If you have been diligent about poking around my web site then you have seen the repeated statements that I only recommend education, and any action I even suggest that you take on your own is toward the end of complying with all laws that apply directly to you. That's the way I have always stated the case of my involvement in the Patriot Movement, and always will.

Most of you will recall my messages about, and a few of you have seen my videotaped interview of, Lloyd and Dana Long. Briefly, Lloyd "home schooled" himself on the tax laws, stopped filing all returns, and, after the government was routed in the Franklin Sanders trial in the Western District of TN, was prosecuted in the Eastern District for "willful failure to file. . . . " Lloyd was defended by Larry Becraft and local counsel was Russell Long, who Dad was so horrible abused by the government bureaucrats, that Russell left his family farm in mid-life to complete law school and pass the bar with the hope of helping his Dad and preventing similar injustices from happening to others1

Lloyd convinced the jury that he had "a good faith belief that he was not required to file" and his nightmare ended, almost. IRS pursued him for several years with threatening letters, which Lloyd politely responded to in a timely manner, and nothing further has been done to him to the best of my knowledge. If you haven't already done so, you can purchase the complete transcript of his trial with all exhibits directly from Lloyd, to help him pay his legal expenses, and you can read a blow for blow description of how the "Reliance Defense" really works (the central precedent is Cheek v. US [111 S.Ct. 604 (1991)]. If you already have found his transcript online for free, you should send Lloyd a congratulatory note with a check or money order since those online versions were posted by profiteers in derogation of Lloyd's circumstances. He is a proud man, so do not say you are sending him a gift, tell him that you feel sending him money will help Larry Becraft keep fighting the good fight he wages tirelessly!

Don't forget that it was a jury that believed Lloyd, not a federal judge. So everyone should send some money to the
Fully Informed Jury Association
Box 59
Helmville, MT 59843

[NOTE ON BONA FIDES: Isn't it nice to be reading a free message and access a free self help legal clinic built by a practicing attorney for your benefit, and not see blatant self promotion of "Xerox Scholarship" like "Paul Andrew Mitchell" in AZ or RightWay L.A.W. in OH, or Karl Granzes, et. al.; a place where you are encouraged to prove things for yourself and not take the word of others just because they shout louder than you do; where you can COMPARE CONTRAST AND DECIDE FOR YOURSELF what is competent legal literature, and what is fatuous fabrication ripped off from others? When I mention sending money, it's to others we all know, have benefited by their good work, and want to encourage onward. Hmmmm!]

Where did all this get started? Just ask Bill Drexler! He is a Lis-LEAF subscriber and a dear friend of mine for the past five years. Both of us spoke at a Tax Compliance seminar in Indianapolis in March of 1994, and Bill instantly offered to help me move out of Indiana and into his office in San Diego. I thanked him for his generous offer, but told him that I still had important things to accomplish in Indy before I moved on. Bill doesn't take no for an answer, and kept after me, until, finally, he got online and saw my web site and read some Lis-LEAF messages. Now, he wants to work with me online, and reach a wider audience with his incredibly powerful and tremendously popular writings on the tax revolt that he and Jerome Daly started.

Beginning in January of this year, a lot of you have written to me asking me about Joe Bannister. I have yet to reply to your questions because I only got back on line in August, and am having trouble keeping things afloat just now, even had my telephone service terminated last week, which is why I only send you messages late at night while I use my Dad's telephone line after he goes to sleep. :^ (

Bill wrote a piece warning about the Bannister phenomenon and has graciously consented to my posting it for your edification, together with another article about the Tax Revolt. Remember, both Bill and I are talking about TAX COMPLIANCE. We are not the "tax protestors" and we believe that the IRS agents and US Attorneys who prosecute 7201, et. seq. cases are the real tax protestors.

Here is Bill's message about Bannister, the typos are mine not his, and if you like what you read, please let me know so I can light a fire under Bill's butt and finalize our plan to get him going at FREEDOMLAW.com. sRJ

----------------

WHO IS JOE BANISTER: SPECIAL AGENT OF IRS OR A DOUBLE AGENT?

YOU CAN'T CHANGE THE SPOTS ON A LEOPARD!!!!
FOR THE SAKE OF THIS ARGUMENT LET'S SAY HE'S YOU.AS A SPECIAL AGENT FOR OVER 10 YEARS HE PUT AT LEAST ONE PERSON IN PRISON EVERY MONTH, FOR 10 YEARS. THIS S 120 PEOPLE WENT TO JAIL BECAUSE OF YOU. OF COURSE, HE CARRIED 30 TO 40 OPEN CASES EACH MONTH SO ONE PERSON A MONTH IS VERY LOW. HE MOST LIKELY PUT 3 TO 5 PEOPLE IN PRISON A MONTH IF HE WAS AVERAGE.
NOW YOU DISCOVER THAT WHAT YOU HAVE BEEN DOING FOR YEARS IS WRONG. WHAT WOULD THE FIRST THING THAT YOU WOULD DO TO RECTIFY WHAT YOU DID?
WOULD YOU CONTACT THE 120 PEOPLE AND SAY YOU'RE SORRY.? JOE DIDN'T.
WOULD YOU TRY TO GET THE ONES STILL IN PRISON OUT? JOE DIDN'T.
WOULD YOU HELP THE FAMILIES OF THE INCARCERATED PERSON? JOE DIDN'T.
WOULD YOU WARN THE JUDGE? JOE DIDN'T.
WOULD YOU WARN THE BUREAU OF PRISONS? JOE DIDN'T.
WOULD YOU ASK YOUR GOD FOR FORGIVENESS?
OR WOULD YOU PUT ON TAX SEMINARS?
OR WOULD YOU JOIN WITH THE SO-CALLED LEADERS OF THE TAX REVOLT AND GAIN THEIR CONFIDENCE, & PUT ON SEMINARS SELLING A $20.00 BOOK (PROFIT $10.00 TO $15.00). LET'S SAY YOU SOLD 100 BOOKS EACH SEMINAR (ONCE A MONTH DURING THE TAX SEASON) THAT'S $1,500, OR $18,000 A YEAR. LESS THAN YOUR OLD SALARY AT IRS.

NOW LET'S SAY YOUR OLD BOSS COMES TO SEE YOU AND OFFERS YOU 25 PERCENT OF EVERY PERSON THAT YOU TATTLE ON. THEY GIVE YOU THE STATE OF CALIFORNIA, WHERE 90 PERCENT OF ALL TAX PROTESTORS ARE, AND EVEN SET YOU UP WITH EVERYTHING YOU NEED. HE AGREES THAT YOU WILL GET 25 PERCENT OF EVERY DOLLAR THAT YOU HELP COLLECT FROM THE TAX PROTESTORS. BUT HE GETS 5 TO 7 PERCENT AS A KICK BACK.

WHICH CAN YOU MORE MONEY ON? SELLING BOOKS AT SEMINARS? OR COUGHING UP TAX PROTESTORS, BY SENDING THEM TO PRISON? WHAT DO YOU THINK?.

NOW THAT THE IRS HAS TO FOLLOW THE NEW TAXPAYERS BILL OF RIGHTS, IT'S GOING TO BE TOUGH TO COLLECT FROM THEM. IF YOU HELP THEM WIN A CRIMINAL CASE, AND THEY GO TO PRISON. IT'S AUTOMATIC THAT THE IRS WILL GET THEIR BANK ACCOUNTS, HOME (AVERAGE VALUE IN L.A. IS $150,000.00 TO $250,000.00). IF JOE (YOU) GET 20 TO 25 PERCENT OF THE HOME, IT AMOUNTS TO $40,000.00 TO $60,000.00 FOR EACH CASE. YOU COULD MAKE $160,000 TO $240,000 A MONTH CLEAR PROFIT.

