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Tag Archives: Supreme Court

          The official website of the Internal Revenue Service has a page titled “Brief History of IRS”.  It states there the following:  “The roots of the IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue and enacted an income tax to pay war expenses.”. 

          Here is the Act of Congress approved July 1, 1862, that the IRS cites as the origin of the position of commissioner of Internal Revenue:  Act of Congress approved July 1, 1862.  I have enclosed the first two pages of this Act and a later page that contains Section 89 of the Act, which is listed under the heading of “Income Duty”.  In Section 89 it states that it is modifying and reenacting a previous Act of Congress that relates to income tax.  In other words, the income tax was already in existence before the Act of Congress that the IRS relies upon for its origin.  The income tax is specified as being enacted in sections 49, 50, and 51 of the Act of Congress approved on August 5, 1861.

          The Act of Congress approved on August 5, 1861, “An Act to provide increased Revenue from Imports, to pay Interest on the Public Debt, and for other Purposes” created the income tax.  Here is a link to that Act of Congress:  Act of Congress approved August 5, 1861.

          I have enclosed the first page of this Act of Congress and the pages that contain the sections referenced above, sections 49, 50, and 51.  Section 49 implements the income tax and states that :  “The tax herein provided shall be assessed upon the annual income of the persons hereinafter named …”.  Then in section 50 the President is authorized to appoint assessors and collectors to assess and collect internal duties and income tax.  These are “the persons hereinafter named” from section 49 (along with other government officials) that are now subject to the income tax.  Section 51 then grants the assessors and collectors the power to levy those that are delinquent in their payments.

          The Act of Congress that the IRS cites for its origin reenacts the income tax laws, but does not any longer cite “the persons hereinafter named”.  This is one of the most important things to understand about the legislative draftsmen that write the laws – the original Act of Congress must be read in order to find the basic jurisdiction of the laws.  None of the later Acts of Congress that create, amend, or reenact an income tax actually cite to whom the tax applies.  This is consistent throughout the history of legislation in the United States.  Since the Declaration of Independence is the organic law of the land, and it states that “all men are created equal”, only the government’s own assessors and collectors could be subject to an income tax.  The income tax was implemented within an Act of Congress that concerned increasing revenue from imports – foreign commerce.

          In the 1870’s the Revised Statutes were written to help consolidate all the previous legislation of Congress.  Title XXXV of the Revised Statutes is Internal Revenue.  Section 3158 of the Revised Statutes defines the income tax return.  It states, in part, as follows:  “Every internal-revenue officer, whose payment, charges, salary, or compensation are composed, wholly or in part, of fees, commissions, allowances, or rewards, from whatever source derived, shall be required to render to the Commissioner of Internal Revenue, under regulations to be approved by the Secretary of the Treasury, a statement under oath setting forth the entire amount of such fees, commissions, emoluments, or rewards of whatever nature, or from whatever source received, during the time for which said statement is rendered…”.  I have enclosed a link to section 3158, along with the overall title page of the Revised Statutes and the heading page for Internal Revenue here:  Revised Statutes – Section 3158.  Note the use of the phrase “from whatever source derived” in this section.  This is obviously the predecessor of the 16th Amendment – the income tax.  The 16th Amendment reads as follows:  “The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”. 

          Since the income tax applies to the government’s own tax assessors and collectors it was naturally ruled to be constitutional by the Supreme Court.  The Supreme Court ruled that the Congress always had the power to institute an income tax and that no new powers of taxation were granted to the government by the 16th Amendment.  (For a more complete examination of the Supreme Court decisions, link to “The Supreme Court decisions concerning the 16th Amendment” here at on the “Posts for freedom” page of this Blog).

          When the federal government went bankrupt to the international counterfeiters in 1933 the Social Security scam was hatched.  A Social Security applicant is unknowingly becoming a federal employee who is receiving an undistributed dividend that is composed of income tax payments, thus turning that applicant into an internal revenue assessor and collector.  This is why the IRS states that this country’s income tax is based upon self-assessment. 

          Social Security is the most pernicious and destructive plot to undermine freedom ever devised by any government.  The United States government always talks about protecting the freedoms of Americans, while actually doing everything in its power to destroy freedom.  By taking an American’s money to do with whatever the government (actually the government’s masters, the international counterfeiters – the Federal Reserve) wishes an American’s vote has become meaningless.  As long as the government and its masters have an American’s money they will continue to undermine all freedom regardless of who is elected.    


I’ve just written a new Blog (February 25, 2014) that will confirm everything herein with even more Supreme Court decisions.  Everything here is still relevant, but what I have just recently uncovered that is the basis of my new Blog makes it even more important that this message gets out in front of the public.  Go to to read “Supreme Court Decisions Concerning the 16th Amendment, Sovereignty, and Corporations”.

The Supreme Court is bound by the Constitution.  In Article I, Section 8, the Constitution grants jurisdiction to the federal government to regulate three areas of commerce:  “To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes” – in other words, foreign commerce, interstate commerce, and Indian commerce.

The 16th Amendment, the income tax, has been the subject of many Supreme Court decisions.  The IRS always cites to the Brushaber v. Union Pacific R.R. Co., 240 U.S. 1 (1916), to inform the public that the income tax was held to be constitutional by the Supreme Court.  What the IRS doesn’t inform the public about Mr. Frank Brushaber, the central character in the Supreme Court case, is that he was a withholding agent for several foreign investors in the Union Pacific Railroad, acting as their fiduciary.

The Supreme Court, obviously being aware of all of the pertinent details, ruled in the Brushaber case that the federal government always had the power to tax income as an excise tax and, therefore, the 16th Amendment is constitutional.

