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The News

Current Events and Continuing Education for January 8 through January 21, 2018

“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”

-James Madison


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Features in this edition:

(Click on the underlined text to jump to each feature. To return, use your browser's "back" button or the provided "Return to Contents" links. Please keep in mind that many more items of interest are to be found between featured articles, so your most profitable course is to scroll through the whole page...)

The crumbling "ignorance tax" scheme...

An Unexpected (But Very Welcome) Indicator


The crumbling "ignorance tax" scheme II...

Watching The House Of Cards Collapse


Who's got more power? The haters, or Facebook?

An Opportunity For An Entertaining Experiment In Israel


A really important question:

How Do You Know When A Government Is Engaged In A Cover-Up?


From the "Keepin' It All Real" department:

The Serious Threat Of Species Suicide


What's happening and what needs to happen:

A Call To Action Or Two


Time for some push-back...

Have You Been Harassed By "Frivolous" Threats?


Have you heard a discouraging word?

The Truth About Trolleries


Other Voices

'Who Are The Leading State Sponsors Of Terrorism?'


Setting 'em straight:

Questions For The Silent So-Called "Alt-Media"


Share, share, share, people

Got Twitter?


The most important question facing Americans today:

What Do The People Do About The Rogue State?


Guess what? There are only two possibilities:

You Either Stand Up For The Truth, Or You've Surrendered To The Lie


Spotlights on the past that help bring clarity to the present:

Illuminating Anniversaries for this week


Got something to say?

Your Comments



My interview by Lana Lotkeff for Radio 3Fourteen can be found here.

Find my YouTube channel here.


The upgraded Fifteenth Edition of CtC is Now Available!

Btw, a copy of CtC from anywhere except the link above may not be a current edition. CHECK. It matters. Also, there ARE no e-book, Kindle or .pdf versions of CtC. Don't get taken in by efforts to sell you-- or even give you for free-- any such thing.

Get The Short, Easy Intro To The Liberating Truth About The Tax


Click here for the current Mid-Edition Update posts

Featured In This Update:

Another Welcome Indicator (Of The Collapse Of The Scheme)


Is Trump The Most Frightening President Ever? Not Hardly...


New Inspirational Videos


Notes For An Educated Filer-- Whether A First-Timer Or A Veteran


Now, THIS Is What I'm NOT Talking About!


Recent Victory Posts-- Each More Illuminating Than The Last!


Regarding Daft And Despicable Deniers


Regarding State Group Membership


Project Paradigm-Shift


Test Your "Income" Tax IQ!


A "Pragmatic" Perspective On The Tax And The Rule Of Law


Your Comments


"There are two distinct classes of men...those who pay taxes and those who receive and live upon taxes."

- Thomas Paine

C'mon! CtC can't be right! You're crazy!

If CtC were actually right,

it would mean the government's been concealing and denying the truth for years on end,

and everybody knows THAT would never happen...

(Edward Snowden, come home! It was all just a bad dream; there really is No Such Agency!)



Do you know someone truly steeped in the Kool-Aid?


 I mean someone who finds it easier to believe that the far-better-educated, far-more-suspicious-of-government Americans of a hundred years ago were complete morons who granted authority to the state to take whatever it wished from themselves and their posterity than to imagine that they themselves simply misunderstand the true nature of the income tax? Even while knowing that their beliefs about the tax are derived entirely from the representations of those who profit from those beliefs (like tax bureaucrats and "tax professionals")?


Do you know someone like that? Shake them awake with the latest (fifteenth) edition of CtC!



I'm delighted when anyone wishes to share what I have posted here with others! Sharing this page is an important means of moving toward the restoration of the rule of law-- PLEASE DO IT!! But I'd appreciate your doing so by directing your friends here themselves, rather than by copying and emailing chunks of the material.


The Newsletter is interested in your work! If you are a writer, scholar, or just a dedicated Warrior with a good story to tell, please consider sharing your words and your wisdom with our thousands of readers! Click here to learn how.


You can't understand the present if you don't understand the past...

Illuminating anniversaries of this week:

January 15- In 1777, 'New Connecticut' (now Vermont) declares its independence from Great Britain and its colonies of New York and New Hampshire.  In 1943, the Pentagon is dedicated.  In 1967, the first Superbowl is played (Packers over the Chiefs, 35-10).


Anniversaries of interest for each day of this week will be found throughout the newsletter below.


"It does not take a majority to prevail... but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men."

-Samuel Adams


Fear nothing but God


An Unexpected (But Very Welcome) Indicator

...that the "ignorance tax" scheme is crumbling.

I WAS DELIGHTED LAST WEEK TO FIND on Cornell University's Legal Information Institute website an acknowledgement of the specialized, limited meaning of "person" as defined at 26 U.S.C. § 6771(b), and as the term is meant in IRC "offense" statutes. This legal information giant is now recognizing the distinguished character and relevance of the term as I have explained many times both here and in legal filings over the years.

See the post of 26 U.S.C. § 6702- Frivolous tax submissions, for instance. The text of the first few sentences of the statute are rendered as follows:

(a) Civil penalty for frivolous tax returns

A person shall pay a penalty of $5,000 if— (1) such person files what purports to be a return of a tax imposed by this title but which—

...yada, yada, yada...

Note the hyperlinked character of the term "person" used throughout. Click on those links and what appears is the statutory definition of the term "person" for purposes of the "Assessable penalties" subchapter (subchapter B of chapter 68), labeled as "Scoping Language":


(b)The term “person”, as used in this subchapter, includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

Source 26 USC § 6671(b)

Scoping language

as used in this subchapter

The same feature now appears in the statutes concerning "crimes and other offenses", as well, in which the key "person" definition-- identical to the one at 6671(b)-- is found at 26 U.S.C. § 7343.

The pop-ups with the limited "person" definitions have an, "Is this correct?" inquiry on them. I suggest everyone go to each and reassure Cornell with a big thumb's up.

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Watching The House Of Cards Collapse

Grim, slightly nauseating entertainment, but with an important message.

