Posts tagged ‘Taxes’

Vortex

Vortex

The threat that keeps us apart

 

Gary Hunt
Outpost of Freedom
May 24, 2012

 

Vortex

Noun:   1. a mass of whirling fluid or air, esp. a whirlpool or whirlwind.
2. Something regarded as a whirling mass.

So, why Vortex?  Well, when something goes down into the bottom of a vortex, it is spun around and emitted in a different form than when it went in.

Background:

A recent discussion brought up an issue that has been close to me, for quite some time.  I have seen many succumb to entrapment, or, just plain deceived, by agents, informants, infiltrators and other such ilk.

It seems that many think the government is squeaky clean, or, that issues, not being of national security levels of interest, don’t warrant the effort that would be necessary to ‘move in’ on the patriot community.

A few years ago, I learned that as many as fifty percent of the members of Richard Butler’s Aryan Nation Church (Randy Weaver country), and of the old Posse Comitatus, were people who, for whatever reason, had changed sides, or were not quite honest in their dealings with the respective organizations.

I had read the following memorandum, which is included in the Appendix of Congressman George Hansen’s book, “To Harass Our People”, while traveling through the Washington, D.C. area, after Waco.  I met with an associate of George Hansen.  He gave me a Xerox copy of the memorandum, and I have no doubt as to its authenticity.

As you read the excerpts from the memorandum, take note of the extent in which the government is willing to ‘get involved’ in the “Tax Rebellion Movement” (see note 5 to District Directors).  Remember, also, that this memo was written nearly 40 years ago.  It would be ludicrous to think that they have not enlarged and perfected their program. [Emphasis, mine]

* * * * * * * * * * * * * *

Memorandum
FEB 26, 1973

to: Participants in Conference on Tax Rebellion Movement
from: Western Region
subject: Tax Rebellion in California

I am sending you the minutes of our meeting of February 9, 1973, on the Tax Rebellion Movement.  These minutes enumerate action items for the Los Angeles and San Francisco District Directors and for Regional Office officials.

I appreciate your past attention to this serious matter, and feel confident that all of us working together can successfully overcome this challenge to our tax system.

/S/
Homer O. Crossman
Regional Commissioner

Mr. Howard advised he has been conferring with state tax officials who are anxious to cooperate with IRS in the attack on tax rebels who also do not pay state taxes; often the state can move quickly to close up a tax rebel’s business or revoke his license; that we should see that the State uses its enforcement machinery on those cases which are not our targets.

Mr. Crossman reported on his discussions with Assistant U.S. Attorney Courts and Judge Crocker, Fresno, and of their interest in enforcement of the law in tax rebel cases.  Mr. Hansen commented on the problem of federal judges appearing to be anti-IRS based on a belief that IRS is “highhanded”.  Mr. Howard reported on a change of attitude in federal judges in San Francisco after he met with a number of them and discussed the gravity of the Tax Rebellion Movement and the importance of giving prison sentences as deterrents.

There was a general discussion of the importance of meeting with U.S. Attorneys and federal judges to acquaint them with the full picture of the tax rebellion movement.  Mr. Crossman pointed out that after his meeting with Mr. Couris and Judge Crocker, they requested background information on the Movement which was furnished them.

Mr. Kingman suggested the possibility of requesting religious leaders to warn their following against participation in the movement, pointing to the beneficial effects of Mormon Church President Lee’s message.

***

Mr. Krause pointed out the importance of close planning on common targets by the tax rebellion project supervisors of the Los Angeles and San Francisco districts with planning meetings as needed.

Action items for District Directors:

1. Maintain the initiative in the attack on the tax rebels.
2. Know their plans before they arrive at our door to execute them.
3. Identify the leaders of the Movement and concentrate on them.
4. Have a plan of action in coordination with the Region rather than hit and miss defensive reactions.
5. Continue to step up the infiltration in-depth of the Movement.
6. Use all available federal, state, and local laws.
7. Use civil penalties on Porth-type cases.
8. Wage a campaign to educate U.S. Attorneys and federal judges with the importance of prison sentences on cases.

* * * * * * * * * * * * * *

At the same time that the IRS was acting out the above to deal with what the termed “tax rebels”, the federal government also had to contend with the anti-war (Vietnam) movement.  In dealing with what was going on at the time, infiltration into that movement was also a part of the government’s program.

One of the larger groups that were active in the anti-war movement was a broad based group known as Student for a Democratic Society (SDS).  They were of so much concern to the government that the government actually started some of the SDS chapters so that they had a degree of control, and, received intelligence from other SDS chapters.  If they didn’t start them, they, at least, had agents and informants join the various chapters.

Another target of the government, during the anti-war movement, was Vietnam Veterans against War (VVAW).  Some of the VVAW members were from Gainesville, Florida.  Among them, however, were informants and agents.  The agents fed them information that the 1972 Republican National Convention (Miami Beach) was being set up to set up the anti-war demonstrators.  They were told that the police would shoot some protesters.  This would lead to sealing off Miami Beach by raising all of the drawbridges, trapping the protesters, and making for shooting fish in a barrel.  To counter this tactic, the Eight made plans to attack government buildings, police and fire stations, and then force the lowering of the drawbridges.  This was to draw the police away from the Beach and allow the demonstrators to leave the Beach, avoiding the catastrophic scenario that had been fed to them.  Of course, the informants and agents testified against them, however, their correspondence (which was seen by the jury) said that their plan was “for defensive purposes, only”, which lead to an acquittal.  However, it does demonstrate that forty years ago, the ability, means, and practice, of infiltration and entrapment were standard government tools.

For a detailed study of the infiltration of the anti-war movement, see http://www.outpost-of-freedom.com/library/provoca.pdf

 

Who are the agents and informants?

There are any number of reasons and means by which some people will become agents of the government, or informants for the government.  Though there are variations of each of these, we will cover the more general types of people and what their relationship to government is.

Agents

Starting at the top, we have undercover agents.  They can be undercover agents for nearly any branch of the federal or state government.  Most often, they are very well trained, to include psychology, so that they can get close to the people they are supposed to encounter and infiltrate.  They generally receive very explicit instructions when they go on an operation, though they can also adjust, quite well, when a “Target of Opportunity” arises.  They are full time agents (Type I) and will become very close to those in leadership.  They will engross themselves in their work, often living a life outside of what would be normal for an FBI agent.  They have “handlers” that are often, for months or years, the only contact they have with the parent organization.

There is second type of agent, Type II, who is called in for support; for example, the FBI agent who alleged to have explosives and other material for sale in the Georgia Militia bust.  Often they have desk or other duties and are called only when needed.

A good example of the Type I is FBI agent Steven Haug.  Haug, who went by “Jersey Steve”, had infiltrated the Hutaree Militia.  He got so close to the Hutaree leader, David Stone, he was asked to be the best man at Stone’s wedding.  Later, he would testify against Stone.

Another was a man, back in the nineties, who went by the name of Bob Chapman.  Later, when he testified against the Florida Common Law Court, he identified himself as Robert Quigley, “IRS deep undercover agent” and instructor at the IRS undercover school. (See “Let me tell you about a man named Quigley”)

These agents are often ‘wired’, and the recorded conversations are transcribed to be used for evidence, when their task is completed and they have turned witness against former ‘friends’.  A partial transcription of such a recording can be found at “Record of Activity“.  BC = Bob Chapman = S/I Quigley is the agent.  You may note how he tries to blend in but does ask some questions attempting to entice information that can be used against the parties, later.  This is from the 1995 investigation of the Florida Common Law Court that sent all but one of the defendants to prison for 12 years.

These paid agents, regular employees of the government, on special duty, are a blight on our concept of self-government.  Though such agents go back to the Revolutionary War, where Washington had a staff of agents that mingled with the British to gain intelligence information, they did not join the British army or other government forces.  It wasn’t until early in the 20th century that the practice became common, to deal with organized crime.  However, currently, the government claims to have thousands of agents working within various patriot or political groups.  Must we assume that political activism is now criminal?