YOU COULD PUT ONE PERSON IN PRISON A MONTH MAKING $40,000.00 A MONTH OR YOU COULD SELL BOOKS AT $20.00 EACH AND MAKE Sl,500 WHY NOT DO BOTH????

JOE HAS ENOUGH EXPERIENCE TO DEMAND HIS FULL SALARY, PLUS RETIREMENT IF HE GETS A CASE TO CONVICT ON ONE PERSON A MONTH. HE HAS THE EXPERIENCE TO KNOW JUST WHAT THE PROSECUTORS WANT AND NEED TO CONVICT, AND HE GIVES IT TO THEM.

IN JOE"S BOOK HE TALKS ONLY ABOUT 3 DEFENSES TO BE USED BY PROTESTORS.
1. FEDERAL INCOME TAX IS VOLUNTARY NOT MANDATORY. COURTS RULED MANDATORY.
2. 16TH AMENDMENT WAS NEVER RATIFEED. COURTS RULED RATIFIED.
3. FIAT MONEY FINANCES THE U.S GOVT. COURTS RULED IT'S LEGAL MONEY.

NOW YOU HAVE TO THINK REAL HARD. JOE NEVER TELLS YOU NOT TO FILE A 1040.HAS ANYONE EVER WON A TRIAL USING ANY OF THESE DEFENSES??? HELL NO!!!!WHY DOESN'T HE USE THE 5TH AMENDMIENT? I WON USING THAT IN 1973.

WHY DOESN'T HE USE THE "RELIANCE DEFENSE"? SEVERAL HAVE WON USING IT.

ANYONE IN THE TAX PROTEST MOVEMENT KNOWS THAT THE 3 JOE MENTIONS ARE THE WORST DEFENSES AVAILABLE, AND THAT EVERYONE THAT HAS EVER USED ANY ONE OF THESE THREE DEFENSES, HAS GONE TO JAIL FOR A LONG TIME. SHOW ME ONE WIN. YOU CAN'T.
READ THE BOOK. TO ME! IT LOOKS LIKE IT WAS WRITTEN BY THE IRS.

DON'T BE A"SUCKER" INVESTAGATE THIS MAN FULLY. HE COULD BE A SNITCH.

WITHIN THREE YEARS, (IT TAKES THAT LONG FOR THE DUMMIES IN THE TAX MOVEMENT TO FIGURE THINGS OUT), OLD JOE BANISTER WILL HAVE MADE HIMSELF $500,000.00 A YEAR OR A MINIMUM OF ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. HE SHOULD BE ABLE TO CONVICT ONE PERSON A WEEK FOR OVER FIVE MILION DOLLARS A YEAR, OR MORE. WAKE UP BEFORE IT'S TOO LATE. PROVE ME A LIAR. DON'T BE A KAMIKAZE. IF HE'S BUSY CONVICTING KAMIKAZES, HE'LL KEEP THE IRS OFF MY BACK AND I HOPE YOURS. ALWAYS PLAY IT SAFE UNLESS YOU ARE 100% SURE. GOD BLESS & GOOD LUCK.

BILL DREXLER, JD (ret.)
=======================

"Nothing in this world can be said to be certain except DEATH AND TAXES," Ben Franklin wrote to a friend in 1789. Were Franklin to return to America today, he would surely change the ancient saw to read "TAXES ARE DEATH," especially for a civilization such as the U.S. of A. The nation is just waking up from twenty-five years of sleepwalking. We had watched mute as America became an endangered society, threatened not by pollution but by excessive taxes at all levels, from a dogged IRS to an insatiable Town Hall. Just a few years ago, the anti-tax crowd was dismissed as "crackpots." American politicians taxed and spent with a promise of Nirvana tomorrow as long as we handed over our wallets today.

Well, tomorrow has arrived, and it turns out that our bloated, wastrel governments , at all levels are the true "crackpots," apparently determined to weaken the economy and destroy our independence. In fact, the beleaguered American family has involuntarily broken the symbolic four-minute mile of politics. According to the Tax Foundation, they now pay an average of 40 percent of their income to Uncle Sam and his hungry assistants in the states and localities. Taxes now take more money from them than housing, food, and medical care combined

At the same time, the federal income. tax bite has gone up some tenfold in real dollars. since the Fabulous Fifties. The cost of all governments - federal, state, and local - has ballooned to 40 cents of every dollar earned in the nation from Brooklyn to Burbank, a sinful mathematical equation and almost double the 22 cents we spent under Harry Truman in 1950. - Today, our Tax Freedom Day - when we stop working for governments and put the first bite of tax-free food in our mouths - is May 6 nationally. Bad enough, but in New York it extends to May 24, some 144 days into the year. Connecticut pays until May 22, followed not far behind by Minnesota, New Jersey, and California.

Spending Freedom Day, when all governments stop spending our money, including borrowed funds, is now May 18 nationally, and June 9, almost half the year, in New York. The sad truth is that including deficit financing, we Americans now pay $2.6 trillion in some thirty-five different taxes to a cornucopia of governments and agencies, each with a lien on our pocketbooks. (In the back, a chart will help you figure out just how much the taxmeisters have dunned you for this year.) That $2.6 trillion represents some $40,000 for each family of four, a fortune taken out of our mouths by our governments II for supposed. services which most Americans never see, and didn't want in the first place. Our politicians now say they understand-that the revolution I asked for in A Call for Revolution in 1993 has taken place, and that their eyes have been opened. Not really. President Clinton, in his hyperbolic "Middle Class Bill of Rights" (Harry Truman is turning over) is promising a $500 tax credit for each child in families earning up to $75,000. A little help, but very little. What if you are a two paycheck family making $76,000, and are hard-pressed to pay your exorbitant FICA, federal and state income levies, and constantly rising property taxes in high-priced suburbs? Don't you also deserve tax relief for your children? And what happens if you earn considerably less, as most do, and have no dependent children!

In this new sociopolitical game, taxes are. becoming chips in a class warfare rapidly engulfing America. Not only is the government picking your pocketbook, but it's also looking into it to see if you're eligible for tax breaks, student loans, or. any of the "means tested" goodies offered by Washington.

You don't have to make $75,000,.or even half of it, to be hard-pressed tax-wise.

Typical Household
You may be the average Joe and Jane, heads of the typical American household which takes in only $33,000 a year, $53,000 in two-paycheck homes. In that category, you'd think you're escaping the high dudgeon of the wealthier. Think again. Your taxes are staggering as well. What is your real federal tax bracket? Fifteen or 20 percent? Hardly. It's 7.65 percent for FICA from the first dollar earned, and a 28 percent income tax on top for all monies over $39,000-an incredible marginal rate of almost 36 percent. And what about the strained self-employed person who pays almost double Social Security taxes? Well, read on. High for a working person? One would think so.

When -added to 'state income and local property taxes, it becomes a litany of agita for millions of Americans. High taxes makes anxious victims of us all, and in that, the nation is united. The new Republican majority in the 104th Congress offers a somewhat better deal than the president. But like the Democrats, none of their schemes-except symbolically-faces the true reality. Whatever little is saved at the federal IRS level will be immediately eaten by the yearly automatic increase in FICA taxes (up to an income of $61,200 in 1995) and the constant rises in local property levies. One tax goes down a little, maybe. Two go up, definitely.

