The Illegal, Unconstitutional Income Tax in America – Never Ratified by the States

Posted by: Phil Jayhan

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Chapter 2.4: The Federal Income Tax
Collecting the interest payments for the owners of the Federal Reserve

The Federal Income Tax

With the Illuminati in complete control of our monetary system, they were ready for the next step. They couldn’t touch the money of the people, because the Constitution did not contain any provision for the taxing of income; so they now set into motion a plan to accomplish this, in order to oppress the middle class, and increase the lower class, who would have to depend on the government for their survival.

From 1862-72, to support the Civil War effort, Congress enacted the nation’s first income tax: 3% on incomes from $600 to $10,000, and 5% for incomes above that, which was later deemed to be insufficient, and it was increased twice, till it reached a high of 10% on all incomes over $5,000. The tax was criticized because it wasn’t apportioned among the states according to population. The Act of 1862 also provided for a sales tax, excise tax, and inheritance tax; and established the office of Commissioner of Internal Revenue, who was given the power to assess, levy, and collect taxes, and was given the authority to enforce tax laws. In 1868, tobacco and alcoholic beverages were taxed.

The income tax was discontinued in 1872, but after heavy lobbying by the Populist Party, it was reinstated in 1894, as part of the Wilson-German Tariff Bill, when Congress enacted a 2% tax on all incomes over $4,000 a year. On May 20, 1895, the U.S. Supreme Court ruled that the tax was unconstitutional, because it was not distributed among the states in accordance with the Constitution. Newspapers controlled by the Illuminati denounced the Court’s decision.

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When the income tax legislation was introduced in the Senate in 1894, Sen. Nelson W. Aldrich had come out against it, saying it was “communistic and socialistic,” but in 1909, he proposed the 16th Amendment to the Constitution, with the support of President Taft, which called for the creation of a progressive graduated income tax. It was ratified in February, 1913, and levied a 1% tax on all incomes over $3,000, and a progressive surtax on incomes over $20,000. Although praised by reformers, conservatives said it was “a first step toward complete confiscation of private property.”

According to a 2-volume investigative report called The Law That Never Was, by William J. Benson (who had been a special agent with the Illinois Department of Revenue for 10 years) and M. J. ‘Red’ Beckman, on February 25, 1913, shortly before the end of his term, Secretary of State Philander C. Knox ignored various irregularities, and fraudulently declared that the 16th Amendment had been ratified by three-fourths (or 36) of the 48 states. Benson traveled to all the State archives and to the National Archives in Washington, DC, obtaining more than 17,000 pages of documents, all properly notarized and certified by state officials, that proved that the 16th Amendment was never [properly] ratified.

A 16-page memo dated February 15, 1913, to Knox from his solicitor stated that only four states had “correctly” ratified the amendment, that Minnesota had not forwarded their copy yet, and that the resolutions from 33 states contained punctuation, capitalization, or wording different than the Resolution that was approved by Congress. The memo read:

“In the certified copies of the resolutions passed by the legislatures of the several states ratifying the proposed 16th amendment, it appears that only four of these resolutions (those submitted by Arizona, North Dakota, Tennessee and New Mexico) have quoted absolutely accurately and correctly the 16th amendment as proposed by Congress. The other thirty-three resolutions all contain errors either of punctuation, capitalization, or wording. Minnesota, it is to be remembered, did not transmit to the Department a copy of the resolution passed by the legislature of the state. The resolutions passed by twenty-two states contain errors only of capitalization or punctuation, or both, while those of eleven states contain errors in the wording…”

Benson discovered that some word changes and misplaced commas were done by legislative intent. State Legislatures voting to ratify a proposed Constitutional amendment must use a certified, exact copy, as passed by the Congress. Since this was not done, legally, the Government can only collect an income tax within the guidelines set forth by the Supreme Court in Pollock v. Farmers Loan & Trust Co., 157 U.S. 429 (1895), and all sections of the Internal Revenue Code based on the 16th Amendment are not valid.

