Detecting language using up to the first 30 seconds. Use `--language` to specify the language
Detected language: English
[00:00.960 --> 00:05.360]  Welcome to the podcast. When Kevin McCarthy was trying to round up enough Republican votes in
[00:05.360 --> 00:10.960]  the House to become Speaker, he gave the holdouts a pledge that he'd give a fair hearing to a bill
[00:10.960 --> 00:16.640]  to abolish the IRS. In other words, abolish the income tax and replace it with a
[00:16.640 --> 00:21.920]  national sales tax. As you likely know, after making a slew of promises, McCarthy was elected
[00:21.920 --> 00:30.320]  Speaker of the House. On January 9th, 2023, a bill entitled the Fair Tax Act of 2023 was submitted
[00:30.320 --> 00:38.880]  to the Ways and Means Committee for consideration. That bill would abolish the IRS. So what happened
[00:38.880 --> 00:47.520]  next? The Dr. Reality Podcast with Dave Champion.
[00:52.880 --> 01:01.600]  Let's start with this. When I heard about this group of Republicans seeking to get a fair hearing
[01:01.600 --> 01:06.800]  on the so-called fair tax, I laughed. This legislation has been introduced in nearly every
[01:06.800 --> 01:13.200]  congressional session for years and always with the same outcome. It never makes it out of committee.
[01:13.200 --> 01:17.360]  McCarthy knew as he was making that promise that he would never give the bill a hearing
[01:17.360 --> 01:22.240]  because no senior member of the House or Senate from either party is going to give the so-called
[01:22.240 --> 01:29.040]  fair tax a hearing. Like so many things in D.C., there is a veil over the truth of what's
[01:29.040 --> 01:33.600]  really happening. On this subject, the veil not only shills the truth from you,
[01:33.600 --> 01:39.520]  but also from all members of Congress, except those at the very top of the power structure.
[01:39.520 --> 01:45.680]  Today, I'm going to rip away that veil and let you see what the so-called servants of the people
[01:45.680 --> 01:52.000]  in D.C. are really up to on the question of abolishing the IRS. If you're a fan of a national
[01:52.000 --> 01:56.960]  retail sales tax, you're going to be upset at what I'm about to say. But as I move along in this
[01:56.960 --> 02:03.200]  presentation, I'm going to prove in law what I'm about to say. I don't know if proof will make a
[02:03.200 --> 02:07.680]  difference to those who support a national sales tax because I've noticed it's pretty much a
[02:07.680 --> 02:12.080]  religion for them. I have yet to meet a supporter of the national sales tax whose position is based
[02:12.080 --> 02:18.400]  on facts or law. That said, facts and law do matter to the courts, so ordinary citizens who
[02:18.400 --> 02:24.800]  adore the idea of a national sales tax being in denial isn't terribly important. Here's the
[02:24.800 --> 02:32.640]  statement that's going to anger the national sales tax, folks. Congress has no authority to enact
[02:33.200 --> 02:39.920]  a national sales tax. Now, don't run away in a hissy. I'm going to show you why that statement
[02:39.920 --> 02:45.840]  is legally factual. But before I do that, I want to let you know that putting forth a bill to
[02:45.840 --> 02:53.280]  enact an unconstitutional tax is not the worst of what's being done in D.C. on this subject.
[02:53.280 --> 02:57.600]  After I provide the evidence showing why a national sales tax is unconstitutional,
[02:58.320 --> 03:04.640]  I'll then hit you with the really ugly aspect of what the elected miscreants in D.C. are hiding
[03:04.640 --> 03:11.520]  from you. In order to discuss a national sales tax, we have to know what kind of tax sales tax
[03:11.520 --> 03:20.640]  is. If your answer is that sales tax is, well, sales tax, you are completely unqualified to even
[03:20.640 --> 03:26.640]  have an opinion on this subject because you don't know anything about how taxes are classified in
[03:26.640 --> 03:32.400]  law. You may recall from high school civics class that the federal government only has the authority
[03:32.400 --> 03:37.760]  specifically granted to it in the U.S. Constitution. Accordingly, what kind of tax is
[03:37.760 --> 03:43.760]  the federal government allowed to impose under the Constitution? The top tier issue is whether a tax
[03:43.760 --> 03:49.120]  is direct or indirect. I'm going to keep this presentation short by excluding direct taxes
[03:49.120 --> 03:53.920]  from the discussion because the Supreme Court in the Hylton case stated direct taxes, as understood
[03:53.920 --> 03:59.600]  by the men who wrote the Constitution, are only upon slaves and real property. Further, in the
[03:59.600 --> 04:04.400]  entire history of the United States, Congress has never enacted a direct tax, so we needn't waste
[04:04.400 --> 04:10.640]  time discussing direct taxes. That leaves us with indirect taxes, which are specifically named in
[04:10.640 --> 04:18.000]  Article 1, Section 8, Clause 1 of the Constitution. They are, and I quote, duties, imposts, and
[04:18.000 --> 04:25.040]  excises. We needn't waste time with imposts and duties because an excise tax means a tax upon the
[04:25.040 --> 04:31.440]  exercise of a government-granted privilege, and sales tax is upon a government-granted privilege.