Be warned. The tax debacle is so. entrenched that no first aid for taxpayers over the next few years is going to change the basic, punishing equation. Washington is not the only operator of the tax racket. Since 1960, the cost of state and local government has risen 350 percent in real dollars and has now passed the trillion-dollar mark, the sign of bloated, local bureaucracies. Property taxes in many suburban communities - escalating with the cost of K-12 education - are a governmental water torture. Small homes in the New York tri-state metropolitan area which cost $200,000 have property tax bills of $5,000 and $6,000, beyond the ability of many to pay. And larger homes ($500,000 is not untypical in Westchester County, New York) have property tax tags that reach $12,000 a year and more. - Affluent Greenwich, Connecticut, for one, received an average 28 percent hike in residential taxes on July 1, 1994. What's the basic problem? It is that we Americans can no longer afford our governments or the unwanted tithes that sustain them. And most don't know what to do about it. This volume will try to unravel that conundrum and come up with solutions, including some of dramatic proportions. How widespread are taxes? Are there just the basic four or five to bedevil us?

Hardly. In the real world we are surrounded by them oppressed by the heavy ones, needled by the typical, and annoyed by the minor. Collectively, they create a climate of oppression from which there's no escape and in which mental depression is a common side effect.

In researching this book, I have spotted over two hundred different taxes, and I'm only one person working with an ancient computer.

Tax Monster
Taxes are now extorted from most Americans through a multitude of levies. The hydra-headed tax monster includes, but is not limited to: (1) FICA tax (Social Security and Medicare); (2) the regular IRS Income tax; (3) Extra Medicare taxes; (4) State Income tax; (5) School taxes; (6) Town or City Local Property tax; (7) County Property tax; (8) Personal Property tax; (9) Excise taxes on cigarettes, beer, whiskey, wine; (10) some sixty other Federal Excise taxes; (11) Local Sales taxes; (12) State Sales tax; (13) Inheritance taxes; (14) Use taxes; (15) Capital Gains taxes; (16) City Income tax; (17) Small Business taxes. It continues: (18) License taxes; (19) Gross Receipts tax; (20) Unincorporated Business tax; (21) Telephone taxes; (22) Cable taxes,, (23) Gasoline taxes; (24) Hotel and Travel taxes; (25) Intargible Property, or Wealth, tax; (26) Car taxes; (27) Boat taxes; (28) Airline tax; (29) Double Dividend taxes; (30) Stock Transfer taxes; (31) Property Transfer taxes; (32) Parking taxes via meters and garages; (33) Environmental taxes; (34) Building and other Permit taxes; (35) Special District taxes; and (36) many other hits ranging from Bridge to Highway taxes, euphemistically known as "tolls." Is there no end? Absolutely not.

On Long Island, New York, they have "Swimming Pool" tax districts.- Park districts proliferate everywhere. In one town in tax-happy Connecticut, a single street, Quail Road, is a tax district. Bloomington, Minnesota, home of the world's largest shopping mall, is now trying to recoup its money through a "Mail Tax" on hotel visitors. Who can afford all these taxes? Very few of us.

The present federal tax bite alone can be dramatized in many equations, one of which is a self-employed person making $50,000 a year, who moves into the 41 percent federal FICA and income tax bracket at the regal sum of $39,000 taxable-not counting state or local levies. Believe it or not. In New York City, an unmarried editor at a publishing house who thought she was "successful," finds she's paying $25,000 in taxes on a $60,000 salary. At some 42 percent, it's the perfect equation for personal fiscal disaster. (California has an even higher state income tax.) At that level, it's not taxation. That's legal extortion, and thus the subtitle of this work.

The damage done by our tax system is not only to individuals but to the economy, which spirals downward with each new tax burden. The best example is the New York tri-state metropolitan area, home of almost 20 million tax-oppressed Americans. New York City and its suburbs, lower Connecticut, and New Jersey are not only among the highest taxed areas in the country but among the worst hit by the last recession and the slowest to recover.

Mysterious Triangle
In this, the Bermuda Triangle of the tax racket, billions of dollars, both federal and local, move mysteriously from citizens' pockets into the vast official coffers. Connecticut, which used to be a tax haven from nearby New York; began its own state income tax in 1991. It has since lost about 100,000 jobs as firms and people leave for kinder tax climes. Connecticut is one of only two states to have lost population in the last census. New York, of course, is the champion, working until May 24 before citizens can put a bowl of tax-free chicken soup on the table. In the last decade, New York has lost 40 percent of all the jobs that have disappeared in the nation! Residents of New York City need no lecture on taxes. In addition to federal levies, there's a state income tax that reaches 7.875 percent and a city income levy of over 4 percent. If you're self-employed in the Big Apple, you also have to contend with an Unincorporated Business Tax. New Jersey follows close behind New York in its late-in-the-year Tax Freedom Day. Governor Christine Todd Whitman is cutting 30 percent of the state's income tax, but that welcome move is mainly symbolic in that high-property tax state. Compare the sluggish growth of the Triangle with the success of Florida and Texas, two states that have no state income tax and generally low property taxes. They lead the way. According to a University of Florida study, these two southern giants topped the nation in 1993-94 in job growth. Though only 10 percent of the population, they accounted for 20 percent of all new jobs created. But why. all this fuss about taxes now, just when America is in the midst of an economic boom?

What boom? Professional people, entertainers, stock brokers, and their ilk have had an economic field day. But the average American household income of $33,000 has gone down three years in a row, from 1992 through 1994. The wages of the average American worker, after inflation and taxes, have decreased 17 percent since 1973, the only Western industrial nation to so suffer. Some boom. According to the World Bank, America's $24,750 per capita income is a third less than Switzerland's and $7,000 less than Japan's. And now we're in seventh place, beaten out by Sweden. Shame. But we have a low 5-plus percent unemployment rate. No?

No. That mythical Washington figure appears that low because the government counts only what it wants to count. It doesn't, for instance, count non-working adults on welfare, and their hangers-on partners, as being "unemployed." It falsely counts millions of part-timers and "temps" as fully employed. It doesn't count laid-off white-collar workers scrounging out a meager income as self-employed. Nor does it include as "unemployed" the long-ten-n out-of-work who no longer draw benefits and so are totally out of the government's fake statistical loop!

What's' the real undoctored number of the unemployed?

According to a candid economist at the Bureau of Labor Statistics it's 15 percent, the very same figure estimated by Lester Thurow, noted MIT economist. The suspicion that we're nowhere near full employment was confirmed recently when police had to handle a mob of people who had applied for temporary work at the GM plant in Tarrytown, New York. So without a real boom, or full recovery, taxes matter more than ever In fact, it's becoming obvious that America's high taxes are the major cause of our structurally weak economy, crippling any hope for a truly resurgent - nation-unless we dramatically change our tax system.

Otherwise, the recoveries from each recession will be less and less vibrant, and the financial slope of our civilization will be one of continued long-range downdrift.

(One saving grace. The economic damage from taxes could spark a rebellion against the income tax much like the 1994 election revolt against Washington's waste and overspending.)

BI-Partisan Blame
Despite what partisans say, the tax horror we're experiencing is not just the work of one political party. After Democrat Truman and Republican Eisenhower-both of whom balanced the budget in an era of low taxes-all subsequent presidents of both parties trod the slippery path of deficit financing.

It began with JFK, and went through LBJ, Nixon, Ford, Carter, Reagan, Bush, and Clinton. All have played leading roles in increasing the size of an inefficient, anti-intellectual, misshapen, often badly motivated federal government. Thus began America's great slide downward. Those traits have overflowed into our states forty three of whom have income taxes of up to 11 percent and to our profligate local governments as well. The other villain is, of course, Congress, whose excesses over the past years led to the "revolution" that promises to cut Washington down to size. We'll have to see if that work will be substantial or merely symbolic "feel good" fiscal policy which will not solve our tax woes.