  • Rhode Island, Utah, Connecticut, New Hampshire, Kentucky, Florida, Virginia, and Pennsylvania did not approve or ratify the amendment.
  • Texas and Louisiana were forbidden by their own state constitution to empower the federal government to tax their citizens.
  • Vermont and Massachusetts rejected the amendment with a recorded vote count, but later declared it passed without a recorded vote only after the amendment had been declared ratified by Knox.
  • Tennessee, Ohio, Mississippi, California, and Washington violated their own state constitutions during their ratification procedures.
  • Minnesota had not sent any copy of its resolution to Knox, let alone a signed and sealed copy, as was required by law.
  • Oklahoma, Georgia, and Illinois had made unacceptable changes in the wording, as did some of the above states (in addition to the other unacceptable procedures).

When you deduct these 21 states, you only had a proper ratification by only 27 states, far less than the Constitutionally-mandated 36. Because of his diligence, Benson was arrested and imprisoned on income tax charges, but later released.

The Stock Market Crash and the Great Depression

The Federal Reserve Board held a secret meeting on May 18, 1920, to plan a depression. Large banks began calling in loans, causing stocks to drop from a high of 138.12 in 1919, to a low of 66.24 in 1921. When the value of government bonds plummeted, they were forced to call in even more loans. When thousands of the banks’ customers could not pay their notes, the banks seized their assets.

After 1922, profits rose, and with the Federal Reserve’s ability to lend ten times more than their reserves, credit was easily obtained. From 1923 to 1929, $8 billion was sliced off of the deficit. The Reserve expanded the money supply by 62%, and this excess money was used to bid the stock market up to fantastic heights. The media began publicizing that there was an enormous profit to be made from the stock market. This push was planned at a meeting of the International Bankers in 1926, who made the boom possible, and who was going to bring about financial disaster later.

In 1928, the House hearings on the “Stabilization of the Purchasing Power of the Dollar”, revealed that the Federal Reserve Board had met with the heads of various European central banks at a secret luncheon in 1927 to plan what they believed might be a major crash. On February 6, 1929, after Montagu Norman, Chairman of the Bank of England, came to the United States to meet with Andrew Mellon, the Secretary of Treasury, the Reserve reversed its monetary policy by raising the discount rate, and during the next few months, after Paul Warburg had issued a tip in March, 1929, Illuminati members, who knew what the future held, got their money out of the stock market, reinvesting it in gold and silver. In the year before the crash, 500 banks failed.

On October 24, 1929, the New York banking establishment began calling in their loans, forcing their customers to sell stock at ridiculously low prices in order to pay off the loans. Stock prices fell by 90%, and U.S. Securities lost $26 billion. Thousands of smaller banks and insurance companies went bankrupt, and people who had been millionaires, were now broke. To prolong the depression after the crash, from 1929 to 1933 the Reserve began to reduce the money flow by one-third.

The Great Depression, as it became known, was engineered by the Illuminati to take money from the people, and to make them dependent on the Government through the subsequent New Deal programs of Roosevelt. Congressman Louis T. McFadden, Chairman of the House Banking and Currency Committee said:

“It was no accident. It was a carefully contrived occurrence … The International Bankers sought to bring about a condition of despair here so they might emerge as the rulers of us all.”

In his book My Exploited Father-in-Law, Curtis Dall (son-in-law of Franklin D. Roosevelt) wrote:

“The depression was the calculated “shearing” of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market … The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.”

To a limited extent, this same method was used to create minor “depressions” in 1937, 1948, 1953, 1956, 1960, 1966, 1970, and 1979.

The Federal Government Siezes Power from the States

According to Article I, Section 8 of the Constitution of the United States:

“The Congress shall have power … to exclusive legislation in all cases whatsoever, over such district (not exceeding ten miles square) as may, by cession of particular States and the acceptance of Congress, become the seat of the Government of the United States, and to exercise like authority over all places purchased by the consent of the legislature of the State in which the same shall be, for the erection of forts, magazines, arsenals, dockyards, and other needful building…”

This passage reveals the true intention of our forefathers, which was for the Federal Government to coordinate the efforts of all the States in order to combine their resources when it came to things like trade and defense, since the States were actually like separate countries. Therefore, the Congress only had jurisdiction over the area of Washington, D.C.; territories like Alaska and Hawaii (before they became states); present [non-state territories] of Puerto Rico, Virgin Islands, Guam, American Samoa, and others; and Federal property such as military bases. This area [of jurisdiction] will be hereinafter referred to as the “District” (as in the District of Columbia), as it is in the United States Code (see 26 USC 7701(a)(1), and 26 USC 3121(e)(1)).

