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Talk Is Cheap


Everybody complains about the overgrown, arrogant federal government, but nobody actually does anything about it.  Nobody, that is, except real Americans like 'Cracking the Code-...' warriors Mark B__ and Carmen Dagostino, who know the difference between talking the talk and walking the walk.  These American heroes recognize the distraction and insignificance of merely arguing about the best arrangement of the deck chairs on the Titanic, and have gone down to the engine room to make something meaningful happen.


Carmen and Mark have insisted that their servant government abide by the written law, and have secured complete refunds of everything withheld from them for taxes by the federal Leviathan during 2004.  Celebrate their victories on behalf of the rule of law and a better future for all of us at www.losthorizons.com/tax/MoreVictories4.htm.


Crack the Code and Learn the Truth


Those of you who are still in denial regarding the nature of the law as revealed in 'Cracking the Code- The Fascinating Truth About Taxation In America': Wake Up!


Actually, those in denial fall into two categories.  One category consists of those who suspect the truth but avoid it, due to recognizing that knowledge brings with it a duty to act, and not wanting to be bothered.  If you're in this group, I have this to say to you (borrowing the words of Samuel Adams):


"If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you. May your chains set lightly upon you; and may posterity forget that ye were our countrymen." 


Do those words seem hokey to you?  That's why I really mean them.  Really.  Don't wake up-- just go.


The others in denial are honest skeptics.  If that describes you, my words for you are these: "It can’t be true,” is not the intellectual equivalent of, “Having studied your presentation with due care and objectivity, I can (or must) dispute [this or that contention, conclusion, etc.]…” 



Those of you who are already awake:


Please forward this message as widely as possible.  Then firmly resolve-- this very evening-- to stand up alongside Carmen and Mark and do your part to remind the people who work for you that the law says what it means, and means what it says; and Americans worthy of their heritage won't have it any other way.


Do You Know What You Aren't?


Suppose you went out to your mailbox one afternoon and found a notice from Sears, Roebuck & Co. instructing all employees to report to the nearest company office for a staff meeting the next day.


Would you go?


If you didn't work for Sears?


That'd be pretty stupid, wouldn't it?


So, when you're presented with a notice from the United States government instructing all employees to do this or that, why would you do whatever it says, if you don't work for the United States government?




How about you business owners?  Suppose you found a notice on Sears letterhead in your mailbox one day declaring that anyone to whom employees report is to send information on all salaries paid during the past year to the main office.


Would you send Sears such a list?


If your company was not a division of Sears?


That'd be pretty stupid, wouldn't it?


So, when you're presented with such a notice on United States government letterhead, why would you do what it says, if you're not a division of the United States government?



Philosophers are of one mind that knowing what you are is highly important, and might well require a lifetime of disciplined contemplation.


Knowing what you aren't can be just as important, but isn't so demanding-- it just takes a little research.



 I'm guessing 'Cracking the Code-...' warriors Mel Gerstenkorn and Lanora Cox have a pretty good handle on what they aren't.


Mel has just received a federal refund for 2001 to add to those already posted for 2002, 2003 and 2004. Enjoy Mel's victories for the rule of law at www.losthorizons.com/tax/MoreVictories2.htm.


Lanora has just received her first refunds since learning what the law actually says: Every penny withheld from her as taxes-- Social Security, Medicare and all-- by the federal government and the government of California during 2004.  The evidence of Lanora's successful insistence that her governments abide by the law is posted at www.losthorizons.com/tax/MoreVictories3.htm.

Do You Know What YOU Aren't?


Why Someone Becomes A 'Cracking the Code-...' Warrior

A Brief Profile Of Today's True American Heroes


She knows how to read.


She reads Article 1, Section 9 of the United States Constitution:

"No capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken."

She looks up the definitions of 'direct tax' and 'capitation':

“Direct Tax: One which is demanded from the very persons who it is intended or desired should pay it."  Black's Law Dictionary, 5th edition.


"Capitation: ...an imposition which is yearly laid on each person according to his estate and ability."  Bouvier’s Law Dictionary, 6th Edition


"The taxes which, it is intended, should fall indifferently upon every different species of revenue, are capitation taxes,..."  "[As applied to the working class,] Capitation taxes... ...are direct taxes upon the [earnings] of labour,..."  Adam Smith, 'The Wealth of Nations' (1776)

She notes that the Supreme Court clearly declares that Article 1, Section 9 remains the unadulterated law of the land:

“We are of opinion, however, that the confusion is not inherent, but rather arises from the conclusion that the 16th Amendment provides for a hitherto unknown power of taxation; that is, a power to levy an income tax which, although direct, should not be subject to the regulation of apportionment applicable to all other direct taxes. And the far-reaching effect of this erroneous assumption will be made clear by generalizing the many contentions advanced in argument to support it...”

“But it clearly results that the proposition and the contentions under it, if acceded to, would cause one provision of the Constitution to destroy another; that is, they would result in bringing the provisions of the Amendment exempting a direct tax from apportionment into irreconcilable conflict with the general requirement that all direct taxes be apportioned."  United States Supreme Court, Brushaber v. Union Pacific R. Co., 240 U.S. 1 (1916)


He knows how to think.


