Tax resistance primer

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WARNING – Tax evasion is a
criminal offense. Don't do it.
The material in this article
is presented for information,
research, entertainment,
& education purposes only.

Tax resistance primer –
How to beat the IRS...
Copyright ©1998 Lee Adams. All rights reserved.
NOTE – Spy & CounterSpy does not endorse, condone, or encourage any illegal act. The material in this article is presented for information, research, entertainment, and education purposes only. The words "you" and "your" are used in this article for ease of readability only.
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     You probably don't realize that big government sticks its hand in your pocket and takes half of everything it finds there. Every time money change hands, government bureaucrats skim their cut off the top.
     A growing doubt. Across America, more and more citizens are losing confidence in their government. Common, decent folk are losing faith – they look around them and see unresponsive elected officials, national ID cards, gun registration, militarized police, property confiscation, rampant surveillance, a cashless society, a tethered news media. They remember Vickie Weaver. They remember Waco.
     Decent Americans are beginning to see the effects of no-knock warrants, coerced informants, illegal arrests, rigged trials.
     At the international level, more and more Americans are troubled by a foreign policy indistinguishable from terrorism – and a disgraced (but still arrogant) national leadership.
     The list goes on and on.
     These hard-working, decent Americans no longer believe their government represents them. These citizens no longer accept that the government has any moral right to take their hard-earned money.
     These patriotic, otherwise law-abiding citizens are rallying to the same cry that stirred the heroes and heroines of the American Revolution – no taxation without representation.
     How the world really works. Stop for a moment and consider this scenario. If you earn a hundred dollars the government grabs 35% as income tax. That leaves you with $65.00 in your pocket. If you wanted to buy $100.00 worth of groceries you'd actually need to earn $155.00 just to have $100.00 left in your pocket.
     But it doesn't stop there. When you go to pay for your $100.00 groceries, the seller tacks on the sales tax. Between state tax, county tax, local tax, hidden manufacturing taxes, licensing fees, permits, excise, duty, etc. etc. etc. in many cases the sales tax exceeds 15%. So now you're paying $115.00 for $100.00 worth of groceries. To get that $115.00 you need to earn $180.00.
     NOTE – In all fairness, we're playing loose and fast with figures here in order to get our point across. Other taxes, rebates, exemptions, licensing fees, permits, and surcharges apply, but they only serve to complicate the issue – these factors don't alter the fundamentals of the racket being foisted on us by the gangsters... err, we mean the government.
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What you'll learn here...
     This article teaches you a method of tax resistance that allows both parties in a transaction to keep every dollar they earn.
     This system is already being successfully used in the USA by individuals and small businesses. The IRS doesn't want you to know about this method because they don't know how to stop it. Simply stated, this article shows you how to beat the IRS.
     IMPORTANT NOTE – Spy & CounterSpy does not condone any illegal act. Tax evasion is a crime. Don't do it. You shouldn't let your judgment be clouded by the fact that IRS "inspection agents" routinely carry concealed handguns in direct violation of federal and state law. Just because the IRS routinely breaks the law doesn't mean you should too. Remember, the material in this article is presented for information, research, entertainment, and education purposes only.

Lesson 1:
How to guarantee you'll continue
to be fleeced by the government...
     Let's consider a simple deal in which I agree to buy an item from you for $100.00.
     Sales tax. You must collect the sales tax from me. Let's assume it's 15% (federal, state, county, and local all added together). That means I actually pay $115.00 (not $100.00) for the $100.00 item I've agreed to buy from you. Government gets the $15.00. As the buyer, I pay the sales tax under threat of imprisonment.
     Forced labor. You as the seller, meanwhile, are forced to do the government's paperwork – you must calculate the tax, collect it from me, and remit it to the government. You as the seller do all this work for free, again under threat of imprisonment.
     Income tax. You, as the seller, receive $100.00 for the item. Let's assume your wholesale cost is $50.00. That means your real earnings are $50.00 (for your labor, etc.). Let's assume an income tax rate of 30% (it's often higher). When you fill out your income tax form next spring you're going to find that you must pay the government $15.00 on the $50.00 you earned. So you as the seller really make only $35.00 on a $100.00 transaction. As the seller, you pay your income tax under threat of imprisonment.
     The bottom line. In the simple example given here, the government skimmed $30.00 off a $100.00 transaction. They took $15.00 from me, the buyer. They took another $15.00 from you, the seller.
     In actual practise, however, the government takes a lot more than this. We haven't considered the wholesaler or the manufacturer, who will each be paying 30% income tax on their revenue too. Nor have we considered that the buyer needs to earn $155.00 in order to have $100.00 in his/her pocket. If all parties are considered, the government skims more than 50% off each and every transaction every day in America. All under threat of imprisonment, of course.
     Four hundred years ago we had a name for people who did things like this. We called them robber barons.
     NOTE – Government bureaucrats need an efficient money-raising system like this if they're going to keep buying $600.00 hammers and $400.00 screwdrivers for their departments. If you ever need a good laugh, consider looking through the auditors' reports on how these idiots waste our tax dollars. They often spend money just for the sake of spending it – in order to ensure their department gets a bigger budget next fiscal year. It's insanity, but that's business-as-usual for the government.