The reality is that for the last quarter century, Congress and the presidents have betrayed us by concocting tax laws that are insincere, unfair, and convoluted. We're just learning that when it comes to taxes, Washington speaks with an accomplished forked tongue. Take the so-called 1986 Tax Reform Act. To great fanfare, they passed what was heralded as a great boon to taxpayers. Instead, vital money-saving deductions, interest on most loans, sales taxes from states and localities, a strong IRA retirement plan, income averaging, plus several other goodies-were taken from us. (By the way, it also ruined the commercial real estate business.) But politicians trumpeted that if we made that sacrifice, the top tax rates would come down to 28 percent. Everyone would gain.

What has actually happened? It turned out to be a Washington folderol. The deductions we loved are long since gone, but the higher rates have come back, with a vengeance. They have risen from 28 percent - slowly but inexorably during the Bush and Clinton administrations - back to 31, 32, 36, and 39.6 percent, just about where they were before.

All this, plus an extra Medicare tax; which no longer has an income ceiling, brings the marginal rate up to almost 42 percent. Meanwhile, the old deductions are gone.

(In any case, you should also know that the Medicare tax money no more goes to Medicare than it does to Iceland. In fact, none of the FICA tax is segregated out for Social Security but is deposited immediately in the general fund to pay for everything from the president's salary to cash for unwed mothers to subsidies for farmers. The simply fact is that FICA "contributions" are just a second income tax. masquerading under a more acceptable name!) So much for "tax reform."

Fooling the Middle Class
We've been fooled many times by a clever Uncle Sam, who specializes in tweaking the pocketbook of the middle class. For example, we now get only a rather puny $2,450 deduction on Form 1040 for each family member. But that amount should be double or triple just to keep up with inflation since the golden days of 1950. That one trick has cost every family of four $11,800 in lost deductions a year!

Not only families, but the young are worried as well. They fear that their FICA "contributions" (a creative euphemism for taxes) won't pay for both the Social Security of the aged today and their own retirement tomorrow. In fact, a recent survey of twenty-somethings shows that more of them believe in UFOs than think they'll ever get a Social Security check. They would be even angrier if they knew that Washington has stolen every nickel of the yearly FICA tax surplus-some $400 billion from Social Security and $130 billion from Medicare hospitalization insurance to date. That money was supposed to have been put away for them for the year 2015 and beyond, in cash. But now it's all gone, squandered by the government and replaced with meaningless federal IOUs that are part of a $4.9 trillion national debt-which will never be paid back. The aged have also become angry as the tax on their benefits has skyrocketed. As a result of the 1993 Clinton tax bill, supposedly "rich" aged couples with an income of $44,000, or aged individuals with $34,000 income, will pay taxes on 85 percent of their Social Security benefits. It's a cruel Washington joke on retirees hoping for comfortable golden years. Successful Americans who followed the dream, but who are far from being rich, are angry as well. Two paycheck families with a combined income of, say, $80,000 are shocked by their tax bills, making their "success" hollow. With federal income taxes, two FICAS, expanded Medicare levies of over $61,200, state income taxes and local property taxes, they're pushing up against the dreaded 50 percent marginal tax bracket. They've become special targets of the tax system. The poor (except for the regressive FICA tax are virtually free of income taxes. The bottom 30 percent of earners pay only 2 percent of the federal receipts. The middle class, because of their numbers, pay the bulk of the taxes.

The tax system that penalizes someone who makes $80,000 is called "progressive." By placing a fierce penalty on success with higher rates as one earns more compounding the tax - it might better be called "punitive." These citizens are paying much more than their "fair share," a meaningless phrase now in currency among glib tax-happy politicians. No one has properly explained why such minor "success'!- the great goddess of our culture-should be so denigrated and punished. When that happens, and the great myths of our civilization become hollow, watch out. Under the tax onslaught, some of us have become so paranoid that we've come to believe that our politicians are out to destroy us. Nothing could be further from the truth. They want us sufficiently alive, like the Jews building the Pharaoh's pyramids-strapped to the oxen of time and penury-so that we can keep working to pay our taxes.

Excessive Burden
The sad part of the whole thing is that the current tax burden is unnecessary. If Harry Trumati's debt-free budget, on which we paid for the enormous expenses of the Korean War, the Marshall Plan, and the GI Bill (the last piece of social legislation for middle America) had just gone up with inflation, the cost of Washington would today be only $800 billion, not the current $1.6 trillion. We'd have no deficit and a 60 percent tax cut. So, where does all the present multi-trillion-dollar tax bite go?

To the largest collection of govermments-85,000 in all, federal, state, and local-in the history of the civilized world. That's where. We're being hit from every direction. Each bloated jurisdiction pulls at us, insisting that their need for cash has greater priority on our pocketbooks than our own bills. (Forget about saving money. Because of tax burdens, Americans have a skimpy 3.9 percent savings rate, about one-fourth Japan's, and a major cause of our high interest rates.) Another reason for high taxes is that Washington has turned our states into colonies, agents for administering expensive federal programs which they must help support-often against their will. The states have had to increase taxes enormously to pay up to 50 percent of the enormous Medicare and AFDC welfare bill. Yet these are only two of eighty-one welfare programs whose fiscal 1995 tab is $384 billion, more than a fourth of which has to be paid by the states. States have had to raise another $ 1 00 billion in taxes to pay for Washington-dictated unfunded mandates such as Motor Voter; law enforcement and prisons; clean air and other environmental projects; Americans with Disabilities, or whatever programs our Beltway masters divine, but for which they have no intention of laying out a nickel.

This expensive federal coercion is, of course, a blatant violation of the Tenth Amendment to the Constitution, which protected the states against such forced .federal spending. It says, in full: "The powers not delegated to the United States in the Constitution, nor prohibited by it to the States, are reserved for the States respectively, or to the people. " Today, it's a near-discarded piece of paper, ignored by Congress and by the cowardly Supreme Court.

(The House has passed a supposed anti-unfunded mandate bill, but it doesn't cover mandates under $50 million, and only slows down, but doesn't fully prohibit, unfunded Washington pressures on the states.) - Another stimulus for high taxes has been the army of federal, state, and local government employees, some 19.2 million strong, few of whom die of overwork. For the first time in our history, we have more of them in government than in manufacturing (18.2 million), a sure equation for national disaster. The cost of government employees is astronomical. Each federal civilian employee costs us $80,000 in.cash for salary, benefits, and pension, plus a collective halftrillion dollars in unfunded pensions. A study by the American Legislative Exchange Council shows that privileged government workers at all levels not only earn more than private employees, but cost us $300 billion a year in extra pensions, an amount larger than the entire federal deficit. The 1994 congressional elections showed that Americans are dissatisfied with high taxes, but they continue to take it in the pocketbook.

Why?

One reason is that like the onetime secret of massive government waste, which I helped expose in the Government Racket: Washington Waste From A to Z, we don't know the truth about our madcap tax system. From he IRS to the Town Hall, facts are purposely kept from us by our politicians and bureaucrats, to whom taxes are their cherished "bottom line." '! That's the purpose of this book, to explain, in forty chapters arranged from A to Z, the full extent of the taxes we pay plus subterfuges, lies, irrationalities, stupidity, and self-destructiveness of our present tax system, nationally and locally. Simultaneously, I will outline ways to drastically change the income tax structure so that we can again flourish as a wealthy nation,. much as we did thirty years ago.

