“Many a man stumbles across the truth, then picks himself up and
hurries on as though nothing had happened.”
In 2003, I revealed the hidden mechanisms by which most Americans
have been improperly subjected to the "income" tax for decades.
Shortly thereafter, I had the pleasure of displaying concrete
corroborating evidence-- furnished by the federal government
itself-- of the truth of what I said.
This was not "evidence" of the sort offered by "tax honesty"
entrepreneurs, which typically takes the form of a triumphant
display of some out-of-context fragment of code, statute or judicial
dicta capable of being perceived, if the light is right, as
supportive of the huckster's assertions; or the announcement of
having successfully slipped through the cracks for another year.
Nor was it even just more of the already-voluminous and
comprehensive body of statutes, regulations, history, judicial
rulings and logic of which 'Cracking
the Code- The Fascinating Truth About Taxation In America' is
Instead, what I displayed to the eyes of any who would bother to
look was an on-paper, explicit
acknowledgement by the federal government that every penny of
mine that had been taken from my earnings during 2002 in
anticipation of an "income" tax thereon-- Social Security
'contributions' and all-- constituted an 'overpayment' (that is, was
in excess of the amount owed as tax-- again, every penny).
This acknowledgement was accompanied by a full refund of all of that
money-- $10,152.96-- even after an initial refusal by the IRS.
In every particular (and as is made unmistakable by the evidence
posted-- including both what was filed, and what resulted), this
occurred precisely as I said it would-- and for the reasons I said
it must-- in
CtC. In several different ways, this event was a first
in American history.
But it was far from the last such event. Since that first
acknowledgement of the unique accuracy of what is taught in
CtC, and first complete refund, tens of thousands of
CtC readers have received the same-- many for several years in a
Hundreds of thousands of explicit, unambiguous acknowledgments
of many different kinds have now issued forth from federal and, so
far, 35 state offices across America (along with a growing number of
local tax offices, as well).
Readers have secured transcripts showing zero "income" and zero tax
owed, have recovered money garnisheed away from them for old tax
'debts', have shut down liens and levies, seen 'Notices of
Deficiency' evaporate, and much more. These victorious
warriors for the rule of law, including doctors, nurses, professors,
CPAs, attorneys, pilots, engineers, teachers, truckers, IT
specialists-- in short, Americans from all walks of life-- have
amassed and shared with the world a vast body of additional,
unambiguous evidence that what I have presented in 'Cracking
the Code-...' is the simple, never-before-revealed absolute
truth about the law; and that what that truth offers to America is
clean, proper and lawful liberation from an ancient and evil scourge
that has destroyed lives, eroded the Constitution, and fastened upon
us a pelf-swollen, arrogant, despotic and out-of-control government.
Indeed, even the
increasingly desperate efforts by the state and federal
governments to thwart
CtC-educated Americans invariably confirm the accuracy of my
message. Such efforts are focused on one goal-- excluding
informed filings from being admitted into the record at all, based
upon one absurd, corrupt pretext or another. The reason for
this is simple and unambiguously revealing: Once those filings are
admitted, the law, which these governments wish to evade, must take
its course-- to the benefit of the filer.
Such efforts are thus of a kind with the
repeated failed efforts of the IRS to suppress my book and my
voice, because once the truth is really understood by any American,
nature takes its course, and that American is lost forever as a
resource to the exploiters of ignorance, and becomes instead an
implacable warrior for liberty and the rule of law.
Nonetheless, in the face of all of this evidence-- in the face of
these clear facts-- some of you reading these words have steadily
and resolutely averted your eyes from this truth, or, seeing it,
have remained silent. This, even while you rail against the
predations of the unbridled state on a daily basis.
Why do you not look, why do you not speak? The solution to the
predations about which you complain is in your very hands, but you
sit idle and mum! Why? Has the concept of the rule of
law, or the very idea that it can be upheld, and can prevail if
vigorously championed become so alien to you that you do not
recognize what you see?
Maybe you just can't be troubled to do the reading and studying
needed to take in the truth and make it your own? I know the
reading and studying can be grueling, but you know what? You
get what you pay for.
Look at it this way: Most of you would willingly spend years
of your lives and vast amounts of money to improve your education,
primarily just for the sake of getting a job that pays more money.
Those of you who have gone to college, or specialized training
schools, did just that. Are your rights, and the rule of law
for yourselves and your children, not worthy of a small fraction of
that effort and expense? (This is not to mention the
additional benefit of regaining control of up to 45% or so of your
earnings year in and year out-- a much higher return-on-investment
than most forms of higher education will offer.)
Perhaps you're intimidated by
the government's PR campaign against me? If so, you really
don't belong in this arena at all. Perhaps that propaganda
campaign has succeeded in planting the seeds of doubt in your mind
about the revelations of
CtC? If so, you really haven't been paying attention,
haven't bothered to read my responses and learn of the eventual
outcome-- and are hopelessly naive about the lengths to which the
riders of a plush gravy-train will go in an effort to keep rolling
for a little while longer, to boot.