The other form of agent is the paid agent of a private organization.  These are best described as “infiltrators”.  One such organization using this tactic is the Southern Poverty Law Center (SPLC) that claims to have many infiltrators within the various patriot groups, from militia to Tea Party groups, and everything in between.  Their primary purpose is strictly information gathering, though if given the opportunity, they will exploit a situation.

 

Informants

Informants come in different varieties.  Some are induced into informing on friends and associates when they are charged with a crime, themselves.  They will sign a “plea agreement” (plea agreement informants) and exchange their efforts for, most often, a “withheld adjudication” — meaning that so long as they provide good information (not necessarily truthful), and testimony, if required, they will not be prosecuted for the crime that they are alleged to have committed.  See “Informants Amongst Us?” for an explanation of this process.  In desperation, these informants are capable of lying (since they have already given up their integrity) and participate in entrapment, to ‘save their own skin’.  They are, by nature, weak and unwilling to stand up for their convictions.

A lesser version of this is the “states evidence” witness that will tell all to save his own neck.  Though not an agent, active informant, or infiltrator, he is often the source of conviction of patriots because he does not have the fortitude to be a true patriot.  An example of this is one of Schaeffer Cox’s fellow Alaska Peacemaker Militia members, Michael O. Anderson.  Cox, Lonnie Vernon, and Coleman Barney are currently (May 2012) on trial.  Anderson, who was arrested, along with the other, in March 2011, has had his charges dropped and will be testifying for the state, against the other three. (Reference: Alaska Militia Trial Opens With Former Defendant as Key Witness)

Others might become informants in custody (jailhouse informants), seeking favor, or reduction of sentence.  These jailhouse informants will usually testify to anything that is requested of them, to bring “jailhouse confessions” to trial.  They are often used to ‘enhance’ the evidence against a defendant to assure conviction.

Volunteer informants come in two categories.  First are those who have been charged with, or know that they have charges pending, for a crime.  They will contact a government agency and offer their services, hoping for a reduction, withheld adjudication, or dismissal of charges.  This is the probable scenario in the Joe Sims involvement with the Georgia Senior Militia, this past year.  Joe, according to an Esquire magazine article, was in jail pending child abuse charges.  He contacted the FBI and volunteered to provide information about members of the Georgia Militia.

Other volunteer informants are often James Bond wannabes or government employees seeking beneficial treatment by freelance work to aid law enforcement.  There was the Viper Militia, Phoenix, Arizona, in 1996, where about a dozen concerned patriots prepared for a Red Dawn type of event.  An aspiring firefighter joined the group.  In his John Wayne machismo, he began suggesting more active pursuits.  Later, he brought in an undercover Sheriff’s Deputy, and both encouraged testing bombs, often made with materials provided by the informant or agent, and making plans to attack government buildings.  Prison was the outcome for those that followed the lead of the informant and agent.  What bright future lay in store for the informant, we do not know.  Presumably, however, he was rewarded favorably.

Another type of informant, though not always intentional, is the “easily swayed informant”.  These sort don’t usually have any idea that they are an informant, though they are, just the same, because they pass on information that might have destructive ends, or, they are duped into passing information that is erroneous and, potentially, destructive to the patriot community.  They have, usually,  been contacted by a law enforcement agent (often FBI Special Agents), or even others down the chain, including others who have been easily swayed,  who convince them that they are really good guys, and an asset to their country.  They are then beguiled, and act in concert with agents against the best interest of the patriot community, most often thinking that they are doing right to the community.  Often, they will sway others (usually larger numbers) away from any activity that is not easily controlled.  If the person is susceptible to the charms of the agent, he can go beyond that easily swayed and become a de facto agent, and never realize that he is being used.  It is the psychological training that the agent uses to manipulate the person and use him to influence others, most often away from a professed course.  He is, in essence, a sleeper, and can always be put to greater purpose, if the need arises.  These relationships tend to be long-term, and quite congenial between the parties.

Of these last, a friend refers to them as “useful idiots”.  However, I think it more appropriate that they should be referred to as “guess what I know” types.  Often, they pass on information just because they have found it and think that everyone should be apprised of this “wonderful;” or “dreadful” information.  Rumors of foreign troops across the Mexican border, for example, have been circulating for twenty years, each time, with new adherents and a new life, with only minor revisions to the original story, and, most often, without any identifiable source.

All of those described above are contrary to the Framers concept of government.  They are, by their very practice, violating the concept of the Fourth Amendment, the right to “be secure in their persons, houses, papers, and effects”.

 

How do they function in the patriot community?

All of the above identified sources of benefit to the government enter the patriot community, though they do so in various ways.

First is the coward who turns state’s evidence, but began by believing in a cause.  Once the chips were down, he cowers and turns against those that do hold the principles highly.  The turncoat, in a sense, is the worst of those who find themselves on the wrong side of the battle.  There is nothing, except his nature, that would lead one to believe that he is not really on the right side — since he was on the right side until imminent threat to his future freedom caused him to turn against those who had every reason to believe that he was as sincere as they were, and had nothing to hide.

Next, are those who become paid informants.  Often, they have joined with a true belief that something is wrong; however, somewhere along the line they change ideologies.  It may be the result of less conviction toward the cause; the fear of doing something ‘illegal’ (as the Founders did); or simply a change of heart.  However, they are in and, perhaps, they can make a little money by offering their services to the government.  This sort is as bad as the first; perhaps even worse, for he continues to gather and pass on intelligence, and may even go further, acting against the best interest of the Patriot Community and those he has gotten to know.

Next are those informants who have been charged with a crime and decide to “cop a plea” and become an informant for the government.  Like the first, those that turn state’s evidence, they are cowards and will send others to prison to avoid their own stay in the “gray bar hotel”.  However, since they continue to “play along” with you, they can pass on even more information, and often will set traps for you to fall prey.

Finally, in the informant category, are those who have joined in hopes of increasing their “job opportunities” with the government.  Most often, they are already employees of government, as noted above, but they are playing the “spy game” in hopes of enhancing their resume. (Reference: My Life as a White Supremacist)

Now, we get into the realm of professional spies.  These are the agents whose job is to invade your privacy, get dirt on you, and even more, which will be discussed later.  We’ll begin with the Type II agent.  His job is to be available and act the part, when the need arises.  Otherwise, he is just an employee with other duties.  He will be a witness only to what transpired during the course of his brief interlude with the subject of the investigation.

Next comes the Type I agent.  His dress, his manner, his whole life, revolves around his active participation in the group that is the target, or contains the target, of an investigation.  Since his job is playing spy, he will do whatever is necessary to obtain the accolades he will get for obtaining a conviction and getting the job “well done”, regardless of what techniques he uses to achieve that end.

Often, this person, let’s call him the Vortex, will use others to insulate himself from exposure, if things don’t go smoothly.  He will also use others to achieve specific ends.  He is, however, the point of contact between the government and the patriot community, hence, Vortex.  The information swirls in and out, on the patriot side of the Vortex.  His job is to sort out, manipulate, control that information, and pass it thorough to the government for their nefarious purposes.  He is also the source of misinformation, coming from the government side, and then thrown into the swirl on the patriot side, though more about this, later.

Often, the Vortex will never even see a patriot, though he could be directing the operation from a distance.  This is common with certain types of informants, where the Vortex is most often referred to as the “handler”.  However, for any such investigation, there will always be a Vortex; the agent or other government employee who passes information in both directions; plans, or passes on plans, for the control or expansion of the operation; and is the person, who, if exposed by the patriot community, damages or defeats the government’s operation.

These agents have a plan when they go into their job.  That plan can be revised to meet the exigency when circumstances warrant a change, or an expansion, of an investigation.  They will also know who most of, if not all of, those who are lower level informants involved in any case they are working on.  However, the informants will seldom, if ever, know who the agents are, until both find themselves on the witness stand.  (Reference for Type I and Type II agents: Patriot Games)

Agents, especially Type I, will seldom be used to testify, if informants can became the “fall guys” and provide sufficient testimony to obtain a conviction.  Once an agent testifies, he has probably blown his cover and will have to retire to some other duties.  His effectiveness is lost, so he is a commodity that has to be protected, unless exposure is absolutely necessary.