The Quick and The Poor
And whatever our income, we aren't always quick or solvent enough for our tax masters, who insist on their pound of cash on time and in full. To get it, they're empowered with such tools of persuasion as interest, exorbitant penalties, even seizure of our material goods-even our homes. Last year, the IRS, which has 110,000 employees and a $10 billion budget, made 10,000 seizures of taxpayer properties, issued penalties in the $23 billion range, and was the perpetrator of many horror stories, including the heart-wrenching suicides. of taxpayers, as we shall see. (One recent action of the IRS defies description. They actually sent a tax bill for $6.4 million to the relative of a Pan-Am bomb victim, even though he hadn't received a penny in settlement!)

One reason IRS abuses have gone unchecked is that many congressmen are deathly afraid of the agency, fearful they will become the target of audits, hounding, or worse.

One man who's not cowed is Senator David Pryor, Democrat of Arkansas and courageous author of the Taxpayer Bill of Rights.

Says Pryor about the IRS: "When we held hearings, a parade of witnesses provided numerous examples of honest taxpayers whose lives were chewed up by a relentless bureaucracy. . . . In recent years a startling pattern of IRS abuse - and overzealousness has emerged from coast to coast." Pryor, who is convinced the IRS has not really reformed, is now seeking congressional support for a stronger Taxpayer Bill of Rights 11. He offers tale after tale of innocent harassed people whose lives were maimed by the IRS.

A divorced woman struggling to support her three children by working as a $4.50-an-hour cook in a Phoenix restaurant was anxiously awaiting her $614 income tax refund. Instead she got a notice from the IRS that they were confiscating that money toward the unpaid taxes of her ex-husband, some five years after their divorce!

Soon after, she was hit with $3,666 in taxes and interest and penalties on her ex-husband's account. Frantically, she sought help from the IRS as a legal "hardship" case, but they turned her down. Fortunately, a local tax attorney found that the IRS had slipped up on a technicality and saved the woman from, total ruin. "Acting as both judge and jury," says Senator Pryor, "the IRS has used its sweeping authority to confiscate income or property of thousands of single mothers to pay the debts of their ex-husbands." The Internal Revenue Service has replaced the Soviet Union in the affections of many Americans. But we should also remember that the IRS is the Frankenstein monster of the United States Congress and our presidents, who have created the imperious Tax Code the IRS often unfairly and inaccurately enforces in the first place.

This book will not be a catalogue of IRS victims and gremlins, although we will show the convoluted nature of the tax codes and demonstrate, through fact and anecdote, the agency's excessive-probably unconstitutional power over taxpayers.

But in general I will do what I do best, which is to explain and analyze the tax world in detail, then offer reforms so that citizens can make the tax revolution America so desperately needs.

The centerpiece of the tax racket is the irrational Internal Revenue system, which must be indicted for its many failings. Here then is a Bill of Indictment that must be prosecuted if we are to survive as a healthy nation.

The present Internal Revenue system: 1. Forces Americans to become nervous, compulsive bookkeepers for the government. 2. Discourages savings and investments. 3. Abuses honest citizens who have tax problems. 4. Is overly complex and arcane in its tax codes. 5. Seizes property. and bank accounts without due process.. 6. Takes too much money out of the economy. 7. Requires confession of personal finances and destroys privacy. 8. Levies excessive interest and penalties. 9. Is error-prone in its advice and notices. 10. Violates our basic civil rights. 11. Encourages evasion through high marginal rates. 12. Changes its rates and rules too often. 13. Makes' it necessary for many taxpayers to use costly professional help. 14. Keeps cutting back on taxpayer deductions. 15. Punishes success with a vengeance. 16. Creates fear, anxiety, and confusion in the population. 17. Makes arbitrary decisions against taxpayers. 18. Probably operates unconstitutionally.

Subterranean Economy
One obvious symptom of its failure is the phenomenal growth of the untaxed Underground Economy, run by people who believe they can only stay solvent by cheating the IRS. "Your bill is $65," says a plumber in a mild whisper. "But if you pay me in cash, it's only $50." They even accept checks made out simply to "CASH."
==========
I have more, and Bill has MUCH MUCH MORE, so let me know what you want, and, you know, I will do my best to get it for you. sRJ
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* NOTICE: In accordance with Title 17 U.S.C. Section 107,
this material is distributed without profit to those who have
expressed a prior interest in receiving the included information
for research and educational purposes.
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Subscribing to Lis-LEAF
(the Learning Electronically About Freedom mail service)
can be accomplished by filling in the REQUEST form at
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After you start enjoying all that you are receiving, encourage
others to subscribe, by forwarding Lis-LEAF messages to
them and posting Lis-LEAF messages as pages within your
own web sites! It's all about spreading the word and helping
everyone we can, who wants help! sRJ

[NOTE: In the wee hours of this morning, I sent you a 71 page message about Bill Drexler working with me online at Freedomlaw.com and I hope that everyone of you read that message and will redistribute it far and wide as well as HTML encode it for posting at your own web sites! If you must cut and paste or comment as you see fit, please try to leave as much intact, ESPECIALLY THE SIGFILE (because the point is to get others involved in the online projects at Freedomlaw.com, we can't afford to be divided and conquered). I will place a link to the relevant portion of that message and this one which you can link to at your own sites if you don't want the file residing on your own server. It will be at the top of the Taxes page in the self help legal clinic
http://freedomlaw.com

THIS MESSAGE WAS TAKEN FROM BILL'S NEWSLETTER, SUBSCRIPTIONS FOR WHICH CAN BE MADE THROUGH FREEDOMLAW.COM (ONCE BILL AND I HAMMER OUT OUR DIFFERENCES ON SUCH ISSUES AS DELIVERY OF CONTENT).

A]
CLICK ON "LAW" AT THE OPENING SCREEN OF FREEDOMLAW.COM WHICH TAKES YOU TO THE LAW LIBRARY WHERE YOU CLICK ON "Law Search Tools" that has the search engines to deliver these complete cases to your desktop for reference (present and future): BRUSHABER v. UNION PAC. R.R., 240 U.S. 1, 36 S.Ct. 236 (1916)
[Discussed at USTaxes and IRSJD in the Taxes Page of the self help legal clinic]
CHEEK v. US, 111 S. Ct. 604 (1991)

B]
Shelly Waxman and I will be forming a law partnership based in MI once I am admitted to practice before that bar, that will focus on helping folks get out of the system by using the system for our benefit (remember, the Code was written by rich folks in order for them to keep their money and to prevent you and I from horning in). In advance thereof, Shelly is going ahead with a seminar presentation he had previously wanted to do with me (but I let him down by decided to stay with my dying Dad in Indpls.). If you can make it to Traverse City, MI on OCTOBER 15, 1999 you can attend PDQ Accounting and Tax Service, Ltd. and Waxman Legal Network's presentation of "THE FUTURE IS AWAY FROM EMPLOYEES, THE FUTURE IS NOW!!" CALL 800-374-7163

C]
Remember the "Hmmmm" in this morning's 71 page message, about unselfishness online, and no "Patriots for Profit" at Freedomlaw.com? Well, in today's message, I tip Bill's and my hands a little bit more as to why we want to work together online, and what you can expect when you buy something from Bill through Freedomlaw.com or support my online projects in any and all other ways.

You would be proper in asking yourselves, since Bill is hugely successful doing his thing offline and working his referral services and printed materials to an already large audience, why in the world would he ever agree with me that the WWW-Net is where we can do our best to help everyone? "If it ain't broke, don't fix it," goes the old saw, so why go online? PRESS ON, MR. STANLEY. DR. LIVINGSTON IS JUST AROUND THE CORNER!