Or perhaps you cultivate the notion that however I am able to
demonstrate the truth of what I say about the law, it doesn't
matter, because it just reflects a temporary glitch in an otherwise
seamless conspiracy of corruption, so vast and insurmountable that
you are relieved of responsibility to act? A clever mental
gymnastic, certainly; but nothing but cheap and phony excuse for
inaction. The only conspiracy against which one cannot act
is a conspiracy of which they are a part.
The fact is, the vast conspiracy to which America is in thrall is
merely a conspiracy of mutually-tolerated apathy and willful
blindness to the evidence and the truth. It is a conspiracy by
which those who would prefer to just talk or complain, and cultivate
denial of the truth in the vain hope that some silver bullet or
magic word will be revealed which will restore and defend their
liberty for them without the trouble of actually defying the
beneficiaries of the status quo with their own testimony, forgive
and enable each other.
You can do better, and your efforts are needed. Put aside the
misleading distractions, the excuses, the haring off after
'silver bullet' miracle-cures, and your fear. Open your eyes,
recognize the truth, and act. Although still benefiting from a
lap-dog mainstream media and a massive inertia and infrastructure,
and still sticking it out and playing tough (did you think it would
hold up a white flag and cry "Mercy!"?), Leviathan stands naked and
vulnerable before you for the moment. But the moment could
quickly slip away. If it does, and is lost, it will be you
that will bear the blame.
"If ye love wealth greater than liberty, the tranquility of
servitude greater than the animating contest for freedom, go home
from us in peace. We seek not your counsel, nor your arms. Crouch
down and lick the hand that feeds you. May your chains set lightly
upon you; and may posterity forget that ye were our countrymen."
-Samuel Adams, Architect of the American Revolution
"It ain't what ya don't know that
hurts ya. What really puts a hurtin' on ya is what ya knows
for sure, that just ain't so."
-- Uncle Remus
Do you imagine that you
know what 'Cracking
the Code- The Fascinating Truth About Taxation In America'
says without having read the book (or that
CtC is missing something relevant to the "income" tax)?
But sadly, you're not alone.
That's because there is a whole department of the IRS
devoted to nothing but issuing disinformation about
CtC, and dissuading people from
reading, or confidently acting on what they learn in, the
book. A big part of this effort involves disseminating
carefully crafted, inaccurate "summaries" of, or disparaging
commentaries on, the book-- among, and through members of,
both the "tax professional" and the "tax honesty"
communities. This is done in recognition of the fact
that some will then presume that they know what the book
says, and not bother reading it for themselves, or will
misconstrue and misunderstand sporadic tax-agency efforts to
resist CtC-educated filings.
Why this massive and focused effort?
That's simple. The "income tax" scheme has been
entirely laid bare and entirely undone in
CtC are routinely winning victories in restoring the
rule of law over the tax. Each such victory adds to
the mountain of hard, incontrovertible, and in many cases
highly comprehensive on-paper evidence that this book
(and this book alone) contains the liberating truth about
the tax. Each such victory makes the concealment and
denial of the liberating truth about the tax that much more
THERE IS NOTHING MORE IMPORTANT TO
THOSE WHO EXPLOIT IGNORANCE ABOUT THE "INCOME" TAX THAN
KEEPING AMERICANS FROM READING
CtC, AND THEN CONFIDENTLY ACTING ON WHAT THEY LEARN
FROM THE BOOK.
TAX AGENCY EFFORTS against
CtC get help from within the "tax honesty" community.
For example, some folks who have already gotten their feet
wet looking for the truth about the "income" tax elsewhere
and actually learning that truth. They might hear
things about the book's contents that sound familiar, and
then make the mistake of imagining that they already know
what's in the book. This is because over the years,
many researchers have made varyingly accurate observations
about certain things which REALLY ARE elements of the
"income" tax, and are thus properly a part of the complete
picture of the subject. Some of these same things may
make an appearance in
and evoke that superficial sense of familiarity for some.
However, this sense is highly
misleading, even only insofar as those individual elements
are concerned. When taken in the past, these
"snapshot" observations of aspects of the law had been made
and considered in ignorance of other key elements of the
"income" tax, and without any understanding of the
all-important context within which they exist. It is
only now, in
CtC, that all the pieces are in place, the context is
revealed and the puzzle is solved. Thus, even the
seemingly old and familiar is truly new in
FAR WORSE, some people will be
deliberately dissuaded from reading
CtC for themselves, or, after reading the book, face
efforts to discourage them from acting on what they have
learned, by others in the "tax honesty" community.
This especially disturbing dynamic has its own little
hierarchy of bad behavior.
