperation with Frederick Engels, 1888.) The 16th Amendment, implemented, fits exactly with the 2nd of 10 tenets of this manifesto (“A heavy progressive or graduated income tax“). The Federal Reserve System fits with the 5th tenet.
The 16th Amendment (in direct violation of the “Apportionment” and “Enumeration” clauses of Article I, Section 2, of the Constitution) gave the flim-flam artists in Congress virtually unlimited power to “lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” Congress now had freedom to reinterpret the “Spending” and “Uniformity” clauses of Article I, Section 8, to their best political advantage. The Federal Reserve Act, passed by Congress in late 1913, allowed Congress freedom to reinterpret the “Borrowing” clause of Article I, Section 8. With these two new powers in the hands of a greedy government, and a power mad so-called “Federal” Reserve System, with membership in a shady international banking cartel, “Reason” exited, stage left.
In 1913 income taxes ranged from a low 1.0% (for those earning $0 to $20,000) to a high 7.0% (for incomes of $500,000 and above). January 19th would have been the Tax Freedom Day, at 5.2% of the average income. In 1913 there were only about 400 pages in the US Tax Code. Federal spending amounted to $970 million at 2.5% of Gross Domestic Product, and the national debt was $2.9 billion at 7.5% GDP.
Today we have our own modern bamboozler, whose mantra is also predicated on change “Change doesn’t come from Washington. Change comes to Washington.” (BARACK OBAMA, DNC speech, Aug. 28, 2008) Today the disgrace of our BOONDOGGLE has grown into pandemic proportions.
In 2009 income taxes (for married, filing together) range from a low 10.0% (for those earning $0 to $16,700) to a high 35.0% (for incomes of $372,950 and above). The normal Tax Freedom Day (not adjusted to add the budget deficit) was April 13th (103 days) at 28.2% of the average income. In 2009, however, an unprecedented budget deficit over $1.5 trillion produced a date of May 29, fully forty-five days later than the normal Tax Freedom Day. Today there are upwards of 67,000 pages in the US Tax Code. (Americans will pay more in taxes in 2009 than they will spend on food, clothing and housing combined.) Federal spending is reported to be $4 trillion at 28.07% GDP, and the national debt is estimated to be $12.8 trillion at 90.4% GDP.
“Washington is estimated to run a 2009 budget deficit of $1.845 trillion ($15,635 per household). While deficits naturally rise during recessions, one would expect them to eventually return back to the $100 billion to $400 billion range that prevailed before the recession. However, the President’s budget shows annual budget deficits averaging just under $1 trillion over the next decade–a period in which the national debt would double. These deficits would not only raise interest rates, they would also nearly quintuple the net interest costs of the national debt over the next decade.” (SR-63, a Heritage Foundation publication)
On the surface, it would seem that our root problem is our failing economy. The fact is that our failing economy is only a surface symptom of a much deeper two root malady. Our Republicrat and Demopublican politicians, in concert with the so-called “Federal” Reserve Loan Shark System, seem to be wallowing in two mud puddles of mad money and mad power.
Diving deep into the mad money puddle, we could analyze charts and graphs of the steady growth of our national debt, from reasonable millions in the nineteenth century, to the unmanageable and outrageous billions and trillions of our Bush/Obama bailout generation. The bottom line, zeroed in, problem definition is found in God’s word. “But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.” (1Timothy 6:9-10)
Diving still deeper, into the mad power puddle, we could mention any number of “in your face” bills being considered in Congress, and the thousands of oppressive laws already signed into law. Consider the outrageous executive orders, hammered out by our current President, and those of past Presidents with unchecked power. Laws, which are obviously repugnant to our Constitution, have been unconstitutionally “legislated” by activist judges in our Supreme Court in recent years.
In most of these cases, it seems that all three branches of our government are totally ignorant of the litmus test for just laws, written into the Preamble of our Constitution. “We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.” A prime example of the ignorance about this test for just laws is the 1973 Supreme Court “Roe v Wade decision. Has “domestic tranquility” been insured by this SCOTUS legislation? Has the Congress or the Presidency made any move to check or balance the power grab of activist SCOTUS judges?
A quote by the English historian, Lord Acton, comes to mind as a possible bottom line commentary on the mad power puddle: “All power tends to corrupt and absolute power corrupts absolutely.”
“Change“, in American political terminology, has come to mean greater domination of the masses. “Progress”, in terms of the progressive political agenda, is a backward movement, back to the era of landlords and serfs. The four sided golden mean has been replaced by a demonic triangle. The three branches of our government have hog-rooted out the fourth. “We, the people, are left hanging, powerless, in the balance of administrative, legislative, and judicial “Change.”
Outside Independence Hall when the Constitutional Convention of 1787 ended, Mrs. Powel of Philadelphia asked Benjamin Franklin, “Well, Doctor, what have we got, a republic or a monarchy?” With no hesitation whatsoever, Franklin responded,
“A republic, if you can keep it.” In our time we are witnessing a gradual and insidious “Change” from republic to democracy. We have only to listen to the words of our politicians to understand where the political power agenda may lead next; and we have had fair warning of the corrupting effect of power, in Psalm 37:35 — “I have seen the wicked in great power, and spreading himself like a green bay tree.” George H.W. Bush was not the first President to tout the “New World Order.” Henry Kissinger was not the first political scientist to speak of a “New Vorld Order.”