THE LATEST IRS RESPONSE to veteran warrior Joe H. starkly and unmistakably reveals an agency whose sporadic spasms of bad behavior in the face of the truths revealed in CtC have collapsed into utter incoherence. Even the few rotten-apple agents still struggling to discourage educated filers and keep the "ignorance tax" gravy-train alive (in the hands of a couple of which Joe has unfortunately found himself) can do nothing but flail about like broken robots:


JOE'S 2014 FEDERAL FILING three years ago was uneventful, resulting in a typical complete refund of everything withheld, FICA and all:

The filing can be seen here; Joe discusses this victory in a nice video here.

THE RESPONSE TO JOE'S NEXT CLAIM a year later is a bit different. It appears that some "ignorance tax" schemers in Joe's part of the country had begun sensing that a bell was tolling on what had been their smooth-running, lucrative scam, and Joe's victory for 2015 reflects their growing panic. This victory IS a complete refund of all nominal federal income tax withholdings:

...but with a ridiculous attempt by the schemers to keep what was withheld from Joe as FICA surtaxes from the same earnings acknowledged as untaxable by the refund he did get. See the documentation and a discussion of this absurd ploy here.

NOW, ANOTHER YEAR OF FRAYING at the hands of CtC-educated Americans has led the rotten apples to the point of mindlessly head-butting the tar-baby of inescapable truth, as shown in the response to Joe's filing and claim concerning 2016. Here's the documentation:

Let's begin with Joe's March 12, 2017 filing-- a perfectly conventional educated return, claiming the return of the $13,007 which, as will be seen in a moment, the IRS can't help but agree was erroneously withheld from Joe by an ignorant payer.

As is true of all CtC-educated filings, Joe's claim for 2016 went through the multi-level vetting process at the IRS. Unlike the vast majority of the hundreds of thousands of such vetted claims over the last fourteen years, however, Joe's was selected for harassment. Five weeks after his filing, Joe was presented with a challenge to his refund claim-- probably by the same rotten apples who had mistreated him the year before.

Doubtless annoyed but maintaining his equilibrium, Joe responded very calmly, even while pointing out the glaringly obvious fictional premise for the challenge. About seven weeks later, this appeared in Joe's mailbox (forward-dated by a week or so, as is often the agency's quirky practice):

NOW, TAKE NOTE OF WHAT'S BEING SAID and implied in the notice above:

"We agree that you did nothing causing a tax liability to arise during 2016. But even though you attested to $13,007 having been withheld, and even though the people who did the withholding sent us sworn statements declaring that $13,007 withholding to have taken place and our own records show that we received your $13,007 into escrow [as will be shown below], AND even though we have admitted that we have no grounds for keeping your money, we're just going to falsely assert that none was withheld from you or given to us, and we're going to keep your money."

The lame ploy attempted by the rotten-apples here is to try to make Joe believe that only the W-2s created by the payer who did the withholding can serve to verify the withholdings. But those forms, while admitting the withholding, also erroneously allege that the payments from which the withholding was done qualify as "wages" as defined at 26 U.S.C. §§ 3121(a) and 3401(a), and therefore as a measure of taxable activity.

The hope is that Joe, in order to overcome the rotten-apples' refusal to admit the withholdings, will send in W-2s, thus legally adopting them as his own testimony. If he should do so, the rotten apples will then have grounds to conclude that they can keep Joe's money in payment of taxes on those "wages" Joe will thereby have said he was paid.

Talk about desperation!

JOE, OF COURSE, was having none of it. He promptly fired off another remarkably-restrained response focused on this new notice and its frivolous nonsense.

The rotten apples? They begged for time to figure out what to do next.

And then asked for MORE time...

And then they doubled-down in early September with an even more egregious load of nonsense (which contradicts itself AND their earlier nonsense...):

Now the rotten apples are saying that Joe never filed a return at all! And they do so right after referencing-- in supposed regard to Joe's June 13 correspondence-- "the information that [Joe] supplied" ($13,700 refund).

But Joe doesn't mention any amount in his June 13 letter. Even the form 4852 he attached to it hasn't got that figure on it anywhere-- it only has three amounts of withholdings in regard to federal income taxes which total $13,007.

Only the 1040EZ which the agency admitted having received in its notice dated June 19 has that amount on it (which we will presume was just sloppily transposed into $13,700 by the schemers in their final rush to slap together this pretense after having stalled for 81 days). So that 1040EZ-- the form the schemers now say never got sent-- is the only thing from which they could have gotten that number.

Joe, being a clear-eyed, well-educated veteran of the ongoing "ignorance tax" apocalypse, promptly secured copies of the IRS's own internal records relating to his filing-- a "return transcript" and an "account transcript", both dated Sept. 17, 2017.

Looking at the return transcript, we can see a plain, unambiguous admission of the receipt of Joe's return and an accurate recording of everything on it:

The only false notes on this report are the first and last "Payments" entries declaring a "Federal income tax withheld" of $0.00 and an inexplicable "total payments per computer" of $0.00, which is contradicted by the admission just above it of total payments of $13,007 (and by all the other points made earlier about this assertion).

It's also worth noting that this transcript plainly acknowledges Joe's completion of the health care section on his 1040EZ (line 11):

...which the Sept. 8 "LTR 96C" falsely asserts was unaddressed.

LOOKING AT THE "account transcript" below, we see an admission of $7,400 withheld ($0.00 to $7,400-- quite a contrast), a declared "Tax return filed" date of June 19, 2017 and a reference to a "Notice issued" on the same date (remarkable timing, and doubtless a reference to that $0.00 "income", $0.00 tax due notice we looked at earlier, which Joe actually received by June 13, at the latest).

Further down, we see the [partial] $7,400 withholding admission, followed by another remarkable entry-- a declaration of $10,465.00 in tax being assessed on October 2, 2017-- a date which at that point was nearly three weeks into the future. The magic never ends!

CAN IT BE MORE CLEAR that the rotten apples are making this up as they go along? Is this not-- at a minimum-- the very definition of arbitrary and capricious, while also rising to felonious efforts to defraud Joe, and criminal conversion?

Needless to say, Joe had a reply to the September 8 gibberish, getting even more pointed than my generalized observations about criminality. He also undertook, on December 1st, to get another "account transcript" printed, just out of curiosity about where the weeble might have wobbled to by then. It proved a good idea...