In some cases these efforts to
dissuade their fellows from learning the actual truth about
the tax will be undertaken by folks who have simply
convinced themselves that they personally have already
figured it all out (or someone else they know has done so),
and because what THEY believe to be the truth is either not
CtC, or is presented in a fashion contrary to their
CtC must be wrong. Those in this group are
well-meaning, but are seemingly incapable of recognizing
that despite what they imagine they see when reading some
portion of law, or some judicial ruling, or some conspiracy
theory that has caught their fancy, there is absolutely
no evidence of any kind demonstrating the correctness of
their cherished belief.
same time, these folks have become highly practiced in the
exercise of rationalization, mentally insulating themselves
from perceiving the unrelenting and completely unprecedented
four-year-long-and-counting accumulation of hard evidence of
the fact that
CtC, and nothing but
CtC, has nailed it-- simply because that evidence is so
inconvenient to their preferred view of things.
Whenever this type of stubborn theorist is forced to
confront reality, he or she lives in hope that some fatal
CtC will eventually be revealed, muttering,
"Just you wait...!"
Others in the community who will
engage in this destructive behavior of hindering the spread
of the actual truth about the tax comprise those who have
been aptly labeled "PAY-triots". These folks make a
business of capitalizing on the misfortune-- and often
desperation-- of their activist but ignorant neighbors,
selling "services" (or expensive seminars or "information
packets", etc.) which they claim will solve the victim's tax
problems. These operators have learned the age-old
lesson that people in trouble will pay a lot for what is
claimed to be a way out, and quite frankly, they just don't
want their market to learn the truth about the "income" tax.
Does this sound harsh? There's a
simple test that will prove the truth of this in any given
case. Go to anyone holding forth as an "income
tax problem solver" and ask for help. If your
correspondent is honest, he will promptly and freely make
you aware of what you're going to see as you continue
reading this page. He might still assert that he has
something better to offer-- if he somehow believes this to
be true-- and try to make a case for that alternative...
But any correspondent purporting to peddle relief from the
"income tax scheme" who FAILS to promptly and freely make
you aware of what you're going to see as you continue
reading this page is a scam artist whose interest is your
money, not your well-being.
(The same test can be applied to those
who constantly circulate "news" and "views" on the subject
of the tax by email or in newsgroups and forums. Any
of these folks that do not regularly direct the attention of
their readers to the constant victories posted on this site,
and to other
CtC-related news, have to be presumed to be deliberately
trying to prevent knowledge of these things from making its
way into the community.)
there are those in the "tax honesty" community who will
dissuade others from learning the liberating truth about the
tax by prominently adopting and encouraging a sort of a
know-nothing, "I'm mad as hell and I'm not going to take it
anymore!" attitude, by the nature of which "demanding
answers" is seen as virtuous, while seeking them out somehow
is not. That is,
"Don't distract me with the facts-- I've got the 'tude,
and I'm on a roll!"
Look at what those who actually HAVE read the book have to
...and at what has been done by some of these true American
heroes, so far.
Even the couple of
courts which have allowed themselves to be co-opted into
the governmental effort to discourage the spread of the
knowledge uniquely presented in
CtC have actually only emphasized the accuracy of that
knowledge. For instance, a federal district court was
persuaded in 2007 to cooperate with a DOJ/IRS PR pretense of
"enjoining" a tax-preparation professional from helping
clients with returns of a certain, carefully specified
description intended to be confused with those which might
be made pursuant to what is taught in
CtC. The idea was to imply, to those who have
never actually read the book, that what is conveyed therein
"has been rejected by the courts".
Nothing could be further from the
truth, and, in fact, an educated consideration of this
"injunction" reveals that not only does it not actually say
what the IRS wants it to be understood to say, but its
careful language is made necessary by the fact that the
court CAN'T dispute what is really taught in
CtC. To begin with, though, a little background
revealing the pretexts for this assault, as discussed in a
May 4, 2007 losthorizons.com newsletter article about this
Accounting Professional Don Gray Faces
Harassment Over A Minor Paperwork Slip-Up
Don Gray, a professional accountant who has been providing
services to CtC-educated Americans for the last 18-months or
so, has been made the target of an IRS effort to have him
enjoined from offering tax-return preparation services
because he neglected to keep his Michigan state public
accountancy license up-to-date.
