"AMERICA'S #1 TAX CHEAT"
By Bob Schulz
February 13, 2004
Do you cheat on your income tax? Just a little bit here and
there? If you do, you have lots of company. The IRS Form 1040 probably makes liars out of more Americans than the bathroom
scale. Why do otherwise honest people cheat on their taxes? When asked, people will say, "It's just none of the government's
business," or "I pay them enough as it is." Such emotional statements are not based upon any knowledge or even worry about
what the law may require. People are venting their resentment at an all-powerful government that invades their privacy, raids
their paychecks, and keeps them in line with threats of audits, penalties and even prison. Add it up. Most Americans are government
slaves two days out of five. Perhaps a little cheating makes that more bearable.
Who do you suppose is the biggest tax cheat
in American history? Al Capone? Leona Helmsley? Willie Nelson? Some big corporation? I'm afraid not. The fact is that no single "taxpayer"
can hold a candle to the #1 biggest tax cheat in American history -- the United States government! As you will
see, the strongest evidence supporting this shocking allegation is the very behavior of the government itself in response
to the questions raised in this article.
How do Americans acquire their beliefs about
the income tax? Virtually all Americans grow up taking other people's word for it. We take the word of others for a great
deal in life actually, having neither the time nor the skill to confirm everything society appears to require of us. For example,
most parents apply for a Social Security number on behalf of their newborn before ever leaving the hospital. The nurse hands
them the form, and they fill it out without question. Everyone assumes that medical professionals would not be insisting on
a Social Security application if the law did not require it. It turns out that there is no law requiring Americans
to apply for a Social Security number at any time, much less at birth. However, the important question is this: why do nurses
at virtually every hospital in America believe there is a law that requires parents to fill out the Social Security application
for their child? How and why is this belief being propagated?
Were you aware that a Federal Court has ruled that
no one can be refused a job for failure to have or provide a Social Security number? (See EEOC v. Information Systems Consulting
CA3-92-0169-T IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION) It may actually be unlawful for
an employer to terminate or not hire you merely for failure to fill out IRS Form W-4 or W-9. (See DOJ Form I-9; or 8 U.S.C.
1324a(b), 1324a(b)(2); or Privacy Act of 5 USC Annotated 552(a).) Yet virtually every employer in America believes that no
one can be hired or work without providing a Social Security number on Form W-4. Who is telling the employers this?
As it turns out, in response to countless letters from concerned
Americans, the government has either been unable or has flatly refused to cite any law that would force Americans to "join
Social Security" against their free will. What is going on here?
In February, 2002, 537 questions of this nature were
considered during open hearings near the nation's Capitol. Both the Internal Revenue Service and Department of Justice pledged to attend and participate in
these historic hearings at the behest of Congressman Roscoe Bartlett (R-MD). In a last minute display of dishonesty and cowardice,
the IRS, DOJ and Rep. Bartlett refused to honor their pledge to participate. However, the hearings proceeded as scheduled,
and the questions were answered by a panel of experts that included attorneys, CPA's, former IRS agents and other researchers.
Subsequently all 537 questions were presented to the United
States government in a formal Petition for a Redress
of Grievances. To view the full record of the hearings, as well as news of the ongoing legal battle to compel the government
to answer these disturbing questions see www.givemeliberty.org on the Internet.
Over the last couple of decades a significant, if uncertain
number of Americans have discovered that the income tax laws are convoluted, deceptive and, most importantly, misunderstood
and misapplied. Some learn these things by chance or curiosity. Many more have learned the hard way -- in a fight for their
lives against the most hated and feared agency in America, the Internal Revenue Service. The government itself estimates that tens of millions
of Americans fail to file required tax returns. The number who do not file in the sincere belief that no law requires it is
probably more like tens of thousands; but, if you pause to consider the risks involved, it becomes all the more significant
that tens of thousands of Americans are flatly refusing to file returns as a matter of principle.
Most Americans do not read the Tax Code, relying instead
upon the professional advice of CPA's and attorneys. Tens of thousands of private citizens, for a variety of reasons, have
done their own study of the tax laws and have been so outraged by what they have discovered that they have been willing to
risk financial ruin and even prison rather than continue to submit to what they see as fraud and coercion. Many of these people
have consulted with CPA's and attorneys only to find that the "professionals" don't have the slightest idea what the Tax Code actually
says. Instead, the "professionals" parrot the government line: "No judge will agree with you, and you'll wind up in prison."
