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Nationwide
10-05-2008, 08:52 PM
OK, I'm mad as hell over this trillion dollar taxpayer bailout of private companies bad bets on wacky Credit Default Swaps. I've started thinking about how a Nationwide Tax Revolt/Rebellion might practically work, as well as the govt's likely response.

Only thing I could find online is Ms. Sheehan's Tax Revolt (http://ronpaulforum.info/index.php?topic=502.0) in which she proposes:
"*If employed, change your withholding to M-9, (married with 9 dependents) so no taxes are withheld from your paycheck and do not file next April 15th.

*If possible, limit your income to so you do not have to file.

*Or this is the best scenario: file your taxes and deduct 2300.00 for each member of your family and request a refund from Uncle Sam. (and still change your withholding).

*Withhold a partial amount of your taxes to make a statement."

I would add:
* persuade your company's bookkeeper/payroll person to... make a little error such that no employees fed taxes are withheld or paid.

Now suppose lots of taxpayers went along with us, enough that the Treasury faced a shortfall. What's their likely response? Just print more dollars dramatically devaluing our own dollars (hyperinflation) ? They couldn't jail all of us.

hillbilly123069
10-05-2008, 09:27 PM
This is civil disobedience in it's simple form as condoned by Our Constitution.

KPatrick
10-05-2008, 09:29 PM
not that I disagree in theory, but can you cite the part of the USC you're referencing?

Danke
10-06-2008, 12:42 AM
OK, I'm mad as hell over this trillion dollar taxpayer bailout of private companies bad bets on wacky Credit Default Swaps. I've started thinking about how a Nationwide Tax Revolt/Rebellion might practically work, as well as the govt's likely response.

Only thing I could find online is Ms. Sheehan's Tax Revolt (http://ronpaulforum.info/index.php?topic=502.0) in which she proposes:
"*If employed, change your withholding to M-9, (married with 9 dependents) so no taxes are withheld from your paycheck and do not file next April 15th.

*If possible, limit your income to so you do not have to file.

*Or this is the best scenario: file your taxes and deduct 2300.00 for each member of your family and request a refund from Uncle Sam. (and still change your withholding).

*Withhold a partial amount of your taxes to make a statement."



Withholding to "M-9"?

Do you mean change your W-4 exemptions to 9?

That will not reduce your withholdings to zero for most people, at least not for me. I have no dependents and have a much larger number than that. (it is not necessarily based on dependents anyway).



I would add:
* persuade your company's bookkeeper/payroll person to... make a little error such that no employees fed taxes are withheld or paid.

Now suppose lots of taxpayers went along with us, enough that the Treasury faced a shortfall. What's their likely response? Just print more dollars dramatically devaluing our own dollars (hyperinflation) ? They couldn't jail all of us.

WTF? I don't even think I know what that means.

"make a little error"?

hascat
10-06-2008, 10:37 AM
I would add:
* persuade your company's bookkeeper/payroll person to... make a little error such that no employees fed taxes are withheld or paid.


As the individual responsible for doing payroll and taxes for my business, I do not recommend this approach. In fact, you'd be a jerk for even trying it. It's a great way to end up costing your business even more in fines and interest on back taxes, and possibly get shut down entirely. It's unfair to put the employment of your fellow employees and the investment of shareholders at risk for a personal vendetta against the government.

I don't like paying taxes, either. Hell, it almost bankrupted my business last year. It would be irresponsible of me to involve my coworkers and the business owners in any action I decide to pursue against the IRS.

You're better off telling your employer not to withhold anything or to renegotiate your employment to 1099 status, e.g. as a contractor. As a 1099, you're supposed to make quarterly payments on FICA and income withholding, but you can always opt not to do this as your protest. The other benefit of the 1099 route is that your employer should be willing to give you a raise to cover the employer side of FICA. You'll probably also be subject to the employer side of unemployment at the state and federal level, as well as worker's comp, so your employer should cover those, too. Do your homework before bringing up the issue so you know what you'd actually be required to pay.