The government's filing is thick with the usual ridiculous
mischaracterizations of a return filed by a knowledgeable
person. Over and over Gray is accused of helping
prepare returns based on a claim that "wages were not
income", for instance. As is the 'service's'
well-established pattern in struggling to respond to CtC-educated
Americans: When it can't dispute what IS said, it pretends
something has been said that it CAN dispute... The
words "false" and "fraudulent" also make their predictable
couple-of-hundred appearances, unsurprisingly without the
slightest evidence or explanation being provided, or even
referenced, in support of these inflammatory
Don is credited by the government with explicit credit for
helping recover $188,587 in amounts erroneously withheld or
paid in for Americans in 7 states, a record for which he can
be justifiably proud. For no particular reason given,
though, the filing goes on to accord victories reaching as
high as an aggregated $1.5 million to Don "based on IRS
estimates..." (Since Don hasn't been able to
furnish me with more than a total of just a few thousand
dollars worth of victory evidence for posting, I thought
about posting the IRS claim and bumping my "victory" total
by $1.45M, but since doing so would mean taking the agency
at its word-- and since Don dismisses this figure as
absurd-- I just couldn't do it...) One of the
allegations in the government's filing is that Don failed to
sign some returns that he prepared?! Maybe this is
where the IRS gets to its $1.5 million-- by ascribing to Don
credit for returns he had nothing to do with?
Ah well, the ways of the agency are inscrutable, by design.
You know the old saying, "If you can't dazzle them with your
brilliance, baffle them with your b______t.
The only substance in this filing appears to be the
assertion that Don had included the acronym CPA in the list
of his considerable credentials on returns he helped prepare
for a brief period of time, stopping doing so a few months
ago when it was pointed out to him that although he IS, in
fact, a state-certified public accountant, just as he had
claimed, a provision of the certification holds that only a
Michigan-certified public accountant who has stayed current
on his registration requirements can use the state's
certification to call themselves a CPA. It's a way of
ensuring an incoming $220 biannual fee from guys like Don,
As Don explains:
It is the various states that regulate the licensing
of CPA's, not the federal government. When I
became recognized by the state of Michigan back in 1986
as a CPA, the requirements were that you pass the AICPA
exam, which was 19.5 hours long, and that you have 2 or
more years of what the state refers to as "qualifying"
experience. I won't get into what counts as
qualifying experience, but suffice it to say that I had
it because they gave me the certificate.
In order to continue to be licensed with the state, you
have to send them $220 every 2 years, and report 80
hours of qualifying continuing education. Now, I
have to complete continuing education for my CFP
certification as well as my state insurance licenses
every 2 years as well, which I have done for many years.
The reason is because I do financial planning as well as
provide insurance products where appropriate for my
clients. Most of this continuing ed would satisfy
the CPA requirement as well, so if I had wanted to renew
my license, I wouldn't have had to take much in the way
of continuing ed beyond what I was already doing.
However, as I stated in an earlier email, since I
haven't done accounting or auditing in a number of
years, I didn't see the need to send the state $220
every 2 years, etc., so I didn't. I was registered
with the state as a CPA, which is a lesser fee, and
doesn't require reporting continuing ed. However,
registration expires every 2 years, and I didn't get a
renewal form from the state. So my registration
ended 12-31-03. Being registered doesn't give you
the right to practice "public accounting", it just keeps
your name on file. However, my CPA certificate is
still valid with the state, until and unless the state
revokes it. In talking with the state board of
accountancy, they advised me to wait until September,
2007 before attempting relicensure, if I want to because
I would have to take 80 hours before they would
relicense me, and then another 80 hours over the next 2
years. The reason is because you have to have the
hours done within 12 months of relicensing, and I
haven't taken any continuing ed yet for my CFP or
insurance licenses yet because they're not up for
renewal until later this year.
It's a real shame that a good American like Don, who has,
according to the government's own words, helped many folks
exercise their rights and stand up for the law, should be
victimized as part of the increasingly desperate efforts of
the IRS to shore up its rapidly-crumbling little
castle-built-on-ignorance. I hope everyone will join
with me in wishing Don the very best as he prepares to deal
with this outrageous, and fundamentally petty, assault.
Aren't You Glad That Thugs Engaged In Corrupt Efforts To
Suppress The Truth No Longer Control The Disposition Of
Now, here are portions of the DOJ
press releases touting the eventually issued "injunction" (I
have put "enjoining" and "injunction" in quote marks for
reasons that will be clear in a moment...):
UNITED STATES OF AMERICA v. DONALD
A. GRAY, File No. 1:07-CV-42, UNITED STATES DISTRICT
COURT FOR THE WESTERN DISTRICT OF MICHIGAN, SOUTHERN
DIVISION, 2007 U.S. Dist. LEXIS 19833; 99 A.F.T.R.2d
(RIA) 1695, March 19, 2007, Decided
Mr. Gray stated that he prepares
conventional federal income tax returns and he prepares
federal income tax returns based on the book Cracking
the Code: The Fascinating Truth about Taxation in
America by Peter Eric Hendrickson.
Mr. Gray has asserted that: (i)
that his customers had no income and (ii) that his
customers' wages are not taxable income. The position
that his customers had no income or that his customers'
wages were not taxable are variations of the argument
that the I.R.C. does not define "income" and that wages
are not "income."
As anyone who has read
CtC knows, "wages" certainly ARE "taxable income".
