I've explained it many times like this:
[1] The redemption of scrip for lawful money 'sponsors' the instrument into "lawful money land"--it is akin to acceptance (i.e. being the primary creditor on the instrument or at least on your issue);
[2] the tax obligation associated with naked indorsement of private credit is on the perceived gain when the FRB/bank accepts/cancels the instrument for you thusly you gain from private credit and owe the tax --THIS HAS NOTHING TO DO WITH THE UNDERLYING FICA/SSA contribution --you are paying even FICA with lawful money then once the FRB-SSA-Treasury systems get processed.
I'm not sure how more clearly it can be explained. Its to do with checks/notes thusly it to do with bills of exchange, UCC, cancellation/discharge/acceptance/notes/dishonor/honor. It might help to look at the matter from a '1099-C perspective'. If I cancel/sponsor it for your 'use' then you are gaining (from doing nothing) thusly you get taxed on a 1040 schedule--like as in capital gains. Think: getting paid TWICE--once for the labor/principal that improved/passed through the estate that you jointly own, the second time from money the FRB/bank sponsored by cancelling your bill. (Tikkun Anthology?)
The FRB by design can't originate lawful money. You aren't gaining from your own money. HOW MANY TIMES MUST IT BE EXPLAINED?That doesn't affect FICA / insurance contribution requirement except it makes the inclusion LAWFUL MONEY. For those who hate 'the tax man' just maybe ***YOU** are the tax man (filling out IRS forms? collecting tax and paying it in?)! Thinking it affects FICA is like thinking because you won $20M in the lottery that you shouldn't have to pay the wire transfer fee--FICA is perhaps more like a "social credit" systemic maintenance fee.
THE SOCIAL SECURITY ADMINISTRATION IS ONE OF THE PRIMARY CREDITORS TO THE UNITED STATES GOVERNMENT AND HAS BEEN SINCE ITS INCEPTION. ALL OF THE LAWS PERTINENT TO SECURITIES REGULATION ARE DESIGNED TO PROTECT YOUR INVESTMENT (SECURITIES EXCHANGE ACT OF 1934, INVESTMENT COMPANY ACT OF 1940)--THOSE LAWS WERE MEANT TO CURB THE TRUSTEES OF THE POOLED ASSETS OF THE ORIGINAL INVESTORS (YOU!).
WHAT ORGANIZATION IS THE CUSTODIAN FOR BOOK ENTRY SECURITIES AND SUCH INVESTMENTS IN THE UNITED STATES? THE FEDERAL RESERVE SYSTEM/BANKS
It should be clear how the FRB and the SSA link together --the FRB has the role of custodian for US Government securities, the SSA is investor. HOW MANY TIMES MUST THIS BE STATED? DOES IT HAVE TO BE ON TALKSHOE TO BE BELIEVED?
HOW MANY TIMES MUST IT BE SAID THAT EACH FRB IS A CLEARINGHOUSE AND THAT CLEARINGHOUSES ISSUE OR HAVE CLEARINGHOUSE CERTIFICATES RATHER THAN LAWFUL MONEY?
Related:
- 31 CFR Part 357, Subpart B - Treasury/Reserve Automated Debt Entry System (TRADES)
- (31 CFR 357.10 - Laws governing a Treasury book-entry security, TRADES, and security interests or entitlements.)
- UCC Chapter 8 (hint: indirectly held securities)
- UCC Article 8: Will the Indirect Holding of Securities Survive the Light of Day (2002)
- Conflict of Laws for Transactions in Securities Held Through Intermediaries (2006)
- CHAPTER 33. INSURANCE - ARTICLE 8A. USE OF CLEARING CORPORATIONS AND FEDERAL RESERVE BOOK-ENTRY SYSTEM.
- SSA's $2+ Trillion Surplus
- Government Owes $2.7 Trillion to Social Security
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