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WARNING – Tax evasion is a
criminal offense. Don't do it.
The material in this article
is presented for information,
research, entertainment,
& education purposes only.

Lesson 2:
How to pretend you're not being
fleeced by the government...
     Let's assume you agree to have some electrical work done in your office for $100.00.
     Suppose the electrician is a tax resister. He might wink at you and say, "If you'll pay me cash, I won't charge you any sales tax."
     (No nasty email please. We've got nothing against electricians, most of whom are good people.)
     You, being somewhat of a rube at the tax resister game, agree to this conspiracy. After all, you figure you're saving the 15% sales tax. And you don't need a receipt.
     Unfortunately, however, things aren't that simple. One of you is still getting fleeced.
     The buyer's dilemma. If you're in business, you can't claim what you spent as an expense – because you didn't get a receipt. So you're still stuck in the position of needing to earn $155.00 in order to be able to spend $100.00. Of course, these calculations are hidden and the stark reality doesn't really confront you until next spring when you're filling out your income tax forms.
     The seller's situation. The electrician did okay. Because he issued no receipt to you, there is no record of the cash transaction. So he might be tempted not to declare the money as revenue. In that case the seller pays no income tax. So he gets to keep the full $50.00 he earned ($100 minus his wholesales costs of $50.00).
     The seller is a happy camper. But once you figure out what's happened to you, you're unlikely to fall for the no-sales-tax ploy a second time. That's because the seller is beating the IRS, but it's at the buyer's expense. In other words, he beat the IRS but you didn't.
     You're probably asking yourself, "Gee, there must be a better way, where both buyer and seller come out ahead of the IRS."
     And there is.

...

WARNING – Tax evasion is a
criminal offense. Don't do it.
The material in this article
is presented for information,
research, entertainment,
& education purposes only.

Lesson 3:
How to beat the tax man...
     The key to a successful, audit-proof, tax resistance strategy is the receipt.
     Pay attention. Here's how tax resisters across America beat the IRS every day.
     The seller winks and says, "If you'll pay me in cash, Mr. Buyer, I won't charge you the sales tax."
     The buyer replies, "Sure, I'd be glad to, but I'll still need a receipt for income tax purposes."
     "Of course," says the seller, who proceeds to make out a receipt for the buyer under the name of a non-existent firm.
     Both parties win. Here's why...
     The buyer is happy. The buyer saves 15% off the top. He doesn't pay any sales tax on the transaction. Plus, he gets to claim his purchase as a legitimate expense because he's got a receipt to staple to his tax form next spring. So he only needs to earn $100.00 in order to be able to spend $100.00.
     The seller is happy. The seller saves 30% income tax on his earnings. It's a cash transaction so there's no record of the sale. So he doesn't declare the income. The preprinted receipt he gave the buyer is under the name of a non-existent company that cannot be traced to the seller.
     Criminal conspiracy. Let's be frank. What we're describing in this article is criminal conspiracy and collusion. The IRS has found that, if both parties keep quiet about what they've done, this method of tax resistance is audit-proof, provided that the method isn't flagrantly overused.
     SECURITY NOTICE – The "inspection agents" of the IRS will, however, open your mail, bug your home or office, and put you under surveillance in their attempts to get you. Whistleblowers at the IRS have told Spy & CounterSpy that these goons carry guns – in direct violation of federal and state law, of course.
     Thousands of transactions are conducted across America every day using this method of tax resistance. Yes, it's illegal. Yes, it's criminal fraud. Yes, it's tax evasion. Don't do it. Simply put, it would be unlawful for Spy & CounterSpy to encourage you to join the thousands of Americans who already practise tax resistance because they have lost faith in their government.
     Summary. The receipt is what makes this method of tax resistance successful. The IRS doesn't want you to know about it because they don't know how to stop it.
     NOTE – Spy & CounterSpy does not endorse, condone, or encourage any illegal act. Tax evasion is a criminal offense. Don't do it. The material in this article is presented for information, research, entertainment, and education purposes only. The words "you" and "your" are used in this article for ease of readability only.
     For other tax resistance and tax reduction strategies, interested readers may find the information at http://www.taxgate.com useful. (This is an external link unrelated to Spy & CounterSpy.)

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