Indeed, there is no body of information on the planet that
makes that fact more clear than
CtC-educated American would ever declare that "wages are
I can't say from my own personal
knowledge that Mr. Gray never said such a thing, of course
(though I doubt he ever did). However, to declare him
to have said it, and to declare that to do so is wrong, is
to say nothing whatever about what is taught in
CtC. The fact is, by virtue of the language above,
Gray has been "enjoined" in reference to something that he
probably never did, and in any event certainly never would
do pursuant to what is taught about the law and the tax in
On the other hand, the court in this
case very carefully, explicitly and revealingly DOES NOT
condemn, nor prohibit Gray, or anyone else from, acting
pursuant to what IS taught in the book-- such as that not
all earnings in the form of pay-for-work are "wages" (as
that term is explicitly defined, and meant, in the federal
revenue laws); nor are all money-making enterprises "trades
or businesses"; nor are all receipts "income" (or even
potentially "income" except as exempted or excused from that
status by some act of Congress)... The court doesn't
do these things because it cannot, for the simple reason
that all these things are true.
This court had a perfect opportunity
to flatly and plainly say, "All earnings (or receipts) are
"income"" (or "All earnings are "income" unless exempted by
law"), or "All pay for work is "wages", or ANYTHING that
actually disputes what is revealed in
CtC. This court certainly WOULD have said these
things, if it could have. The fact is, you could pore
through court rulings for the next ten years and not come
across a single ruling in which a judge dared to make the
ridiculous and flatly wrong assertion that all earnings, or
all receipts, are "income". None ever has. But
those beholden to the gravy-train that is the misunderstood
"income" tax sure don't want YOU to be conscious of that.
Instead, this disingenuous court says
nothing more than what
CtC itself teaches-- that "wages" are "income"-- while
carefully avoiding the subject of what constitutes "wages"
(and what doesn't). (The reality of the latter subject
doesn't escape the IRS and, so far, 30 state tax agencies,
of course-- all of which continue to issue ten of thousands
of dollars in complete refunds each and every month since
the "Gray" injunction, just as they had been steadily doing
for years before it.) The sordid truth is that this
court groped its way to accommodating the DOJ and IRS desire
for some press release fodder by cheap semantical gimmickry
and careful misdirection, hoping that the rubes will take
its integrity on faith and not actually study this ruling.
way, speaking of semantical gimmickry, Word to the Gray
court: "The general
term "income" is not defined in the Internal Revenue Code."
U.S. v. Ballard, 535 F.2d 400, 404 (8th Circuit, 1976).
The closest thing there is to a "definition" of "income" in
the IRC is an elaboration of "all income, from whatever
this language says is that everything which DOES qualify as
"income" within the context of this body of law is to be
considered subject to the law's provisions.
As such, it is no more of a
definition of "income" than is provided by defining "froogle"
as "all froogle, from whatever source derived". That
is, this language doesn't define "income" at all, but only
defines the class [of whatever "income" is] that is
comprehended by the law. Obviously, this was
recognized by the wiser-- or more honest-- jurists in the
Ballard case, who were also doubtless aware that "income" is
a Constitutional term not capable of Congressional or
Executive department definition [see Eisner v. McComber, 252
U.S. 189 (1920)], and that the jig is long since up as to
the limited meaning of "income" even without doing
a comprehensive analysis of the term:
"We must reject… …the broad
contention submitted in behalf of the government that
all receipts-- everything that comes in-- are income…”
United States Supreme Court, So. Pacific v. Lowe, 247
U.S. 330, (1918) [because otherwise, the tax would be an
Further, no matter what the Gray court
chooses to admit or comprehend about the definition of
"income", does it REALLY mean to suggest that it is
IMPOSSIBLE for someone to not have had any? Where do
they get these people??!!)
The summary of all of these facts is
clear and straightforward: Every possible means by which the
unique, liberating accuracy of 'Cracking
the Code- The Fascinating Truth About Taxation In America'
could be demonstrated-- short of an IRS press conference
declaring its surrender and dissolution-- is plainly and
Read the book.
Learn the truth.
Spread the word.
NOTE: There are a number of folks now
CtC-educated who came to their new
knowledge of the truth about the law only after having
embraced errors, and having engaged in associated bad
practices in the past-- often for years. Some of these
folks ARE suffering harm of one kind or another from the
ongoing (or newly-emerging) ill effects of these bad
practices, even though they have since attempted to correct
their situations with what they now know.
Inevitably, the troubles these
activists are experiencing are sometimes mistaken by
ignorant observers-- or even by the victims themselves-- as
being related to their
CtC-educated actions, when the
reality is that the troubles are being visited upon them
(Unfortunately, even the most perfect knowledge cannot undo,
reverse or rectify every misstep taken in ignorance.)
It is incumbent upon anyone encountering stories about "CtC-related"
troubles to gather sufficient background information to
reveal what is really going on. See the "Help!"
page for more on this.