He recognizes that according to what he has read, the income tax has to be unconstitutional-- unless there is something about it that he doesn't know.


She knows how to educate herself.


She reads 'Cracking the Code- The Fascinating Truth About Taxation In America' and finds the keys to the puzzle.


On the pages of 'Cracking the Code-...' she sees, for the first time, the 'fine print' in the income tax law which the IRS and the multi-billion dollar tax compliance industry somehow never get around to sharing with the average American.  She learns the extremely narrow legal meanings of the terms "income", "wages" "employee", "trade or business" and others, which are fundamentally different in the law from the common words that most people take them to be.  She recognizes that by virtue of those specialized meanings, the tax actually only applies to people engaged in certain kinds of voluntary, out-of-the-ordinary activities, and thus IS completely Constitutional-- and is also completely different from what Americans are led to believe by letting themselves be shown only carefully selected little snippets of the law, with that critical 'fine print' left out.


Furthermore, she learns exactly how she, like most other Americans, is made to appear to be engaged in those voluntary, out-of-the-ordinary activities to which the tax does apply, even when she is not-- and what can be done about it.


He respects the law.


He recognizes that to let his earnings continue to be characterized as "income" when they are not is to undermine one of the basic principles of the Rule of Law-- that the law must say what it means, and mean what it says.   He understands that when the government is allowed to treat the words of any law as meaning what they do not, the " law" quickly becomes a tool of self-serving corruption-- and eventually a tool of oppression.


Today's Featured 'Cracking the Code-...' Warrior Is Kenny Holmes


Kenny knows how to read, think and learn.  Kenny respects the law.  Kenny has stood up and taken action, using his comprehensive knowledge to insist that the law be obeyed.  During the last 60 days, the federal government, and the government of Kenny's home state of New York, have been responding-- by following the law.


Thus far, Kenny has received a complete refund of every penny withheld from him and given to the state of New York for "income" taxes during the past three years.  He has also (so far) received a refund of the majority of what was withheld from him and given to the federal government for "income" taxes during 2004-- and a formal acknowledgement that all but $12 of his earnings for that year DID NOT constitute "income".  All told, Kenny has had more than $24,000.00 of his money returned to him over the last two months.


Scans of Kenny's refunds have been added to those of the many other 'Cracking the Code-...' warriors who have stood up, reclaimed their property from the federal and various state governments, and then generously shared their victories on behalf of the rule of law with their fellow Americans.  They can be seen at www.losthorizons.com/tax/MoreVictories3.htm.


Do You Know How To Read, Think and Learn?  Do You Respect The Law?




The Ranks Of Americans Standing Up For The Law Continue To Swell!


Joyce Mealing-Easley has read the law and insisted that it be obeyed.  She has received a total refund of everything withheld from her and given to the federal government for 2004.  The evidence of the blow she has struck against the corrupt beneficiaries of tax-law ignorance can be seen at www.losthorizons.com/tax/MoreVictories3.htm.


Dave Wagner tells me that just one week prior to receiving his copy of 'Cracking the Code-...' the people at H&R Block-- undoubtedly having made no effort whatsoever to determine whether Dave's earnings did or did not qualify as "income" (I speculate here, but with high confidence...)-- concluded that he owed the federal government $2000.00 for the year over and above what had already been withheld from him.  Dave read CtC and came to a rather different conclusion.  Who was right?  Dave has just received the complete refund of everything withheld from his earnings and given to the federal government for taxes during 2004.  Dave's refund check is on display at www.losthorizons.com/tax/MoreVictories3.htm.


And Michael and Janice Bernard have enjoyed a particularly pleasing victory, receiving a complete refund of almost $8,000.00 garnisheed from Janice's earnings in connection with an alleged liability for the year 2000.  See the details at www.losthorizons.com/tax/MoreVictories3.htm.



Despite the constant (and occasionally highly detailed) acknowledgments of the earth-shaking, life-changing truths in 'Cracking the Code- ...' by the federal and state governments, such as those celbrated above, the media near-blackout continues.  Similarly, many "leaders" of the so-called "tax honesty movement" remains stubbornly silent about CtC.  What a shame.


And what an irony.  The IRS is admitting the accuracy of 'Cracking the Code-...' on a daily basis, while self-professed "adamant enemies of the income tax" refuse to.  Some of these prominent and influential "leaders" appear to be so heavily invested in one or another misunderstanding about the "income" tax as to be unwilling to acknowledge the contrary truth out of sheer pride.  Others have doubtless concluded that if it becomes widely-known that the problem over which they have made a career (or at least a bid for fame) has been solved, they're out of a gig.  Applying the reasoning that when an honest but mistaken man learns of his error, he either [forthrightly] ceases to be mistaken, or ceases to be honest, I have begun thinking of some of these 'leaders' as being part of the "tax DIS-honesty movement".