Keep in mind that if the government audits you, which they probably will, you're going to get stuck with paying all your back taxes, plus interest, plus fines. If you choose to fight it in court, you'll probably end up spending more on legal fees than you would have owed in taxes.

For a tax revolt to work, you really need a critical mass of people to participate. There aren't enough on these forums to make a dent in federal revenues. I think we need a more gradual approach with a more widespread appeal, but I really don't have any good ideas at the moment.

mediahasyou
10-06-2008, 11:16 AM
If you are interested in a tax revolt, you may be interested in the Bailout Boycott:

http://www.ronpaulforums.com/showthread.php?t=161345

karlkat
10-08-2008, 10:48 AM
A W-4 is voluntary.

US Laws, Codes, Statutes & Cases
Supreme Court Center | US Laws | Blawgs.FM | BlawgSearch.com | Justia

Justia> Law> United States> Code of Federal Regulations> Title 26 - Internal Revenue> CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY > PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE> § 31.3402(p)-1 Voluntary withholding agreements.
26 C.F.R. § 31.3402(p)-1 Voluntary withholding agreements.
Title 26 - Internal Revenue

Title 26: Internal Revenue
PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
Subpart E—Collection of Income Tax at Source
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§ 31.3402(p)-1 Voluntary withholding agreements.
(a) In general. An employee and his employer may enter into an agreement under section 3402(b) to provide for the withholding of income tax upon payments of amounts described in paragraph (b)(1) of §31.3401(a)–3, made after December 31, 1970. An agreement may be entered into under this section only with respect to amounts which are includible in the gross income of the employee under section 61, and must be applicable to all such amounts paid by the employer to the employee. The amount to be withheld pursuant to an agreement under section 3402(p) shall be determined under the rules contained in section 3402 and the regulations thereunder. See §31.3405(c)–1, Q&A–3 concerning agreements to have more than 20-percent Federal income tax withheld from eligible rollover distributions within the meaning of section 402.
(b) Form and duration of agreement. (1)(i) Except as provided in subdivision (ii) of this subparagraph, an employee who desires to enter into an agreement under section 3402(p) shall furnish his employer with Form W–4 (withholding exemption certificate) executed in accordance with the provisions of section 3402(f) and the regulations thereunder. The furnishing of such Form W–4 shall constitute a request for withholding.
(ii) In the case of an employee who desires to enter into an agreement under section 3402(p) with his employer, if the employee performs services (in addition to those to be the subject of the agreement) the remuneration for which is subject to mandatory income tax withholding by such employer, or if the employee wishes to specify that the agreement terminate on a specific date, the employee shall furnish the employer with a request for withholding which shall be signed by the employee, and shall contain—
(a) The name, address, and social security number of the employee making the request,
(b) The name and address of the employer,
(c) A statement that the employee desires withholding of Federal income tax, and applicable, of qualified State individual income tax (see paragraph (d)(3)(i) of §301.6361–1 of this chapter (Regulations on Procedures and Administration)), and
(d) If the employee desires that the agreement terminate on a specific date, the date of termination of the agreement.
If accepted by the employer as provided in subdivision (iii) of this subparagraph, the request shall be attached to, and constitute part of, the employee's Form W–4. An employee who furnishes his employer a request for withholding under this subdivision shall also furnish such employer with Form W–4 if such employee does not already have a Form W–4 in effect with such employer.
(iii) No request for withholding under section 3402(p) shall be effective as an agreement between an employer and an employee until the employer accepts the request by commencing to withhold from the amounts with respect to which the request was made.
(2) An agreement under section 3402 (p) shall be effective for such period as the employer and employee mutually agree upon. However, either the employer or the employee may terminate the agreement prior to the end of such period by furnishing a signed written notice to the other. Unless the employer and employee agree to an earlier termination date, the notice shall be effective with respect to the first payment of an amount in respect of which the agreement is in effect which is made on or after the first “status determination date” (January 1, May 1, July 1, and October 1 of each year) that occurs at least 30 days after the date on which the notice is furnished. If the employee executes a new Form W–4, the request upon which an agreement under section 3402 (p) is based shall be attached to, and constitute a part of, such new Form W–4.
(86 Stat. 944, 26 U.S.C. 6364; 68A Stat. 917, 26 U.S.C. 7805)
[T.D. 7096, 36 FR 5216, Mar. 18, 1971, as amended by T.D. 7577, 43 FR 59359, Dec. 20, 1978; T.D. 8619, 60 FR 49215, Sept. 22, 1995]
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katy4liberty
10-08-2008, 04:00 PM
IM ALL FOR A TAX REVOLT!

