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Detected language: English
[00:00.640 --> 00:01.760]  Welcome to the show.
[00:01.760 --> 00:04.680]  It is exceedingly rare for the United States Supreme Court
[00:04.680 --> 00:09.680]  to bitch slap half the Federal Circuit Courts of Appeal,
[00:10.000 --> 00:11.200]  but it just did.
[00:11.200 --> 00:13.880]  The decision to which I'm referring is so momentous,
[00:13.880 --> 00:16.340]  it will change the future of our country.
[00:16.340 --> 00:18.320]  Perhaps more astoundingly,
[00:18.320 --> 00:19.840]  no one in the media is reporting
[00:19.840 --> 00:22.280]  on the profound implications of the decision,
[00:22.280 --> 00:25.040]  so this presentation will be the public's first exposure
[00:25.040 --> 00:26.920]  to the historic consequences
[00:26.920 --> 00:29.880]  of this particular Supreme Court decision.
[00:29.880 --> 00:34.880]  The Dr. Reality Vodcast with Dave Champion.
[00:45.600 --> 00:46.440]  Let's start with this.
[00:46.440 --> 00:50.360]  As many of you know, income tax is my area of expertise.
[00:50.360 --> 00:52.480]  I am arguably the most knowledgeable person
[00:52.480 --> 00:54.880]  in the United States concerning upon whom the income tax
[00:54.880 --> 00:57.520]  has been imposed and by association upon whom
[00:57.520 --> 00:59.120]  it has not been imposed.
[00:59.120 --> 01:01.480]  I am the author of Income Tax, Shattering the Mists,
[01:01.480 --> 01:03.300]  the best-selling book in America
[01:03.300 --> 01:05.360]  that reveals the truth of the income tax
[01:05.360 --> 01:08.300]  the government doesn't want the American people to know.
[01:08.300 --> 01:12.160]  Today, I will be showing you a June 2024
[01:12.160 --> 01:14.520]  Supreme Court decision that has set the stage
[01:14.520 --> 01:16.840]  to fundamentally change our nation.
[01:16.840 --> 01:18.620]  I'll be sharing the words of the court
[01:18.620 --> 01:22.200]  as you see them on screen directly from the court's website.
[01:22.200 --> 01:24.280]  I'll put a link to the decision in the notes
[01:24.280 --> 01:25.700]  so you know that what you're seeing
[01:25.700 --> 01:28.080]  is indeed the court's words.
[01:28.080 --> 01:29.960]  Before I get rolling, I want to let you know
[01:29.960 --> 01:32.580]  that I'm running two special offers on my books.
[01:32.580 --> 01:34.640]  I bring that up now because I'm confident
[01:34.640 --> 01:36.320]  by the end of this presentation,
[01:36.320 --> 01:37.960]  you'll want to know how you can purchase
[01:37.960 --> 01:39.600]  Income Tax, Shattering the Mists,
[01:39.600 --> 01:42.240]  and it wouldn't hurt to pay less for it, right?
[01:42.240 --> 01:44.920]  Stay with me to the end to learn about the special offers.
[01:44.920 --> 01:48.640]  What you're seeing now is page one of the court's decision.
[01:48.640 --> 01:50.600]  I've underlined the case name in red,
[01:50.600 --> 01:53.500]  which is Moore at Oaks v. United States.
[01:53.500 --> 01:56.660]  Also, I underlined the date the case was decided,
[01:56.660 --> 01:59.420]  which is June 20th, 2024.
[01:59.420 --> 02:01.900]  At this point, some of you may be thinking,
[02:01.900 --> 02:03.060]  wait a minute, Dave,
[02:03.060 --> 02:05.540]  you just said the media hasn't covered this case,
[02:05.540 --> 02:07.860]  but I distinctly remember seeing articles
[02:07.860 --> 02:09.580]  about it back in June.
[02:09.580 --> 02:12.460]  As far as that thought goes, you're right,
[02:12.460 --> 02:15.020]  but I didn't say the media didn't cover the story.