Now we see that injected into the record and given a date prior to the previously reported prescient October 2, 2017 assessment appearing on the Sept. 17 transcript is an alleged "amended return". I guess this nonsense was felt necessary to make the rest of the nonsense seem more plausible? O, what a tangled web we weave, eh?

JOE HADN'T HEARD ANYTHING from the "ignorance tax" trolls after that Sept. 8, 2017 "LTR 96C" until, coincidentally, the very day I began parsing this classic example of empty-game bluster and bullsh*t. This past Saturday Joe sent me a copy of the latest spitball-- a forward-dated "amount due reminder" notice flogging the $3,065 balance previously-contrived by pretending that Joe hadn't ever filed a return.

What a pathetic display!

SO, JOE NEEDS TO invoke 26 U.S.C. § 6402(l):

(l) Explanation of reason for refund disallowance

In the case of a disallowance of a claim for refund,, the Secretary shall provide the taxpayer with an explanation for such disallowance.

...and demand a meaningful explanation why his claims are not being honored, that comports with the actual facts (such as him actually HAVING filed his returns, and the government not having filed any in opposition, and so forth...).

While waiting (almost certainly in vain) for that meaningful explanation, Joe should also be getting a lawyer geared-up for some suing, and getting some criminal complaints into the right hands. What is going on with regard to his 2016 filing closely mirrors the similar bad behavior attending his 2015 filing, and clearly establishes willfulness, in my view.

Everyone else needs to reflect on the message being delivered by this flailing IRS (or particular IRS agents). What has happened in regard to Joe's previous and latest filings is an expression of the slow-motion collapse-- in the face of CtC's unique and inescapably-accurate revelations-- of a rancid, worm-eaten, hollowed-out and 100% corrupt-to-the-core scam.

Continued denial of CtC's accuracy by those who do so is DESPICABLE. Continued failure to act in accordance with CtC's revelations by those who do so is IRRESPONSIBLE.

More, continued denial and continued failure to act puts those who do either one in league with the scummy institutional thugs whose frauds and falsehoods and other crimes through which we have just been wading. Make sure everyone you know understands this, people.

Remember, friends don't let friends consort with slimy thugs.




DUE TO CHRONIC AND ESCALATING interferences by ISPs (or others) which have made newsletter emails an extremely time-consuming and increasingly unreliable announcement mechanism, I have transitioned to alternative announcement methods. These include:

  • Twitter (click here to follow me and receive the announcement posts-- set for push notifications);

  • Facebook (click here to "like" the losthorizons page and receive the announcement posts);

  • GAB (click here to follow me and receive the announcement posts); and

  • My RSS feed:

(Members of the state CtC Warrior forums in AZ, CA, CO, FL, GA, IL, MI, MN, MO, NE, NY, NC, OH, OR, PA, SC, TX, UT, VA, WA or WI, will continue to get the regular announcements if the membership is set to receive email updates.)

NOTE: I will still not be engaging in correspondence by any of these alternative, social media means-- those wishing to correspond should continue to use email for this purpose.

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Illuminating anniversaries of this week:

January 16- In 1547, Ivan the Terrible becomes Tsar of Russia.  In 1909, Ernest Shackleton's expedition finds the magnetic South Pole.  In 1919, the Eighteenth Amendment is ratified, providing authority (otherwise lacking) for the federal criminalization of alcohol manufacture and distribution.  In 1979, the CIA-installed Shah of Iran flees to Egypt to escape the wrath of Iranian revolutionaries after 25 years of brutal despotic rule as a United States client and agent.  In 1991, the "Operation Desert Storm" United States invasion of Iraq begins.


An Opportunity For An Entertaining Experiment In Israel

Who's got more power? The haters, or Facebook?

IT HAS RECENTLY BEEN REVEALED that officials in Israel who apparently have little or no respect for human rights have been pressuring Facebook to censor (delete) customer accounts on which are said things these officials don't like, on pain of being banned from operation in the little Middle East statelet. Thus far, Facebook has disgracefully let itself be co-opted into this censorship and oppression, granting more than 95% of all requests.

I think this situation presents a fascinating opportunity for a political experiment. Right now, 3.63 million Israelis use Facebook. That's better than 41% of Israel's 8,793,000 people.

I'd really like to see what would happen if Facebook just manned-up and told the fascist censors to go pound sand. Let's see if a nation-wide ban of a product probably considered indispensable by 41% of the population goes over well, and sticks. I'm betting it won't, on both scores.

FACEBOOK WOULD BE DOING NOTHING but standing up for basic human rights-- freedom of speech and assembly. It would not be taking a stand on behalf of what is said by anyone-- just on behalf of that person's right to say it.

If the service ended up successfully separated from Israeli customers by the fascists in office (which would only be because those customers didn't rise en masse to protest the abuses and demand that the officials stand down), this is not a big loss.

First, the 3.63 million Israeli users is only .00175% of Facebook's total subscriber base. Second, these folks will have demonstrated poor character by not raising hell over the censorship effort behind their loss of service, and thus, are more properly denied service than those who the Israeli officials are demanding be denied service as the price for Facebook continuing to operate in the statelet.

But again, I don't think Facebook would have to swallow this pill. I believe that 41% of the Israeli population would immediately storm the ramparts over being cut-off. And they'd do it en masse, because they'd all hear about the cut-off, and the reasons for it at the same time-- via Twitter.

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Hey, Gamers!


You are surrounded by an actual battle between villains, monsters and true heroes, all simply concealed from you by sophisticated spells which also keep you from engaging in the fight.

There are real great deeds to be done, and real treasures to be had for your efforts, and frankly, your real future is at stake. You just have to gain "the sight" in order to penetrate the illusions.

Visit losthorizons.com to get the counter-spells and get onto the real field of battle!




The craziness of the neo-con nutcases in Washington is starting to generate its predictable blowback, but on a much more dangerous scale than in the recent past.

Based on relentless hostile rhetoric and steady efforts at military encirclement the Russian Federation Armed Forces Command has concluded that the United States intends to launch a pre-emptive nuclear attack on Russia. While this perception continues to be fed, the risk of a prophylactic Russian first strike exists and grows more perilous.

