Junious Ricardo Stanton
Tax Time
“Revenue from mortgages, deeds or securities dropped 36 percent, with the largest decreases occurring in the South. The declines in tax revenue have forced states to reduce spending. States cut their general fund expenditures by nearly 5 percent in 2009, according to the National Governors Association, and are expected to cut spending by another 4 percent this year as revenue collections continue to decline. The association predicts state revenues likely will continue to be depressed in 2011 and 2012, since state tax collections tend to lag national economic recovery.” State Revenue Falls 9%; decline likely to continue Washington Business Journal March 29, 2010
As you read this, the April 15th filing date for federal and most state income taxes is almost upon us. If you’re like me you waited until the late minute then scrambled to get all your forms, records and laboriously go over them to meet the filing deadline. Local governments impose taxes on the public to cover its operating costs. But in the case of the federal government the money we pay goes to the interest and fees associated with the printing of US currency by a consortium of privately owned banks known as the Federal Reserve Bank. The member banks of the Federal Reserve system are not part of the federal government, they exist and operate in contradiction to the supposedly sacrosanct US Constitution which states Congress has the power “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures...” US Constitution Article I section 8. Congress abdicated that power in 1913 when it supposedly passed the Sixteenth Amendment to the Constitution.
The Fed as it is called is the culprit behind the creation of the US income tax. The Fed in collusion with its fellow international bankersters created and facilitated all the boom and busts since its creation in 1913. “A consortium of international bankers had tried and failed over and over again to maintain financial dominance of the U.S., but this changed in 1913. As is covered in great depth in G. Edward Griffin’s incredible book The Creature From Jekyll Island, the consortium returned, led by men such as JP Morgan, Paul Warburg, Frank Vanderlip, German Bankers Kuhn, Loeb and Co., and the Rothschild Family among others. They and their representatives met in secret, traveling under fake names, to meet at the resort on Jekyll Island off the coast of Georgia in 1910. Under Paul Warburg’s direction, they drafted a plan to pass the 16th Amendment which would allow them to flank the Supreme Court in creating an income tax, as well as the Federal Reserve Act, which would form the new Federal Reserve System (the bank was in no way a part of the Federal Government. The name was used to swindle the public into believing the institution was not the same as the Central Banks they despised). The plan was then to be presented to Congress by their confidant Senator Nelson Aldrich as if it was his idea alone.” The Anti-Income tax Movement And Why They are Right By Giordano Bruno Neithercorp Press - 02/25/2010
Even with an income tax, the US government and most states are still broke. With each passing year “we the people” are being gouged, fleeced and taxed into poverty and peonage. The federal, state and local governments are in deep financial difficulty and they are forced to hit
taxpayers harder to take up whatever slack they can. The economy is way down, unemployment and bankruptcies are way up, so naturally tax revenues are not what they used to be. Federal tax
revenues are off over the last two years following the Wall Street banker/speculator created economic implosion. “Federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago — the biggest April drop since 1981, a study released Tuesday by the American Institute for Economic Research says. When the economy slumps, so does tax revenue, and this recession has been no different, says Kerry Lynch, senior fellow at the AIER and author of the study. ‘It illustrates how severe the recession has been.’ For example, 6 million people lost jobs in the 12 months ended in April — and that means far fewer dollars from income taxes. Income tax revenue dropped 44% from a year ago... Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.” IRS tax revenue falls along with taxpayers' income by John Waggoner USA Today.
The situation will probably worsen in 2010 into 2011 because the commercial real estate market is unraveling. “Over the next five years, about $1.4 trillion in commercial real estate loans will reach the end of their terms and require new financing. Nearly half are ‘underwater,’ meaning the borrower owes more than the property is worth. Commercial property values have fallen more than 40 percent nationally since their 2007 peak. Vacancy rates are up and rents are down, further driving down the value of these properties. When the reckoning comes, it could threaten everyone from banks and pension funds to renters and small businesses -- and small banks could be particularly vulnerable.” Elizabeth Warren warns about Commercial Real Estate Crisis Downward Spiral For Small Businesses and Banks The Huffington Post 02-11-10 .
This means even less tax revenue will flow into federal, state and local coffers. Where will the needed money come from to replace these funds? What does this decline in revenue mean for working folks? It means local governments will be increasingly hard pressed and stretched to make ends meet. In fact some municipalities and state finances are so precarious, default on their loans, and pension obligations is a real possibility ! This means state and local governments will be forced to: raise taxes, cut services or both. Guess who will catch the brunt of these cuts and tax increases? State and local government debt has skyrocketed in the last several decades and now the bill is coming due. “The growth in local government debt has exploded since the 1970s. We went from $295 billion in 1968 to $2.3 trillion today. But as Greece is demonstrating, there is such a thing as having too much debt and at a certain point the markets no longer have an appetite for so much borrowing. Average Americans probably have a hard time examining the large numbers being thrown around. Yet state and local governments are now finding a hard time balancing their budgets. In many cases, the ability to balance their budget goes in direct conflict with paying out pension distributions. Or in many cases states need to raise taxes or cut services.” - The $2.3 Trillion State and Local Government Debt Monster – California Pension Systems on Unsupportable Path with $500 Billion Projected Shortfall. CalPERS, CalSTRS, and UCRS.
The federal government unlike the states is not constitutionally mandated to balance its budget; so it will continue to spend money it doesn’t have and descend deeper and deeper into debt. (The US government borrows over two billion a day just to operate and this doesn’t count the appropriations for their imperialist wars) It means the government will take even more of our money via all kinds of taxes and hidden fees. We will continue to experience flat line wages. We
will have less discretionary funds for spending.
This is why white anger and frustration levels are so high and why their anger and frustration are being channeled and manipulated by the tea party movement backers. This is why
the anti-income tax movement is growing. I suggest you rent or download the late Aaron Russo’s film America, From Freedom to Fascism. It examines the nexus between the Federal Reserve Bank and the illegality of the US federal income tax among other things. I am not telling anyone not to pay your taxes but we need to do the research about the real deal about the government, the Fed and taxation. In a future article I will introduce you to a courageous Sistah named Sherry Peel Jackson who appears in Russo’s film. Mrs. Jackson is a former IRS agent currently in federal prison for telling people there is no actual law that says we have to pay federal income tax.
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