but im also a broke college student who is anti-banking to start with. so even if i did have money and didnt pay taxes the IRS would have one hell of a time getting to it without a bank account number. But for most middle class tax payers this isnt the case. if audited, wouldnt these ppl be subject to, basically, a financial ass raping from the IRS. it has the power to go into ppls accounts and TAKE the damn money or part of ppl paychecks if it wants! so why would your average, middle class tax payer even dare to try to practice civil disobedience?? first they would have to empty and close their accounts which means no more convenient debit cards! and god knows americans cant seem to live if the living isnt convenient. im not saying its impossible, im just saying mainstream america isnt gonna go with it.

jm1776
10-08-2008, 04:36 PM
I started my tax revolt last June. All one has to do is learn the truth about the law and then apply it.

http://www.losthorizons.com/

I received a refund for all credits sent in for the first quarter of this year, plus interest!

Danke
10-08-2008, 04:53 PM
I started my tax revolt last June. All one has to do is learn the truth about the law and then apply it.

http://www.losthorizons.com/

I received a refund for all credits sent in for the first quarter of this year, plus interest!

Ding Ding Ding. We have a winner.

Been posting this for as long as I've been on this forum. (see sig)

jm1776
10-08-2008, 05:17 PM
Danke - I learned about Cracking the Code and Pete on this forum in January.

I don't remember the post, might have been you. If so I missed a grand opportunity to buy you a beer while attending the Rally for the Republic.

Turns out, the truth does set you free! :)

Danke
10-08-2008, 05:36 PM
Danke - I learned about Cracking the Code and Pete on this forum in January.

I don't remember the post, might have been you. If so I missed a grand opportunity to buy you a beer while attending the Rally for the Republic.

Turns out, the truth does set you free! :)

January, hmm, I wasn't very active here then.

Did you attend my picnic on Sept. 1st? Peter Hendrickson was one of the speakers I arraigned.

I was so busy that week+, I missed getting to know (and meet) many folks.

jm1776
10-08-2008, 05:53 PM
I was asked to represent my AR district at the convention on the 1st which lasted until 5:00pm.

Missing the picnic was the only regret I had for an otherwise great trip. I very much wanted to meet Pete and the rest of you guys.

A friend of mine did make it, said it was great time. Thanks for putting that together!

katy4liberty
10-08-2008, 07:47 PM
I started my tax revolt last June. All one has to do is learn the truth about the law and then apply it.

http://www.losthorizons.com/

I received a refund for all credits sent in for the first quarter of this year, plus interest!


HEYO! that site is awesome. im gettin my money back, asap! cant wait to read the whole book. the author is my new hero...second to ron paul of course!;)

Nationwide
10-08-2008, 09:27 PM
Thanks for the insightful replies. My thinking with getting to the payroll guy was.. easier way to reach that critical mass as the average bookkeeper probably withholds 10 employees taxes. But yes, I can see how problematic it'd be. I was thinking tax protest - withholding $ assumed legally due - not the legal aspect of the tax itself. But WHOA - that losthorizons site IS AWESOME! If I understand it correctly (that is some hard-core reading lemme tell ya) I only owe fed income tax on the gain of my activity involving the federal govt. Which for most people does not rise above the statutory limit of $600? We gotta tell everyone about this!
We can legally REFUSE THE BAILOUT TAX!

torchbearer
10-08-2008, 10:00 PM
If you decide not to pay your taxes, I wouldn't admit to it on the internet.
Though there is this great movement with white arm bands that bring notice to this idea.