Finally, you must always remember that I urge only legal, non-violent, civil obedience, after proper and complete education on the subject has been had by the individual. That is why every page in my sprawling web site bears the legend, top and bottom, PURSUE JUSTICE VOTE PEACE DEFEND RIGHTS LEARN LAW sRJ]
============

THE 16TH AMENDMENT TO THE U.S. CONSTITUTION STATES:
"THE CONGRESS SHALL HAVE THE POWER TO LAY AND COLLECT TAXES ON INCOME...
OUR FEDERAL GOVI. WAS SET UP WITH 3 BRANCHES OF GOVT: THE EXECUTIVE, THE LEGISLATTVE & THE JUDICIAL. THEY EACH HAVE DIFFERENT AND DISTINCT POWERS AND THIS IS CALLED THE "SEPARATION OF POWERS" DOCTRINE. BASICALLY THE "LEGISLATIVE BRANCH" HAS THE POWER TO "MAKE THE LAWS" , THE "EXECUTIVE BRANCH" HAS THE POWER TO "ENFORCE THE LAWS"; AND THE "JUDICIAL BRANCH" HAS THE POWER TO "JUDGE THE LAWS” THIS IS THE LAW OF THE LAND SET UP BY OUR FOREFATHERS, AND THIS IS THE LA W "TODAY!

THE 16TH AMENDMENT IS UNCONSTITUTIONAL AND ILLEGAL ON IT'S FACE, SINCE THE "CONGRESS SHALL HAVE THE POWER TO LAY AND COLLECT TAXES ON INCOMES..."AND THE CONGRESS IS THE LEGISLATIVE BRANCH OF THE GOVT. THIS BRANCH CAN ONLY MAKE LAWS. IT CANNOT LAY & COLLECT ANYTHING. THE EXECUTIVE BRANCH CAN LAY AND COLLECT, BUT THE LEGISLATIVE BRANCH CAN ONLY MAKE THE LAWS. CONGRESS CANNOT ENFORCE THE LAWS. AND CANNOT LAY AND COLLECT TAXES. ONLYTHE EXECUTIVE BRANCH CAN LAY AND COLLECT TAXES ON INCOMES.

THIS IS WHY THE INCOME TAX SYSTEM IS BASED UPON A SYSTEM OF "VOLUNTARY COMPLIANCE."CONGRESS HAS NO LEGAL RIGHT TO LAY AND COLLECT ANYTHING.

IT CANNOT ENFORCE THE LAWS NOR CAN IT DELEGATE TO THE EXECUTIVE BRANCH ANY OF IT'S DUTIES. THE16TH AMENDMENT IS "TOTALLY BOGUS & UNCONSTITUTIONAL!

THE CONGRESS CAN MAKE THE LAWS, BUT THEY CANNOT DELEGATE THAT POWER TO THE EXECUTIVE BRANCH NOR TO THE JUDICIAL BRANCH OF THE U.S. GOVT.

THE JUDICIAL BRANCH HAS THE POWER TO JUDGE THE LAWS, AND THEY CANNOT DELEGATE THAT POWER TO THE CONGRESS NOR THE EXECUTIVE BRANCH OF THE U.S. GOVT.

THE EXECUTIVE BRANCH HAS THE POWER TO ENFORCE THE LAWS AND THEY CANNOT DELEGATE THIS POWER TO THE LEGISIATIVE BRANCH NOR THE JUDICIAL BRANCH OF THE U.S. GOVT.

THIS IS THE"LAW OF THE LAND” AND IT CANNOT BE CHANGED BY ANYONE.

WELL, WHAT ABOUT -TAX COURT- AND -ADMINISTRATIVE LAW COURTS-? THEY ARE IN THE "EXECUTIVE BRANCH" OF THE GOVT. AND NOT IN THE "JUDICIAL BRANCH". THE GOVT. CANNOT SUE YOU IN TAX COURT NOR ANY ADMINISTRATIVE LAW COURT. YOU HA VE T0 BRING AN ACTION IN THESE COURTS "AGAINS T THE GOVERNMENT AGENCY" IN THE EXECUTIVE BRANCH OF THE GOVT.

EXAMPLE: YOU GET A "NOTICE OF DEFICIENCY- (90 DAY LETTER). YOU CAN FILE A PETITION IN THE TAX COURT OR SUE THE GOVT. IN ANOTHER COURT. THIS IS YOUR CHOICE AND NOT THE GOVT'S CHOICE. BY SUING IN TAX COURT (FILING A PETITION) YOU HAVE WAIVED YOUR RIGHTS TO SUE IN ANOTHER COURT. "YOU HAVE VOLUNTEERED.

THE LAST PARAGRAPH OF THE FAMOUS BRUSHABER CASE MUST BE READ AND UNDERSTOOD, SINCE THE UNITED STATES SUPREME COURT (THE HIGHEST COURT OF THE LAND) CLEARLY STATES THIS RULE OF LAW. SOME OF YOU WILL HAVE TO READ THIS OVER MANY, MANY TIMES. MOST PEOPLE THAT READ THIS DECISION DO NOT READ THE LAST PARAGRAPH CAREFULLY ENOUGH TO UNDERSTAND JUST EXACRLY WHAT THE HOLDING OF THE SUPREME COURT REALLY IS. READ IT!!!. READ IT!! & READ IT SOME MORE. UNTIL THAT LAST PARAGRAPH SINKS INTO YOUR HEAD, YOU HAVE NOT FULLY UNDERSTOOD JUST EXACMY WHAT THE HOLDING OF THE CASE IS. I'VE HAD FRIENDS READ IT OVER 10 YEARS BEFORE THEY GOT WHAT THE SUPREME COURT REALLY MEANT. NOW YOU KIVOW THE SECRET. "PASS IT ON! ONWARD TO VICTORY OVER THE D?S.

WE ARE WINNING THE WAR. NOW WE HAVE TO DOUBLE OUR EFFORTS *

ACCORDING TO THE HOUSTON PAPER, THE IRS HAS CUT IN HALF THE NUMBER OF AUDITS, THE NUMBER OF SEIZURES, THE NUMBER OF LEVIES, THE NUMBER OF LIENS FILED, AND THE NUMBER OF PROPERTY SOLD FROM LAST YEAR. THIS IS THE BEST NEWS WE'VE HAD SINCE 1964. IT'S NOW TIME TO DRIVE THE STAKE THROUGH TIRE HEART OF THE BEAST, AND FINISH IT OFF COMPLETELY. MOST OF THE OLD TIMERS ARE TAKING EARLY RETIREMENT AND THE YOUNGER AGENTS ARE AFRAID TO SIGN THEIR NAMES TO ANY FILES FOR FEAR THAT THEY WILL BE DISCHARGED UNDER THE NEW RULES. THEY ARE "CIVIL SERVANTS" BUT WITH THE NEW RULES MAKING MANY, MANY NEW ACTIONS THAT THEY CAN BE FIRED FOR, EVERYBODY IS SLOWING DOWN THEIR WORK. THE NEW RULES STATE THAT THE SUPERVISORS CANNOT AWARD PROMOTIONS ON HOW MANY LIENS THEY FILE ETC. MANY OF YOU READERS REMEMBER "OLD OSCAR FOSSENDODDLE” CONTACTING RETAIL CREDIT COMPANY, WHEN EVERYBODY WAS SENDING THE COMMISSIONER A COPY OF ATTY LARRY BECRAFT'S LETTER, AND SHE WAS NOT OPENING THE LETTERS, BUT SENDING THEM TO THE LOCAL DISTRICT DIRECTORS. OSCAR GOT HER HOME ADDRESS IN WASHINGTON D.C. AND SPREAD IT AROUND TO THE FREEDOM MOVEMENT, AND EVERYBODY STARTED WRITING HER AT HER HOME. WITHIN ONE WEEK, SHE RETIRED AS COMMISSIONER OF INTERNAL REVENUE SERVICE. THIS WAS IN DECEMBER, AND HER TERM DID NOT END UNTIL APRIL 15, OF THE NEXT YEAR. HE ALSO DID THE SAME THING WITH THE HEAD OF THE CALIFORNIA TAX COMMISSION, AND HE ALSO RESIGNED 5 MONTHS BEFORE HIS TERM WAS UP.

