Why are Federal Reserve Notes Taxable?Originally Posted by ADBrooks11
Simple, they are currency issued by a private Corporate Bank, "Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized."
The FED is a private company, making one product, FRNS in any form. The FED is not a government agency. Why would the profit from such a company not be "taxable"? Also, Tax law allows a Corporation to use any legal means to "reduce its tax liability" so why would the VOLUNTARY reporting of "income" of FRNs to any person or corporation and payment of tax on those FRNS not be perfectly legal by ignorant endorsers and users of that product?
It would also explain why the Federal Reserve voluntarily gives and "profits" back to the US Treasury every year after costs and fees are deducted (which are simple deductions any Corporation does every 1/4 or yearly). Is the Fed simply avoiding "profit" so it is not liable for taxes on said profit? Or do to they simply not want their own currency and instead want "all goods and services" in the US Economy Titled to them? I would say both, but the latter holds is the only real value to them, since they can recycle old debt without the actual work of issuing new debt.
As for private Corporate Banks Notes being taxable there are cases explaining just that.
"So the Springer v. US (1881) income tax on wages. The Springer case was actually a twofer. It gave legitimacy to the income tax on wages. However it also started the movement towards the 16th amendment as the other part of the case dealing with taxes on rents,and investment income was eventually struck down in Pollock as a direct tax and then made legal again with the 16th amendment.
So the income tax on the wages part of the case actually got its footing from a case 12 years earlier. Veazie Bank v. Fenno (1869). Reading Springer doesn't tell you anything without keeping this case in mind. The holding as follows (my bolding and hints included)
"It cannot be doubted that under the Constitution the power to provide a circulation of coin is given to Congress. And it is settled by the uniform practice of the government and by repeated decisions, that Congress may constitutionally authorize the emission of bills of credit. ... Having thus, in the exercise of undisputed constitutional powers, undertaken to provide a currency for the whole country, it cannot be questioned that Congress may, constitutionally, secure the benefit of it to the people by appropriate legislation. To this end, Congress has denied the quality of legal tender to foreign coins, and has provided by law against the imposition of counterfeit and base coin on the community. To the same end, Congress may restrain (TAX), by suitable enactments (26 USC), the circulation as money of any notes not issued under its own authority. Without this power, indeed, its attempts to secure a sound and uniform currency for the country must be futile."
from https://www.godlikeproductions.com/f...e1304915/pg102 post by Jknoph
The main reason I also include a "refusal of FRNS in any form" on my demand for redemption is to show I have no contract, real, presumed or assumed with the Federal Reserve.
United States Currency Notes (31 USC 5115) are still "outstanding" as is proven by the Secretary of Treasury Report on the public debt, issued monthly to Congress. Those notes are found on the right side of all currently issued Notes. The design of currently issued Notes are, in fact, 2 faced Notes. The "FEDERAL RESERVE NOTE" is clearly titled as such on the left (smaller side of the Note) and the "UNITED STATES NOTE" on the note to the right, there is also gold, silver and copper on the United States Note (consideration) just as it is in US coins. the Federal Reserve note contains no such consideration.
Also, the amount of gold, silver and copper on the United States Notes varies on the US NOTES, the 100 Note has much more than the 10 or 20 dollar notes. This is because no matter what anyone tell us, the Government is controlled by the Law of the land and must provide a public currency of some real, lawful value.
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