Danke
10-08-2008, 10:20 PM
If you decide not to pay your taxes, I wouldn't admit to it on the internet.

You are missing the point. People are paying their taxes. Just not taxes they don't owe, that most assume they do owe from ignorance of the law.



Though there is this great movement with white arm bands that bring notice to this idea.

LOL

torchbearer
10-08-2008, 10:23 PM
You are missing the point. People are paying their taxes. Just not taxes they don't owe, that most assume they do owe from ignorance of the law.



LOL

I know what you are saying... I must add, that paying any taxes right now is just enabling the drug addicts in DC.

Grimnir Wotansvolk
10-09-2008, 07:54 PM
I've wanted to be part of a tax revolt ever since I discovered the truth about income tax, and taxation in general. The thing is, I'd much rather avoid these petty car-salesman-esque, clandestine schemes. It needs to be out in the open, and branded on my chest.

If we want to bring about change, we'll need to again brave bullets, teargas, and handcuffs.

weatherbill
10-11-2008, 07:15 PM
you may be suprised to know that according to the 1982 Ronald Reagan Grace Commision Report, that not one penny of your individual incomce tax return goes to pay for gov. services. 100% solely goes to the national debt..... in other words, the 700 billion bailout was nothing, when these banksters have been given multi trillions over the course of a few decades..... so the fraud of the "national debt" is nothing but our government making payments to private banking families who are the stock holdrs of the privately owned federal reserve. So the IRS is a complete fraud becasue they collect money for the private federal reserve bank. The Constitution does not authorize collection from people's right to labor. In fact, it says the opposite in articel 1 sections 2 and 9, where no direct taxes can be levied unless apportioned by the census, so they cannot directly tax anyone who is not under theri jurisdiction and if you're a citizen of any of the States, you cannot be lawfully taxed in the first place, according to the constitution. The mere exercise of a right, the right to labor cannot be taxed. They can only tax privileges, but rights, cannot be taxed.....it's basic fundamental american law.....rights cannot profiteered by anyoone or any entity, including the government....to suggest otherwise is to say that you do not own yourself and your labor belongs to the government...you are a slave........ but salvery and involuntary servitude is forbidden in the 13th amendment.....not that we needed it becasue we were already born free men...... you can google alot of terms and come to this info
"tax honesty", tax hoax, irs unlawful, right to labor, sovereign citizen, state citizenship, grace commission, national debt fraud, federal reserve lies........

google any kind of saying like that and just a slight digging and you'll find a ton of stuff that defends this position.

phoenixrising
10-11-2008, 08:21 PM
http://www.truthattack.org/american_liberty_council_2008.php


go to th website & listen to the youtubes for starters {use the button on the top left--for some reason the ones further down the page weren't working}

mellamojuana
10-11-2008, 09:22 PM
I've wanted to be part of a tax revolt ever since I discovered the truth about income tax, and taxation in general. The thing is, I'd much rather avoid these petty car-salesman-esque, clandestine schemes. It needs to be out in the open, and branded on my chest.

If we want to bring about change, we'll need to again brave bullets, teargas, and handcuffs.

I respect your courage. Teargas, handcuffs, dogs. . . .

Altho' I'm a bit off subject, I save "tax money" by living simply, buying second-hand, gardening, forgoing luxury items.

Wasn't it Franklin who said, "A penny saved is a penny earned"? I say it's easier to save a penny than to earn it.