[02:15.020 --> 02:16.980]  I said the media has not reported
[02:16.980 --> 02:21.460]  on the profound implications of the decision.
[02:21.460 --> 02:25.140]  The media coverage addressed one thing and one thing only,
[02:25.140 --> 02:26.940]  the holding that the US government
[02:26.940 --> 02:30.060]  has the authority to tax unrealized gains
[02:30.060 --> 02:32.340]  that have accrued to shares of foreign corporations
[02:32.340 --> 02:34.620]  when those shares are owned by US citizens.
[02:34.620 --> 02:37.540]  While that's inarguably important for US citizens to know
[02:37.540 --> 02:40.180]  if they own shares in foreign corporations,
[02:40.180 --> 02:42.180]  that doesn't come within a million miles
[02:42.180 --> 02:44.500]  of the description I gave you in the introduction,
[02:44.500 --> 02:46.460]  which was that the court's decision
[02:46.460 --> 02:48.180]  contains something that is quote,
[02:48.220 --> 02:52.380]  so momentous it will change the future of our nation.
[02:52.380 --> 02:54.380]  That's the aspect of the decision
[02:54.380 --> 02:57.020]  no one in media has covered.
[02:57.020 --> 02:59.540]  The published decision is 32 pages long,
[02:59.540 --> 03:01.900]  but you need go no further than page two
[03:01.900 --> 03:03.540]  to find the bombshell.
[03:03.540 --> 03:07.900]  On page two, we find paragraph A,
[03:07.900 --> 03:11.780]  which contains the words that will change America's future.
[03:11.780 --> 03:13.060]  When we read paragraph A,
[03:13.060 --> 03:15.180]  some of you might think it sounds like gobbledygook
[03:15.180 --> 03:16.820]  because it uses a number of legal terms
[03:16.820 --> 03:18.380]  with which are unfamiliar.
[03:18.380 --> 03:21.140]  Not to worry, I'm going to explain
[03:21.140 --> 03:24.220]  the unfamiliar terminology in a way everyone can understand
[03:24.220 --> 03:27.100]  as well as describe how the pieces fit together.
[03:27.100 --> 03:30.580]  When I'm done, not only will you understand paragraph A
[03:30.580 --> 03:32.740]  as if you're a constitutional scholar,
[03:32.740 --> 03:36.660]  but the momentous implications will be crystal clear.
[03:36.660 --> 03:40.860]  With that said, here is what paragraph A says.
[03:40.860 --> 03:42.260]  Article one of the Constitution
[03:42.260 --> 03:45.540]  affords Congress broad power to lay and collect taxes.
[03:45.540 --> 03:47.420]  The power includes direct taxes,
[03:47.420 --> 03:49.260]  those imposed on persons and property,
[03:49.260 --> 03:50.540]  and indirect taxes,
[03:50.540 --> 03:53.060]  those imposed on activities or transactions.
[03:53.060 --> 03:56.020]  Direct taxes must be apportioned among the several states
[03:56.020 --> 03:57.980]  according to each state's population,
[03:57.980 --> 04:01.300]  while indirect taxes are permitted without apportionment
[04:01.300 --> 04:04.540]  but must be uniform throughout the United States.
[04:04.540 --> 04:07.060]  Taxes on income are direct taxes,
[04:07.060 --> 04:08.660]  and the 16th Amendment confirms
[04:08.660 --> 04:11.660]  the taxes on income need not be apportioned.
[04:11.660 --> 04:15.180]  Let me cut to the chase on the profound change
[04:15.180 --> 04:18.500]  that paragraph will produce in the United States.
[04:18.500 --> 04:21.380]  That paragraph prevents the Internal Revenue Service
[04:21.380 --> 04:23.820]  from collecting income tax from any American
[04:23.820 --> 04:25.620]  living and working in a state of the union,
[04:25.620 --> 04:27.740]  earning his or her domestic income,
[04:27.740 --> 04:31.540]  and who invests a bit of time getting informed.