[04:31.440 --> 04:38.160]  In other words, sales tax is an excise tax. Because the federal government has never enacted
[04:38.160 --> 04:43.600]  a sales tax, I can't quote from a statute that doesn't exist. However, many states have sales tax,
[04:43.600 --> 04:48.800]  so we'll look at one of those. Although sales tax is the same everywhere, I'm going to share the
[04:48.800 --> 04:53.840]  wording from the California sales tax statute because California uses very clear language in
[04:53.840 --> 04:59.040]  its statute. The California statute that imposes sales tax is found in the California Revenue and
[04:59.040 --> 05:07.840]  Taxation Code, Section 6051, which reads, quote, for the privilege of selling tangible personal
[05:07.840 --> 05:13.680]  property at retail, a tax is hereby imposed upon all retailers, close quote. In those 18 words,
[05:13.680 --> 05:19.200]  there is a lot to unpack, but for today, I'll simply point out that the California Legislature
[05:19.200 --> 05:25.520]  stated plainly sales tax is imposed upon the exercise of a privilege, which is the definition
[05:25.520 --> 05:32.560]  of an excise tax. Wait, you don't believe me? Maybe you'll believe the federal courts. In American
[05:32.560 --> 05:39.440]  Airways v. Wallace, the court stated, quote, the term excise tax and privilege tax are synonymous,
[05:39.440 --> 05:45.440]  the two are often used interchangeably, close quote. Now that you understand sales tax is a
[05:45.440 --> 05:51.600]  tax upon a privilege, it's time to go a step further. Westlaw is one of the premier proprietary
[05:51.600 --> 05:57.680]  databases used by lawyers and legal professionals to research matters of law. Part of its database
[05:57.680 --> 06:04.160]  is entitled Taxation Keys. Keys provide an attorney with a short statement, usually one sentence,
[06:04.160 --> 06:09.680]  that summarizes a point of law well settled by numerous concurring court decisions. In the section
[06:09.680 --> 06:17.040]  concerning excise taxes, Westlaw provides this key statement, quote, the legislature cannot name
[06:17.040 --> 06:22.960]  something to be a taxable privilege unless it is first a privilege, close quote. Remember a moment
[06:22.960 --> 06:29.360]  ago I said the opening 18 words of the California sales tax statute provides a lot to unpack? Well,
[06:29.360 --> 06:33.760]  I'm not going to get into it today because this would end up being a very long presentation,
[06:34.320 --> 06:40.720]  but one part of unpacking those words would be explaining what exactly the privilege is.
[06:41.360 --> 06:46.960]  And that brings us to what is not a privilege. In terms of today's discussion, the important
[06:46.960 --> 06:52.960]  thing to understand is that buying and selling your own property is not a privilege. For those
[06:52.960 --> 06:59.760]  who want to pretend that isn't true, let's hear from the federal courts. Corn v. Fourth, 1936,
[07:00.560 --> 07:05.840]  the individual's right to live and own property are natural rights for the enjoyment of which an
[07:05.840 --> 07:13.760]  excise cannot be imposed, close quote. Butcher's Union Company v. Crescent City Company, 1884,
[07:13.760 --> 07:19.360]  quote, the property that every man has is his personal labor as it is the original foundation
[07:19.360 --> 07:25.520]  of all other property, so it is the most sacred and viable to hinder his employing it in what manner
[07:25.520 --> 07:31.760]  he thinks proper without injury to his neighbor is a plain violation of that most sacred property,
[07:31.760 --> 07:38.080]  close quote. And Coppage v. Kansas, 1915, quote, included in the right of personal liberty is the
[07:38.080 --> 07:43.280]  right to make contracts for the acquisition of property. Chief among such contracts is that of
[07:43.280 --> 07:48.080]  personal employment by which labor and other services are exchanged for money and other forms
[07:48.080 --> 07:53.280]  of property, close quote. It should be noted these decisions remain binding decision, a law having
[07:53.280 --> 08:00.240]  never been overturned or reversed in whole or part. To summarize, sales tax is a privilege tax,
[08:00.240 --> 08:06.240]  which is synonymous with excise tax. Congress does have the authority to enact excise taxes.