The persistent, recently-escalated, plainly unfounded and deliberately provocative saber-rattling against Iran-- a long-time close ally and buffer-state of Russia's, the destabilization or regime-change within which would be another substantial threat factor-- has magnified the intensity of the peril.

So, more than ever...


What You Need To Know If CtC Doesn't Spread Like Wildfire RIGHT NOW So The Nut-Cases Can Be Stripped Of Their Resources:

NOT THAT "DUCK AND COVER" would do you or your kids any good, of course... The Russian Federation has 7,400 nuclear warheads and the means to deliver them. China is coming on strong, too, these days.

Perhaps you imagine the US has some magical technological advantage that will protect us when all the nut-case bellicosity leads to its inevitable outcome? Read this, this, this, this and this. And in any event, don't forget the inescapable issue of nuclear winter and fallout-- the world-killing harm from either of which doesn't require even a single Russian or Chinese warhead to hit a target.

Really, it's this simple:

Click here for the sourcepage of the image above and for more scary details from actual grown-ups which the neo-con nutcases in Washington wish you would never find.

Spread CtC's revelations like wild-fire.

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Illuminating anniversaries of this week:

January 17- In 1893, the "Citizen's Committee of Public Safety" (and the U.S. Marines) overthrow the government of Queen Liliuokalani of Hawaii.  In 1949, American television gets its first sitcom-- "The Goldbergs".  In 1961, Dwight D. Eisenhower warms America against the growing insidious and pernicious influence of the "military-industrial complex".  In 1998, Paula Jones accuses President Bill Clinton of sexual harassment.


A Call To Action Or Two

Nothing happens if you do nothing.

THE VIDEO OF MY JULY 16 PRESENTATION on judicial fraud to conceal the true legal character of the income tax is posted here. Everyone should see it and share it like crazy.* It is hugely powerful and WILL successfully educate even the most stubbornly skeptical and disengaged.

Video of the Q&A session that followed that presentation can be seen here; this is also a "must see".

*Here's a sample formulation for sharing:

The American people have been victimized by massive and sustained corruption in the federal judiciary in order to fuel the ambitions of the Deep State. See the incontrovertible evidence at https://youtu.be/105GKdmJ9HU.

This enormous harm can be remedied, but the path to that solution begins with widespread awareness of the problem. Please watch the film yourself, and please pass this wake-up call along as widely and urgently as possible.

If you have a serious-minded group that you think will benefit from an in-person presentation on this long-running assault on the rule of law in America, contact me.


A call to action

CLEARLY, THE MERE AIRING OF THE JUDICIAL AND EXECUTIVE CRIMES revealed in the presentation discussed above is not enough. What is revealed here is a vicious widespread plot to destroy our Constitutional republic. It can be stopped, and it must be stopped, and all culpable parties-- who have each and every one grossly betrayed and defiled the trust and honor the people of America have bestowed upon them-- should be harshly punished. Therefore...

I call on every law-respecting journalist to raise the hue and cry about these outrages.

I urge every American reading these words to join me in demanding action.

Append this article or this video (or both) to an introductory note and a demand for action, and mail it to Jeff Sessions, Paul Ryan, your federal and state congressional delegations and to every journalist possible. This will ensure that these folks will be made aware of this matter, and cannot say otherwise as an excuse for inaction.

Click on the name below for contact info:

Jeff Sessions

Paul Ryan

Journalists (this is a short list-- you may know or have access to more; send to all of them)

Your representative

Your senators

Your state legislators

Your mom, your dad, your sibs, your best friend, the guys and gals at the office or the plant, etc.-- you have these addresses or must find them on your own.

ALSO!!! Send to law school faculty!!! Find schools, faculty names and contact info however you can and send! Send to every lawyer you can find.

Understand, if YOU haven't shared this film with any given judge, prosecutor or attorney, he or she will not have ever seen any of the information presented. He or she will not only know nothing of the truth about the tax, but will believe the untruths about the tax which the falsifying officials exposed in the film (and in the text treatments of the same material here and here) have been peddling on behalf of the "ignorance tax" scheme.

Don't make the mistake of imagining that "they all know the truth, and are part of a giant conspiracy against it." This is not true.

Most of those folks have never seen even a single one of the authorities you have seen in these presentations. They never knew there was a reason to look for them. Certainly none of them have ever seen this material knowledgeably assembled and presented.

YOU have to show it to them. If you haven't done so, assume that no one has.

“Our lives begin to end the day we become silent about things that matter.”

– Martin Luther King Jr.

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Illuminating anniversaries of this week:

January 18- In 1788, the first shiploads of English convicts arrive at Botany Bay in Australia.  In 1861, Georgia becomes the fifth of the several states to secede from the Union.  In 1896, the world gets its first look at an X-ray machine.  In 1911, an aircraft lands on a ship for the first time (Eugene Ely pilots a plane onto the deck of the USS Pennsylvania in San Francisco harbor).  In 1990, Washington, D.C. mayor Marion Barry is arrested for drug possession.  In 1998, the Clinton-Lewinsky affair is revealed by an internet news outlet.  In 2012, the effort by the United States to compromise the freedom and integrity of the internet under the "Stop Online Piracy Act" and the "Protect Internet Privacy Act" is met with a coordinated "Blackout Day" in protest by numerous major internet operations.


On Criminal Complaints For Filing False IRs

Getting practical on a core element of the "ignorance tax" scheme.


"A nation of sheep will beget a government of wolves."

-Edward R. Murrow



What Is Paid For By The "Ignorance Tax"

LOTS of very bad things...

The U.S. Income Tax: An Excise On The Profitable Exploitation Of Federal Privilege

The U.S. Ignorance Tax: The Profitable Exploitation of Confusion About The Income Tax

I WAS IN A GROUP THE OTHER DAY in which I overheard, "The income tax just goes to pay the interest on the national debt!" Would that it were so...

The statement is a long-standing misconstruction of something said by Peter Grace of the Reagan-era Grace Commission, which had been tasked with an analysis of the federal budget. Grace attempted to illustrate the significance of the federal debt burden by pointing out that the interest paid on that monstrous debt was so much as to more-or-less match the amount taken in by the income tax-- an amount that is a metaphorical synonym for "huge".