It seems that extremely few people are willing to actually withhold any hard-earned income in the form of tax because we are all scared to death of the power of government to put us out of our homes, take our vehicles, our freedom, and our peaceful sleep.

May a merciful God help us all.

2BFree
10-11-2008, 11:41 PM
I have mulled this over for a while.

Not paying taxes is not going to get the desired effect. First, not enough of your countrymen have the courage to follow suit and many, if not most, will see this simply as you shirking your payment of your fair share.

What would work in my opinion, and would get the co-operation and participation of most, along with the desired attention, would be a nation-wide strike - sick-out - whatever we want to call it.

We would need to declare it and publicize heavily - this would let those in Washington know of our resolve, and everyone could/would support it...and those that don't would take the day off anyway...magnify our numbers.

How about Monday Oct. 27?

cheapseats
10-12-2008, 04:32 AM
I know what you are saying... I must add, that paying any taxes right now is just enabling the drug addicts in DC.

But that is exactly it. There is a point when even the most devoted parent, the most forgiving spouse, the most relaxed boss, the most supportive friend has to cop to the reality that their Beloved is strung the fuck out on whatever they're strung out on. In the case hand, it's the time-honored dual-addiction of money and power. No half-measures for us.

There is a point whereat funding the behavior assumes its own culpability.

jm1776
10-12-2008, 10:14 PM
Not paying taxes is not going to get the desired effect. First, not enough of your countrymen have the courage to follow suit and many, if not most, will see this simply as you shirking your payment of your fair share.

These Americans might disagree with you.

http://www.losthorizons.com/tax/MoreVictories.htm

There is nothing wrong with not paying any tax that one is not liable for. Besides, this is primarily about the rule of law. Keeping your property is a nice side benefit.

Danke
10-12-2008, 10:56 PM
These Americans might disagree with you.

http://www.losthorizons.com/tax/MoreVictories.htm

There is nothing wrong with not paying any tax that one is not liable for. Besides, this is primarily about the rule of law. Keeping your property is a nice side benefit.

Yes, education is key.

tron paul
10-13-2008, 01:30 AM
If anyone is thinking about going off the financial grid, I recommend you make it seem like it happened by accident. Play dumb. "Oops, did I just max out all my credit cards buying food, guns, and real money?" Time to settle for pennies on the dollar. We all get a bailout! Bailouts for every1!

Then let the multipliers kick in. We have the power to kill the banks, they gave it to us on a silver platter created by their greed and hubris.

cheapseats
10-13-2008, 08:31 AM
If anyone is thinking about going off the financial grid, I recommend you make it seem like it happened by accident. Play dumb.

Ignorance is not a defense, I am told...for me. It appears to be bullet-proof if you are a member of Congress, a Bush Administration crony, a member of the Aristocracy, an eyes-bigger-than-your-wallet homesquatter, a Welfare Recipient or Henry Paulson.

For the average Conscientious Objector, is it better to file and not pay, thereby accruing interest only and avoiding the penalty for not filing? Or is it better to not file...is the penalty portion of the Contested Amount insignificant relative to buying bureaucratic time? One would hate to jump through extraneous hoops if we shall be sold into slavery the following week. ;)

Ironically, if one means truly to challenge the legitimacy of the tax-more-like-extortion, if one means truly to compel Authorities LOOK AT the crazymaking paperwork and the loophole labyrinth, one is obliged to perform the very tasks that are claimed to be bullshit.

"LOOK AT this madness, how can you expect a person to do it?!

But look, you HAVE done it...for years...well done! We want more, however. We have new rules. Fear not, paying several hundred dollars to a tax professional is good for the economy, some of it is bound to trickle back to you...be patriotic, have faith. You know that God doesn't give us more than we can handle. Now pay up, or I'll put you in jail.