Just to set the right tone as we proceed, I'd like
to point out that:
Individual Virtue Is The Most Powerful Weapon Against A Corrupt
Ever wonder what lies behind the studious institutional enmity
toward moral consciousness we see all around us in America (and
elsewhere) today? It is an institutional recognition that the
greatest stumbling-block to the core ambition of the unbridled state
(the unhindered exercise of power on behalf of its clients) is the
stature of individual morality as a popular value. This is
because while all the mundane costs of compliance with the state can
be manipulated in the state's favor, the moral cost of compliance
with illegitimate state behavior cannot be. The only tool the
state has in that regard is the undermining of morality in general.
I will offer taxation as a
convenient model: It is easy to see that merely by manipulating the
rate of any given tax, the state can make the cost of resistance--
either resistance as a matter of political opposition, or even as
legal resistance to the misapplication of the tax-- greater than the
cost of compliance, if the only considerations are out-of-pocket
expenses and expenditures of effort. If these were the only
considerations, and everything else about it remained the same,
would anyone invest much in opposition to, for example, an actual
aggregated net "income" tax burden of, say, 5%? Or 10%?
Even when the tax was being misapplied in defiance of the law,
resistance wouldn't be worth it. Indeed, at the right rate,
even the trouble of saving receipts and calculating deductions
wouldn't be worth bothering with.
However, when the cost of compliance with any policy or demand
involves the violation of moral principles, the calculation is quite
different. In that case, a moral person will find no price of
resistance too high.
Continuing with the "income" tax example: When compliance with the
state's ambition requires false testimony about oneself and/or
others (such as is discussed in 'The
Criminal Rites Of Spring'), and/or cooperation with, or
acquiescence to, the illegitimate use of force against others, a
moral individual simply cannot comply, regardless of the cost of
refusal, and regardless of how inexpensive any other cost of
compliance is made to be. The two positions-- respect for, and
embrace of, morality; and cooperation with, and participation in,
institutionalized immorality-- simply cannot co-exist. A moral
person will choose the course illuminated by the instruction,
"Render unto Caesar that which is Caesar's, and unto God that which
is God's", understanding that while Caesar is entitled to look
after his legitimate interests, he is entitled to the cooperation of
others in doing so only insofar as that cooperation is compatible
with God's requirement's.
Thus, the subversion of morality is necessary to the state's
purpose, and is cunningly and relentlessly practiced. This
subversion is often highly specialized, as in this "income"
tax-related example excerpted from 'Why
It Matters' in
Effectively presented as an involuntary requirement, the
scheme corrupts our fundamental principle of equal treatment
under the law with a progressive structure under which some
citizens are able to force a benefit for themselves out of the
pockets of their neighbors. This callous design, intended
to maximize the protective political support for the scheme by
invoking Shaw’s principle that, “A government which robs Peter
to pay Paul can always depend on the support of Paul”, engenders
institutional endorsement of the proposition that a form of
slavery is a fundamental element of social justice. (Where
the tax lawfully applies, of course-- as an expected cost of
voluntarily enjoying the benefit of federal privilege-- unequal
treatment is no more unfair than is having to pay more for good
seats at the show).
This is a particularly noxious perversion, in that under this
“justice” a heavier burden is extracted from some Americans
precisely because they have already made a greater contribution
to the common weal than others. After all, one earns one’s
unprivileged receipts solely by serving the interests of one’s
Furthermore, contrary to the many false intellections
marshaled to support this aspect of the scheme, the more such
receipts that one’s good service brings in, the less demand one
places on, and the less benefit one has from the community
resources-- making the progressive structure of the tax even
more obscene. The reality is that a successful
wealth-producer has typically been more adamant and persistent
than others in defying and surmounting the public infrastructure
and its typically sclerotic defense of the status quo. (The
exception is those who have used government to their advantage;
their gains, of course, are the lawful objects of the “income”
tax as properly applied).
As to public services, the well-to-do place far less demand
on such expenses than others-- they draw no public welfare, they
are privately insured, they live where the local services are
equitably paid for out of (typically) high local tax rates.
In other words, they pay their own way. The vigorous
efforts of many in positions of authority and respect to seduce
Americans into accepting the standing of these truths on their
heads, in order to ensure that the gravy-train of professional
fees, bureaucratic power, and re-election will continue, is a
national scandal. That these efforts have largely been
successful is a national shame.
Similar efforts are focused upon many other areas in which the
ambitions of the state and its clients are hindered or
inconvenienced by an upright citizenry insistent on lawful, limited
government. Paralleling such targeted efforts is a general
pressure against morality, in service to the understanding that once
any corrupt practice is excused, forgiven, or rationalized, the rot
will soon spread.