Money, of course, is fungible, so even if the tax take were earmarked for the interest payment, that would simply free up other funds for other uses. Thus, the "earmarking " concept is illusory at best. Income tax revenue gets spent for any and all government purposes, just as is true of every other dime that goes into the general fund.

Further, Grace undervalued the income tax dramatically. This is because Grace didn't understand that FICA (Social security and Medicare) taxes are just income "surtaxes"-- meaning income taxes like any others, despite the misleading application-specific label of "employment taxes". As a result of this misunderstanding Grace failed to factor this additional enormous amount into his casual analogy.

The reality is that the income tax take-- by which we really mean the "ignorance tax" take, since we're talking about the amount captured by government through exploitation of ignorance about what is really subject to the income tax under the law-- is many times the amount paid in interest on the national debt. Last year, for instance, the interest payment was about $432 billion. The ignorance tax total was a whopping $3.9 trillion.

MY POINT HERE IS NOT TO CRITIQUE THE GRACE REPORT, however. I'm only interested in stopping its mistakes from being repeated and persisting as a false "factoid".

The reason I'm concerned is that the throw-off, "It just goes to pay the interest on the national debt..." line, though not meant as, or in support of, anything but a disparagement of the tax, actually serves to minimize or conceal the horrendous evil for which the tax really does pay.

Lets look at a small sampling of the things made possible by the ignorance tax:

  • The corruption of our political office-holders;

  • The drug war and all the violence and corruption it brings;

  • Our wives, daughters and ourselves being virtually strip-searched in airports;

  • Agricultural price supports raising the cost of our food;

  • A bloated military unable to account for $6.5 trillion given to it over recent years;

  • Hundreds of millions who hate us for the harm we have inflicted directly after violently invading their homes (here's an analysis of just a few of these affairs), or by supporting the despotic regime holding them in thrall;

  • A Department of Education working to fill American kids' minds with mush and PC propoganda;

  • The Panopticon surveillance state which spies on all of us all the time, subverting our privacy and any hope of confidence in the independence of our elected officials;

  • The militarization of our local police;

  • A direct and indirect federal workforce of 14,000,000 or so, every member of which needs to be messing with some or many citizens' lives in one way or another in order to justify his or her pay;

  • The coercion of state governments into certain behaviors even where no Constitutional authority exists for Washington's decrees, by issuing grants with strings;

  • The supplanting of genuine prosperity opportunities for young Americans by entrapment in rotten, impoverishing economic prisons.

  • And on, and on, and on...

NOW LET'S LOOK at what preservation of the "ignorance tax" scheme has made valuable to the schemers, and therefore an increasing part of our lives:

  • The inculcation and maintenance of a pervasive fear of government lawlessness;

  • A corrupt judiciary;

  • The systematic erosion of the rule of law;

  • The mis-education of our children about our founding principles and the legitimate authorities and limits of our public institutions;

  • The co-option of our churches into cheerleaders for the statist-quo;

  • A de-emphasis on logic, economics and history in our schools and school textbooks;

  • The infection of our legal framework with hive thinking, identity politics, and "social justice";

  • And on, and on, and on.

EVERYTHING LISTED ABOVE IS what is actually paid-for by the "ignorance tax", either in the conventional sense of being financed with its enormous, corruption-inducing aggregation of wealth into the hands of a political class with feet of clay, or as a price we all pay by the degradation and loss of our principles and our values.

Is all this really how a sensible people want to be spending their resources? I think not, but this IS what we're doing now, because of all those not yet awakened to the truth about the income tax.

Be an alarm clock.

(Click on Saruman to see what he means..."

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The Biggest Snow-Job In World History: The Myth That 1913 America Adopted A Marxist Progressive Tax On "All That Comes In"

“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”

-James Madison



Thank goodness the sun is now shining...


PRO TIP: If I were the IRS and I wanted to discourage people from rebutting allegations that they had done things I can tax, and keep them from successfully reclaiming withheld or paid-in money, I would salt the "tax honesty" community with passionate-seeming "legal researchers" who would warn anyone whose ear they captured that filing a 1040 is a bad idea for one reason or another...


A Review of CtC by Derek Cushman

You can also find this film at https://vimeo.com/175424277.


Regarding Trolleries

(Deceitful efforts to discourage Americans from learning the truth about the "income tax")



FOR ALL THE YEARS SINCE 2003 when CtC was first published, the government has engaged in a concerted effort to frighten people away from its truths. This effort involves official government websites and press releases touting an occasional court ruling that appears to be at odds with some CtC-revelation (but without details sufficient to expose the real substance of the ruling)-- and sometimes even more mendacious behavior.

Click here for the rest of this article

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Are the presentations and resources offered on this site and in my other work of any value to you?

Tim Kendrick has posted a video on YouTube regarding donations. I didn't know what to do about it to begin with; I don't do what I do intending for anyone to feel obligated in any way.

But of course, no one IS obligated. I will continue to make my work freely-available here, and in my books for only the cost of a cheap paperback.

Thus, even though I post it here below, Tim's very thoughtful personal resolution and encouragement to others is just an invitation for consideration by those who may not be conscious of the fact that I can't do what I do without support. No one is to feel any pressure from it; if it moves anyone to act let it be solely because it seems right.



Why Does The Government Lie About 'Cracking the Code'?

THE ANSWER TO THAT QUESTION is the key to the restoration of the republic and the rule of law in America. See it below. (NOTE: It's very important that the entire 24 minutes be viewed.)

This video can also be found on YouTube at https://youtu.be/hgzzYl-eeUI.

Here are links to the two pages to which viewers are directed at the end of the film: The Crime of the Century and The Truth About The 16th Amendment.

The other two mentioned in the film are this one (the "bulletin board" stack of 1,200 or so posted refunds and other victories in knowledgably applying the law; and this one (the collection of resisted claims and the outcomes of those little battles).

PLEASE be a real activist about sending this link to every single person in your address book, and about sharing it through facebook, reddit, twitter, and any other distribution channel with which you are familiar. Send it to every journalist you can. It's time to really make something happen.

Accompany your emails and posts with with a strong admonishment to watch the film through, and that doing so will show the viewer an individual-empowering, state-restraining truth about the income tax which the government has been trying to keep hidden from view for 75 years and which that person really needs to know.