The Supreme Court then ruled in the very next case it decided, Stanton v. Baltic Mining, 240 US 103 (1916), the following:  “… that by the previous ruling it was settled that the provisions of the Sixteenth Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged and being placed in the category of direct taxation subject to apportionment by a consideration of the sources from which the income was derived…”.  The “previous ruling” cited in the Stanton decision was referring to the Brushaber decision.

A few years later the Supreme Court again ruled upon the 16th Amendment’s effect on the federal government’s power of taxation.  In Peck & Co. v. Lowe, 247 US 165 (1918), the Supreme Court stated, in part:  “The Sixteenth Amendment … does not extend the taxing power to new or excepted subjects …”.

The Supreme Court decisions above all inform everyone that no new power of taxation was granted to the federal government by the 16th Amendment.  These decisions all inform everyone that the federal government always had the power to tax income from the beginning.  Since no new power of taxation was granted to the federal government by the 16th Amendment and the federal government was held to always have had the power to tax income, then the revenue that’s being derived by the federal government from an income tax must come from one of the regulated commerce jurisdictions granted to the federal government by the Constitution – therefore, this revenue must come from foreign commerce, interstate commerce, or Indian commerce.  After all, generating income is a commercial activity.

The Supreme Court ruled exactly that in Eisner v. Macomber, 252 U.S. 189 (1920), where the Court stated the following:  “The 16th Amendment must be construed in connection with the taxing clauses of the original Constitution and the effect attributed to them before the Amendment was adopted.”.

By realizing that Mr. Frank Brushaber was a fiduciary for foreign investors in the Union Pacific Railroad, it becomes obvious that the revenue being derived by the federal government from the income tax must come from foreign commerce.

After the Brushaber and Stanton Supreme Court decisions were rendered, the Treasury Department issued its own decision, Treasury Decision 2313 (TD 2313).  TD 2313 was issued to “collectors of internal revenue” and it stated that the Internal Revenue Form 1040 is to be used only by the fiduciary of a nonresident alien who has received interest from bonds and dividends on the stock of domestic (US) corporations on behalf of that nonresident alien.  This Treasury Decision, which was based upon the Supreme Court decisions, confirms the foreign commerce nature of the income tax.

The statutes that make up the Internal Revenue Code must, therefore, be read in mind with the above Supreme Court decisions as well as the following Supreme Court decision:

“It is elementary law that every statute is to be read in the light of the Constitution.  However broad and general its language, it cannot be interpreted as extending beyond those matters which it was within the constitutional power of the legislature to reach.” – McCullough v. Com of Virginia, 172 U.S. 102 (1898).

The Social Security scam was created to enslave free, sovereign Americans.  An American applying for a Social Security number has become a federal employee by joining a partnership (the Social Security number is the partnership number) that is attributing an undistributed dividend to that American as a partner in that partnership, said dividend being the link to foreign commerce that subjects that American to Treasury Decision 2313 and the requirement to file an Internal Revenue Form 1040.  The undistributed dividend, known as a patronage dividend within the Internal Revenue Code, is offset by the American’s foreign tax credit, FICA.

The Internal Revenue Form 1040 has a large section titled “Tax and Credits”.  Within that area are various credits that can be claimed by attaching the corresponding form, for instance:  Form 2441 for credit for child and dependent care expenses, Schedule R for credit for the elderly or the disabled, Form 8863 for education credits, Form 5695 for residential energy credits, Form 8880 for retirement savings contributions, etc.  However, the foreign tax credit line states “Attach Form 1116 if required”.  It only states “if required” because the Form 1040 automatically is claiming a foreign tax credit, FICA.  FICA is a possession tax as stated at 26 USC Section 7655, and the possessions are treated as foreign countries (26 USC Section 865 and Section 872 for example).  This makes FICA a foreign tax and it is the credit that is used to offset the earnings represented by the undistributed patronage dividend.

Social Security is the biggest fraud ever instituted – making a free, sovereign American nothing more than a subservient slave for the federal government.  The federal government (actually its owners, the international counterfeiters who have bankrupted the federal government) has had to contrive this incredible fraud in order to get around the bedrock of America – the Declaration of Independence which states that “all men are created equal”.  Since all men (and women) are created equal, no one American or group of Americans may initiate fraud or force against another American or group of Americans, including the government, which is simply made up of other Americans.  No one may convey a power to any government agent that that person does not have.  In other words, Americans can not vote to give a power to the government that Americans do not have to begin with.  The government and its owners, the international counterfeiters (the Federal Reserve) know that the government has no power over free, sovereign Americans.  The prohibition, the depression, and wars have all been masterfully engineered in order to get Americans to give up their sovereignty by enrolling in Social Security.

Actually, the 14th Amendment was ratified in order to prepare Americans to be treated as foreigners by creating the “U.S. citizen”.  The 14th Amendment speaks of a citizen born in the United States and subject to its jurisdiction.  As noted above, the federal government only has jurisdiction over foreign commerce, interstate commerce, and trade with the Indians.  An American is sovereign – a person born in one of the States is not subject to the federal government’s limited jurisdiction.  The Birth Certificate is actually used by the federal government to establish U.S. possession citizenship.  This makes one born in one of the States and subject to its jurisdiction since the federal government is given total control over its possessions – Article 4, Section 3, Clause 2 of the Constitution.  Go to to read “The 14th Amendment Destroyed American Sovereignty”.

Go to to see the actual jurisdiction of internal revenue.

Go to to see the actual Act of Congress that created the income tax.

Go to to see “The Bankers’ Blueprint to Destroy American Sovereignty”.