Since we began with a quote from President Wilson’s inauguration speech, it is interesting to note that the phrase, “New World Order“, was first explicitly used in connection with Woodrow Wilson‘s “Fourteen Points“, and call for a “League of Nations“, following the devastation of World War I. The term “New World Order” has been used to refer to any new period of history evidencing a dramatic change in world political thought and the balance of power.
We can all agree that using the terms “New World Order” and “Global Governance” has the ring of a very complex set of problems. G.K. Chesterton, in his 1928 review of the book, The Open Conspiracy, by H.G. Wells, explained the danger he saw in what Wells was saying about the “general tendency towards establishing a world control.” He described several difficulties that he felt in what he called Wells’ “glorification of world government.” But then he narrowed the complexity of the problem, where America is concerned, down to the lowest common denominator. He said “One is the very simple fact that the real difficulty of representative government is how to make it representative, even in the smallest of small nationalities, even in the nearest parish council.” That statement is key to understanding the extent of our problem. We have, in common with our founders, the problem of “Taxation Without Representation.”
So, how do we escape this modern feudal system? We go back. We pick up where reason left off in 1913.
First, it is imperative that we understand, and take responsibility for, our own part in the development of our modern American feudal system. Our founders designed into our system of government a unique system of checks and balances. We have been somewhat brainwashed into the erroneous belief that we have three branch governments, consisting of Executive, Legislative, and Judicial branches, in both the Federal and State levels. The propagandists in government have, in effect, deleted the sentence from our Declaration of Independence, which gives proper definition of the roles of the 3 branches (“ deriving their just powers from the consent of the governed” ). The epitome of audacity is shown in a video, recently posted on the “You Tube” web site, entitled “I Pledge”, in which we are encouraged to pledge to be servants of President Obama.
That propaganda has been used as an effective tool for the manipulation of society, is shown in the twisting of Jefferson’s “wall of separation” between church and state to neutralize a very large segment of society. The First Amendment “establishment clause” was never intended to silence the Church from proclaiming the truth of God’s word in the political arena. Yet, in those battles where truth has lost to tyranny, she has remained largely silent. In these radical times, it is absolutely crucial that the Christian Church stops listening to demonic propaganda, and restores her prophetic voice. Who is better to call for justice, than she who holds truth in her bosom? The Church must reclaim her “we the people” place in American history. “. . . with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.” (last line of the Declaration of Independence)
The Preamble of our Constitution begins with “We the people of the United States . . .” The 10th Amendment, in our Bill of Rights, outlines this intended system of checks and balances: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” It was intended, by our founders, that we the people of the United States should serve as the 4th side of the golden mean; that we would maintain a proper balance of power in our Republican form of government, by active participation beyond the voting booth.
So, our first priority is to stop believing that the other three branches of our government have our best interests at heart. Recognize the reality that our politicians will never, of their own accord, repair the breach. We the people must recommit to the checks and balances role of our constitutional 4th branch and follow a reasonable path toward restoration of our constitutional Republic. Today, we are faced with the same problems our forefathers had, but since our Founders left us the great heritage of a Constitutional Republic, through our Declaration of Independence and through our Constitution, we are almost home free. Our modern problems, the lack of proper government representation; our over-complicated system of taxation; and our humongous, incompetent bureaucracies, are at least simpler to solve than the original “Taxation Without Representation.”
Second, as the largest branch of our constitutional Republican form of government, it is incumbent upon us to re-impose constitutional limits in the other branches. Over the past 96 years, our elected representatives have gradually changed the spelling of the word “Representative” to “Ruler.” Rulers can spend and borrow as they please, without regard to any other entity or ethic. If we pick up where reason left, that means that we must repeal the 16th Amendment and the Federal Reserve Act. Reason left Washington, when those two bills removed the Article I constitutional limitations on spending and borrowing.
Third, we must put our big spenders on a fixed income. We must find a way to do that, without a second shooting revolution, and by constitutional means. Fixing government revenues to a certain percentage of individual gains would force the US Government to cut spending and live within her means, as most of the rest of us do.
Solving the biggest of the government imposed boondoggles should go a long way toward solving all of them.
There are boondoggles, and there are boondoggles, but the US Tax Code is a BOONDOGGLE! President Jimmy Carter called it “a disgrace to the human race”, and during his years in office, there were only a scant 25,000 or so pages of rules and regulations. Remember, this is a 67,000 page boondoggle. It has to go!
From the Wall Street Journal to National Public Radio, everyone is saying “We Still Need a Simpler Tax Code.” Even the American Institute of Certified Public Accountants has a long history of advocating sound tax policy, and providing study guides for the ongoing debates on the several types of tax reform proposals.
Over the years, several types of tax reforms have been proposed, including the “Flat Rate Tax”, the “Consumption Tax”, the “Value Added Tax”, the “Fair Tax”, the “Comprehensive Income Tax Reform”, and others. Some of the proposals advocate replacing the current tax system completely. Some are saying “Don’t throw out the baby with the bath water”, as if any mother in her right mind would want to wash her baby in such dirty water.”