BY THE WAY, as is impossible to miss, I have neither the skills nor the tools to make even moderately good films. This is simply not my forte. Anyone able to do better is encouraged to talk to me about that.

As is ALSO impossible to miss, though-- even in my amateur production-- reader video testimonials have GREAT POWER. Send me yours.

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Illuminating Anniversaries:

January 19- In 1883, Roselle, New Jersey becomes the first town with a pole-strung electricity grid.  In 1920, the U.S. Senate votes to keep the United States out of the League of Nations.  In 1937, Howard Hughes set a record flying from Los Angeles to New York City in 7 hours, 28 minutes and 25 seconds.  In 1977, snow falls in Miami, Florida-- the only time this has happened in the history of the city (the Bahamas got some that day, too).  In 1983, Apple announces its first computer with a GUI and a mouse.


How To Be A Leader In The CtC Community

It's simple:






All-in-all, just be the sort of person for others that you would go to yourself for trustworthy leadership.

Leadership is a challenge. But it's not complicated, and you can do it.


PRO TIP: By the physics of the law, an indirect tax is necessarily a privilege tax. Here's why:

The distinction between a direct tax and an indirect tax is incidence. A direct tax arises by the direct imposition of the taxer, without any election of the taxed (other than that of authorizing the taxing power in the first place).

An indirect tax arises by the taxed choosing to do something by which the taxer's claim is then created. The choice that is a valid object of an indirect tax can't be anything done as an exercise of an untaxable right. Nor can it be any activity of necessity. A tax on anything done by necessity would arise not by actual election of the taxed but simply because the tax had been imposed by the taxer. Such a tax, whatever it may be called, would be in actual substance a direct tax, even if one that arose only intermittently. Think of a tax on eating, for example, or working, or engaging in trade with others (all of which are things done by right as well as by necessity, but you get the point).

What is left as the valid object of an indirect tax is the exercise of privilege-- something done not by right, and therefore done by the permission of the taxer (who, due to being possessed of an ownership right in the thing being permitted, is entitled to claim of portion of the proceeds when the thing is profitably used).

"[Although the Legislature may declare as privileges and tax as such for State revenue purposes those pursuits and occupations that are not matters of common right], the Legislature has no power to declare as a privilege and tax for revenue purposes occupations that are of common right."

Sims v. Ahrens, 167 Ark. 557, 271 SW 720 594, 595 (Ark. 1925)


The 'Watching the Watchmen Amendment'

If you're not talking this one up everywhere and helping generate a buzz, you don't really want liberty and the rule of law...


PRO TIP: The argument that a concept explicitly given a statutory definition for purposes of this or that chapter or "title" has the same meaning as the common word the legislature has borrowed for its label-- which meaning plainly didn't suit the legislature's purposes, hence its replacement-- is a preposterous reading of the law.

“It is axiomatic that the statutory definition of the term excludes unstated meanings of that term.” 

Meese v. Keene, 481 U.S. 465 (1987);

“[W]e are not at liberty to put our gloss on the definition that Congress provided by looking to the generally accepted meaning of the defined term.”

Tenn. Prot. & Advocacy Inc. v. Wells, 371 F.3d 342 (6th Cir. 2004).



In light of the actual evidence,, those who doubt or deny the accuracy and correctness of CtC just because some government officials denounce it are like the 16th-century Europeans who were mystified by Copernicus getting all those astronomical predictions right even though the church had said he was wrong.

Do you have a victory to share?  Click here to learn how to do so.

If you're working on one, and just getting stonewalled or speed-bumped, you can still be recognized! Go here to learn what to do.

Learn The Liberating Truth About The Tax

NEW! Orders of twelve or more books now come with a free DVD containing six informative and inspiring videos-- 112 minutes in all. Click here for the details.


Did you miss the 'Set Your Church Free' commentaries?

Set Your Church Free

Ignorance of the true nature of the "income" tax has gagged, gutted and seduced-into-disgrace America's ministerial community. This must change.

You're a passenger on a riverboat that relies on regular contributions of fuel from the passengers to keep moving forward. You see an unsurvivable waterfall ahead, and note a soon-to-be-irresistible current growing stronger each day. What does common sense suggest?


Copy and post this one around, people!




Media Evasion Of CtC Must End, Now

Time, unfortunately, is on the side of the well-funded disinformation specialists class


Illuminating Anniversaries:

January 20- In 1265, the first English Parliament holds its inaugural meeting.  In 1649, Charles I of England goes on trial for treason and other high crimes.  In 1841, Britain occupies the island of Hong Kong.  In 1885, the roller-coaster is patented.  In 1944, the Royal Air Force drops 2,300 tons of bombs on Berlin.  In 1981, Iranian revolutionaries release 52 American hostages upon the inauguration of Ronald Reagan, pursuant to an earlier agreement.  In 2017, Donald J. Trump becomes the oldest person ever inaugurated as President of the United States (at 70).


Are You Having Trouble Spreading The Word?

SKEPTICISM (SOMETIMES INVOKED BY FEAR) IS TO BE EXPECTED when you're trying to explain to someone that everything they've been encouraged their whole lives to believe about something as entrenched and significant as the income tax is basically nonsense. So here's a way to help cut through the resistance:

Ask your listener how he or she would react if you were to show an announcement from the Commissioner of Internal Revenue admitting that the tax doesn't apply to the earnings of most Americans and is misapplied most of the time because people don't understand how it works? Or how about if you showed a ruling from the Supreme Court saying the same?

Now you just have to explain that you're going to show exactly those things-- but because the state really doesn't want people to know this, these things haven't been said quite as forthrightly as we would all wish. It's going to take a bit more work to take these admissions in than is sufficient for just reading a press release. But it'll be worth the effort...


The Liberating Truth About The 16th Amendment

IF YOU'RE NOT SPREADING THIS LINK with every bit of energy you can, to school libraries, homeschool families and community groups, your neighbors, your family members, your pastors and co-congregationalists, journalists, lawyers, CPAs, members of congress, tax-agency workers, Wikipedia, Anonymous, WikiLeaks, the Tax Foundation, everyone in the "tax honesty" movement, the 9/11 truth movement, other activist movements and everyone else, you have only yourself to blame for your troubles with the tax, and a whole lot else of which you might complain. It's on you.