[04:31.540 --> 04:34.820]  Before I jump in, I want to go up to the 35,000 foot level
[04:34.820 --> 04:38.860]  and consider what the court did in paragraph A.
[04:38.860 --> 04:40.980]  The first thing the court did was to validate
[04:40.980 --> 04:43.780]  that everything I've been telling you in my book,
[04:43.780 --> 04:47.580]  Income Tax Shattering the Mist, is legally factual.
[04:47.580 --> 04:49.820]  In paragraph A, the court said,
[04:49.820 --> 04:52.860]  taxes on income are indirect taxes,
[04:52.860 --> 04:55.500]  which is precisely what I've been telling
[04:55.500 --> 04:56.980]  the American people for 30 years,
[04:56.980 --> 04:58.620]  and Income Tax Shattering the Mist
[04:58.620 --> 04:59.780]  has been telling my countrymen
[04:59.780 --> 05:02.740]  since it was published 15 years ago.
[05:02.740 --> 05:06.940]  I appreciate that the Supreme Court has validated my work.
[05:07.820 --> 05:09.400]  The second thing paragraph A did
[05:09.400 --> 05:12.020]  was tell half the Federal Circuit Courts
[05:12.020 --> 05:16.500]  they've been wrong for decades.
[05:16.500 --> 05:17.620]  In Income Tax Shattering the Mist,
[05:17.620 --> 05:20.180]  I discussed that half the Federal Circuits
[05:20.180 --> 05:23.300]  have held the income tax to be an indirect excise,
[05:23.300 --> 05:25.060]  which is legally factual,
[05:25.060 --> 05:26.700]  and the other half have held it
[05:26.700 --> 05:29.260]  to be a direct tax absentment apportionment,
[05:29.260 --> 05:31.260]  which is not legally factual.
[05:31.260 --> 05:34.260]  The more decision confirms that half the Circuit Courts
[05:34.260 --> 05:38.420]  have been wrong for 100 years.
[05:38.420 --> 05:39.960]  More on that in a minute.
[05:39.960 --> 05:41.460]  Let's get into the specific language
[05:41.460 --> 05:44.620]  the court used so when you read paragraph A again,
[05:44.620 --> 05:46.260]  it will make perfect sense.
[05:46.260 --> 05:47.980]  In paragraph A, the court mentions
[05:47.980 --> 05:50.540]  direct taxes and indirect taxes.
[05:50.540 --> 05:51.740]  Because those terms are essential
[05:51.740 --> 05:53.740]  to understanding the larger issue,
[05:53.740 --> 05:56.560]  you need to know what each of those terms means.
[05:56.560 --> 06:00.180]  We'll start with the explanation of direct taxes.
[06:00.180 --> 06:01.740]  As the court stated, direct taxes
[06:01.740 --> 06:04.340]  bear upon persons and property.
[06:04.340 --> 06:07.080]  Article 1, section 2, clause 3 of the Constitution
[06:07.080 --> 06:10.140]  requires direct taxes to be apportioned
[06:10.140 --> 06:11.820]  and reach as follows.
[06:11.820 --> 06:13.580]  Representatives and direct taxes
[06:13.580 --> 06:16.800]  shall be apportioned among the several states.
[06:16.800 --> 06:19.300]  What that means is Congress would declare an amount
[06:19.300 --> 06:20.860]  each state owes the federal government
[06:20.860 --> 06:22.800]  based on the state's population,
[06:22.800 --> 06:25.020]  as determined by the most recent census.
[06:25.020 --> 06:27.580]  Each state would be responsible for making payment
[06:27.580 --> 06:29.880]  of the amount imposed by Congress.
[06:29.880 --> 06:32.700]  If a state refused or fell short,
[06:32.700 --> 06:34.480]  the federal government might collect the tax
[06:34.480 --> 06:36.940]  directly from the citizens of the state.
[06:37.760 --> 06:38.600]  As an illustrative example,
[06:38.600 --> 06:40.160]  let's say Congress imposed a direct tax
[06:40.160 --> 06:42.440]  in the form of a capitation tax.
