Redeeming Lawful Money on Daily Paul

[Keith Alan]

I believe the question for #4 is, "Is redeemed lawful money taxable income?"

I would like to see a discussion about that as well.

[mikecz]

I would like to see a discussion about that as well.

David,

Let me just say your responses on this site are extremely appreciated. I also apologize for asking maybe what seem to be obvious questions, but, I am in the process of trying to form a process flow chart with the 3 or 4 steps to begin this process. Each step will have links with supporting text / photos, but, I really want to wrap my head around this, so once again, thank you. Basically I find bits and pieces here on the site, but, a condensed version, bringing all the info together is my goal.

Yeah so question #4, I've heard stating all your income was in FRN and not really lawful money has been a claim to the IRS as a reason for not having to pay taxes. Well, because FRN's aren't lawful and not really anything of substance, therefore you never really received anything for pay and you can't be taxed on something that you didn't receive. So that is one side of the coin, and I thought I saw a thread describing exactly this reason was listed in a memo to IRS agents as a frivolous claim.

The other side of the coin, if all your income is in LAWFUL money, not FRN's, the IRS can't tax it. You can claim all your withholding's are due back to you. This is obviously the most interesting part, and I among others would like to hear a description as to why. I LOVE the idea of not allowing my bank to expand my money and will definitely pass on an interest bearing account if it is necessary to accomplish this end. So yeah, why can't the IRS tax lawful money?

I guess when a bank makes a loan through fractional reserve banking, the money has just been created, increasing the overall supply in the system. What I'm having a tough time wrapping my head around... Does it ever go the other way, does the supply shrink, because how I see it, this system has created a money spewing beast that never gets smaller and always creates interest for the money grabbing octopus we know as the federal reserve.