Wendi
10-13-2008, 09:27 AM
I respect those who are willing to stand up and say "enough" by refusing to pay into their unconstitutional income tax scheme any longer. If someday I find the courage to do so myself - I won't be advertising it on a message board anyone can read.

jm1776
10-14-2008, 09:14 PM
I respect those who are willing to stand up and say "enough" by refusing to pay into their unconstitutional income tax scheme any longer.

This is the nexus of the problem. The Federal Income Tax is Constitutional. It is Constitutional by way of a very limited scope. It is ignorance of this along with ignorance of the actual revenue laws that cost Americans over a trillion dollars a year. Once one knows the truth there is no going back.

Here is a quick overview as a double side flyer.

http://www.losthorizons.com/Newsletter/NutshellSmallPamphlet.pdf



If someday I find the courage to do so myself - I won't be advertising it on a message board anyone can read.


I realize several million Americans feel the same way but here is the thing. The only way to be free is to act free, to stand up and claim our birth right. We must do this as individuals and it sure would be nice if we all had lots of company.

Nationwide
10-14-2008, 11:27 PM
Yes Im all over that losthorizons site, very eye-opening. Meanwhile...
Tea Party for the 21st Century
OK, you know that most small businesses use a payroll service or software (Quickbooks, Peachtree) to run payroll. And these programs must be updated with the correct tax tables from time to time so they'll know how much tax to withhold and then deposit to the USTreasury. I've been told there's a little anti-Bailout appl/hack that will slowly withhold less and less tax from every employees paycheck. Less to the govt, more to the people every week (who need it now more than ever). Of course it's not the correct tax table so the business is liable but, think if this caught on.... our Leaders who disregarded the taxpayers now faced with ever increasing lack of $. And nobody notices because it's so gradual. And when they do .. suddenly millions of employees owe backtaxes in the millions.. billions...... what are they to do.. who do they go after? "Sorry, musta been a computer glitch" I won't link to it because . .

FindLiberty
10-15-2008, 12:55 AM
It won't work (but who knows, I'm half asleep here as I write)...

IMO, the income tax just exists to keep your mind off of the "printing press" where most of the money is really coming from.

Look around and think.

Taxes could stop and the slack would just be printed up to pay government employees.

Look around and think about the number of government employees (and contractors). They might even enjoy a nice pay raise to offset inflation (or hyperinflation if required or as necessary) if the flow of taxes stopped in a tax revolt. More prisons will still be built, spare no expense, and others will buy your property at auction.

Look around at the infrastructure and industry that's funded "by government", or actually, the fiat printing press. You can do the math on a cocktail napkin and see there is far more all around us than could possibly come from just our "income taxes".

We are tricked into working for money that is becoming worthless due to the inflation from the money that was created to run government, while government employees and contractors get to enjoy the use of that money long before the prices rise for the non-government worker who is effectively being robbed of wealth.

Computers, electronic funds and paperless fund transfers have made the whole fiat scam even slicker. The creature from Jekyll Island has always been nearly invisible, but it now moves at the speed of light when it feeds off of the very substance of our lives. We are to function as insects under the control of the queen insect via some phoneme chemical that works directly on our brains, almost as if the smell of money somehow drives human behavior. It's as if the head vampire does not even need to bite you on the neck, it can suck out over half of your blood from a great distance (via fiat inflation within 7 years) while you think you are safe from the (tax) bites by wearing some garlic around your neck.

Look at the math involved here. There are only so many people that can pay via taxes on real productive labor, and taxing a government employee who is paid mostly by fiat money is pointless since they can't ultimately pay themselves. Government employees may exceed 40% of the working population. Can the non-government workers be taxed enough to even pay salaries? How about taxpayers also funding building materials and war equipment production? Roads and medical? Government pensions? Bank fractional reserve organs and loans? Government hand outs? Technology research?

Income taxes are only a tiny percentage, but those taxes have been providing effective cover for the much bigger scam to go on for 100 years, hardly detected, until now.