WRITE A NICE, FRIENDLY AND BRIEF introductory note explaining what will be seen at the link-- cryptic is bad; excited is good-- and then send this WMI (weapon of mass instruction) far and wide.

"I am a great believer in luck, and I find the harder I work, the more I have of it."

-Thomas Jefferson


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Real Americans don't accommodate fog, lies and a sliding scale of adherence to the rule of law. Real American men and women stand up for the truth and the law, come what may, knowing that it is only by setting the bar at the top and enforcing it, come what may, that liberties are secured.


"Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as freedom should not be highly rated."

-Thomas Paine




ONLY ONE THING WILL WIN YOU YOUR LIBERTY: Spreading the truth. Accordingly, I've assembled outreach resources into a new, dedicated page. Find it here, and please, USE THESE TOOLS!! I can't do this all by myself. 

"In a time of universal deceit telling the truth is a revolutionary act."

-George Orwell


Test Your "Income" Tax IQ!

CtC Warrior SanDiegoScott has put together a great little 20-question quiz to test your knowledge of the law regarding the United States "income" tax. Test yourself, test your friends and family! Test your accountant and tax attorney, and help them learn the liberating truth!!

Click here to take the test

Click here for more Tax IQ tests

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“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”

-James Madison

How About You?

Are You Governing Yourself?

Get The Knowledge, Reclaim Your Power, And Stand With The Founders

Other Voices


Who Are The Leading State Sponsors Of Terrorism?

by Philip Giraldi

As 2017 draws to a close, it is difficult to be optimistic about what will be coming in the new year. The American President, whose margin of victory was certainly based on his pledge to avoid unnecessary wars, has doubled down on Afghanistan, refuses to leave Syria even though ISIS has been defeated, and is playing serious brinksmanship with a psychopathic and unpredictable regime in Pyongyang. The White House has also bought into the prevailing largely fabricated narrative about a Russia and has decided to arm Ukraine with offensive weapons, which has already resulted in a sharp response from Moscow and will make détente of any kind between the two leading powers all but impossible in the upcoming year.

But, as I have observed before, the red hazard light that continues to be blinking most brightly relates to Washington’s relationship with Iran, which has unnecessarily deteriorated dramatically over the past year and which brings with it collateral problems with Russia and Turkey that could trigger a much wider conflict. I say unnecessarily because all the steps taken to poison the relationship have come out of Washington, not Tehran. The Trump administration refused to certify that the Iranians had been in compliance with the nuclear agreement negotiated in 2015 and has since escalated its verbal attacks, mostly at the United Nations, claiming that the regime in Tehran is the major source of terrorism in the world and that it is seeking hegemony over a broad arc of countries running westward from its borders to the Mediterranean Sea.

The only problem with the allegations being made is that none of them is true and, furthermore, Iran, with limited military resources, poses no serious threat to gain control over its neighbors, nor to attack the United States or Europe. The invective about Iran largely derives from Israel and Saudi Arabia, which themselves have hegemonic ambitions relating to their region. Israel’s friends in the US Congress, media and White House have not surprisingly picked up on the refrain and are pushing for military action. Israel has even threatened to bomb any Iranian permanent presence inside neighboring Syria.


Click here to read the rest of this article


NOW CONSIDER: Aren't you REALLY, REALLY glad YOU'VE had the fortitude and clarity of vision to do the only thing that will restrain those in Mordor-on-the-Potomac from fastening more dysfunction upon us all by taking control of how much of YOUR WEALTH facilitates government misbehavior?

Now ask yourself this: Have I really done all that I can to urge everyone I know to also stand up and act in the only way that will really bring about change in my lifetime?


EVEN AS ARDENT A STATIST as Abraham Lincoln, in announcing his willingness to burn the Southern states to the ground in order to keep them paying the tariff for the benefit of Northern interests in his first inaugural address on March 4, 1861, paid at least lip service to the Founders design of leaving control over the fuel available to feed the fires Washington wants to light in the hands of the individual citizenry when he said, "Doing this I deem to be only a simple duty on my part; and I shall perform it, unless my rightful masters, the American people, shall withhold the requisite means..."

Held over great reading recommendations:

Disinformation-How it works

by Brandon Smith


The Discourse of Voluntary Servitude

by Étienne de la Boétie


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Are You Ready For More Power?



"Peter Hendrickson has done it again! 'Upholding The Law' does for individual liberties what 'Cracking the Code' did for tax law compliance: exposes the reader to the unalienable truth!"

-Jesse Herron, Bill Of Rights Press, Fort Collins, Colorado

Click here for more information

And don't miss:

Was Grandpa Really a Moron

picks up where 'Cracking the Code- The Fascinating Truth About The Income Tax' leaves off.

Click here for more information


There is little more important to the long-term health of America than how our children are educated..



Want to get on the Newsletter mailing list? Just email your name to SubscribeMe 'at' losthorizons.com using the address you want added!


Some Observations Regarding Educated And Accurate Filing


CtC-Educated Lawyers: It's Way Past Time For You All To Queue Up!

[Y]ou really need to familiarize yourself with Pete Hendrickson's absolutely magnificent work at his website and in his book(s). He has, brilliantly and lucidly, "cracked the code" regarding the federal income EXCISE tax(es)."

-Mark C. Phillips, JD


"...I find your work fascinatingly simple to understand."

-J-Jerry Arnowitz, JD


"Your book is a masterpiece!"

-Michael Carver, JD


"Received your book yesterday. Started reading at 11 PM, finished at 4 AM." "I have 16 feet (literally 16' 4.5") of documents supporting just about everything in your book." "Your book should be required reading for every lawyer before being admitted to any Bar." "I hope you sell a million of them."

-John O'Neil Green, JD


“Thanks again for your efforts, Pete. They mean an awful lot to a lot of people.” “…as an attorney, I am humbled by your knowledge and ability in navigating the law. THANK YOU for your hard work and sacrifice.”

-Eric Smithers, JD


"I am an attorney and want to give a testimonial to your book, which I find to be compelling. I am exercising these rights for myself and my adult children. I'm even considering making this my new avenue of law practice."