Often, these agents will create an organization to give itself legitimacy within the patriot community.  In so doing, they have established their “credentials”, though you may have never heard of the organization before meeting the agent.  If he can demonstrate that he has created a following, you will drop you guard, as he has apparently, achieved what all are trying to accomplish.  (See Patriot Games link, above)

In all cases, if the abilities of the individual, in whatever capacity, are such that he can move up the chain of command of an organization, he will do so.  This allows him to obtain access to information that others might not have access to.  It allows him to obtain information from individuals in casual conversation, when that individual doesn’t suspect that anything he says is going beyond the two of them.  It also allows him to move upward in command, and perhaps, replace the existing command, once it is taken out because of his efforts.

 

Objectives of infiltration – Surveillance, profiling, disruption

We must begin to understand just what capabilities the government’s has to keep track of patriots.  They have an identification program that includes anybody who is likely to read this article.  It will include most militia members, even those who have never gone on line, through use of informants and other means.  It will include almost any attendee at a Tea Party gathering, and, probably, anybody who had gone to a Ron Paul rally, if the participant gave a name, by any means.  Intelligence gathering is the source/foundation of the entire government verses the people program.

Once they get the information, they have to retain, store, manipulate, and provide access, to that information.  They also have to sort that information into meaningful data.  So, we’ll begin by looking at what the sorting aspect entails.

The government has developed a program for categorization of everybody in this country (except, perhaps, illegal immigrants).  The program is called “C3CM“.  It defines three major categories, though we will only concern ourselves with the first one.  That is those who have, to some degree, expressed their disenchantment with government — the patriot community.  This doesn’t require disobedience, or even advocacy.  It only requires that you don’t believe that the government is working the way that it should be.

If you are among this group, you will be categorized into one of three sub-categories.  Those who are simply dissatisfied, those who are prone to act because of their dissatisfaction, and, those who are capable of leading others into exerting effort to effect change.  It doesn’t matter if those leaders are of a violence oriented militia, or a group that encourages voter registration and voting outside of the mainstream agenda.  The fact that they are leaders and can obtain followers poses a problem for government, though the government may direct more resources at the more militant.  This does not mean that the peaceful sorts are beyond efforts of government to affect their ability to lead.  On the contrary, each of us has entered the patriot community rather naive, and has learned, as time went on, which can  move us, inevitably, toward the more extreme means of dealing with the despotic government that we find in control of our country.  If someone can influence large numbers, he is more of a threat than a few isolated die-hards.

Where would the government be able to store and manipulate such a large amount of data?  Well, that goes back to a story from the past.  Inslaw, Inc., had a contract with the Department of Justice to develop some tracking software — “Promis” could be plugged into the 12 petabyte (if you were wondering about the next level, a petabyte is 1,024 terabytes) database that Sybase (the company that developed SQL for Microsoft) is developing.  So, once all of the pieces fall into place, there will be little that you can do to keep from being tracked, along with almost everything that you do, by the government.  (References: see http://www.profoundstates.com/promis.htm)

Now, as they take out any leadership, if they have moved their resource up into the upper echelons of any organization, they have attained a position that may soon leave the government resource in charge of the organization.

We began this article with a memo from the IRS Western Division, nearly forty years ago, about a tactic to be used to disrupt the “tax rebels’.  Not that this was the beginning of government efforts to manipulate both people and truth, only to demonstrate, with a provable piece of evidence, that influencing, by whatever means, including judges and churches, is and has been a part of the plan for total control of the people and their actions.  Would we be doing ourselves any favors to think that they would not use these same tactics, today, enhanced by both technology and experience?

Methods of Disruption

So, now, let’s look at objectives that the government might pursue through their various types of informant, agents, and infiltrators:

  • Discredit, or, take out, leadership or those who pose a threat to the continuation of the government’s effort to gain absolute control over the people, removing them from their means of influence over those who might follow them.
  • Discredit those who might bring attention to government tactics by suggesting questionable behavior, or, accusations, that will occupy them and remove them from any effective contribution to the patriot community.
  • Move those who are within government control or influence into positions of influence within the patriot community
  • Create division, wherever possible, any organization that begins to grow and may become effective.  If possible, splinter the group into two, or more, factions, so that they don’t flee elsewhere, and the government can retain controlling interest, or at least positions of influence, within each faction.
  • Use of a group the government has control of to create conflict with another group, creating doubt, disenchantment, and, perhaps, dissolution of the targeted group.
  • If a group has a structure (rules) that would make it more difficult to create disenchantment, challenge, ridicule, or ignore the rules, to create as much disturbance as possible — hopefully to disrupt any group that might really organize into a cohesive and effective group working together for a common goal.
  • Stimulate discussion of controversial subjects (Waco, Oklahoma City bombing, 911, Birth Truthers, etc.) to bring division and, perhaps, conflict, oral or physical, between adherents of each side of the issues.
  • Promote identification of theoretical enemies (Rothschild, Illuminati, Free Masons, etc.) so that members pursue un-provable resolution, thereby creating endless squandering of time on insignificant objectives.
  • For those with legal pursuit as means of attacking the government, direct them on fanciful flights with erroneous objectives such as Admiralty Law, Maritime Law, Uniform Commercial Code, United States government is a corporation, etc. (reference for the last three items: Divide and Conquer)
  • Use of “trolls” on Internet discussion groups and other forums to detract from discussions that  might cause some to think; includes ridiculing opponent, specious arguments, diversion from the subject of discussion, and other tactics intended to discourage active participation in what might otherwise be productive discussions.

 

Consequences

The consequence of the government meddling in our affairs, if we are truly self-governed (We the People), is that the government manipulates us to achieve an increase in power and control over us.  It is not our disenchantment with government that is the problem; it is the government overreaching its authority that has caused us to be concerned as to the direction of the government and its impact on us and our posterity.

To achieve their goals, they must devise means for keeping the will of the people from being manifest and force them into compliance with that will.  By their efforts to fragment the patriot community, they have achieved their goal and will continue to do so.

When their efforts have identified targets of any effort at political change, outside of the two controlling parties (Democrats and Republicans), and have manipulated the others into ineffectiveness, they have effectively created a one party system, not unlike the Soviet Union’s Communist Party where all power was granted only to party members.

Effectively, the government has become the master and we have been subjected to their will — through the divisive means explained herein.

Solution

The solution to this otherwise overwhelming problem is to resist the infiltration, by whatever means necessary.

To begin with, look in to the background of all who join your organization.  In the modern world that we live in, we are obliged to provide a Social Security Number (SSN) to arrange for utilities to be turned on, to borrow money or establish credit, and for many other purposes.  If we wish to get a job, we are obliged to provide background information regarding previous work history, education, criminal and military records.

Why should something as important as our Liberty not require at least such evidence of background and personal history as our daily lives do?  After all, there is far more at stake than whether I can buy something when I don’t have the money, or even having electricity at my home.

Thorough background information should be required of all who wish to join any patriot organization, even those currently members.  If someone is reluctant to provide such information, then you must wonder if they have something to hide from you that they don’t have to hide from their employer or bank.  If the position they are seeking might have potential risk to others, then not only the background information, but a review of records* would be in order.  If any questions arise that are not properly addressed, then realize that absent satisfactory answers, you may be subjecting yourself to influence that is not in your best interest, or, worse, being set up to take a fall..
[*There are a number of sites on the Internet where court, criminal, and other records can be purchased for very nominal fees – perhaps a good investment for the security of your organization]

If someone has been charged with a crime and adjudication withheld, then they may have worked a deal with the government.  Don’t put them in a position that would allow them to work a deal with you.