No answers, just threats.
Consider, if you will, some highly interesting court
cases from the last 15 years in which Americans, who had refused to file, were tried and found not guilty. Defendants
are occasionally acquitted due to legal technicalities; we all know that. However, these cases share two astounding similarities.
First, each defendant based his defense almost solely on the belief, indeed the argument, that there is no law that requires any
American living and working in the 50 states to file an income tax return or pay an income tax. Second, neither the prosecution
nor the judge in each of these cases was willing or able to show the jury any such law. Below are the names of those
found not guilty, the cities where the trials took place and the dates:
- Thomas Reeves, Paducah, Kentucky, January 1988
- 17 Defendants including Mr. Franklin Sanders, Memphis, Tennessee, July, 1991
- Gabe Scott, Fairbanks, Alaska,
Lloyd Long, Chattanooga, Tennessee, October, 1993
- Fred Allnut, Sr. and son
Christopher, Baltimore, Maryland, March 1996
- Gaylon "Whitey" Harrell,
May 26, 2000
- Don Fecay, Detroit, Michigan, August, 2001
- Vernice Kuglin, August 8, 2003, Memphis,
Tennessee, August 8, 2003
It should be noted that there have been several hundred convictions
for willful failure to file income tax returns in the same time period as the cases noted above. We have seen no proof
that the government has ever put into evidence the specific code section that these convicted Americans allegedly violated.
How desperate is the government to discredit and destroy
those who dare to take a stand on the income tax issue? In 1992 in Honolulu, Hawaii, Mr. Lamar Hardy was indicted and prosecuted for allegedly laundering drug money. He was acquitted
when an IRS agent on the witness stand admitted to designing a scheme to lure Mr. Hardy into unwittingly committing a serious
felony when, in fact, the government had been unable to find any evidence that Mr. Hardy had committed any crime, drug-related
or otherwise. Why target Mr. Hardy? Mr. Hardy and his brother had for some years been advising people that there is an important
difference between "tax evasion" (failure to pay what is lawfully owed) and "tax avoidance" (not paying a penny more than
the law requires). Significant numbers of people have listened to the Hardy Brothers and no longer file tax returns. Why didn't
the government simply charge Mr. Hardy with failure to file returns and/or aiding and abetting others in failing to file their
returns? Were they afraid to put the knowledgeable and experienced Mr. Hardy in front of a jury?
In the Spring of 1993, the Ninth Circuit Court of Appeals
reversed the convictions of Ray and Dixie Lee Powell of Washington state, who had been convicted of failure to file income tax returns. The convictions were overturned
on the grounds that the trial court had failed to properly instruct jurors; the Powell's good-faith belief that they were
not violating the law was, indeed, a proper defense, whether or not it was "objectively reasonable". The Powells flatly stated
that they did not file returns. What would their belief have to do with it? Is the tax system a matter of faith?
In mid-1990's, Joseph Banister was a Special Agent
for the IRS Criminal Investigation Division. One day he heard these "preposterous" income tax questions being discussed on
a radio talk show. Joe's curiosity was aroused by the simple fact that he knew the talk show host to be level-headed and reliable
on other topics. Joe began his own investigation, eventually contacting several people who had studied the issue extensively.
On his own time Joe studied the questions and allegations about the income tax. He presented this research, along with his
own questions, to his bosses at the IRS. It was immediately suggested that he should resign. Here was a golden opportunity
for the IRS. It could have simply answered Joe's questions, sent him back to his "contacts" and put to rest the mistaken ideas
of countless "tax protesters" once and for all. Instead, for simply asking questions, Mr. Banister was forced out. The government continues
to prosecute Mr. Banister, only recently trumping up charges against him in order to revoke his CPA license -- all for asking
questions. What does common sense tell you about the government's treatment of Mr. Banister?
On Tuesday, April 3, 2001, CBS posted to its
Web site an article, including a video clip, entitled "Tax Revolt". That same evening CBS treated the same subject in its
program 60 Minutes II. The program producer had spoken by telephone for some 90 minutes with a long-time investigator of these
income tax questions. This gentleman faxed to the CBS producer approximately 30 pages of documentation related to information
in this article. The ensuing TV broadcast contained not one reference to any of the information provided. IRS Commissioner
Rossotti, interviewed on the program, ridiculed the Tax Honesty Movement and claimed "100% success" in criminal prosecutions.