[08:06.960 --> 08:13.040]  Excise taxes can only be imposed on activities that are, in reality, a privilege. In other words,
[08:13.040 --> 08:17.840]  a legislature can't declare something that is a right to be a privilege for the purpose of that
[08:17.840 --> 08:22.880]  imposing an excise tax. Standing decisions of the U.S. Supreme Court have declared that acquiring
[08:22.880 --> 08:29.520]  possession, utilizing, and disposing of personal property is an unalienable right. In short,
[08:29.520 --> 08:34.720]  Congress can't impose a national sales tax, an excise, on the American people because buying and
[08:34.720 --> 08:40.800]  selling personal property is a right not subject to an excise privilege tax. I can hear the
[08:40.800 --> 08:49.040]  anguished cries now, but Dave, in states with sales tax, everyone pays it. While I certainly
[08:49.040 --> 08:54.080]  wouldn't argue with that sentiment, saying everyone pays it isn't true. Let's revisit
[08:54.080 --> 08:59.920]  California Revenue and Taxation Code Section 6051, which reads, for the privilege of selling
[08:59.920 --> 09:08.240]  tangible personal property at retail, a tax is hereby imposed upon all retailers. Who is the tax
[09:08.240 --> 09:13.760]  imposed upon? Right, all retailers. Again, I'm not going to make this presentation super long by
[09:13.760 --> 09:18.880]  unpacking that. Instead, I'll tell you that about 25 years ago, after I discovered what the
[09:18.880 --> 09:24.160]  privilege is concerning sales tax, I immediately stopped charging my customer sales tax. Why?
[09:25.440 --> 09:31.200]  Because I actually read the law. But Dave, they cry. If what you're saying is true,
[09:31.200 --> 09:39.920]  attorneys for major corporations would tell them about it. Sorry, no. I've been at this for decades.
[09:39.920 --> 09:44.880]  Do you know how many corporate attorneys I've talked with who knew any of what we've just
[09:44.880 --> 09:52.880]  discussed to this point today? If you said zero, you'd be right. It is a pervasive public myth that
[09:52.880 --> 09:58.720]  attorneys know the law. Attorneys know only a tiny fraction of law that's pertinent on a daily basis
[09:58.720 --> 10:04.080]  to their area of specialty. And it's only worse with tax attorneys. They only know superficialities
[10:04.080 --> 10:11.120]  such as there is hereby imposed a tax on retailers. In their appalling ignorance of the law,
[10:11.120 --> 10:18.160]  they'll turn to a business client and say, see, retailer, that's you. They have no clue that
[10:18.160 --> 10:22.880]  because of what the privilege is involved with sales tax and having never bothered to research
[10:22.880 --> 10:28.160]  it, the vast majority of companies selling merchandise to the public are not retailers
[10:28.240 --> 10:35.040]  for the purpose of sales tax law. Remember when Anthony Fauci said, quote,
[10:35.040 --> 10:39.280]  when people are vaccinated, they can feel safe that they are not going to get infected.
[10:41.440 --> 10:46.720]  Tax attorneys are no better. They constantly make baseless comments about the law. They can't back
[10:46.720 --> 10:52.480]  up when challenged. Sadly, the people who pay these attorneys blindly believe whatever they say
[10:52.480 --> 10:58.400]  because there is a pervasive myth in America that attorneys know the law. Since Congress
[10:58.400 --> 11:03.520]  can't impose a national retail sales tax, why did a group of Republican lawmakers introduce
[11:03.520 --> 11:09.840]  legislation to do that? That's simple. The big pitch they made when introducing the bill
[11:09.840 --> 11:15.840]  was that it would abolish the IRS. Who wouldn't want to abolish the IRS, right? Introducing
[11:15.840 --> 11:22.000]  legislation to abolish the IRS makes for great campaign rhetoric going into the 2024 election.