If someone demonstrates any characteristics that lend to the possibility that they are pursuing any of the “Objectives” listed above, there may not be an indication that they have someone else’s interest at heart, though the method by which they pursue such objectives should be carefully considered.

Disagreement can be resolved through reasoned discussion/debate.  It should be organized and open to all, or many, of the existing members.  It should be void of both personal attacks and unsubstantiated (with real evidence) accusations.

Any organization would be wise to adopt some rules and methods of evaluating all of its personnel, including existing officers and members, as well as recruits.  They should be based upon the above information as well as interviews with the individual concerned.

Any organization should include within their structure a means to evaluate new members, investigate any member who comes into question, and, establish a review procedure that includes a review board, composed of already approved members, to evaluate any information, conduct hearings, and, proscribe remedies, including removal of membership.

There is no doubt that on occasion, someone may have the appearance of having the characteristics that would lead one to believe that their interest is elsewhere, though it may only be that the person’s personality brings about such suspicion.  However, is it better to exclude someone by error rather than allow a potential risk to the entire organization.  Weigh the risk against the lesser objection to hurting someone’s feelings.

These are the times that try men’s souls.  The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of his country; but he that stands it NOW, deserves the love and thanks of man and women.  Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict the more glorious the triumph.  What we obtain to cheap, we esteem too lightly — Tis dearness only that gives every thing its value.  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.

Tom Paine, The American Crisis (December 19, 1776)

 

Absent our policing ourselves, our groups, and, our own patriot community, we only leave ourselves open to the disruption that the government has desired to create.

 

Conclusion

At this point in time, we have many thousands of people being deprived of their productive time and participation by “chasing ghosts” created by the government to do just that — deprive us of time and confuse us with distractions.

 

At the same time, they have addressed and attacked many who would be useful to our purpose by accusations of crime, as explained in the IRS letter, in violation of federal, state, or local laws.  The have, thorough seminars, advised judges to “throw the book at” patriots charged with made up crimes, removing them from any active participation in our cause.

The time has come for us to change the game.  They laugh at us, now, because they are far more in control than we want to recognize.  We don’t recognize it because we have faith in the government — we just want some changes that return us to the Constitutional government that is our birthright.

They, however, are playing a serious, and often deadly, game, with every intention of winning.

We fear them, yet they have no reason to fear us — because they have subverted most elements of our movement, and have at least some influence or control on the reminder.

It is time for us to change the game around and get them to fear us.  Not through violence, rather, through exposure and removal of those who would seek to undermine our ability to function productively.  It is time for us to be as serious about ridding ourselves of these subversive elements as we are about our individual causes, for all are doomed to failure unless we regain control of our own activities.

-END-

 

A PDF version of this article: Vortex PDF

Some Thoughts on Public Education

Some Thoughts on Public Education

Gary Hunt
Outpost of Freedom
November 29, 2010

Introduction

Public Education in America has a long history.  In the Cape Code area, a public school was established in the early seventeen hundreds.  The pay for the schoolmaster was in the form of part of the catch of fish.  Public Education was not established by government, rather, by the parents and members of the community.

Today, we have a “public education system” that has deviated from that original intent to such a point that, except for the name, they bear little resemblance to each other.

The current form has become an administrative nightmare; a means of social reform (indoctrination); and, fails, miserably, to achieve its intended purpose as a mechanism for the diffusion of knowledge, focusing instead, on an institutional evaluation of the failure of that system.

So, let’s look at what public education was, from Jefferson through the end of the 19th century.

Historical perspective

Thomas Jefferson, the principle advocate of public education, is probably the finest source of the intent of that system.  Below are a number of historical quotes by Jefferson regarding the subject:

“I have indeed two great measures at heart, without which no republic can maintain itself in strength: 1. That of general education, to enable every man to judge for himself what will secure or endanger his freedom.  2. To divide every county into hundreds, of such size that all the children of each will be within reach of a central school in it.” –Thomas Jefferson to John Tyler, 1810.

Education not being a branch of municipal government, but, like the other arts and sciences, an accident [i.e., attribute] only, I did not place it with election as a fundamental member in the structure of government.” –Thomas Jefferson to John Taylor, 1816.

“The present consideration of a national establishment for education, particularly, is rendered proper by this circumstance also, that if Congress, approving the proposition, shall yet think it more eligible to found it on a donation of lands [this applied beginning with the lands acquired under the Treaty of Paris -- Ohio Territory], they have it now in their power to endow it with those which will be among the earliest to produce the necessary income.  The foundation would have the advantage of being independent on war, which may suspend other improvements by requiring for its own purposes the resources destined for them.” –Thomas Jefferson: 6th Annual Message, 1806.

A bill for the more general diffusion of learning… proposed to divide every county into wards of five or six miles square;… to establish in each ward a free school for reading, writing and common arithmetic; to provide for the annual selection of the best subjects from these schools, who might receive at the public expense a higher degree of education at a district school; and from these district schools to select a certain number of the most promising subjects, to be completed at an University where all the useful sciences should be taught. Worth and genius would thus have been sought out from every condition of life, and completely prepared by education for defeating the competition of wealth and birth for public trusts.” –Thomas Jefferson to John Adams, 1813.

The less wealthy people… by the bill for a general education, would be qualified to understand their rights, to maintain them, and to exercise with intelligence their parts in self-government; and all this would be effected without the violation of a single natural right of any one individual citizen.” –Thomas Jefferson: Autobiography, 1821.

The most effectual means of preventing [the perversion of power into tyranny are] to illuminate, as far as practicable, the minds of the people at large, and more especially to give them knowledge of those facts which history exhibits, that possessed thereby of the experience of other ages and countries, they may be enabled to know ambition under all its shapes, and prompt to exert their natural powers to defeat its purposes.” –Thomas Jefferson: Diffusion of Knowledge Bill, 1779.

It is an axiom in my mind that our liberty can never be safe but in the hands of the people themselves, and that, too, of the people with a certain degree of instruction.  This is the business of the state to effect, and on a general plan.” –Thomas Jefferson to George Washington, 1786.

Nearly a century later, we can observe the view and understanding of the public school system from, “Elements of Civil Government, A text-book for use in public schools High schools and normal schools and a manual of reference for teachers, by Alex. L. Peterman, 1891″. From that book:

CHAPTER II. — THE SCHOOL.

Introductory. — When children reach the age of six or seven years, they enter the public school and become subject to its rules.  We are born under government, and we are educated under it.  We are under it at home, in school, and in after life.  Law and order are everywhere necessary to the peace, safety, liberty, and happiness of the people.  True liberty and true enlightenment can not exist unless regulated by law.

Definition and Purposes. — A school district or sub-district is a certain portion of the town or county laid off and set apart for the purpose of establishing and maintaining a public school.  It exists for educational reasons only, and is the unit of educational work.  The public schools are supported by funds raised partly by the State, and partly by the county or the township.  They are frequently called common schools or free schools.  It is the duty of the State to provide all children with the means of acquiring a plain English education, and the State discharges this duty by dividing the county into districts of such size that a school-house and a public school are within reach of every child.

Formation. — The limits of the school district are usually fixed by the chief school officer of the county, by the town, by the school board, or by the people living in the neighborhood…

Functions. — The functions, or work, of the school are solely educational.  The State supports a system of public schools in order that the masses of the people may be educated.  The country needs good citizens: to be good citizens the people must be intelligent, and to be intelligent they must attend school.

MEMBERS.

The members of the school district are the people living in it.  All are interested, one way or another, in the success of the school.  In most States the legal voters elect the school board, or trustees, and in some States levy the district school taxes.  Those who are neither voters nor within the school age are interested in the intelligence and good name of the community, and are therefore interested in the public school.

Children. — The children within the school age are the members of the school, and they are the most important members of the school district.  It is for their good that the school exists.  The State has provided schools in order that its children may be educated, and thus become useful men and women and good citizens.