To my limited knowledge, none of the various proposals have zeroed in on the real problem, that of immoral and unconstitutional concentration of governmental powers through the 16th Amendment, coupled in tandem with the Federal Reserve Act. As far as I am aware, none of these proposals have shown how to rein in the tax and spend Oligarchy, and that must be done, if we are to survive as a nation.
The following tax reform proposal is designed to provide (A.) stabilization of funding to local, state, and federal governments; (B.) economic stabilization to American taxpayers; and (C.) simplified American taxation, which replaces all of the multiple tax systems with single locally visible, locally accountable, and reasonable tax systems.
Tax Reform Proposal
- Within a time frame of three years, phase out all existing systems of local, state, and federal taxation. Forbid any tax rate increases within the three year time period. Forbid any new spending programs or increase in spending in any existing program within the three year time period.
- Local Level Income Tax Systems: Within a time frame of three years, replace all of the current local, state, and federal tax systems with local independent income tax systems, accountable only to local constituents through ombudsmen, and based in counties or regions within each state (If regions, base the tax authorities in a common set number of regions within each state – one system per region or one system per county). Forbid any income tax rate increases within the three year time period. Populate the local tax authorities with locally elected management officials, with set term limits. Design all of the new local taxing authorities to include managers, accountants, and auditors, who will receive just compensation from collected taxes.
- Set a permanent non-graduated income tax rate ceiling of 10.0% for all individual and corporate tax payers, with no exemptions, with no deductions, and with no loopholes. (The only exception should be exemption granted to 501 C 3 nonprofit charitable organizations and churches — repeal all restriction of free speech.) The 10% rate can be reduced, as governments learn better management skills, but never increased. Rate decreases will depend on the return of statesmanship principles.
- Require corporations, businesses, and self employed to submit quarterly profit income taxes at the 10% rate, with simplified statements, to their respective local tax authorities.
- Require employers to withhold, and regularly submit to their respective local tax authorities, the required 10% income tax for employees.
- Require all self employed and corporate employees to submit annual simplified income tax statements to their respective local tax authorities. (The vast majority of these could be post-card forms.)
- Set a permanent non-graduated state income tax rate ceiling of 10% for all local tax authorities, to be paid to their respective state taxing authorities. Require all local tax authorities to submit, quarterly, 10% of their respective local collected taxes, with audited statements, to the state taxing authorities.
- Charge each of the new local taxing authorities with the purpose of funding their respective local government functions out of the remaining 90% of locally collected taxes.
- State Level Income Tax Systems: Concurrent with the creation of aforementioned local income tax collection systems, establish independent state income tax authorities (one system per state), accountable only to state constituents through state Houses of Representatives , to receive 10% of the taxes collected by the local taxing authorities within their respective states. Populate the state tax authorities with state elected managers, with term limits. Set a permanent non-graduated income tax rate ceiling of 10% for all state tax authorities to be paid to the federal taxing authority. Require all state tax authorities to submit, quarterly, 10% of their respective state collected taxes, with audited statements, to the single federal taxing authority. Design all new state taxing authorities to include managers, accountants, and auditors, who will receive just compensation from collected taxes. Charge each of the new state taxing authorities with the purpose of funding their respective state government functions out of the remaining 90% of taxes collected from their respective local income tax systems.
10. Federal Level Income Tax System: Concurrent with the creation of aforementioned state income tax collection systems, establish a single federal taxing authority, accountable to the House of Representatives, to receive 10% of the taxes collected by state income tax systems. Populate the single federal tax authority with a federally elected manager with term limits. Design the new federal taxing authority to include manager, accountants, and auditors, who will receive just compensation from collected taxes. Charge the new federal taxing authority with the purpose of funding the federal government functions out of the taxes collected from state level income tax systems.
A Sampling of Benefits to be Derived From Implementation of This Tax Reform
- Unconstitutional federal and state involvement in the K-12 education of American children can be replaced by privately operated school systems and home school co-op systems. The first sentence of 10th tenet of “The Manifesto of the Communist Party” mandates “Free education for all children in public schools .” Why would we wish to continue with this failed education system?
- Restoration of Fifth Amendment eminent domain. With the elimination of property taxes, one can finally hold actual constitutional property ownership rights. The 1st tenet of The Manifesto of the Communist Party mandates the conversion of private property to public use. Is property tax part of a conspiracy?
- Restoration of limits to government revenue, spending, and borrowing would provide incentives for the elimination of massive amounts of government subsidies to controversial special interest groups, such as Planned Parenthood, National Education Association, National Endowment of Arts, etc. In fact, our federal and state governments could, conceivably, return to the mode of Constitution enumerated roles only.
- The Tax Policy Center estimated that, under current law, 38 percent of all nondependent tax units would pay no income tax in 2009. A common fixed percentage of income taxes, to be paid by all employed and productive citizens, fosters restoration of fair share self-esteem among those who have been outside of the income tax system. A common set percentage for all taxpayers is a true “fair tax.”
- Redistribution of wealth — back to those who earned it.