[11:22.480 --> 11:27.840]  If you think me cynical and there was more to it than merely a stunt to create campaign rhetoric,
[11:27.840 --> 11:32.320]  reach out to the offices of the congressmen who introduced the bill and ask for a document
[11:32.320 --> 11:36.320]  showing they reached out to the Congressional Research Service to find out if Congress has
[11:36.320 --> 11:42.000]  authority to impose such a tax. I assure you, you'll get nothing in response to your request
[11:42.000 --> 11:46.320]  because they didn't seek that information from the Congressional Research Service.
[11:47.040 --> 11:51.440]  Why didn't they? Because they knew the bill was going nowhere. So whether what's in the bill is
[11:51.440 --> 11:56.880]  constitutional wasn't important. It was all about the ability to stand on the stump in 2024 and say
[11:56.880 --> 12:02.800]  they introduced legislation to abolish the IRS, which is appealing to a whole lot of voters for
[12:02.800 --> 12:09.360]  the obvious reason. As a note, because today I happen to be talking about Republicans, don't
[12:09.360 --> 12:17.120]  misinterpret that as being partisan. The Dems do exactly the same thing nearly on different subjects.
[12:17.120 --> 12:22.400]  At the outset, I told you that introducing legislation to achieve an unconstitutional end
[12:22.400 --> 12:27.600]  was not the worst of this situation. Also, McCarthy refusing to give a hearing to a bill that
[12:27.600 --> 12:35.360]  would abolish the IRS isn't the worst of it. What McCarthy knows, as do only those at the
[12:35.360 --> 12:40.720]  pinnacle of power in Congress, is that no alternative form of taxation can be allowed
[12:40.720 --> 12:46.080]  to take the place of the current system. Why? Due to the constitutional issue of direct and
[12:46.080 --> 12:51.280]  indirect taxes and the constitutional regulations of apportionment and uniformity, respectively,
[12:51.840 --> 12:58.560]  as well as a long list of Supreme Court decisions saying unalienable rights cannot be taxed because,
[12:58.560 --> 13:04.080]  as the court proclaimed in McCullough v. Maryland, the power to tax is the power to destroy.
[13:04.080 --> 13:09.840]  The founders did not give the national government the authority to impose the kind of income tax
[13:09.840 --> 13:14.080]  most Americans wrongly believe exists at this time in this country.
[13:15.040 --> 13:21.040]  But, Dave, they cry. Congress already has that authority. That's why we pay income tax.
[13:22.160 --> 13:28.960]  Nope. That assertion is factually and legally inaccurate. You pay income tax for one of two
[13:28.960 --> 13:35.600]  reasons. One, despite the fact that the Constitution does not give Congress that power and Congress
[13:35.600 --> 13:40.160]  has never passed any law taxing your labor, you pay it because you've never bothered to actually
[13:40.160 --> 13:46.160]  read what the law says for yourself. Or two, you know the truth and you're so fearful of the government
[13:46.160 --> 13:51.200]  that you pay it anyway. If you're in that second category, Samuel Adams has something to say to
[13:51.200 --> 13:58.160]  you. Quote, crouch down and lick the hands which feed you. May your chains set lightly upon you and
[13:58.160 --> 14:05.840]  may posterity forget that ye were our countrymen. Close quote. One thing is true. You can be a
[14:05.840 --> 14:12.240]  coward or you can have liberty. But you can't be a coward and have liberty. Unless, of course,
[14:12.240 --> 14:17.280]  other men secure liberty for you and you're able to enjoy it because of the sacrifices made by
[14:17.280 --> 14:22.560]  real men. Those who've never bothered to read the law with their own eyes may not believe that
[14:22.560 --> 14:30.000]  Congress has never passed a law taxing your labor. Of course, I don't know how they could have any
[14:30.000 --> 14:36.640]  opinion on the matter considering they've chosen to be completely ignorant. Thomas Jefferson has