***

Parents, their Rights and Duties. — All parents have the right to send their children to the public school, and it is also their duty to patronize the public school, or some other equally as good.  Fathers and mothers who deprive their children of the opportunities of acquiring an education do them lasting injury.  Parents should use every effort to give their children at least the best education that can be obtained in the public schools.

GOVERNMENT.

The school has rules to govern it, that the pupil may be guided, directed, and protected in the pursuit of knowledge.  Schools can not work without order, and there can be no order without government.  The members of the school desire that good order be maintained, for they know their success depends upon it; so that school government, like all other good government, exists by the consent and for the good of the governed.

***

Duties. — In most States it is the duty of the district officers to raise money by levying taxes for the erection of school-buildings, and to superintend their construction; to purchase furniture and apparatus us; to care for the school property; to employ teachers and fix their salaries; to visit the school and direct its work; to take the school census; and to make reports to the higher school officers.

***

Powers. — The teacher has the same power and right to govern the school that the parent has to govern the family.  The law puts the teacher in the parent’s place and expects him to perform the parent’s office, subject to the action of the directors or trustees.  It clothes him with all power necessary to govern the school, and then holds him responsible for its conduct, the directors having the right to dismiss him at any time for a failure to perform his duty.

***

CHAPTER III. — THE CIVIL DISTRICT.

Introductory –In our study, thus far, we have had to do with special forms of government as exercised in the family and in the school.  These are, in a sense, peculiar to themselves.  The rights of government as administered in the family, and the rights of the members of a family, as well as their duties to each other, are natural rights and duties; they do not depend upon society for their force.  In fact, they are stronger and more binding in proportion as the bands of society are relaxed.

In the primitive state, before there was organized civil society, family government was supreme; and, likewise, if a family should remove from within the limits of civil society and be entirely isolated, family government would again resume its power and binding force.

School government, while partaking of the nature of civil government, is still more closely allied to family government.  In the natural state, and in the isolated household, the education of the child devolves upon the parents, and the parent delegates a part of his natural rights and duties to the teacher when he commits the education of his child to the common school.  The teacher is said to stand in loco parentis (in the place of the parent), and from this direction, mainly, are his rights of government derived.

The school, therefore, stands in an intermediate position between family government and civil government proper, partaking of some features of each, and forming a sort of stepping-stone for the child from the natural restraints of home to the more complex demands of civil society.  The school district, also, while partaking of the nature of a civil institution, is in many respects to be regarded as a co-operative organization of the families of the neighborhood for the education of their children, and its government as a co-operative family government.

From Webster’s 1828 Dictionary:

Public, a. [L.publicus, from the root of populus, people; that is, people-like.]

1. Pertaining to a nation, state or community; extending to a whole people; as a public law, which binds the people of a nation or state, as opposed to a private statute or resolve, which respects an individual or a corporation only.  Thus we say, public welfare, public good, public calamity, public service, public property.

Education, n.

The bringing up, as of a child, instruction; formation of manners.  Education comprehends all that series of instruction and discipline which is intended to enlighten the understanding, correct the temper, and form the manners and habits of youth, and fit them for usefulness in their future stations.  To give children a good education in manners, arts and science, is important; and an immense responsibility rests on parents and guardians who neglect these duties.

Knowledge, n.

1. A clear and certain perception of that which exists, or of truth and fact; the perception of the connection and agreement, or disagreement and repugnancy of our ideas.  Human knowledge is very limited, and is mostly gained by observation and experience.
2. Learning; illumination of mind.

Public Schools

Jefferson realized that knowledge was essential, in the people, if the government was to be of service to those people, when he said, “The most effectual means of preventing [the perversion of power into tyranny are] to illuminate, as far as practicable, the minds of the people at large, and more especially to give them knowledge of those facts which history exhibits, that possessed thereby of the experience of other ages and countries, they may be enabled to know ambition under all its shapes, and prompt to exert their natural powers to defeat its purposes.” He also provided that such knowledge would “enable every man to judge for himself what will secure or endanger his freedom.”

It is clear that education was not a service to or by the government, only to be encouraged and provided for by the government, when he suggested that parents could utilize the public or private schools, though the minimum education would be that afforded by the public school.

He further suggests the limitation of federal government involvement in education by allowing that they only provide “donations of land” which would “endow” the schools to “produce the necessary income”.  Though he suggested the division of land into districts, he never suggested that the government was a player in that education, rather, that it would educate all, thereby “defeating the competition of wealth and birth for public trusts“.  How could you entrust those of birth and wealth with controlling education if the purpose was to defeat their control of that education?

The ultimate purpose of the public education was to assure that the less wealthy people “would be qualified to understand their rights, to maintain them, and to exercise with intelligence their parts in self-government,” warning, also, that ” our present state of liberty [is] a short-lived possession unless the mass of the people could be informed to a certain degree.”

In establishing that the responsibility for providing the public education is not a function of government, he says, “Education not being a branch of municipal government, but, like the other arts and sciences, an accident [i.e., attribute] only, I did not place it with election as a fundamental member in the structure of government.”

Now, it is possible that what Jefferson has told us could be considered as conjecture, not of practice.  This would suggest that he was in error and the government must take a greater role in the education of our children.  If that were the case, surely, practice would have changed shortly after Jefferson left the scene and would have removed itself from that “public” sphere and into the realm of government control by the end of that century.  So, let us look at public education as it was described and practiced in 1891:

From “Elements of Civil Government”, we find government is a rather broad term.  It applies “in home, in school, and in after [later] life.”  That “[i]t is the duty of the State to provide all children the means of acquiring” an education“.  So, here we come to a crux in the difference between public education and what we have, today.  The means of an education versus the education, itself.  Providing you the means of fishing does not provide you the fish — only the means to acquire the fish.  Education is, likewise, from the standpoint of government, only the means, not the education.

The members of the school district are the people living in it.  All are interested, one way or another, in the success of the school.”  This would exclude people not living in the district, say, in the State capital, or, Washington, D.C.  What conceivable interest could politicians totally unrelated, and, probably, unaware of the nature of the district, should be interested in the outcome of the education?  Surely, if they were other than simply pretending to be interested, we could expect that any true interest would be divisive, and, perhaps as was suggested by Jefferson, a result of their “ambition under all of its shapes, and prompt to exert their natural powers and defeat its purpose”.  After all, if the truth is what is legislated, there is no role for the people to judge what the government is doing.  It is, for all intents and purposes, a “perversion of power into tyranny“.

Looking at the relationship of the teacher to the student, we find that “The teacher has the same power and right to govern the school that the parent has to govern the family.  The law puts the teacher in the parent’s place and expects him to perform the parent’s office.”  This is further supported by the fact that when we look at the Civil District (city or county), we find that there are “special forms of government as exercised by the family and the school” that are “peculiar to themselves“.

To assure a proper understanding of the relationships stated above, let me repeat from that source that:

“School government, while partaking of the nature of civil government, is still more closely allied to family government.  In the natural state, and in the isolated household, the education of the child devolves upon the parents, and the parent delegates a part of his natural rights and duties to the teacher when he commits the education of his child to the common schoolThe teacher is said to stand in loco parentis (in the place of the parent), and from this direction, mainly, are his rights of government derived.

“The school, therefore, stands in an intermediate position between family government and civil government proper, partaking of some features of each, and forming a sort of stepping-stone for the child from the natural restraints of home to the more complex demands of civil society.  The school district, also, while partaking of the nature of a civil institution, is in many respects to be regarded as a co-operative organization of the families of the neighborhood for the education of their children, and its government as a co-operative family government.

So, when you send your child to school, you have made the teacher in loco parentis.  If you have not assigned that right to the federal government, the state government, or even the school district, then, should that authority apply only to those to whom you have granted, should it extended to people unknown, in places unknown, for purposes unknown?

Government Schools

The United States Department of Health, Education and Welfare (Welfare has since been changed to “human services”) was formed in 1953.  Given that the Founders and Framers only saw fit to provide grants of land, at the federal level, for the support of the public education system, we must wonder why this expansive move into the rights previously held by the parents.  However, these intervening 57 years have clearly established the consequences of the establishment of that Department.  It has resulted in a near complete takeover of the education process and moved it into absolute (despotic?) control of the federal government, including denial of the parent’s right to involve themselves in the education process.

