http://www.parascope.com/articles/0397/tax_01.htm{snip}
In 1942, Congress needed money for the war effort and passed a Constitutional two-year income tax called the Victory Tax. FDR invented the Voluntary W-4 Tax Withholding system, making income tax and withholdings mandatory for all citizens of the Union. Again, this was a two-year tax, and as expected, both the Victory tax and W-4 withholdings legislation were repealed by Congress in 1944.
Unfortunately, they forgot to tell America.
Under the disguise of the 1913 Internal Income tax, the machinery of the Victory tax remained in operation. Voluntary compliance with the Federal internal income tax jumped from an anemic 5 percent to a robust 60 percent in a matter of a couple years via the repealed Victory tax system of tax collection.
By using two illegitimate tax systems, Congress created the beast we have today, taxing us under rates and conditions exceeding those which prompted the Boston Tea Party and the Declaration of Independence.
You may have heard the rumblings, a whisper here, a thinly-veiled news report there. IRS Commissioners complain that 34 million Americans no longer file personal income taxes. Most people are smart enough to see the obvious flip side of those figures: 30 to 40 percent of America doesn't file and pay the Federal income tax.
I fall in that 30 to 40 percent category. I am often questioned by people about how I have "survived" non-compliance for nearly a decade without going to prison. Although this is an easy question for me to answer, it's very difficult for most people to understand.
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