Since America is a Republic, and not a democracy, the Government has a responsibility to protect the inalienable rights of its citizens, as granted by the Constitution, rather than to grant privileges, known as civil rights, which are decided by the will of the majority. When the sovereign state citizen gave power to the State Constitution, which created State Government; this in turn gave power to the U.S. Constitution, which created the Federal Government; which has, in a sense, incorporated and gave power to the United States Government; which has turned the U.S. citizen into a subject of the U.S. Government. Therefore, the Federal Government has been able to wield its influence over the entire country, rather than just the area referred to as the District.

This is possible, because, for all intents and purposes, there are two of every state. For example, the official name of Pennsylvania is the Commonwealth of Pennsylvania ; but to the U.S. Government, it is known as the State of Pennsylvania. There are even two state flags. One with a gold fringe, which represents the State of Pennsylvania, and martial law under the U.S. Government; and one without the fringe, which represents the Commonwealth of Pennsylvania. The gold-fringed flag was reserved for use by the General of the Army, where it was present at military headquarters and displayed at court martials. Its use elsewhere, as a government battle flag, was only to be done at the discretion of the President, within his role as the Commander-in-Chief of the military, to establish the jurisdiction of the military presence. This gold-fringed flag, which is common in many public places, such as courthouses, and schools, is not the national flag which represents our constitutional republic. It is a symbol of federal government jurisdiction.

The Abuse of “Emergency Powers”

When Franklin D. Roosevelt was inaugurated on March 4, 1933, he called for an emergency session of Congress on March 9th, where the “Emergency Banking Relief Act” (also known as the “War Powers Act”, which seized all the country’s constitutional gold and silver coinage) was passed. This gave FDR the power to issue any order and do anything he felt was necessary to run the country, without restriction, by authority of the “Trading with the Enemy Act” of October 6, 1917 (which had placed all German citizens under the authority of the President, because they were enemies of the U.S.).

In 1917, Chapter 106, Section 2, subdivision (c), of the “Trading with the Enemy Act”, defined the Enemy as someone “other than citizens of the United States…” and in 1933, according to Chapter 106, Section 5, subdivision (b), the Act designated as the Enemy “any person within the United States.”

America was under the authority of an emergency war government. According to the book Constitution: Fact or Fiction by Dr. Eugene Schroder (with Micki Nellis), our Constitution was actually nullified on March 9, 1933, when President Franklin Roosevelt declared a national emergency. As recorded in Congressional Record in 1933, Rep. James Buck said: “…the doctrine of emergency is the worst. It means that when Congress declares an emergency, there is no Constitution. This means it’s dead.” Senate Report 93-549 (Senate Resolution 9, 93rd Congress, 1st Session) in 1973 said that:

“[since 1933] the United States has been in a state of declared national emergency … A majority of the people of the United States have lived all their lives under emergency rule. For 40 years freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency…”

The Act was never repealed after World War II, [and after] Roosevelt died, Truman used the extraordinary powers he gained through the rewriting of the War Powers Act to establish the National Security infrastructure, which included the C.I.A. [See the National Security Act of 1947 –ed]

The “national emergency” technically ended on September 14, 1976, when the 93rd Congress passed H.R. 3884, the “National Emergencies Termination Act” (50 USC 1601, Public Law 94-412) in response to President Richard Nixon‘s abuse of the “Trading with the Enemy Act”, which was part of Roosevelt’s emergency legislation. Though he had promised an end to the U.S. involvement in the Vietnam War, he actually escalated the war by authorizing the secret bombing of Cambodia. And then later, in December, 1972, Nixon ordered American B-52’s to drop over 36,000 tons of bombs over Haiphong and Hanoi. Congress then appointed the Special Committee on the Termination of the National Emergency, headed by Sen. Frank Church (D-ID), who began having hearings in July, 1973. Even though it appeared that the emergency legislation was repealed, the last paragraph said that it didn’t apply to any “authorities under the act of October 6, 1917, as amended.”