IT IS NOW TIME FOR US TO ESTABLISH A"COUNTER INTELLIGENCE DIVISION." THE THING THAT SCARES THE AGENTS THE MOST IS THAT THEY WILL BE FOUND OUT, AND THEIR FAMILIES, WIVES AND CHILDREN WILL BE EASY TARGETS TO SOME OF THE CRAZIES OF THE WORLD. THIS IS WHY THEY ARE ALL USING PSEUDONYMS, AND NOT USING THEIR REAL NAMES. THEY ARE AFRAID OF WAR, AND AFRAID THAT SOMETHING WILL HAPPEN TO THEM AND THEIR FAMILIES. I JUST FINISHED READING THE "SPECIAL AGENTS HANDBOOK"AND THE "CRIMINAL INVESTIGATOR HANDBOOK” AND NOW I FULLY UNDERSTAND THEIR FEARS, AND WHY THEIR FEARS WILL DESTROY THE WHOLE SYSTEM. THEIR UNDERCOVER TRAINING IS LONG, HARD AND EXPENSIVE, AND NO EXPENSE IS SPARED WHEN THEY ARE ON THE TRAIL OF A TAX “CHEAT.” THE AGENT'S SUPERVISORS ARE HIGH PRICED MEN WITH THOUSANDS OF DOLLARS IN SPECIAL TRAINING INVESTED IN THEM BUT THEY DO NOT USE PSEUDONYMS, BECAUSE THEY RARELY HAVE ANY CONTACT WITH THE TAXPAYERS. THIS IS ALSO TRUE OF THE "BIG SHOTS” IN THE IRS, THE JUDGES OF THE TAX COURTS, AND THE LOCAL BIG SHOTS. SINCE THERE IS NO CONTACT EVER WITH A TAXPAYER AND THEY STAY HIDDEN AS MUCH AS POSSIBLE. THE GRUNT AGENT IS ON THE FIRING LINE, AND IS SUPPOSED TO TAKE ALL THE FLACK FROM TAXPAYERS AND TO PROTECT THE SUPERVISORS. THE TWO HANDBOOKS GAVE ME A GREAT IDEA:
· IT'S SO EASY TO LOCATE THE SUPERVISOR (AND EVERY TIME WE CAME TO THEIR HOMES TO SERVE THEM A TAX COURT SUBPOENA, THEY SETTLED THE CASE FOR PENNIES ON THE DOLLAR);
· IT TAKES 10 TO 15 YEARS TO TRAIN A SUPERVISOR AND THE IRS HAS A LOT OF TIME AND MONEY TIED UP AND INVESTED IN HIM;
· I NOW HAVE A CONTACT THAT WILL PUT THEIR NAMES, ADDRESSES, AND OTHER AVAILABLE INFORMATION ON THE INTERNET FOR ALL THE WORLD TO SEE.
· ONCE WE EXPOSE THEM TO THE WORLD, WE CAN SIT BACK AN LET THINGS HAPPEN NATURALLY, AND WATCH THE SUPERVISORS QUIT, TRANSFER TO CUSTOMS, OR TO IMMIGRATIONS ETC.

CUT OFF THE HEAD, AND THE BODY SOON GOES WITH IT. ALL WE HAVE TO DO IS TO FIND OUT WHERE THEY LIVE, AND EVERYBODY'S NAMES, TAKE THEIR PICTURES, AND GO TO THEIR HOMES TO DELIVER A LETTER TO THEM PERSONALLY AND WE HAVE WON THE WAR.

I DON'T KNOW WHY THIS DIDN'T COME TO ME BEFORE. THIS IS "DUCK" SOUP FOR AN OLD INSURANCE INVESTIGATOR. HOW COME JOE BANISTER DIDN’T TELL US THIS? I AM GOING TO SET UP A “COUNTER INTELLIGENCE UNIT” TO WORK FULL TIME FOR PAY.

I'M GOING TO DONATE ALL PROFITS FROM THE SALE OF MY BOOKS TO PAY THE INVESTIGATORS, BECAUSE I BELIEVE THAT WE CAN WINN USING THIS SYSTEM; WILL SELL ADVERTISING (TWO PAGES ONLY) IN MY NEWSLETTER, ONE PAGE FOR BUSINESS ADS AND ONE PAGE FOR CLASSIFIED ADS (GET RID OF THINGS THAT YOU AREN'T USING, (EX): LOTS, CARS, TRUCKS, FURNITURE, COMPUTERS ETC. AND ALL OF THIS MONEY WILL GO TO PAY THE EXPENSES AND SMALL SALARIES OF THE INVETIGATORS. WE WELL ASK FOR DONATIONS AND EXPECT SOME OF YOU TO HELP OUT IF YOU CAN. WE’LL PUSH SALES OF OUR NEWSLETTER, AND TAKE THE PROFITS TO USE TO PAY THE EXPENSES AND SALARIES OF THE INVESTIGATORS. WE CAN AND WILL WIN IN NO TIME AT ALL. EVERYONE WILL BE EXPECRED TO TAKE THEIR PICTURES AT EVERY MEETING, AND TO WRITE THE IRS’ “NAMES, RANK, AND SERIAL NUMBERS” ON THE BACK OF EACH PHOTO. WE WILL DISTRIBUTE THEM LOCALLY, AND REGIONALLY . WE WELL PUT OUT A PAGE OR TWO OF AGENTS NAMES, ADDRESSES, PHONE NUMBERS, ETC. THEY ARE AFRAID OF US, AND WE WANT TO KEEP THEM AFRAID. I WAS SURPRISED AT HOW MUCH EQUIPMENT THEIR INVESTIGATORS, HAD, INCLUDING RENTAL CARS, AIRPLANES, ETC. WE DON'T NEED ALL OF THIS, JUST SOME DETERMINED PEOPLE THAT WILL DIG, DIG, AND DIG SOME MORE. ALL THE INFORMATION IS EASY TO GET, AND WITH THE PLEDGE TO PUT THEM ON THE INTERNET, WE CAN JUST SIT BACK AND WATCH THEM SQUIRM.

THIS IS THE MOST IMPORTANT THING THAT I'VE DISCOVERED IN MY LIFETIME. ANYONE CAN DO IT AND THEY ARE NOT READY FOR THIS KIND OF COUNTER INTELLIGENCE, SINCE THEY KNOW THAT TAX PROTESTORS ARE NOT ORGANIZED, THEY FIGHT AMONG THEMSELVES, AND MOST HAVE NO MONEY TO PAY FOR A GOOD INVESTIGATION. NOW WE CAN DO IT AND EVERY ONE CAN TAKE A PART IN IT. IF YOU'RE TOO BUSY TO BE AN INVESTIGATOR, YOU CAN SELL BOOKS, OR SUBS ONS AND HELP OUT THAT WAY.

HIS IS OUR BEST CHANCE AT SHUTTING THEM DOWN AND WE MUST DO IT RIGHT AWAY. IN 1964 I TRULY BELIEVED THAT ONCE THE AVERAGE PERSON FOUND OUT WHAT DIRTY ROTTEN SKUNKS THEY WERE, THAT THERE WOULD BE A REBELLION, AND WE’D HAVE THEM OUT OF BUSINESS IN ABOUT 4 TO 5 YEARS. NOW IS THE TIME TO HIT THEM AND HIT HARD. WE WILL HAVE TO HAVE COURT WATCHERS AND TAKE PICTURES OF THE TAX COURT JUDGES, AND KNOW WHERE THEY ARE STAYING AND UNDER WHAT NAME, IN WHAT ROOM, AND LET THEM KNOW (NO THREATS!) THAT WE KNOW WHERE AND HOW THEY ARE HIDING THE TRUTH. MAYBE WE CAN GET JUSTICE IN THE COURTS AGAIN, WHEN THEY KNOW WE ARE WATCHING THEM.