John Adams observed, "Public virtue cannot exist in a nation
without private, and public virtue is the only foundation of
republics", and he and the other Founders wisely equipped us
with a fundamental law which is fully supportive of our private
virtue. Enjoying the benefits of that virtuous fundamental law
simply depends on the firm embrace of that same private virtue by
each of us-- one by one.
Regarding A Shameful Hypocrisy
Within The "Tax Honesty" Movement
Despite the constant (and
often highly detailed) acknowledgments of the
earth-shaking, life-changing truths in 'Cracking
the Code- ...' by the federal and state governments
constantly being added to this site, the
mainstream-media blackout of
CtC continues. This is not all that
surprising, given the mainstream-media's comfortable
position as part of the status quo.
However, many "leaders" of the so-called
"tax honesty movement", who themselves amount to an
alternative media specializing in news of particular
interest to their own community, remain stubbornly
silent-- or even actively disparaging-- about
CtC, as well. What a shame.
And what hypocrisy. The IRS and state
tax agencies are reluctantly admitting the accuracy of 'Cracking
the Code-...' on a daily basis, while self-professed
"adamant enemies of the income tax" refuse to.
Some of these prominent and influential
"leaders" appear to be so heavily invested in one or
another misunderstanding about the "income" tax as to be
unwilling to acknowledge the contrary truth out of sheer
pride. Others have doubtless concluded that if it
becomes widely-known that the problem over which they
have made a career (or at least a bid for fame) has been
solved, they're out of a gig.
do so reluctantly, when I apply the reasoning that an
honest but mistaken man, upon learning of his error,
either [forthrightly] ceases to be mistaken, or ceases
to be honest, I'm afraid I can't help but begin to think
of some of these "leaders" as being part of a "tax
“Many a man
stumbles across the truth, then picks
himself up and hurries on as though nothing
Some Words For Those Who Recognize The Truth And Seek
To Share It
It is important to recognize and understand the
irretrievably ignorant, the ostriches, and the
calculated cynics which anyone seeking to shed a little
light and take a step closer to the restoration of
liberty in our lifetimes inevitably encounters on a
regular basis. Understanding these folks will make
it easier to reach them more effectively, and to know
when to simply move on, as well. Here is the first
of a few observations that might help:
The Irretrievably Ignorant
Even a fiction for which no evidence exists
whatsoever, and which is, in fact, dis-proven by ALL
available evidence, will be indelibly etched in the
minds of some people if it has been presented to
them since childhood.
For instance, many people really did believe the
earth was flat at one time, despite the fact that
most spent their entire lives in view of both a
visibly curved horizon, and the routine sight of
ship's masts sinking as the vessels moved into the
distance. Against this evidence, available to
any who cared to take note of it (and on the basis
of which the ancient Greeks had gone so far as to
calculate the circumference of the Earth many
centuries before the 'flat-earth' nonsense was
finally laid to rest), was set the mere
repetition-from-childhood-onward of the absolutely
unsupported contrary assertion. Rather
shamefully, that mere repetition proved to be enough
to rule the perceptions of millions. Even
after the truth began its ascendancy, and was being
broadly advocated, some men and women went to their
So it will be with some people to whom, for
instance, the demonstrable reality of governmental
jurisdictional limitation is presented (along with
the related, fully conforming, words of the law).
The notion that the federal government exercises
general jurisdiction throughout the country has been
drilled into American's heads since birth, and some
will simply never perceive the truth no matter how
much evidence is laid before them. Every
occasion of the government's respecting its
boundaries when they are properly invoked will be
dismissed as an inexplicable anomaly, one after
another, and another, and another... Happily,
the ranks of such unreachable minds-- about whom Tom
Paine was thinking when he observed that,
"Reasoning with one who has abandoned reason is like
giving medicine to a dead man"-- are thin.
Still, I do not counsel hasty surrender to such
adamant ignorance. Some correspondents will be
of the type whose automatic response to any idea
with which they are unfamiliar is to be scoffing and
dismissive-- thus looking much like the irremediably
ignorant-- while actually being amenable, upon
reflection, to evidence and reason. But I do
urge you to recognize an un-reason-able mind when it
manifests itself consistently, and move on.
Ostriches And Calculated Cynics
If one can successfully cultivate the fiction
that nothing can be done about a problem, even when
its existence is recognized, then one can quiet
one's conscience, excuse one's
The far larger contingent of reality-resistors which
will be encountered in the course of one's
light-shedding endeavors are a more venal lot.
They are not at all inherently incapable of
comprehending the truth, like the irretrievably
ignorant-- in fact, they absolutely can comprehend
the truth, but deliberately choose to evade doing
so. To the irretrievably ignorant, the whole
subject of the legitimate authority of government in
America is like the elephant examined by the six
blind men in the ancient fable-- that is,
effectively imperceptible. But to ostriches
and the calculated cynic, the overall subject is
perfectly manageable. Nonetheless, aspects of
the subject yet have a very pachydermic character
even to these latter types, as the relentless
governmental efforts to exceed that authority over
the last century have become, to ostriches and
calculated cynics, the "elephant in the living
room", famed for its ability to go unremarked.