Look at the job loss after businesses went offshore. Growing numbers "former taxpayers" here are out of work, taking lower pay, or worse yet, going to work for the government. Most don't know who or how they lost everything and fell into debt.

Notice the lies, finger pointing and falling confidence in the U.S. Dollar as fights, suicides and street violence creeps into the MSM news.

Look out for war and awful solutions that only fear can enable as reliance on government increases... as Liberty dies.

Volitzer
10-15-2008, 01:29 AM
What You Can Do to End the Tyranny of the Federal Reserve

NaturalNews
Tuesday, October 14, 2008

(NaturalNews) The bailout opposed by so many Americans was nevertheless negotiated by the Federal Reserve with the help of Congress and the Administration. The final bill for the hotly debated rescue of the rich is over 1 trillion dollars including the ear marks and special interests sops that were included. But this is small change compared to the money that is being pumped into the monetary system by the Federal Reserve without any debate or consent. New money is being printed at record rates, insuring that the currency you have in your pocket will buy less and less everyday. As more people wake up to the threat to American’s future posed by the Federal Reserve, interest is being renewed in the Federal Reserve Board Abolition Act (HR2755).

This legislation introduced by Congressman Ron Paul in June, 2007 would kill the Federal Reserve Act and would then phase out the Federal Reserve altogether one year after the bill becomes law. Although legislators have yet to bring Paul’s bill to the floor, mounting interest in the bill in the face of recent Fed actions suggests it will be revived from its current state of languish in the House Committee on Financial Services.

Although people are just beginning to hear about this proposed legislation in the main stream media, the internet and alternative press reveal the depth of public support for this initiative. Even Constitution Party presidential candidate Chuck Baldwin has placed abolishing the Fed as one of the top planks in his platform that calls for a return to fiscal responsibility for the U.S.

(ARTICLE CONTINUES BELOW)



What the Federal Reserve is all about

The Federal Reserve is called that to fool you. It is actually a private corporation run by bankers dedicated to controlling the nation’s money supply for the benefit of themselves and other wealthy and powerful people. Its mandate is to control the rest of the people by controlling their access to money and credit.

Since the creation of the Federal Reserve in 1913, the American middle and working classes have been victimized by boom and bust monetary policy. Most Americans have suffered steady erosion of purchasing power at the hands of the Fed’s inflationary policies. The result of these policies represents an insidious and onerous tax imposed on the people on top of their already burdensome overt taxation.

The heavy hand of the Fed can be seen by any student of the Great Depression, the torturous stagflation of the 1970’s, the dotcom bubble, the housing bubble, and today’s financial panic and collapse. Its hand print is on every economic downturn that has robbed American’s of their money for the past 80 years, as the Fed has followed a policy of flooding the economy with their easy money and credit. When everyone is in debt up to their eyeballs, the bubble bursts and is followed by a painful recession or depression. To save us from the total devastation they have created, the Fed then rides to our rescue with its printing press causing excessive inflation and the erosion of the purchasing power of the dollar. These policies have made slaves of us all with the exception of the power elite.

A dollar created during the birth of the Fed in 1913 is now worth about a penny thanks to the policies of the Fed. The repeal of its mandate would signal the return of a stable currency. It would provide Americans with incentive to save as they would no longer have to fear inflation eroding their savings. These saving could then be used to return America to the status of producer and exporter to the world.

What Ron Paul tried to explain in the presidential debates

Between interruption, ridicule and unscheduled station breaks, Ron Paul tried to tell us how the Fed policy benefits a few at the expense of many. The beneficiaries are those in position to take advantage of the cycles in monetary policy, with the main beneficiaries being those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. They are the people who get to use the newly printed money first.