-Nancy "Ana" Garner, JD

Learn what these colleagues already know, then step forward and become part of a coordinated, mutually-supportive squadron focused on developing strategy and deploying the law in courtrooms across the country. There's a lot of suing that needs doing right now.

Are you ready for a challenge that'll put some real meaning behind all the effort you went through to get your credentials? Send me an email.

Have You Taken A Military, Law Enforcement or Public Office Oath To Uphold And Defend The Constitution?

Renew Your Promise

IGNORANCE TAX: An unnecessary income tax exaction suffered out of ignorance as to lawful objects of the tax and the means of its application by someone too lazy, frightened or misled to learn how it really works and to what it really applies.

"It is not the function of our Government to keep the citizen from falling into error; it is the function of the citizen to keep the Government from falling into error."

-United States Supreme Court Justice Robert H. Jackson







'Don't Tread On Me' Polo Shirts Say It All!



Click Here To Get Yours Now!




More Than Two Thirds Of The Several States That Collect "Income" Taxes Have Now Acknowledged The Truth About The Law As Revealed In CtC, And Have Issued Complete Refunds Accordingly!  See The Following Chart...





(How our forefathers responded to arrogant "Rule of Law defiers"...)





“All truth passes through three stages. First, it is ridiculed, second it is violently opposed, and third, it is accepted as self-evident.”

-Arthur Schopenhauer


Get your FREE* CtC bumper sticker and help spread the word!

Just send a stamped, self-addressed envelope to Lost Horizons, Bumper Sticker Offer, 232 Oriole Rd., Commerce Twp., MI 48382 (*If you want to throw a few bucks into the envelope to help with costs, that'd be nice, but it's entirely optional...)



The Willingness Of Some People To Trade Liberty For Convenience Is Without Limit

Some Observations About Current Political Efforts To Evade The Truth, Such As The "Fair Tax" Scheme


Regarding "Tax Reform"


"Taxes are not raised to carry on wars, wars are raised to carry on taxes."

-Thomas Paine


Where To Find Things On This Site


Law Professor James Duane Says: "Don't Talk To The Police.  Period."


Honest Cops Agree




Films That Belong In Every Home Library


Ever Wonder How Much An Unrestrained FedState Would Like To Tap You For?





Warrior David Larson shares this beautiful little farce, wryly observing that, "Depositors have "..not lost one penny.." - OK we could agree on that simple statement  ..how about the purchasing power of that same penny 'not lost'?"


Source: Bureau of Labor Statistics




Illuminating anniversaries of this week:

January 21- In 1793, Louis XVI of France is guillotined for treason.  In 1861, Jefferson Davis resigns from the U.S. Senate.  In 1908, New York City passes an ordnance making it illegal for women to smoke in public.  In 1924, Vladimir Lenin dies.  In 1950 Alger Hiss is convicted of perjury for his denials under oath of being a communist while a member of the U.S. State Department.  In 1968, the Battle of Khe Sanh begins in Vietnam.  In 1977, President Jimmy Carter pardons nearly all Vietnam war draft evaders.  In 2008, various stock markets worldwide experience dramatic crashes (American markets were closed for Martin Luther King Jr. day).


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Last Word

"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 first American Revolution


OK, Now Back To Your Regularly Scheduled Programming:



Is this newsletter of any value to you? If so, please consider a donation

to help keep it available, or it soon won't be. Donations can be sent to:


Peter Hendrickson

232 Oriole St.

Commerce Twp., MI  48382


Order Books, Warrior-Wear, or The CtC Companion CD


An "Income" Tax Related Site Map


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Your Comments

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(It may take a while for your newly-posted comments to appear; also, please understand that this is NOT a place for posing questions about individual tax situations.)


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About The Author

Pete Hendrickson is possibly the most effective lawyer in history, even while never having set foot in a law school, nor ever being a card-carrying member of "the bar". He is the first American in history to secure a complete refund of Social Security and Medicare ‘contributions’ withheld from his earnings (along with all other property taken for federal taxes); further, since 2003 students of his legal analyses and arguments in ‘Cracking the Code- The Fascinating Truth About Taxation In America’’ (CtC), and its sequel, 'Was Grandpa Really a Moron?' have been routinely retaining and recovering billions of dollars which otherwise-- wrongly, but as a matter of course-- would have gone to federal or state government treasuries. This despite concerted efforts by government to suppress his work, and in some cases vigorously oppose the claims by his students.

Hendrickson is also a widely-read essayist on matters of politics, public policy and law; many of these works are collected in his second book, ‘Upholding the Law And Other Observations’. He is a member of Mensa; an award-winning artist; and has paid his dues as a youth soccer coach. He is a long-time political activist as well, and has served as co-chair and platform convention delegate of Michigan’s largest county Libertarian Party organization; as a consultant to the National Right to Work Foundation and Citizens for a Sound Economy; as a member of the Heartland Institute; and as a member of the International Society for Individual Liberty. He is a frequent radio-show guest on stations across the country.

Hendrickson's business career has included nearly a decade-and-a-half at the leading edge of the renewable-energy industry, both as Director of Purchasing and Materials Management and member of the R&D board at Starpak Energy Systems, the mid-west's then-largest solar heating and energy-recovery-and re-utilization company; and as founder and president of AFJ Inc., a high-efficiency lighting design, manufacture and installation firm.

Beginning in the mid-1990s and continuing for the twelve years before his present full-time focus on the restoration of the rule of law in America, Hendrickson directed purchasing activities for the $84 million-a-year multi-family-housing division of the Farmington Hills, Michigan branch of Edward Rose and Sons, with responsibility for 18,000+ apartments, direct supervision of 35 technicians and agents, and incidental authority over several hundred divisional workers. He also ran the division's 10 cable television earth-station and distribution systems in four states, and designed and administered the company's website.

On rather the other end of the spectrum, amidst these more mundane pursuits Hendrickson co-founded and was the primary creative force behind a small board- and card-game company that enjoyed a modest success for several years.

Hendrickson makes his home in southeast Michigan, with his wife and two children. He is currently working on his next book.

© All written and graphic material on this page and website are copyrighted by Peter E. Hendrickson, unless otherwise attributed.