The income tax is an excise tax. A tax on status or federally-connected activity. Amount of tax measured by the income.

There is no income tax. There is an excise tax on federally-connected activities, and the amount of the tax is determined by the income received while engaged in these federally-connected activities.

The tax is not on income. The amount of the tax is measured by the income/gains produced. So what is taxed? Activities enabled by the federal government such as working for the government, being an officer of a corporation (charted by the govt), drilling for oil on federal land, selling planes to the federal military, or investing in corporations wholly owned by the government.

4 USC 110 (c)The term “income tax” means any tax levied on, with respect to, or measured by, net income, gross income, or gross receipts. Cite

The activity or status is taxed, not the money. The amount of the tax is determined by the amount of money.

People mistakenly apply the tax to their work. They ‘hang themselves’ by completing the 1040 and referring to their earnings as wages or compensation.

Wage means money paid to a federal employee or corporate officer. Wage does not mean payment to someone at a retail store at the mall.

But, get this, they’re not presuming we work for the government. They presume we are corporate officers of federal corporations called U.S. persons.

Person means corporate entity, at least in federal govt code. A natural person is still a person, and that means business entity. People are not persons. U.S. Person means a corporation created by the federal government.

The scam begins when babies are born. Mom & dad are told to request a birth certificate even though the hospital records the baby being born.

‘Requesting a birth certificate’ means ‘to create a corporation’ called a person/persona/franchise.

Mom and dad have little baby John of the family Myers.

The person/corporation berthed is called John Myers.

Baby John is considered an officer of the persona/person called John Myers, at least once he is no longer a minor.

But that person (franchise), John Myers, is a federal corporation and therefore is taxable. What’s the tax amount? The amount of income generated by the person.

So they are not taxing the man working at the local bike shop. They are presuming the man work as on officer of a corporate U.S. person with a similar name, and that person works for the bike shop.

The 1040 U.S. Individual tax form is for persons/personas.

No people should use the 1040 U.S. Individual tax form. This is an election to treat non-taxable income as income. It supports the erroneous idea that we are officers of U.S. Persons who provide a service to everyday companies.

People also fail to rebut the W2 and 1099s. The IRS receives the W2s and 1099s and uses these to claim one owes taxes. People need to simply rebut the W2 and state ‘I did receive money but it was not wages or compensation.” Or I do have a plumbing business but it’s not a Trade or Business, as defined in the code. See article below about rebuttals.

Most people are not U.S. Citizens. They are state citizens.

Person means a business entity or franchise. Person does not mean man. Consequently, most people are not earning money as U.S. Persons. Persons are franchises, which is why STATE OF CALIFORNIA has the FRANCHISE TAX BOARD, to which people mistakenly gift their money.

Federal government deceives people by teaching one definition of words and phrases in K-12, then they use a different definition in their code.

  • Prime example is the term “Trade or Business”. We think it means a bike shop, but the federal code defines “Trade or Business” to be the performance of the functions of a public office; meaning someone who works for the govt.
  • Another example in the term “United States”. This is usually not used geographically. It does not mean the 50 states. It means the federal govt and it’s operations. Does thou work for United States?

One must learn how to focus on the definitions and learn how to read convoluted definitions. This skill is taught in Cracking the Code, linked below. Though, that book erroneously (1) recommends using the 1040 and (2) fails to rebut the W2s and 1099s as a separate action.

Another trick is federal govt dupes people into electing to treat their non-taxable income as taxable income. One must rebut this as well. “I do not want my private-sector earnings to be construed to be connected to a federal activity.”

State Citizens who do work for the government or use federal land to make money should complete the 1040 NR (Non Resident Alien).

If someone asks, “You don’t pay income taxes?!?” The answer is “I pay all taxes for which I am liable.” Just keep repeating this.

As for the W4 form, I claim that my company is mistakenly using the internal forms of United States, but what choice do I have? If they asked me to complete Walmart forms, I would fill those in as well. But that does not make me a Walmart employee, nor would that transform my private-sector company into Walmart. Similarly, completing the W4 – pretty much under duress – does not make me a federal ’employee’, or someone who works for a (federal) ’employer’, and it does not transform my private-sector earnings into (federal) ‘wages’.

One must be thorough and resolute when rebutting allegations from IRS.

Articles on this site about the federal excise tax

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5 comments on “The income tax is an excise tax. A tax on status or federally-connected activity. Amount of tax measured by the income.”

  1. Question: I used to be employed by the Veterans Affairs (Federal job). I now am on disability retirement from that job and my income is from the federal gov and I get a 1099-R. Does the IRS codes apply to this sort of income?

    Thanks in advance

    1. If i had disability retirement payments from federal gov, and I was a state citizen (born on one of the 50 states), then I would make a return of a portion of that money. I would file the 1040NR – since i am non-resident, alien to the federal govt. But all my earnings would not require me to make a return of the portion. If I had a business on Etsy trading with people, then the proceeds from that business are not taxable. Though, I would need to rebut the 1099 from Etsy, since they would mis-characterize the earnings as federal income.

  2. Hi there, I look a break from the site so my nervous system could regulate and handle its much needed upgrades after de-conditioning. It’s not an easy process, but taking it in steps is helpful. Now being guided to research the tax lies and seek clarity, I knew just where to go. With that being said, will a typed letter of rebuttal for a 1099 suffice and shall it be attached to a certain form?

    1. i don’t use forms because i don’t work for United States, meaning the fed govt or its corporations and agencies. i only write letters.

      Put another way, if i had to rebut something internal at Wal-mart, I wouldn’t use a form for that either. i would write a letter to walmart CEO or another company officer. Or maybe send letter to dept that handles EXTERNAL complaints.

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