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       What is the PURPOSE for Federal Income Taxes?
       ---------------------------------------------

You might be startled to learn that NOT A DIME of the money you
pay in Federal Income Tax to the IRS has EVER gotten to the
United States Treasury -- and has NEVER bought a school book,
or an inch of highway, or a rifle for the military!

In the introduction to the "Grace Commission" Report, ordered by
President Ronald Reagan, Chairman Grace revealed that:

        "...all individual income tax revenues are gone
         before one nickel is spent on the services which
         taxpayers expect from their Government."

The truth of the matter is that IRS taxes as we know them today
were NEVER intended to pay for ANY government services!

The withholding tax was invented by chairman of the Federal Reserve
Bank of New York, Beardsley Ruml around the time of World War II.

To explain the new tax, and its purposes, Chairman Ruml wrote, in
the January 1946 issue of "American Affairs," (the "newsletter"
publication of the Council on Foreign Relations) an article
entitled, "Taxes For Revenue Are Obsolete."

In summarizing the points of his article, the editors of "American
Affairs" wrote,

        "...a sovereign national government is finally
         free of money worries and need no longer levy
         taxes for the purpose of providing itself with
         revenue."

If taxes aren't needed for running the federal government anymore, 
why does the government take so much of what you earn? Chairman Ruml,
under the heading "What Taxes Are Really For," gave the following
answers:

        "Federal taxes can be made to service four principle
         purposes of asocial and economic character.  These
         purposes are:

         1. As an instrument of fiscal policy to help
            stabilize the purchasing power of the dollar;
         2. To express public policy in the distribution
            of wealth and of income, as in the case of the
            progressive income and estate taxes;
         3. To express public policy in subsidizing or in
            penalizing various industries and economic
            groups;
         4. To isolate and assess directly the costs of
            cretain national benefits, such as highways
            and social security."

So, here is what IRS taxes are and are not used for:

        1.   They are used to help implement economic
             policies designed by the federal government,

        2.   They are used for social purposes (who
             should, and should not, in the opinion of
             congress, have such-and-such amount of
             money), and

        3.   They are used to subsidize various groups
             and interests, such as private banks, but

        4.   They ARE NOT used to pay for any government
             services.


This means that if all IRS tax laws were repealed tomorrow, there
would be no effect on government services.  The only thing that would
change is that the federal government wouldn't be able to exert the
social and economic control that it currently does.

Among those who've said that our federal tax system doesn't work is
T. Coleman Andrews, who actually served as the commissioner of
Internal Revenue back in the 1950's. After he left office, he began
to speak out against what he perceived as being "rapacious tax
enactments."  In an article he wrote for the April 22, 1956 issue
of "The American Weekly," he shared these reflections:

        "As Commissioner of Internal Revenue I often thought
         how far we had gone toward conning ourselves through
         excessive and unjust taxation.

        "We have failed to realize, it seems to me, that
         through our tax system we have been playing right
         into the hands of the Marxists, who gleefully hail
         the income tax as the one sure instrument that will
         bring capitalism to its knees.

        "On this point, it's interesting to note that a
         graduated income tax is one of the planks of
         `The Communist Manifesto.'"

There's no patriotic duty to pay a lot in taxes.  But isn't there a
duty to yourself and your loved ones to reduce your costs, while
justly supporting your community with your increased purchasing
power?

To learn more, point your browser toward:

             http://www.vii.com/~solgroup/notax/

                            or

               email to: solutions@iac.net
            Put "NOTAX" in the Subject line.

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