Both are fully aware (or could be) of the presence,
shape and dimensions of the beast-- and, to add a
little something to the metaphor, the hazard it
represents to others in the room; both, salving
their consciences with the idea that nothing can be
done anyway, avert their eyes from the beast as a
matter of policy.
In the case of the ostriches, the underlying
motivation for refusing to regard the beast squarely
is simply fear. Ostriches catch a glimpse of
the hungry and unscrupulous countenance of the
beast, and their stomachs take a powder while their
heads go straight for the sand. There is no
more to be said-- ostriches are the kids who turned
the lunch money over to the school bully with no
thought other than gratitude that they were then
allowed to go on their way. Their policy of
aversion is a reflection of an ostrich's sense of
his or her own incapacity for effective resistance
to the predations of the more ambitious and
Calculated cynics, on the other hand, are a wholly
different breed. Calculated cynics are those
who are able to perceive the beast; are capable of
regarding it without weakness in the knees; and in
many cases, actually have a pretty good handle on
both its inherent destructiveness and its
illegitimacy. Nonetheless, the calculated
cynics have come to accommodation with the creature,
and, like the ostriches, look away-- but not
uncontrollably. Calculated cynics look away
Whatever the individual fashion in which the
decision manifests itself, calculated cynics-- to a
man-- have decided that standing in the way of the
ambitions of the beast is simply too inconvenient to
be considered. For some this is because they
find themselves permitted sufficient space in "the
living room" for their immediate comfort, and will
not risk that known, tolerable circumstance for the
uncertainties of change.
Others actually rely on the presence of the beast
and its blundering destructiveness. They make
good livings out of recommending in which direction
the beast should next careen; or offering for public
consumption their clever and well-styled complaints
about where it last careened, and why this was a
good or bad choice of places for trampling.
Still more, indeed, the majority of this breed,
simply recognize that to squarely acknowledge the
beast-- and all its implications-- is to be
compelled to stir themselves from whatever else
presently takes their fancy. Unwilling to be
troubled, or dislodged from career or comfort, these
and all the other varieties of calculated cynics
adopt a studied position that opposition to the
beast is futile, whatever the law might say; that
corruption and decline is the lot of all nations,
whatever the aspirations of the citizenry; and that
only a fool would stand up and stand out, because,
as everybody knows, "You can't fight city hall."
Happily, however discouraging an encounter with any
of these types can be, all the irretrievably
ignorant, ostriches, and calculated cynics combined
make up only a small minority in an America blessed
with a deep-rooted tradition and heritage of
intelligent, open-eyed inquiry, stalwart personal
fortitude, and unflinching self-sacrifice in the
cause of liberty. Although the effort may at
present be an exercise in regaining lost ground, the
teller-of-truth-- who, after all, is doing no more
and no less than pointing the way to freedom and
prosperity-- will find no shortage of proper heirs
to that virtuous legacy. So, know the lost
causes and the closed minds when they are
encountered; know the special cases and the
idiosyncrasies that inform them; and know that in
the end, your efforts will be successful.
Arm Yourself Against Deceptions
For the identification and discussion of many of the current "silver
bullets" and other distractions being deployed to keep the "tax
honesty community" divided-and-conquered, please visit
'Comments Regarding Various "Tax Protestor/Tax Honesty"
Misunderstandings Of The Law'.
These include misunderstandings (or misrepresentations) about 'ALL
CAPS NAMES'; Social Security and the significance of having had a
number assigned; 'section 861'; the 'UCC'; 'repeal provisions in the
IRC's'; and many others. Some or all of these are constantly
recycled into circulation in an effort to keep Americans from
learning, and staying productively focused upon, the actual nature
of the "income" tax.
For a general "income" tax site map, please see
Lost Horizons "Income" Tax Subject Site Map'
Still In Denial?
Continued denial that what is presented in
CtC (and only in
CtC) is the truth, the exact truth, and the complete truth about
the income tax is just that: Denial. It is dishonest and
inexcusable, and nothing but a comfort to the enemies of liberty and
the rule of law. Get over it.
Yes, the fact that upon acknowledging this truth
you will find yourself honor-bound to stand up and do something, is
scary. But the alternative is contemptible; and the long-run
consequence of a widespread failure to act is a whole lot scarier.
Think about it.
Read the book.
Spread the word.
Stand up and act.
"The Tax Code represents the genius of legal fiction... The
IRS has never really known why people pay the income tax... The IRS
encourages voluntary compliance, through FEAR."
Jack Warren Wade Jr., former IRS officer in charge of the IRS
Nationwide Revenue Officer Training Program, in his book ‘When You
Owe The IRS’