Make Demand At Treasury

[Keith Alan]

Keith,
I'm not trying to make light of your idea's. I try to come at things from the other sides perspective. The taxable event occurs quite simply when you deposit a paycheck into a bank account without the proper verbiage. When you follow what the bank recommends they use your paycheck as an asset and credit your account with "bank credit" that is derived from "Fed Credit". The check then shifts "bank/Fed credit" from your employer's bank to your bank via the settlement of accounts performed at the Federal Reserve through each banks individual reserve account. When you restrict your endorsement to demand money issued directly from the US treasury that throws an extra step into their process.

Normally: Bank A owes Bank B $1000, Bank B owes Bank A $1500. The net effect is $500 of credit is transferred to Bank A's reserve account from Bank B's reserve account.

LMUS is demanded: Bank A has a check (from Bank B) where $1000 of LMUS is demanded. The Fed transfers $1000 of LMUS (coin) to Bank A, then deducts $1000 from Bank B's reserve account. The Fed then needs to replenish it's LMUS supply and orders $1000 of coin from the US Mint, it then credits the Treasury with $1000.

This is logically how I see it working. Again the taxable event occurs at the bank when you have an incoming transfer of money substitutes (bank credit). However when you invoke a demand for money properly created by the Treasury you are using the money properly authorized by the Constitution (coinage clause 1:8:5). Anything other then that CAN be taxed as an excise (1869: Veazie Bank v. Fenno, 75 U.S. 533).

I hope this makes sense to you. The "event" is not when filing a return form. That is the part where you try to recover $$ that were not taxable in the first place. You need to restrict your endorsements on your checks AND MAKE COPIES! As David said.

Thank you for your well explained reply. Yes, the taxable event doesn't take place when the return is submitted. I should have added before that I would not be taking any benefit from the fractional reserve system like earning interest, nor from Treasury's 1040 form (like exemptions and such).

It appears I am stuck on the scenarios you laid out. What I see you providing is your idea about what happens behind the counter of the Fed bank. But what about the person making the deposit? Doesn't he take his check from bank A to bank B? And isn't his account credited the corresponding amount, no matter how he makes the endorsement? He's still using bank credit, and banks deal in FRNs.

This brings up another thought. Since FRNs are for advances to Federal reserve banks and no other purpose, when a person receives a check, isn't he holding bank credit representing FRNs? So isn't that the time when the taxable event occurs?

Also, since anyone holding bank credit representing FRNs is a Federal reserve bank, why isn't a person able to make the demand to himself from his private capacity as a living man? (PS-The answer is obvious: he's not one of the 12 Fed Banks, nor is he Treasury. But it makes as much sense as making a demand at a local bank.)

I envision a veritable sea of metaphysical principles at work here. But there are only a few rock solid elements, namely the demand, the Treasury, the person, and the statutes. The subject is credit, whether denominated as FRNs or USNs.

This is why I see the 1040 as the proper vehicle: it is the well settled and customary practice for the Treasury to receive notice of claims and declarations on the form. This is where income is declared and made known. It's where the NAME conducts business with the gov't. Why not fill out the form, taking no benefits, then make the demand on the form? Isn't the return filed as required? Aren't the taxes paid? Didn't the taxpayer exercise his rights timely?

I don't want to discount what people already know regarding making demand through the Federal Reserve. I'm simply exploring another possible avenue.