[14:36.640 --> 14:42.720]  something to say to folks who choose ignorance. Quote, those who expect to be both ignorant and
[14:42.720 --> 14:51.920]  free expect whatever was and never will be. Close quote. In short, you pay income tax out of ignorance
[14:51.920 --> 14:58.320]  or fear. But not because Congress imposed an income tax on your labor. Congress has never done
[14:58.320 --> 15:04.160]  that. Here's the central point. People like McCarthy and others at the pinnacle of power in
[15:04.160 --> 15:09.600]  the US government know that because the Constitution doesn't grant Congress the power to impose a tax
[15:09.600 --> 15:17.200]  upon your labor, they can never let the current income tax system go because the vast majority
[15:17.200 --> 15:23.280]  of Americans have been brainwashed by a 60-year massive government disinformation campaign into
[15:23.280 --> 15:30.160]  believing the current income tax is something it isn't. Let me be clear. They know the truth
[15:30.960 --> 15:38.160]  and they're playing you, violating your rights and stealing your property because they believe
[15:38.160 --> 15:47.920]  the vast majority of American voters are lazy and stupid. So tell me, what have you done to
[15:47.920 --> 15:53.200]  prove them wrong? Remember a few minutes ago we discussed that an excise tax is a tax upon
[15:53.200 --> 15:58.640]  the exercise of a privilege? Care to guess into which category the current income tax belongs?
[15:59.680 --> 16:07.440]  If you said excise tax, you are 100% correct and the US Supreme Court has said exactly that.
[16:07.440 --> 16:14.080]  Of course, that brings us to the question of what the privilege is that's being taxed. Much
[16:14.080 --> 16:18.880]  like the privilege mentioned in connection with sales tax, proving to you what the privilege is
[16:18.880 --> 16:24.240]  would increase the length of this presentation considerably. Nevertheless, you should have learned
[16:24.240 --> 16:30.320]  enough by this point to know an excise tax cannot be imposed on your unalloyable right to work,
[16:30.880 --> 16:36.960]  your labor or the fruits of that labor. As I mentioned, I'm not going to make this presentation
[16:36.960 --> 16:42.000]  needlessly long by providing mountains of evidence about what the privileged activity is
[16:42.000 --> 16:48.320]  actually being taxed by the US income tax, but I will give you a hint. Most Americans are unaware
[16:48.320 --> 16:53.840]  the income tax involves withholding on various forms of income, not just payroll withholding.
[16:54.480 --> 16:59.440]  But no matter what kind of withholding is taking place, according to US tax law can only be done
[16:59.440 --> 17:07.280]  by someone known in law as a withholding agent. There is no form of withholding in US tax law
[17:07.280 --> 17:13.120]  that can be performed by anyone other than a withholding agent. That includes payroll
[17:13.120 --> 17:18.000]  withholding. Another way to phrase it is anyone who engages in withholding income tax from anyone
[17:18.000 --> 17:26.800]  under any provision of tax law becomes a withholding agent. That said, tax law very strictly defines a
[17:26.800 --> 17:33.120]  withholding agent. In short, anyone who withholds is a withholding agent and only people who fit
[17:33.120 --> 17:38.320]  the definition are allowed to withhold. So let's take a look at the definition of
[17:38.320 --> 17:43.760]  withholding agent. That definition appears in the general definition section of the tax code,
[17:43.760 --> 17:48.320]  which is found in Title 26 of the United States Code, Section 7701A.
[17:49.440 --> 17:54.160]  Withholding agent is definition number 16 and reads as follows, quote,
[17:54.960 --> 17:59.600]  The term withholding agent means any person required to deduct and withhold any tax under
[17:59.600 --> 18:10.480]  the provisions of Section 1441, 1442, 1443, and 1461. Close quote. So what are those listed sections?
