by Patrick Henningsen

Created on: July 02, 2007   Last Updated: July 07, 2008

Imagine this: In real terms our dollar is worth a poultry 4 cents of what it was worth in 1900. How is this true? And what does this have to do with my Federal Income Tax?

On the surface, of course, it does not add up. Most Americans cannot see through this because too many believe the likes of Alan Greenspan, some sort of financial sage, and that banks actual have money which they lend people. Both are fairytale... money in the US is merely a 'Fiat Currency' which is backed by no hard currency or assets. Since the end of the Bretton Woods agreement in 1971, our US dollar has been backed by... the creation of new debt, so instead of dollars, we now have "debt notes". This has caused our US Dollar to be gradually devalued. Amazing, but true.

Doing away with Federal Income Tax on labor is something every American might support... but first they should try to become more enlightened as to how the Central Banking money system actually works in the US and how the Federal Reserve Bank is designed. It's not enough to just jump on the 'NO TAX' bandwagon, you also need to know how this intricate machine functions...

The recent "FAIRTAX" proposal on Capitol Hill is one attempt to offer a resolution. But the FAIRTAX is only the latest accountancy shell game to pacify the tax contrarians. Most Americans actually(and honestly) believe that when they pay their Federal Income Taxes, that those taxes are actually going to pay for essential things... like roads, schools, military protection, government facilities and so on. This is not true. In reality, since the dubious passage of the Federal Reserve Act in 1913, your Federal Income Taxes essentially go towards paying for two things:

1. They pay for the collection apparatus which is itself the IRS.
2. They pay for the interest on every dollar printed by the Federal Reserve(a privately owned bank) and lent to the United States Government.

That's it. Are you shocked by this information?

The answer is to educate yourself. To understand your Fed Income Tax you must understand the Federal Reserve (which is neither "federal" nor does it have any "reserves" at all). The Fed prints and lend dollars to the US with interest on every dollar. This is not fiction, it is simple fact.

Federal income tax on labor, a security for our rolling debt to the Fed, ultimately goes to pay this interest which ends up in the hands of a small hive of privately banks. This financial takeover was hatched in 1913, and we have been living with this system ever since. They took away from the US Government it's power to print its own money. Great business model for the bank- it prints money out of thin air and get paid interest on that money- pure profit of an enormous scale.

What about the US Gold reserves? Surely there is Gold left. WRONG AGAIN. The Federal Reserve took the Gold long ago as "collateral" for the rolling debt owed by the US Government. Shocked? Surprised? Maybe, if you don't know your history.

To date, there IS NO LAW which states that a United States citizen must pay Federal Income Tax on their labor. Yes, that's correct, NO LAW. In effect, we do this voluntarily, and hence the IRS collects it and solicits our payments.

Look on the statutes and you will not find a law because one does not exist.

Dig deeper if you want to know more... it's all out there to learn. This is a big one.

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