Along with the expansion of federal authority in the realm that was previously reserved to the community, the State governments have also encroached well beyond their original enrolment in education.  BY submitting to federal dictates, mandates and funds allocation, they have become co-conspirators with the federal government to undermine the purpose of public education, as envisioned by the Founders and practiced, for over a century, as a right of the local community and the parents, resulting in the subjugation of our children to an indoctrination program the prescribes social relationship, undermines religious and moral values, and, subjects the children to a belief in the absolutism of government’s authority.

Conclusion

The Constitution stands mute on the subject of education and schools.  The only authority that the federal government had was with regard to the “public lands”.  That authority underlay Jefferson’s desire to found the federal support only to the “donation of lands”.  Clearly, no authority was granted by the Constitution to subvert the rights of the parents and the school district in matters of education.  Even an expansive misrepresentation of “the General Welfare” could not subordinate the authority of the parents and the school district, even if they were failing, miserable, in the pursuit of a proper education.  After all, who but the parents could determine whether there was a failure in the process? 

That ascension of authority to the federal government made way for the ascension of State authority, well beyond that which was intended.  Initially, states could set certain guidelines, and, historically, these were quite limited and included the matter of taxation for funding, usually granted to the county or district, and protections to be afforded the district and schools for protection from abuse.

Taxes for the support of public schools were, for many decades, raised through ad valorem (on property) taxes.  This did provide for inequality in education, however, this inequality was no different from the inequality in housing and diet.  Those who worked harder received greater benefit.

This did not demean education.  The basics of reading, writing, mathematics, and science were necessary as a foundation for subsequent learning, whether through the educational system or the ability to acquire additional knowledge by reading books, periodicals, and newspapers.  It was the foundation that was the necessity of public education.  Those who proved themselves worthy were able to take advantage of scholarships to increase their education, though that route was, and should only be, available to those competent, desirous of, and willing to pursue such higher education.  It was, and should be, the foundational education that came within the purview of “public” education.

The consequence of attempting to assure that all people had such higher education available was that the higher education has been lowered in quality to accommodate those who were not mentally capable of such aspirations, though they had been convinced that it was their “right” to achieve what would otherwise be beyond their abilities.  This has resulted in college graduates with 6th grade reading skills, and, and overall reduction of the equality of education of the higher levels, except where wealth has afforded certain individuals with access to expensive private colleges.  The entire country has suffered as a result of this malaise in education by allowing those to have degrees that are not indicative of their scholarly achievements, rather, the fact that they have completed a course of education without regard to the quality thereof.

Public education, to serve the intentions and practices under which it was first instituted, must return to that which serves the people rather than the government.  To allow the government to impose any more than the “means” to educate; to allow the government to subvert the needs of the people, as defined by the people through their school boards of local, interested parties; is to allow the government the means of indoctrination of the people, especially the young, into acceptance of despotism and subjugation.

Some Thoughts on Taxation

Some Thoughts on Taxation

Gary Hunt
Outpost of Freedom
November 24, 2010

 Introduction

Taxation is often considered one of the most burdensome and oppressive duties of government.  “There are only two things certain; Death and Taxes”, quite adequately describes the effect of taxes upon our daily lives.

Though far from truth, schoolbooks have, for generations, proclaimed that “No Taxation without Representation” was the cause of the Revolutionary War.  There is no doubt that the fact that the colonies had no representation in Parliament was one of many points of contention between colonies and Crown.  This very fact was the subject of many speeches, on both sides of the Atlantic.

It has been suggested, on the western side of the Atlantic, that if the colonies were allowed to raise their own taxes, based upon both their needs and requisitions from Parliament, this objection would have been overcome.  So, let’s keep that thought in mind as we look at our history with regard to the subject of taxation.

We need to understand that the Framers had to deal with the touchy subject of taxation based upon the role it played in leading up to separation from England as well as the brief history and problems posed between Independence and the Constitution.  The former has just been addressed, so we will look at the later.

Two situations provided the Framers some concern in dealing with the subject.  The first was that the requisitions imposed by the Continental Congress, both before and under the Articles of Confederation were ignored by a number of states, ultimately resulting in abandoning efforts to collect the requisitions and relieving those debts not paid.

The second situation was known as Shay’s Rebellion [1787].  Farmers in Western Massachusetts had been taxed by the State, the purpose being for the State to be able to pay its obligations to the Congress, as well as have operating funds for the function of the Massachusetts government.  This was compounded by the absence of specie (gold or silver) through the colonies.  Repayment of debt on foreign loans required specie.

Now, to source documents:

Constitution

Article I, Section 2, clause 3:

Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons…

Article I, Section 7, clause 1:

All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.

Article I, Section 8, clause 1:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

Article I, Section 9, clause 1:

The Migration or Importation of such Persons as any of the States now existing shall think proper to admit, shall not be prohibited by the Congress prior to the Year one thousand eight hundred and eight, but a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.

Article I, Section 9, clauses 4 & 5:

No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.

No Tax or Duty shall be laid on Articles exported from any State.

Article I, Section 10, clauses 1 thru 3:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it’s inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.

Amendment 16 [1913]:

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

Amendment [XVII] [1913]

The Senate of the United States shall be composed of two Senators from each State, elected by the people thereof, for six years; and each Senator shall have one vote.  The electors in each State shall have the qualifications requisite for electors of the most numerous branch of the State legislatures.

Amendment 19 [1964]:

Section 1–The right of citizens of the United States to vote in any primary or other election for President or Vice President, for electors for President or Vice President, or for Senator or Representative in Congress, shall not be denied or abridged by the United States or any State by reason of failure to pay any poll tax or other tax.

Federalist Papers

The Federalist Papers are accepted as an indication of the intent to the Framers, and, of those who ratified that Constitution.

Federalist Papers #12, Alexander Hamilton:

The prosperity of commerce is now perceived and acknowledged by all enlightened statesmen to be the most useful as well as the most productive source of national wealth, and has accordingly become a primary object of their political cares….  It has been found in various countries that, in proportion as commerce has flourished, land has risen in value.

***

The ability of a country to pay taxes must always be proportioned, in a great degree, to the quantity of money in circulation, and to the celerity with which it circulates.  Commerce, contributing to both these objects, must of necessity render the payment of taxes easier, and facilitate the requisite supplies to the treasury.

***

But it is not in this aspect of the subject alone that Union will be seen to conduce to the purpose of revenue.  There are other points of view, in which its influence will appear more immediate and decisive.  It is evident from the state of the country, from the habits of the people, from the experience we have had on the point itself, that it is impracticable to raise any very considerable sums by direct taxation.  Tax laws have in vain been multiplied; new methods to enforce the collection have in vain been tried; the public expectation has been uniformly disappointed, and the treasuries of the States have remained empty.

***

No person acquainted with what happens in other countries will be surprised at this circumstance.  In so opulent a nation as that of Britain, where direct taxes from superior wealth must be much more tolerable, and, from the vigor of the government, much more practicable, than in America, far the greatest part of the national revenue is derived from taxes of the indirect kind, from imposts, and from excises.  Duties on imported articles form a large branch of this latter description.

***

Revenue, therefore, must be had at all events.  In this country, if the principal part be not drawn from commerce, it must fall with oppressive weight upon land.

Federalist Papers #30, Alexander Hamilton:

Let us attend to what would be the effects of this situation in the very first war in which we should happen to be engaged.  We will presume, for argument’s sake, that the revenue arising from the impost duties answers the purposes of a provision for the public debt and of a peace establishment for the Union.  Thus circumstanced, a war breaks out.  What would be the probable conduct of the government in such an emergency?  Taught by experience that proper dependence could not be placed on the success of requisitions, unable by its own authority to lay hold of fresh resources, and urged by considerations of national danger, would it not be driven to the expedient of diverting the funds already appropriated from their proper objects to the defence of the State?  It is not easy to see how a step of this kind could be avoided; and if it should be taken, it is evident that it would prove the destruction of public credit at the very moment that it was becoming essential to the public safety.