Chuck Morse wrote in his article “Is the ‘National Emergency of FDR’ Still In Place?” that:

“This was a classic example of sleight of hand. In fact, Congress exempted all laws, based on the emergency of 1933 that were already in place. Rather than being based on the authority of the President under a ‘national emergency’ these federal laws would now be codified as a permanent part of the U.S. Federal Code. Included among the codified laws would be Section 5(b) of the Trading with the Enemy Act, which classifies the American citizen as an enemy of the government.”

The declaration of a National Emergency can legally empower the President to suspend the Constitution. According to Senate Report 93-549:

“[the] President may: Seize property, organize commodities, assign military forces abroad, institute Martial Law, seize and control transportation and communication, regulate operation of private enterprise, restrict travel, and in a plethora of particular ways, control the lives of all American citizens.”

President Carter declared a new national emergency in 1979 during the Iranian hostage crisis, and Bill Clinton, during his two terms in office, declared 12 National Emergencies. A 1976 Senate report noted that there were 470 extraordinary grants of power to the President, during times of National Emergency. [Those powers have since been expanded by the 2001 “Patriot Act” and successors –ed]

The U.S. Federal Government is a Bankrupt Entity

Because of Executive Orders 6073, 6102 (gold confiscation), 6111, 6260 and 6262 by President Franklin D. Roosevelt, it is believed that the District went bankrupt in 1933, and since then, has undergone various “reorganizations.” The Secretary of Treasury was appointed “receiver” in the bankruptcy (Reorganization Plan, No. 26, 5 U.S.C.A. 903; Public Law 94-564; Legislative History, pg. 5967). Representative James A. Traficant, Jr., of Ohio, according to the Congressional Record (pg. H1303), on March 17, 1993, said:

“Mr. Speaker, we are now in Chapter 11 [bankruptcy]. Members of Congress are official Trustees presiding over the greatest reorganization of any bankrupt entity in world history, the United States government…”

It was in 1933 that FDR enacted the “Social Security Act”, which effectively redefined the word “employee” to indicate “government worker.” Then came the “Public Salary Tax Act” in 1939, which gave the U.S. Government the power to levy a tax on those people who were either government employees, or who lived and worked in a “Federal Area.” A year later, the Buck Act was passed, which gave the U.S. Government the power to create a “Federal Area” so they could levy the Public Salary Tax. Since it was unconstitutional to tax anyone outside of the jurisdiction of the District, this Act, in Section 110(d) and (e), made the land within the territorial boundaries of a State, a “Federal Area.” This, in effect, created a paper state, known as a Federal Area, for the purposes of the U.S. Government; and those people who were sovereign state citizens, now found themselves also living in this Federal Area. Now the U.S. Government had to make that citizen one of their subjects by bringing them under the jurisdiction of the District.

This was accomplished by deceiving the citizen into entering an adhesion contract with the U.S. Government, such as a Social Security application, an Income Tax form, a Driver’s License application, a Bank Account application, and other similar things. Contrary to what most people believe, it is not mandatory to apply for a Social Security number; however, in order for a sovereign state citizen to be eligible for Social Security benefits, they have to waive the rights given to them under our Republic.

Probably, the most incredible example of the adhesion contract is the Income Tax system. In 1884, it was accepted that the “property which every man has is his own labor (and) as it is the original foundation of all other property, so it is the most sacred and inviolable.” Therefore, since “wages” are received as compensation for labor, it can not be legally taxed. “Income” is the process of profiting from a business (someone else’s labor) or investments, and is taxable, as in [the case of] a Corporation, which is an artificial entity which is given the right to exist by the State. The Constitution only allows the Congress to collect uniform “excise” taxes on things involving interstate commerce, such as gasoline, alcohol, tobacco, telephone bills, firearms, and tires. The payment of these taxes is voluntary, because they are based on consumption. These funds go directly to the U.S. Treasury to pay the expenses of the Federal government.

