INTRODUCTION

“Many a man stumbles across the truth, then picks himself up and hurries on as though nothing had happened.”
-Winston Churchill

In 2003, I revealed the hidden mechanisms by which most Americans have been improperly subjected to the "income" tax for decades.  Shortly thereafter, I had the pleasure of displaying concrete corroborating  evidence-- furnished by the federal government itself-- of the truth of what I said.

This was not "evidence" of the sort offered by "tax honesty" entrepreneurs, which typically takes the form of a triumphant display of some out-of-context fragment of code, statute or judicial dicta capable of being perceived, if the light is right, as supportive of the huckster's assertions; or the announcement of having successfully slipped through the cracks for another year.  Nor was it even just more of the already-voluminous and comprehensive body of statutes, regulations, history, judicial rulings and logic of which 'Cracking the Code- The Fascinating Truth About Taxation In America' is comprised.

Instead, what I displayed to the eyes of any who would bother to look was an on-paper, explicit acknowledgement by the federal government that every penny of mine that had been taken from my earnings during 2002 in anticipation of an "income" tax thereon-- Social Security 'contributions' and all-- constituted an 'overpayment' (that is, was in excess of the amount owed as tax-- again, every penny).  This acknowledgement was accompanied by a full refund of all of that money-- $10,152.96-- even after an initial refusal by the IRS.  In every particular (and as is made unmistakable by the evidence posted-- including both what was filed, and what resulted), this occurred precisely as I said it would-- and for the reasons I said it must-- in CtC.  In several different ways, this event was a first in American history.

But it was far from the last such event.  Since that first acknowledgement of the unique accuracy of what is taught in CtC, and first complete refund, tens of thousands of CtC readers have received the same-- many for several years in a row, now.  Hundreds of thousands of explicit, unambiguous acknowledgments of many different kinds have now issued forth from federal and, so far, 35 state offices across America (along with a growing number of local tax offices, as well).

Readers have secured transcripts showing zero "income" and zero tax owed, have recovered money garnisheed away from them for old tax 'debts', have shut down liens and levies, seen 'Notices of Deficiency' evaporate, and much more.  These victorious warriors for the rule of law, including doctors, nurses, professors, CPAs, attorneys, pilots, engineers, teachers, truckers, IT specialists-- in short, Americans from all walks of life-- have amassed and shared with the world a vast body of additional, unambiguous evidence that what I have presented in 'Cracking the Code-...' is the simple, never-before-revealed absolute truth about the law; and that what that truth offers to America is clean, proper and lawful liberation from an ancient and evil scourge that has destroyed lives, eroded the Constitution, and fastened upon us a pelf-swollen, arrogant, despotic and out-of-control government.

Indeed, even the increasingly desperate efforts by the state and federal governments to thwart CtC-educated Americans invariably confirm the accuracy of my message.  Such efforts are focused on one goal-- excluding informed filings from being admitted into the record at all, based upon one absurd, corrupt pretext or another.  The reason for this is simple and unambiguously revealing: Once those filings are admitted, the law, which these governments wish to evade, must take its course-- to the benefit of the filer.

Such efforts are thus of a kind with the repeated failed efforts of the IRS to suppress my book and my voice, because once the truth is really understood by any American, nature takes its course, and that American is lost forever as a resource to the exploiters of ignorance, and becomes instead an implacable warrior for liberty and the rule of law.

Nonetheless, in the face of all of this evidence-- in the face of these clear facts-- some of you reading these words have steadily and resolutely averted your eyes from this truth, or, seeing it, have remained silent.  This, even while you rail against the predations of the unbridled state on a daily basis.

Why do you not look, why do you not speak?  The solution to the predations about which you complain is in your very hands, but you sit idle and mum!  Why?  Has the concept of the rule of law, or the very idea that it can be upheld, and can prevail if vigorously championed become so alien to you that you do not recognize what you see?

Maybe you just can't be troubled to do the reading and studying needed to take in the truth and make it your own?  I know the reading and studying can be grueling, but you know what?  You get what you pay for.