Federalist Papers #45, James Madison:

If the federal government is to have collectors of revenue, the State governments will have theirs also.  And as those of the former will be principally on the sea-coast, and not very numerous, whilst those of the latter will be spread over the face of the country, and will be very numerous, the advantage in this view also lies on the same side.  It is true, that the Confederacy is to possess, and may exercise, the power of collecting internal as well as external taxes throughout the States; but it is probable that this power will not be resorted to, except for supplemental purposes of revenue; then an option will then be given to the States to supply their quotas by previous collections of their own; and that the eventual collection, under the immediate authority of the Union, will generally be made by the officers, and according to the rules, appointed by the several States.

***

The powers delegated by the proposed Constitution to the federal government are few and defined.  Those which are to remain in the State governments are numerous and indefinite.  The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected.  The powers reserved to the several States will extend to all the objects which, in the ordinary course of affairs; concern the lives, liberties, and properties of the people and the internal order, improvement, and prosperity of the State.

Constitutional Intent

Representation and Direct Taxes shall be apportioned among the several States” provides an insight into one of the methods of funding for the federal government.  Representation was to be based upon population, and, the funds needed in excess of those derived by other means were to be supplemented proportioned on the strength of voting power of each state in the House of Representatives.

Let’s look at the relationship between taxation, spending, and representation.  First, we have “All Bills for raising Revenue shall originate in the House of Representatives“, giving that representative body the exclusive power to raise taxes, though concurrence by the Senate and the President were still required.

Now, let’s look at the Senate.  Senators were appointed by the State legislatures, prior to the adoption of the 17th Amendment, and, consequently, would look out for the interest of the State, while the representatives would look out for the interests of the people who comprised their constituency.  So, we have both the people and the state with representation to look out for their respective interests.

If the Representatives felt a need for raising revenue, the would “originate” a bill to that effect.  The Senate, if the burden were put upon the states to raise the revenue, might be concerned and refuse to approve the bill, saving the respective legislatures from having to raise taxes to raise revenues to meet the needs of the federal government.

In a sense, we would have three, independent bodies exerting caution over any increase in revenue; the House of Representatives ; the Senate; and, the respective state legislatures, which would have the responsibility of raising additional revenue, as well as the ire of the people in so doing. 

If we delve a bit deeper into this concept, we can see that there is a consistency with the feelings of the Founders when they coined the phrase, “No Taxation without Representation“.  If we equate the Parliament with the Congress, and, the state legislatures with the colonial assemblies, we can see a parallel, which would require the state legislature (colonial assembly) to enact revenue laws based upon requisitions by the Congress (Parliament).  Clearly, this concept has strong support from our history books.

To address the Founders concerns, perhaps it would be appropriate to have representatives in the Congress to enact and approve revenue bills, and then, requisition to the states; the state legislature to raise the revenues so required.

Also, the intent of the involvement of the states in collecting the revenue was made clear by James Madison (FP #45), when he said, “It is true, that the Confederacy is to possess, and may exercise, the power of collecting internal as well as external taxes throughout the States; but it is probable that this power will not be resorted to, except for supplemental purposes of revenue; then an option will then be given to the States to supply their quotas by previous collections of their own.” 

We need not wonder why this method, of the state paying quotas, was not primary.  The experience of the recent past had proven, under the Articles of Confederation, that collection would be, at best, difficult.  There had been no experience under the Constitution and strengthened federal government to dispel such concern.  Recent history, however, has demonstrated that the federal government is quite able to enforce compliance, which makes moot this concern.

Madison also points out, in the same number, that the primary need for additional revenue would be consistent with, “The powers delegated by the proposed Constitution to the federal government [which] will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected.

Subsequently, in 1913, this whole concept of taxation was turned on end.  With the enactment of the 16th and 17th Amendments to the Constitution (coincidently, the same year that the Federal Reserve Act and currency contrary to the Constitution) were ratified, changing our whole economic structure by rendering gold and silver equal to, or subordinate to, promissory notes (Federal Reserve Notes).  Money was relegated to a system without value.

Clearly, the type of expenditures we have today were not within the scope imagined by Madison.  Quite possibly, if the tax structure was maintained along the original concepts, we would not have the enormous debt to repay.

Continuing on with the subject, let’s see what Alexander Hamilton thought should be the primary source of revenue. 

In Federalist Papers # 12, he said, “The prosperity of commerce is now perceived and acknowledged by all enlightened statesmen to be the most useful as well as the most productive source of national wealth, and has accordingly become a primary object of their political cares…” 

He continues, “The ability of a country to pay taxes must always be proportioned, in a great degree, to the quantity of money in circulation, and to the celerity with which it circulates.  Commerce, contributing to both these objects, must of necessity render the payment of taxes easier, and facilitate the requisite supplies to the treasury.”

He then advises that, “[i]t is evident from the state of the country, from the habits of the people, from the experience we have had on the point itself, that it is impracticable to raise any very considerable sums by direct taxation…”

In support of the use of commerce as the primary source of revenue, he says, “No person acquainted with what happens in other countries will be surprised at this circumstance.  In so opulent a nation as that of Britain, where direct taxes from superior wealth must be much more tolerable, and, from the vigor of the government, much more practicable, than in America, for the greatest part of the national revenue is derived from taxes of the indirect kind, from imposts, and from excises.  Duties on imported articles form a large branch of this latter description.”  Included in this is a comparison to England, where the rich are well defined, and a source of revenue.  Something that might be worthy of consideration.

Finally, in this number, he concludes with the significance of the burden on other sources than revenue, when he says, “Revenue, therefore, must be had at all events.  In this country, if the principal part be not drawn from commerce, it must fall with oppressive weight upon land.”

To demonstrate the nature of change in how government operates, we can look at the concerns that Mr. Hamilton placed upon the ability of the country to borrow money, should the need arise, in Federalist Papers #30:

Let us attend to what would be the effects of this situation in the very first war in which we should happen to be engaged.  We will presume, for argument’s sake, that the revenue arising from the impost duties answers the purposes of a provision for the public debt and of a peace establishment for the Union.  Thus circumstanced, a war breaks out.  What would be the probable conduct of the government in such an emergency?  Taught by experience that proper dependence could not be placed on the success of requisitions, unable by its own authority to lay hold of fresh resources, and urged by considerations of national danger, would it not be driven to the expedient of diverting the funds already appropriated from their proper objects to the defence of the State?  It is not easy to see how a step of this kind could be avoided; and if it should be taken, it is evident that it would prove the destruction of public credit at the very moment that it was becoming essential to the public safety.

Clearly, times have changed.  The ability of the government to borrow money on the “public credit” is, without question, indisputable.  So, many of the concerns of the Framers have fallen by the wayside.  Perhaps legitimate under the then circumstances, times, and the new federal government under the Constitution, have changed.  Perhaps, now, it is time to reevaluate the method of federal taxation to be consistent with what was expressed, then, though not put into service because of those concerns.

Some Definitions

From Webster’s 1828 Dictionary:

Apportion, v. t.
To divide and assign in just proportion; to distribute among two or more, a just part or share to each; as, to apportion undivided rights; to apportion time among various employments.

Duty, n.
Tax, toll, impost, or customs; excise; any sum of money required by government to be paid on the importation, exportation, or consumption of goods.  An impost on land or other real estate, and on stock of farmers, is not called a duty, but a direct tax.

Impost, n.
1.  Any tax or tribute imposed by authority; particularly, a duty or tax laid by governments on goods imported, and paid or secured by the importer at the time of importation.

Excise, n.
An inland duty or impost, laid on commodities consumed, or on the retail, which is the last stage before consumption; as an excise on coffee, soap, candles, which a person consumes in his family.  But many articles are excised at the manufactories, as spirit at the distillery, printed silks and linens at the printers, &c.