CBS had much of the information contained in this article, yet failed to ask the IRS Commissioner to comment.
On November 25, 2003 in Fort Worth, Texas, Richard Simkanin was tried on multiple counts
of willful failure to file returns and failure to withhold income tax from employee paychecks. The jury asked to be shown
the laws Mr. Simkanin was accused of violating. The prosecution and the court refused, and the hung jury voted 11 to 1 to
acquit Mr. Simkanin. The government immediately re-indicted him. This time the judge granted government motions to choose
a jury in secret and to prevent Mr. Simkanin from presenting any evidentiary exhibits explaining his beliefs about the tax
code. In short, they tampered with the jury selection process and prevented Mr. Simkanin from defending himself.
On January 7, 2004, Mr. Simkanin was convicted
on multiple counts of alleged tax crimes. In the previous 3 years, Mr. Simkanin had joined in our public efforts to compel
the government to answer the questions that arise from the several tax cases noted above. I attended Mr. Simkanin's trial.
As an American I was shocked and ashamed. Again the government refused to cite the laws Mr. Simkanin was accused of violating;
but this time the behavior of the court was far worse. The judge blatantly sabotaged Mr. Simkanin's defense. Key defense witnesses
were prevented from testifying. Critical evidence was not allowed in. Mr. Simkanin's attorney and witnesses were cut off each time information
damaging to the government's case was about to be introduced. Clearly the word has gone out to Federal judges to railroad
and destroy anyone attempting to hold the government accountable to the tax laws as written. For his noble efforts Dick Simkanin,
loving husband and father -- a man of the highest principle -- may spend the rest of his life in prison, should his appeal
In the last five years the We the People organization has
respectfully and peacefully petitioned our government for a Redress of Grievances -- for answers to reasonable and highly
disturbing questions about the income tax laws. Rather than answer the questions and clear up misunderstandings, the government
has responded with threats, intimidation, contrived civil injunctions and corrupt criminal prosecutions.
Consider the cases cited in this article. What do you
think of the behavior of the courts and other government entities? How many times in your life have you correctly sensed someone's
guilt, not so much by the facts at hand, but by the party's behavior when confronted? I have met many so-called "tax protesters," and to me they do not behave
as if guilty of anything. On the other hand, in several years of pressing these issues with people in government and the Media,
the behavior I consistently encounter absolutely reeks of cover-up, fear, guilt and intimidation.
Indeed, as Americans we must debate the size and role
of government in our lives. The concern here, however, is 80 years of government lies about the income tax and a grossly un-American
inquisition against those who confront these lies. How long must Americans suffer under tax laws that are notoriously confusing,
rules and regulations that a free people should be ashamed of, and tax administration that is scandalously corrupt. Examine
your pay stub. Examine your last tax return. How much is the government taking from you? Based upon several years of my own
study, and decades of research by others, it is my firm conviction that we all have been victimized by the biggest tax cheat
in American history -- the United States government. My fellow Americans, we guarantee a more corrupt government for our posterity when
we fail to root out the corruption we find today. Won't you join me in demanding that the government stop its own shameful
tax evasion and answer these questions once and for all?
Please direct comments or questions
by E-mail to firstname.lastname@example.org, or by mail to We the People, 2458 Ridge Rd., Queensbury, NY 12804; by phone at 518-656-3578 or FAX at 518-656-9724; or visit us on the Internet at www.givemeliberty.org.
© 2004 Bob Schulz - All Rights Reserved
Bob Schulz has an engineering
degree from the United States Merchant Marine Academy (1963), and a Masters Degree in Business Administration from Xavier University (1969).
He completed most of the course work for a Ph. D. in Public Administration at the Graduate School of Public
Affairs, State University of NY. Bob received an honorable discharge from the U.S. Air Force
in 1959 and he answered his country's call by volunteering as a ship's engineer during the sea- lift to Vietnam in
Bob and his wife, Judy, of 38 years live on a small farm on the east side of Lake George, NY, where
they raised four children, each of whom has graduated from one of America's finest universities.
Bob is Chairman of the Board of We the People Foundation for Constitutional Education, Inc., see: www.givemeliberty.org E-Mail: email@example.com
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