Look at it this way:  Most of you would willingly spend years of your lives and vast amounts of money to improve your education, primarily just for the sake of getting a job that pays more money.  Those of you who have gone to college, or specialized training schools, did just that.  Are your rights, and the rule of law for yourselves and your children, not worthy of a small fraction of that effort and expense?  (This is not to mention the additional benefit of regaining control of up to 45% or so of your earnings year in and year out-- a much higher return-on-investment than most forms of higher education will offer.)

Perhaps you're intimidated by the government's PR campaign against me?  If so, you really don't belong in this arena at all.  Perhaps that propaganda campaign has succeeded in planting the seeds of doubt in your mind about the revelations of CtC?  If so, you really haven't been paying attention, haven't bothered to read my responses and learn of the eventual outcome-- and are hopelessly naive about the lengths to which the riders of a plush gravy-train will go in an effort to keep rolling for a little while longer, to boot.

Or perhaps you cultivate the notion that however I am able to demonstrate the truth of what I say about the law, it doesn't matter, because it just reflects a temporary glitch in an otherwise seamless conspiracy of corruption, so vast and insurmountable that you are relieved of responsibility to act?  A clever mental gymnastic, certainly; but nothing but cheap and phony excuse for inaction.  The only conspiracy against which one cannot act is a conspiracy of which they are a part.

The fact is, the vast conspiracy to which America is in thrall is merely a conspiracy of mutually-tolerated apathy and willful blindness to the evidence and the truth.  It is a conspiracy by which those who would prefer to just talk or complain, and cultivate denial of the truth in the vain hope that some silver bullet or magic word will be revealed which will restore and defend their liberty for them without the trouble of actually defying the beneficiaries of the status quo with their own testimony, forgive and enable each other.

You can do better, and your efforts are needed.  Put aside the misleading distractions, the excuses, the haring off after 'silver bullet' miracle-cures, and your fear.  Open your eyes, recognize the truth, and act.  Although still benefiting from a lap-dog mainstream media and a massive inertia and infrastructure, and still sticking it out and playing tough (did you think it would hold up a white flag and cry "Mercy!"?), Leviathan stands naked and vulnerable before you for the moment.  But the moment could quickly slip away.  If it does, and is lost, it will be you that will bear the blame.

"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."

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Just to set the right tone as we proceed, I'd like to point out that:

Individual Virtue Is The Most Powerful Weapon Against A Corrupt State

Ever wonder what lies behind the studious institutional enmity toward moral consciousness we see all around us in America (and elsewhere) today?  It is an institutional recognition that the greatest stumbling-block to the core ambition of the unbridled state (the unhindered exercise of power on behalf of its clients) is the stature of individual morality as a popular value.  This is because while all the mundane costs of compliance with the state can be manipulated in the state's favor, the moral cost of compliance with illegitimate state behavior cannot be.  The only tool the state has in that regard is the undermining of morality in general.

I will offer taxation as a convenient model: It is easy to see that merely by manipulating the rate of any given tax, the state can make the cost of resistance-- either resistance as a matter of political opposition, or even as legal resistance to the misapplication of the tax-- greater than the cost of compliance, if the only considerations are out-of-pocket expenses and expenditures of effort.  If these were the only considerations, and everything else about it remained the same, would anyone invest much in opposition to, for example, an actual aggregated net "income" tax burden of, say, 5%?  Or 10%?  Even when the tax was being misapplied in defiance of the law, resistance wouldn't be worth it.  Indeed, at the right rate, even the trouble of saving receipts and calculating deductions wouldn't be worth bothering with.

However, when the cost of compliance with any policy or demand involves the violation of moral principles, the calculation is quite different.  In that case, a moral person will find no price of resistance too high.

Continuing with the "income" tax example: When compliance with the state's ambition requires false testimony about oneself and/or others (such as is discussed in 'The Criminal Rites Of Spring'), and/or cooperation with, or acquiescence to, the illegitimate use of force against others, a moral individual simply cannot comply, regardless of the cost of refusal, and regardless of how inexpensive any other cost of compliance is made to be.  The two positions-- respect for, and embrace of, morality; and cooperation with, and participation in, institutionalized immorality-- simply cannot co-exist.  A moral person will choose the course illuminated by the instruction, "Render unto Caesar that which is Caesar's, and unto God that which is God's", understanding that while Caesar is entitled to look after his legitimate interests, he is entitled to the cooperation of others in doing so only insofar as that cooperation is compatible with God's requirement's.