Capitation, n.
1.  Numeration by the head; a numbering of persons.
2.  The tax, or imposition upon each head or persons; a poll tax.

Income, n.
That gain which proceeds from labor, business or property of any kind; the produce of a farm; the rent of houses; the proceeds of professional business; the profits of commerce or of occupation; the interest of money or stock in funds.

Tarif, n.
1.  Properly, a list or table of goods with the duties or customs to be paid for the same, either on importation or exportation, whether such duties are imposed by the government of a country, or agreed on by the princes or governments of two countries holding commerce with each other.
2.  A list or table of duties or customs to be paid on goods imported or exported.

Considerations

There can be little doubt that the structure of government and apportionment had a purpose, in the minds of the Framers.  At the time of the Federal Reserve Act, 16th and 17th Amendments [1913], the national debt had remained relatively level with that of just after the Civil War, about 2.5 billion dollars.  Within just a few years, it has gone from that stable 2.5 billion to nearly 5,000 times that amount in 2010.  Can there be any question as to the ability of the government to borrow money.  The problem remains, however, that as we continue to borrow, can that debt be repaid.  Taxation has become a means to pay the interest, though it is not sufficient to retire the debt.

By having direct taxes, without apportionment, easily imposed upon us, we have implemented a direct line from our wallets to the government.  Considering that all direct taxes were intended to be apportioned, we can look at the Sixteenth Amendment to see what it really says.  Remember, the Constitution required apportionment, and, it anticipated that direct taxes would be on land, not on the earnings of a workingman.  The Amendment reads:

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

Rather than going in to the legal ramifications of the Amendment, which has yet to be resolved by the courts, we can wonder what “gain” (definition of income) meant, then, as well as, if it was a direct tax upon something not previously granted, why it had to include the exclusion of apportionment.

If our debt had not grown since the civil war, and there was no need for additional revenue, why would Congress propose, and the states ratify, an amendment that created a completely new method of taxation.  After all, they had not exercised all of those taxes anticipated by the Framers, though in the slow evolution of the “income tax” to what it has become, invading our private records for information; multitudes of new officers to seize our property.  After all, from an historical perspective, we can look to the Declaration of Independence to see that such a means as was to be used to collect this new tax was well defined in the objections to the British Rule that resulted in our independency.  From the enumerated complaints in the Declaration, “He has erected a multitude of new offices, and sent hither swarms of officers to harass our people, and eat out their substance”.  What conceivable method of taxation could require more new offices and officers to harass our people and eat out their substance?

Now, with this in mind, what impelled Congress to establish the most burdensome and intrusive means of tax collection possible?  Duties are based upon tariffs, and easily collected at ports of entry.  Excise taxes are collected by those licensed for the particular activity upon which the tax applies.  Finally, land, which doesn’t move, is already assessed as to value, and has collection methods in place.  Instead, the Congress established a new form of taxation, never before conceived as to being practical, and at present, requiring review and collecting from over two hundred million people, along with the forces necessary to review, audit and collect those taxes.  To add to the idiocy of that system, how many of the people’s own hours of life are committed, each year, to the production of the necessary records to satisfy those tens of thousands of agents, taking that time away from them, their families, their leisure, and their productive pursuits?

We need to consider, too, a couple more events in our history that reflect on taxation.  First was the excise tax on WHISKEY, resulting in the Whiskey Rebellion in 1791.  The country needed money.  They imposed a tax on the production of whiskey.  Whiskey was a product of surplus grain. Since the producers of whiskey in Pennsylvania had very little in the way of circulating money, they were unable to pay the taxes.  So, they would either have to stop producing, which meant that they could not barter with the whiskey, or they would have to find some “hard currency” to pay the taxes.  They were put down by force, and all we have to gain from this event is the experience of the effect of misplaced excise taxes.

The other situation lead to the bloodiest war in our history.  Contrary to popular belief, the slave issue was not the primary event leading to the Civil War.  Slavery did not become an issue until well into the war, though states had seceded from the Union even before Lincoln was inaugurated.

Congress, however, had enacted tariffs that were unequal, and detrimental to the South and its economy.  High important tariffs forced them to buy manufactured goods from the North, paying more than what overseas source would require for the same products.  It was based upon forms of taxes more than slavery that forced the disjointing of the Union.

Conclusion

Federal taxes must be Constitutional, and should be as little burden on the people as possible.  Regardless of what the tax is imposed on, the people will ultimately be the source of that revenue.  If on import duties, the people will pay higher prices.  If on excise taxes, the people will pay higher prices.  The importers and manufacturers will simply add the cost to the product to recover the cost of the taxes.

Excise, impost and duties can be applied in an equitable manner if due consideration (not benefit for contributions to campaigns) of their source is considered. 

Let’s look at Duty taxes.  If the duty is on a product produced in a foreign country, and also produced in the United States, a duty tax that penalized the foreign importer in favor of the American producer might be warranted, unless it was high enough to be protective of the American product, allowing excessive profit to the American Manufacturer.  Balance of trade should also be considered with regard to import duties.  If we allow too many imports and reduce our exports, we create an imbalance of trade whereby we owe foreign nations more than they owe us.  Ultimately, this will have a detrimental effect on our whole economy.

Consideration should also be made as to whether a product is a necessity, or, for comfortable life, or, a luxury, something only desired by a small portion of our population.  Consideration of the circumstance that lead to the Civil War, where the duties tended to place an economic burden on an entire region should be avoided.

To provide fairness in such taxes, perhaps a list of general categories could be developed and all products within that category be taxed at the same rate, or a very small range within that category.

Excise taxes pose a different sort of problem.  When the tax is applied to one object, the price of that object is increased.  In many instances, today, the tax on an item may well exceed the cost to produce, distribute, and sell that item.  This amounts to an extremely unfair burden on those who use that product.  It might also provide an economic favor to a similar item that is not subject to the same excise tax.

* * *

Now, let us look at the direct taxes.  At the time of the Constitution, there were two forms of direct tax.  One was on land; the other was a capitation tax, which was an equal tax on each ‘head’.  One form of capitation tax was the poll tax, which was made illegal by the 19th Amendment.  The only tax even remotely similar to the Capitation Tax, that we have, today, though not envisioned by the Framers, is the income tax.  It is not apportioned, though the Framers considered apportioning to be absolutely necessary in both direct taxes and representation.  Surely, the impracticality, along with the expense associated with collecting the income tax, makes it a likely candidate for history, not for a means of efficiently and effectively raising revenue.

Perhaps an alternative in the method of collection, consistent with what Mr. Madison gave us, would be in order.  Suppose we realize that the federal government will never again face the difficulty in receiving monies due from requisitions to the states.  Can there be any doubt that the means, and, more than likely, the willingness to “pay up”, by the states, exists?  Especially, if the 17th Amendment is repealed, thereby returning to the state legislatures the means to resist excessive taxation that they will have to eat out [the] substance of their constituent’s pockets?  Clearly, they understand more than the federal government the economic abilities of their own state.  Clearly, they would best represent us in defending against excessive spending by the federal government.

We can include another benefit to this method of collection.  Today, the federal government collects taxes through their burdensome system.  They then establish a bureaucracy, which is assigned the responsibility to determine redistribution back to the states, based upon evaluation of need determined by people appointed, not elected, into that capacity.  How susceptible to undue influence is such a system?  And, how many dollars are squandered in the re-administration of funds that left the state only to be returned to them?  Finally, how much influence has the redistribution given to the state and local government by simply putting conditions, probably detrimental to the people, on those agencies that are the beneficiary of these returned funds?  Are not our local and state governments more qualified to determine where this money should go to support the needs of the state?  Need we pay federal people to ask state people, whom we also have to pay, to decide the what, where and how much will come back to the state, and pay both ends of this middleman when he is not even necessary if the State collects the funds before settling the requisition, and then retains that which is left?