Think of it like this. Suppose you are the first person in your town to be allowed to print money in your basement. You print up a million or two and go out to spend it. You can buy almost anything you want, because now you are richer than almost everyone else. Then permission to print money is granted to 25% of all the people in your town. They all print up a bucket full of money and go out to spend it. Obviously, there are only so many palaces and luxury cars available, so with that many people wanting to buy them the prices move up swiftly. And finally everybody in your town is allowed to print money in their basements. At this point the money has become virtually worthless because it has lost all meaning. This is the point at which an economy collapses.

The people’s appetite for big government has tacitly condoned Fed policy. It has allowed the politicians from both parties to use inflation to cover up the true costs of their welfare-warfare spending of American’s future.

The Congress has no authority under the Constitution to delegate control of the nation’s monetary policy to the Federal Reserve. The Constitution does not empower the government to erode the American standard of living through inflationary monetary policy. Constitutional mandate regarding monetary policy whould permit only currency backed by stable commodities such as gold and silver to be used as legal tender. Abolishing the Federal Reserve and returning to a constitutional system would enable America to return to a monetary system where the value of money is consistent because it is tied to a real store of value. This is the type of monetary system that is the basis of a true free-market economy.

Your money and gold

The dollar is nothing more that what it looks like – a piece of paper with some fancy design and some numbers on it. It has no intrinsic worth like a loaf of bread, a tank or gas, a person to fix the plumbing, or a gold coin. The name for it is fiat currency, meaning it is a currency that is backed only by thin air.

Throughout most of history, gold has served as the basic money of all people wherever it has been available. It has been chosen by the markets of the world as the most valuable commodity on earth. Why is this no longer the case? Governments have destroyed the gold standard because they regarded it as too inflexible. This inflexibility is the friend of free markets, making governments keep their financial houses in order. Banks are more careful about lending when they can’t rely on a lender of last resort like the Fed, with access to a printing press. Inflexibility means prices are more stable. The problems of inflation and business cycles disappear completely. Gold and economic freedom are inseparable. Deficit spending is a scheme for the confiscation of wealth and the enslavement of the people.

When money is as good as gold, the government cannot manipulate the money supply for its own ends. The gold standard puts severe limits on the government’s ability to spend, borrow, and create hair-brained programs. The government is forced to raise revenue through taxation, rather than inflation, a task not so easily achieved. Without a gold standard, the government is free to conspire with the Fed to print money without limit. Under the gold standard, the supply of money regulates itself. What the government and the Fed are doing now is creating the spread of mass misery for most people in the U.S., people they were mandated to serve.

Can the gold standard be reinstituted? Certainly it can. The dollar can be redefined in terms of gold. Interest rates can reflect the real laws of supply and demand. The doors of the Fed can be permanently shuttered and no one would miss it except for the few who benefited from its policies. What would motivate us to do this? We would have to be willing to renounce our enslavement. We would have to fall in love with freedom again.

What we can do

The outcry for the abolition of the Federal Reserve is growing louder. Commodities investor par excellance Jim Rogers is calling for the Fed to be abolished to save the world from massive inflation. TV host Glenn Beck is criticizing the Fed for its role in the current financial debacle. According to Beck, “When everyone was meeting with our Secretary of Treasury Henry Paulson, I thought to myself: ‘Who the hell is representing the American people?’”

Wall Street Journal financial editor Steven Moore is asking, “Who elected Ben Bernanke? Who Elected Alan Greenspan?”

The time is right. People have had enough. Now is the time for Americans to come out of their debt induced comas and start calling their congressmen and women, asking them to support Paul’s bill to abolish the Federal Reserve. The Federal Reserve is as deadly to the future of Americans as the FDA and the pharmaceutical industry. There can be no end to these manufactured financial crises until the Fed’s rule is replaced by an honest, debt-free money policy.

See Mike Adam’s wonderful article about the threat posed to you by the Federal Reserve. It contains a listing of the members of Congress if you need to find out who your representatives are. Call them, email them and write them that you are vehemently opposed to the continuation of the Federal Reserve. Tell them you support the passage of House Resolution 2755.