Thus, the subversion of morality is necessary to the state's purpose, and is cunningly and relentlessly practiced.  This subversion is often highly specialized, as in this "income" tax-related example excerpted from 'Why It Matters' in CtC:

Effectively presented as an involuntary requirement, the scheme corrupts our fundamental principle of equal treatment under the law with a progressive structure under which some citizens are able to force a benefit for themselves out of the pockets of their neighbors.  This callous design, intended to maximize the protective political support for the scheme by invoking Shaw’s principle that, “A government which robs Peter to pay Paul can always depend on the support of Paul”, engenders institutional endorsement of the proposition that a form of slavery is a fundamental element of social justice.  (Where the tax lawfully applies, of course-- as an expected cost of voluntarily enjoying the benefit of federal privilege-- unequal treatment is no more unfair than is having to pay more for good seats at the show).

This is a particularly noxious perversion, in that under this “justice” a heavier burden is extracted from some Americans precisely because they have already made a greater contribution to the common weal than others.  After all, one earns one’s unprivileged receipts solely by serving the interests of one’s neighbors.

Furthermore, contrary to the many false intellections marshaled to support this aspect of the scheme, the more such receipts that one’s good service brings in, the less demand one places on, and the less benefit one has from the community resources-- making the progressive structure of the tax even more obscene.  The reality is that a successful wealth-producer has typically been more adamant and persistent than others in defying and surmounting the public infrastructure and its typically sclerotic defense of the status quo. (The exception is those who have used government to their advantage; their gains, of course, are the lawful objects of the “income” tax as properly applied).

As to public services, the well-to-do place far less demand on such expenses than others-- they draw no public welfare, they are privately insured, they live where the local services are equitably paid for out of (typically) high local tax rates.  In other words, they pay their own way.  The vigorous efforts of many in positions of authority and respect to seduce Americans into accepting the standing of these truths on their heads, in order to ensure that the gravy-train of professional fees, bureaucratic power, and re-election will continue, is a national scandal.  That these efforts have largely been successful is a national shame.

Similar efforts are focused upon many other areas in which the ambitions of the state and its clients are hindered or inconvenienced by an upright citizenry insistent on lawful, limited government.  Paralleling such targeted efforts is a general pressure against morality, in service to the understanding that once any corrupt practice is excused, forgiven, or rationalized, the rot will soon spread.

John Adams observed, "Public virtue cannot exist in a nation without private, and public virtue is the only foundation of republics", and he and the other Founders wisely equipped us with a fundamental law which is fully supportive of our private virtue.  Enjoying the benefits of that virtuous fundamental law simply depends on the firm embrace of that same private virtue by each of us-- one by one.

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Arm Yourself Against Deceptions

For the identification and discussion of many of the current "silver bullets" and other distractions being deployed to keep the "tax honesty community" divided-and-conquered, please visit

'Comments Regarding Various "Tax Protestor/Tax Honesty" Misunderstandings Of The Law'.

These include misunderstandings (or misrepresentations) about 'ALL CAPS NAMES'; Social Security and the significance of having had a number assigned; 'section 861'; the 'UCC'; 'repeal provisions in the IRC's'; and many others.  Some or all of these are constantly recycled into circulation in an effort to keep Americans from learning, and staying productively focused upon, the actual nature of the "income" tax.

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For a general "income" tax site map, please see

'A Lost Horizons "Income" Tax Subject Site Map'

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Still In Denial?

Continued denial that what is presented in CtC (and only in CtC) is the truth, the exact truth, and the complete truth about the income tax is just that: Denial. It is dishonest and inexcusable, and nothing but a comfort to the enemies of liberty and the rule of law. Get over it.

Yes, the fact that upon acknowledging this truth you will find yourself honor-bound to stand up and do something, is scary. But the alternative is contemptible; and the long-run consequence of a widespread failure to act is a whole lot scarier. Think about it.

Read the book.

Spread the word.

Stand up and act.

"The Tax Code represents the genius of legal fiction...  The IRS has never really known why people pay the income tax... The IRS encourages voluntary compliance, through FEAR."

Jack Warren Wade Jr., former IRS officer in charge of the IRS Nationwide Revenue Officer Training Program, in his book ‘When You Owe The IRS’