IF YOU ARE INTERESTED IN BEING AN INVESTIGATOR OR IN HELPING OUT, SEND ME A RESUME OF WHAT YOU CAN DO, AND WHAT YOU THINK YOU CAN DO, AND HOW MUCH TIME CAN YOU SPEND WORKING ON THIS. THIS WILL BE LIKE WORLD WAR TWO, WITH OUR UNDERCOVER AGENTS INSIDE THE IRS. THE CHURCH OF SCIENTOLOGY DID THIS MANY YEARS AGO, AND THE IRS GAVE IN AND GAVE THEM BACK THEIR LETTER OF EXEMPTION. WE CAN DO THIS AND DO IT RIGHT.

CIVIL OBEDIENCE:
ALL OF OUR AGENTS WILL HAVE COMPLETE SECRECY, AND WILL BE TREATED RESPECT AND TREAT ALL OTHERS THEY HAVE CONTACT WITH RESPECTFULLY. WE HAVE TO UNITE ON THIS, AND ALL THE GROUPS HAVE TO MAKE AVAILABLE TO US INFORMATION THAT WE NEED. THE INTERNET WILL SPREAD THE NEWS LIKE FIRE, AND IT WON'T BE LONG WHEN THEY COME TO US "HAT IN HAND” WAVING A WHITE FLAG OF SURRENDER. I AM 100 PERCENT COMMITTED TO MAKE THIS WORK. WILL YOU HELP IN ANY SMALL WAY. WE NEED TO TAKE OUR COUNTRY BACK FOR OUR KIDS, OUR GRANDKIDS, OUR POSTERITY. WE CAN'T GIVE THEM TIME TO GET THEIR ACTS TOGETHER AGAIN, SINCE THEY WILL THEN COME AT US WITH A VENGEANCE. NOW IS THE PERFECT TIME FOR US TO DRIVE THAT STAKE THRU THE HEART OF THE BEAST.

WILL YOU HELP US IN ANY SMALL WAY???? THANKS

IN THIS CASE WE BEGGED PEYMAN NOT TO APPEAL SINCE IT WOULD MAKE BAD LAW. WELL, HE WENT RIGHT AHEAD, AND MADE BAD LAW, EVEN THOUGH THE CASE IS NOT APPROPRIATE FOR PUBLICATION AND MAY NOT BE CITED TO OR BY THE COURTS. YOU KNOW THAT THE IRS WILL USE THIS CASE AGAINST SOMEONE ELSE, BUT'THE DEFENSE WILL NEVER BE ABLE TO USE IT. (WHO W ULD WANT TO). NOW WE HAVE PROOF THAT PEYMAN LOST HIS TAX COURT CASE.(NOT WON LIKE HE SAYS)
-----------------

Docket No. 98-70457
Date of Decision: November 19,1998
Judge: per curiam

Tax Analysts Citation: 1998 TNT 242-6
Parallel Citations: 82 AFTR2d Par. 98-5597
Principal Code Reference: Section 6213

Summary
Provided by Tax Analysts. Copyright 1999 Tax Analysts. AU rights reserved.

DEFICIENCY NOTICE IS VALID, BASED ON UNREPORTED INCOME.

The Ninth Circuirt, affirming the Tax Court in an unpublished memorandum, has upheld the validity of a deficiency notice that was based on an individual's receipt of unreported income and failure to file tax returns. (the Tax Court decision was rendered in a bench opinion.)

In addition, the appeals court concluded that the IRS established sufficient evidence for the presumption of correctness to apply, and that the use of Bureau of Labor Statistics for Peyman Mottahedeh's geographic region was a reasonable method of reconstructing his unreported income.

Full Text
Provided by Tax Analysts. Copyright 1999 Tax Analysts. AU rights reserved.

[NOTE: THIS CASE HAD ALL OF THE EARMARKS OF AN EASY WIN, BUT PEYMAN HAD A CHECKING ACCOUNT (NOT IN HIS NAME, THAT HE WAS A SIGNATOR OF, AND HE DEPOSITED CHECKS PAYABLE TO HIM IN THAT ACCOUNT (INSTEAD OF CASHING THEM). WHEN THE "BANKSTER" SHOWED UP AND TESTIFIED ABOUT ALL THE MONEY THAT WENT THRU THAT ACCOUNT, PEYMAN WAS SUNK. BANK ACCOUNTS CONVICT ALMOST EVERYBODY. NOW, PEYMAN AGREES, "GET OUT OF THE BANKS, BUT IT'S TOO LATE FOR HIM. IT TAKES A "WISE MAN" TO LEARN FROM THE MISTAKES OF OTHERS. WILL YOU????]

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

Tax Ct. No. 10592-96
MEMORANDUM /1/
APPEAL FROM THE UNITED STATES TAX COURT
Copyright 1999, Tax Analysts (April)

Submitted November 16, 1998 /2/

Before: Farris, Brunetti, and Silverman, Circuit Judges.

[I] Peyman Mottahedeh appeals pro se the tax court's decision sustaining in part the Commissioner of Internal Revenue's determination of deficiencies in his federal income taxes for tax years 1992 through 1994. We affirm.

[2] Mottahedeh contends that the Commissioner's notice of deficiency was invalid because the Commissioner faded to make an actual determination of his tax deficiency, as required by Scar v. Commissioner, 814 F.2d 1363, 1368-70 (9th Cir. 1987) (notice of deficiency invalid where Commissioner inadvertently sent a notice relating to a tax shelter with which taxpayers had no connection). We reject this contention. Unlike Scar, the Commissioner's notice of deficiency was based on Mottahedeh's failure to file tax returns and receipt of unreported income. See Meserve Drilling Partners v. Commissioner. 152 F.3d 1181, 1183 n.3 (9th Cir. 1998).

[3] Mottahedeh next contends that the Commissioner failed to introduce sufficient evidence that he engaged in taxable activity for the presumption of correctness to attach to the Commissioner's deficiency determination. 'When the IRS bases its assessment on an allegation of unreported income, the Service must show some minimal evidence linking the taxpayer to the source of that income before the presumption of correctness will attach. " See Palmer v. IRS, 116 F. 3d 1309, 1313 (9th Cir. 1997). We conclude that the Commissioner introduced sufficient evidence linking Mottahedeh to his unreported income for the presumption of correctness to apply.

[4] Finally, the Commissioner's use of Bureau of Labor Statistics for Mottahedehs geographic region was a reasonable method of reconstructing Mottahedeh's unreported income. See Palmer, 116 F.3d at 1312, citing with approval Wheeling v. Commissioner, 43 T.C.M. (CCH) 1302 (1982) (upholding use of Bureau of Labor Statistics to reconstruct taxpayer's income).

[5] AFFIRMED.

FOOTNOTES

/1/ This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as provided by 9th Cir. R. 36-3.

/2/ The panel unanimously finds this case suitable for decision without oral argument. See Fed. R- App. P. 34(a); 9th Cir. R. 344.

END OF FOOTNOTES Copyright 1999, Tax Analysts (Aprd)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* NOTICE: In accordance with Title 17 U.S.C. Section 107,
this material is distributed without profit to those who have
expressed a prior interest in receiving the included information
for research and educational purposes.
____________

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