Well, each man's conscience is his own business.  The point of mentioning this is that the critically important spreading-of-the-word is in your hands.  Those blessed with public voices clearly cannot be relied upon in this regard.  PLEASE DO WHAT YOU CAN TO HELP.  Forward this email widely.  EVERYONE in your address book will be interested.  Also, please help distribute the press release posted at www.losthorizons.com/tax/PressRelease.htm.


A Lost Horizons "Income" Tax Subject Site Map


The Lost Horizons Bulletin Board


The Lost Horizons Forum


If Only I Could Afford To Run This On National TV…


    The scene comes into focus on an IRS auditor’s office.  The auditor is behind his desk and a ‘tax professional’ is on the other side.  A thick file folder lies on the desk and a few forms and other papers are spread out.

    The auditor is saying, “I’ll want $2500 from your client.  I’m going to disallow these deductions and add $1000 in penalties and interest”.

    “No, give them the home office expenses and waive the interest on the rest,"  the professional responds.  "You’ll still nick ‘em for $1800-- which’ll make your supervisor happy-- and they’ll have just enough left to pay my bill”.

    “Yeah, OK,” the auditor replies, “But you owe me.  I’ll get it out of that Smith fellow we’ll be meeting about next Tuesday.  His wallet’s fat.”

    They both laugh.


    The professional gathers up the loose papers from the desk and slips them into his briefcase, then rises and puts on an expensive overcoat.  He stops for a moment with his hand on the doorknob and asks, with a twinkle in his eye, “Do you ever wonder what they would all do if they found out the truth?”

    The auditor’s eyes narrow.  “What, about the real meaning of 'income'?  Bite your tongue!  We’d both be ridden out of town on a rail.  Or worse.”  He tugs nervously at his collar, which suddenly seems disturbingly tight.

    The professional waves off the other’s concern.  “It’d never come to that,”  he says dismissively, “This is a civilized country.  Besides, they’d all have so much money to spend, they wouldn’t have time for recriminations.”  Both men chuckle.  As the professional opens the door and walks out into the hallway, the auditor says, “OK, you’re right.  Necktie parties are unlikely.  But we’d both be in the poorhouse.”

    The professional stops and turns.  "Well, don’t even worry about that,”  he replies.  “After all, who do they ask when they want to know what the law says?”  Both men laugh again.  “Right you are,” agrees the auditor, “See you Tuesday.”


    They wave, and the professional turns again to go.  As his smiling face approaches the camera’s view the scene fades to a Corvette zipping along a country road on a beautiful autumn day, overwritten with the message:


"The average American, burdened with the “income” tax, can afford a Kia.  The same American, free of the “income” tax, could afford a Corvette. "

Learn the Truth




Alternate ending: A mom sharing a happy and wholesome moment with her several children, with the message:

"One person’s earnings burdened with the “income” tax aren’t enough to let many families truly make ends meet.  The same earnings without the “income” tax can allow one parent to stay home and raise the kids. "

Learn the Truth




  Or, a montage of a man and his elderly father watching breakers roll in to shore beneath a beautiful sunset; a woman doing volunteer work in the local hospital; a man standing to speak at a city council meeting; a woman back in school studying the classics; with the message:

"A lot of people burdened with the "income" tax find it necessary to work long hours of overtime, or even take second jobs.  Without the tax, there's a lot more time for the really important things in life."

Learn the Truth




“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”

-James Madison




Click here to enjoy and appreciate the victories of a growing host of Americans who have insisted that the law be obeyed by their servant government.  If you are lucky enough to know any of these fine folks, salute them and thank them.  They're standing tall for YOUR rights as well as their own.


Click here to see what readers-- including doctors, nurses, lawyers, paralegals, CPAs, university professors, business men and women, and Americans from every other walk of life-- have to say about 'Cracking the Code- The Fascinating Truth About Taxation In America', the one book that shows what the law actually says.

Please pass this message along; and please think hard about your own responsibility for upholding the Rule of Law.


You Can’t Fight Back When You Don’t Know What You’re Fighting About.


If you are contending with the IRS over a supposed personal liability,

  • You are NOT being presumed to have made “corporate profit".

  • You are NOT being alleged to have received “foreign income”.

  • You are NOT entangled in an invisible “adhesion contract”.

  • You are NOT being held accountable to a law with no subject.

You ARE being targeted because REAL EVIDENCE exists that YOU PERSONALLY HAD “INCOME” to which the revenue laws apply-- even though that evidence is almost certainly incorrect.



  Crack the Code


What would you do...


...if the money you earned stayed in your pocket instead of financing the fat salaries, perks, and pensions of an army of bureaucrats who justify their existence by asserting that the close supervision of your every waking moment is a compelling government interest?


How much health insurance for your family, or school tuition for your kids, or more time to share with your loved ones could you afford with 25, 35, or even 45% more of YOUR OWN MONEY staying in your hands every year?  What small business could you launch; what fulfilling hobby, or charity work, or second career could you take up?  How much could you save for your own retirement or to pass along to your kids?