Quote Originally Posted by shikamaru View Post
"The Informer's" opinion was that income tax was a "use and transfer" fee on FRNs.
I remember that webpage on that.
Indeed Nara, i found this in my little archive from that website. It was in a .doc called, "What Makes you Subject to Income Tax. "
Are you not transferring the debt and they want their cut for the Use of that transfer? The Transfer is the excise taxable activity carrying on a "trade or business" with the United States agents, the banks. Now read very carefully 26 CFR 1.864 and you will see that any dealings with the banking system, in any form, deposits, withdrawals, etc., are considered "carrying on a trade or business with the United States". That’s why they don’t care who the hell you are, citizen, non-resident alien, foreigner, neutral, whatever. They all use scrip, don’t they? What is one of the sources mentioned in 1.861-8? Banking, any kind of banking. So the use of the Federal Reserve Notes is subject to an income tax for the excise privilege of using the private trademarked scrip of the fiscal agent of the United States banking system in "transfer".
And another one from the Use and Transfer.doc
Now we are right back to transfer, which is a privilege for the use of the notes and the laws of the United States are used to effect a tax on this privilege which involves intrastate transfer of blank [sic] notes that are never endorsed, which puts you in commerce which is an excise taxable privilege for the USE of this private note that bears the distinction of a debt obligation of the United States. You are simply being taxed for using IOU’s of the United States and the IRS, A.K.A. federal reserve collecting agent is bound to collect this excise tax. It is an intangible that is being taxed. An intangible fits into excise tax.