posted August 18, 2002 03:29 PM         

There is around $200m annually that quietly goes into NZ politicians overseas accounts from the tax on petrol(gas), and the public don't know about it.

I'm sure the same would happen over there and the UK.

posted August 21, 2002 02:53 AM         

Willful failure to file is a misdemeanor but making a false statement on a tax return is a felony called tax evasion. All tax returns are signed by the taxpayer "under penalty of perjury".

There are a lot of issues with the income tax, not the least of which is the assumption by the government that the taxpayer's labor has no value and therefore anything received as salary, commission, wages etc is income, the definition of which is a gain or profit. But in reality, it's an equal exchange, the value of which is set by the employer and employee when an employment agreement is entered into. So, in an equal exchange, there is no gain or profit, just two dissimilar things of equal value being exchanged. That tax concept is found in what is known as a 1031 tax free exchange in which 2 or more parties exchange commercial real estate of equal value with no tax consequences.

Secondly, one becomes a taxpayer voluntarily by filling out the government withholding form at the time of employment, which is a request to the government for the status of taxpayer, assessing themselves and voluntarily paying a tax on their wages, salary, commission, etc. The American income tax is based on self assessment and voluntary compliance. That which is voluntary cannot be compulsory. One cannot be compelled to volunteer.

What Schiff meant was that IRS agents don't have any more legal authority to levy assessments and/or seize property than any ordinary citizen, which is none, in the absence of a court order. And no such order could issue without notification and a hearing on the matter.

The Income Tax is fatally flawed, riddled with provisions that if it were compulsory, it would be unconstitutional, and I've only brushed the surface. But you waive all that when you volunteer for withholding at the source, assess yourself and voluntarily file and pay the tax you assessed against yourself. Lots of Americans know this and file anyway, some don't want the hassle and some feel it's the right thing to do regardless of the legality of the Internal Revenue Code.

Most people I know who do not file tax returns aren't trying to cheat the government. They just want the government to collect the money it needs to operate in a lawful way, without using fraudulent tactics and intimidation to do so.

I think in the coming years, the income tax will be replaced with a national sales tax on articles of consumption with some exemptions for necessities, like food for instance. And that would be a lawfully enforceable tax well established historically and compulsory.