Because we live in a Republic, the Internal Revenue Service Code, Title 26 USC, could not be passed into law by the Congress, and instead, was passed only as a Resolution, which is a formal expression of intent that was to pertain only to citizens of the District. So, how do they make you a citizen of the District? In the upper left-hand corner of the 1040 Federal Income Tax form is a place to put your preprinted address label, which is designated with the words “label here.” However, to the left of that is the word “label,” which seemingly identifies the entire section as a whole. However, the word “label” actually has another legal meaning that has nothing to do with your name and address. According to Black’s Law Dictionary, “label” is defined as: “A slip of ribbon, parchment, or paper, attached as a codicil to a deed or other writing to hold the appended seal.” Since your “seal” is your signature, the “label” is actually a codicil which indicates you are waiving your constitutional right as a sovereign state citizen to become a citizen of the District and its Federal Area.

The IRS is a Private Collection Agency for the Fed

The Internal Revenue Service is considered to be a Bureau of the Department of the Tresaury; however, like the Federal Reserve, it is not part of the Federal Government (Diversified Metal Products v. IRS et al. CV-93-405E-EJE U.S.D.C.D.I.; Public Law 94-564; Senate Report 94-1148, pg. 5967; Reorganization Plan No. 26; Public Law 102-391), and in fact was incorporated in Delaware in 1933. It is pointed out that all official Federal Government mail is sent postage-free because of the franking privilege, however, the IRS has to pay their own postage, which indicates that they are not a government entity.

They are in fact a collection agency for the Federal Reserve, because they do not collect any taxes for the U.S. Treasury. All funds collected are turned over to the Federal Reserve. If you have ever sent a check to the IRS, you will find that it was endorsed over to the Federal Reserve. The Federal Reserve, in turn, deposits the money with the International Monetary Fund, an agency of the United Nations (Black’s Law Dictionary, 6th edition, pg. 816), where it is filtered down to the International Development Association (see Treasury Delegation Order No. 91), which is part of the “International Bank for Reconstruction and Development”, commonly known as the World Bank. Therefore, it is now clear that the American people are unknowingly contributing to the coming World Government.

The Secretary of the Treasury is the “Governor” of the International Monetary Fund (Public Law 94-564, supra, pg. 5942; U.S. Government Manual 1990/91, pgs. 480-81; 26 U.S.C.A. 7701(a)(11); Treasury Delegation Order No. 150-10). The United States has not had a Treasury since 1921 (41 Stat. Ch. 214, pg. 654) and for all intents and purposes the U.S. Treasury is the IMF (Presidential Documents, Volume 29, No. 4, pg. 113; 22 U.S.C. 285-288).

Chief Justice John Marshall said: “The power to tax involves the power to destroy.” Alan Keyes, the former ambassador to the U.N., who ran for President in 2000 said:

“We ought to have realized that the income tax is utterly incompatible with liberty. It is actually a form of slavery. A slave is someone the fruit of whose labor is controlled by somebody else. A slave is not somebody with nothing. Rather, he has only what the master lets him have …Under the income tax, the government takes whatever percentage of the earner’s income it wants. The income tax, therefore, represents our national surrender to the government of control over all the money we earn. There are, in principle, no restrictions to the pre-emptive claim the government has.”

The income tax was intended to rob the earnings of the low and middle class; or as the saying goes, “the more you make, the more they take.” However, the tax didn’t touch the huge fortunes of Illuminati members. The tax was an indication that the U.S. was heading for a planned war, because they couldn’t go into a war without money. Since the tax provided less than 5% of total Federal revenues, increases were later made to accommodate World War I, FDR’s New Deal, and World War II. In July, 1943, workers in this country were subject to a payroll withholding tax in the form of a “victory tax” that was touted as a temporary tax to boost the economy because of the War, and would later be discontinued. However, the payroll deduction remained because it forced compliance.

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