Fool.com: Pay "Federal" Taxes? (Fribble) August 7, 2000

Fribble Pay "Federal" Taxes?

By KARONHOBAT@email.msn.com (Karon Hobart)
August 7, 2000

We've all heard about United States citizens not being liable for income taxes. Some kook tells you that he doesn't owe/you don't owe tax on your labor and you back away from the conversation mumbling something about feds and prison.

But...

If you take a step back and look at it objectively for a moment, you may hear something that makes sense. I heard a guy say that federal income tax is for people who have federal income. Right away, I went from shuffling away and mumbling, to asking what the heck he was talking about. He said he was a sovereign citizen of the United States of America and NO ONE, not even the government, could tell (compel) him to do ANYTHING he didn't want to do unless he was infringing on the rights of another, or violating a contract. He said that was the definition of freedom.

I always heard that I lived in a free country, so I asked him to tell me why and how the government could come get me if I didn't pay them. He said I inadvertently entered into contracts with them that I shouldn't have, but since I had, they had me. He then told me that If I entered into a contract unknowingly, unintentionally, or involuntarily (as I did by filing a 1040 contract) that it was void and unenforceable.

Next, he told me that the United States was actually two countries. One was the "national" United States of America, a constitutional republic, and the other was the "federal" U.S., a legislative democracy. Anyone who was born, lived, or worked in the federal U.S. (Washington D.C., Guam, Virgin Islands, Puerto Rico, American Samoa, or various forts and stockyards) -- purchased by the federal U.S. -- was who the federal income tax was for. By now I was standing right next to this guy listening to every word he said.

He told me that since I was born in the national Texas Republic and not the federal State of Texas, the government didn't have jurisdiction over me and couldn't make me pay. I asked him how they were making me pay and he told me that I was being duped into federal citizenship in more than one way. He said that TX was federal but Texas was national so I shouldn't be writing TX on anything. He told me the first digit of the zip code designated "the federal territory in which I live." He told me that the Social Security number my parents got me when I was young was a contract that made me a federal citizen. Now I was steaming.

I asked him how the country could pay its bills without taxes and he said that income taxes don't pay the country's bills. They only pay the interest on the federal debt that the country shouldn't have in the first place (by now he was starting to steam). He went on about how Congress was duped into giving the money powers of the country to a private corporation, the Federal Reserve -- a bunch of "robber barons," he called them -- and that the constitution didn't set it up that way. Money powers were expressly given to the Treasury. The country's bills are paid by sales, use and excise taxes, and also from the collection of taxes on the sale of alcohol, tobacco, and firearms. That's it!

Somehow, he succeeded in infuriating me.

Some people will go to any lengths to get out of paying taxes.