[18:11.440 --> 18:16.640]  1441 addresses withholding on the US source income of non-resident alien employed while
[18:16.640 --> 18:23.520]  temporarily in the US for educational purposes. 142 addresses withholding on US source income
[18:23.520 --> 18:31.200]  belonging to foreign corporations. 1443 addresses foreign organizations that are tax exempt, such as
[18:31.200 --> 18:37.920]  registered charities. 1461 says, quote, Every person required to deduct and withhold any tax
[18:37.920 --> 18:45.360]  under this chapter is hereby made liable for such tax. And the title of the chapter referred to when
[18:45.360 --> 18:52.960]  it says under this chapter is Chapter 3, entitled, Withholding of Tax on Non-resident Aliens and
[18:52.960 --> 19:00.160]  Foreign Corporations. So to summarize, a withholding agent is only allowed to withhold on US source
[19:00.160 --> 19:05.920]  income earned by and belonging to a non-resident alien individual or foreign entity. I think that
[19:05.920 --> 19:11.520]  was a pretty good hint concerning the privilege being taxed by the US income tax. Because some
[19:11.520 --> 19:17.200]  folks are in denial about being brainwashed for 60 years of government disinformation,
[19:18.000 --> 19:20.960]  Carl Sagan has something to say about that. Quote,
[19:21.920 --> 19:27.760]  One of the saddest lessons of history is this. If we have been bamboozled long enough, we tend to
[19:27.760 --> 19:33.280]  reject any evidence of the bamboozle. We're no longer interested in finding out the truth.
[19:33.840 --> 19:39.120]  The bamboozle has captured us. It's simply too painful to acknowledge, even to ourselves,
[19:39.680 --> 19:47.120]  that we've been taken. Close quote. And this from Mark Twain, Education consists mainly of what we
[19:47.120 --> 19:52.960]  have unlearned. From all you've learned just in this presentation, doesn't it appear there are
[19:52.960 --> 19:59.520]  some things you need to unlearn and get some good solid knowledge under your belt? The good news is
[19:59.520 --> 20:05.280]  it's easier than you think to get the facts, to know such an important truth that's been hidden
[20:05.280 --> 20:11.840]  from you by the government 60 year disinformation campaign. How do I know so much about taxation?
[20:12.800 --> 20:17.280]  Because I wrote Income Tax Shattering the Mist, the best-selling book in the country
[20:17.280 --> 20:23.120]  that tells the truth about the income tax. Income Tax Shattering the Mist is the product of decades
[20:23.120 --> 20:29.200]  of research. It irrefutably proves the income tax has never been imposed on ordinary working
[20:29.200 --> 20:35.120]  Americans. It doesn't just give you enough evidence to create certainty. It goes well beyond that,
[20:35.120 --> 20:41.360]  providing mountains of evidence that will convince any skeptic. Perhaps more important
[20:41.440 --> 20:46.160]  than the mountains of evidence is that it's all laid out in a straightforward way
[20:46.160 --> 20:52.640]  every American can understand. I guess a lot of people would think a book on income tax is
[20:52.640 --> 20:58.480]  dry and boring. Exactly the opposite is true of Income Tax Shattering the Mist. Readers often
[20:58.480 --> 21:04.400]  refer to it as a page turner and say they can't put it down. Here's what one reader said in a
[21:04.400 --> 21:13.120]  social media comment, quote, wow, chapter seven. Holy shit, man. I feel like I went to law school.
[21:13.120 --> 21:18.720]  Fascinating though. If I didn't have to sleep and work, I'd read the book in one sitting.
[21:19.840 --> 21:25.200]  As I said, a very common reaction as people find Income Tax Shattering the Mist hard to put down.
[21:25.200 --> 21:34.240]  To get your copy of Income Tax Shattering the Mist, go to DrReality.News. DrReality.News.
[21:34.240 --> 21:40.640]  Put your copy in the cart, check out, and your copy will be on its way to you within 24 hours.
[21:40.640 --> 21:46.240]  Also, while you're there, consider grabbing a copy of Body Science 2. Have you ever wondered why
[21:46.240 --> 21:52.960]  America, with all of its wealth and scientific prowess, is the most ill society in human history?
[21:53.920 --> 21:59.760]  Body Science explains the fraud that's been perpetrated on you by the government and various
[21:59.760 --> 22:05.680]  trillion dollar industries, then gives you the truth, closing by giving you a factual scientific
[22:05.680 --> 22:11.440]  roadmap to creating phenomenal health and ensuring you won't be a victim of chronic disease.
[22:11.440 --> 22:18.400]  So go to DrReality.News, DrReality.News, and pick up a copy of Income Tax Shattering the Mist
[22:18.400 --> 22:23.440]  and Body Science. You have my word, they'll be two of the most fascinating books
[22:23.440 --> 22:27.680]  you'll ever read. Thanks for being here. Take care.