[06:42.440 --> 06:44.040]  University of Michigan Law School
[06:44.040 --> 06:46.840]  has perhaps the most straightforward definition
[06:46.840 --> 06:49.360]  of a capitation tax, which reads,
[06:49.360 --> 06:50.980]  also known as a head tax,
[06:50.980 --> 06:54.340]  a capitation tax is a direct tax on a person
[06:54.340 --> 06:57.720]  as opposed to a tax on income, merchandise,
[06:57.720 --> 06:59.960]  or an economic transaction.
[06:59.960 --> 07:02.940]  In other words, it's a tax levied on you
[07:02.940 --> 07:05.660]  simply because you exist.
[07:05.660 --> 07:08.440]  Why did I say Congress would declare
[07:08.440 --> 07:09.600]  an amount the state owes,
[07:09.600 --> 07:11.600]  and if a state didn't pay the federal government
[07:11.600 --> 07:14.960]  might collect the tax directly from the people?
[07:14.960 --> 07:17.560]  I phrased it that way because we really don't know
[07:17.560 --> 07:19.860]  what the apportionment mechanism would look like.
[07:19.860 --> 07:22.520]  The Constitution is silent on the mechanics
[07:22.520 --> 07:25.060]  of how apportionment would be accomplished.
[07:25.060 --> 07:27.460]  From the day the Constitution was ratified
[07:27.460 --> 07:29.020]  until this very moment,
[07:29.020 --> 07:31.420]  Congress has never enacted a direct tax,
[07:31.420 --> 07:33.200]  which means we can only speculate
[07:33.220 --> 07:36.580]  about how exactly apportionment would operate.
[07:36.580 --> 07:39.780]  Let's summarize on direct tax.
[07:39.780 --> 07:41.780]  Any direct tax would have to be apportioned
[07:41.780 --> 07:43.420]  among the states.
[07:43.420 --> 07:46.140]  It is presumed apportionment would be a tax
[07:46.140 --> 07:49.020]  based on each state's population.
[07:49.020 --> 07:51.060]  In the entire history of the United States,
[07:51.060 --> 07:54.060]  Congress has never imposed a direct tax.
[07:54.060 --> 07:55.520]  With direct taxes under our belt,
[07:55.520 --> 07:57.700]  let's examine indirect taxes,
[07:57.700 --> 08:00.500]  which of course begins with the Constitution.
[08:00.500 --> 08:01.820]  Article I, Section 8,
[08:01.840 --> 08:04.680]  clause one of the Constitution states,
[08:04.680 --> 08:07.720]  The Congress shall have power to lay and collect taxes,
[08:07.720 --> 08:10.880]  duties, imposts, and excises to pay the debts
[08:10.880 --> 08:12.440]  and provide for the common defense
[08:12.440 --> 08:14.480]  and general welfare of the United States.
[08:14.480 --> 08:17.080]  But all duties, imposts, and excises
[08:17.080 --> 08:19.840]  shall be uniform throughout the United States.
[08:19.840 --> 08:23.640]  Duties, imposts, and excises
[08:23.640 --> 08:27.200]  are the three constitutional forms of indirect tax.
[08:27.200 --> 08:29.680]  There is no fourth type.
[08:29.700 --> 08:32.100]  In paragraph A, the course said indirect taxes
[08:32.100 --> 08:36.260]  are those imposed on activities or transactions.
[08:36.260 --> 08:39.020]  An example of that is customs duties,
[08:39.020 --> 08:41.340]  the taxes imposed on the activity
[08:41.340 --> 08:43.820]  of importing products into the United States.
[08:43.820 --> 08:45.320]  Although the following judicial statement
[08:45.320 --> 08:47.260]  was made specifically about excise taxes,
[08:47.260 --> 08:50.020]  it applies to all indirect taxes and reads,
[08:50.020 --> 08:51.740]  the obligation to pay an excise
[08:51.740 --> 08:55.140]  is based upon the voluntary action of the person taxed
[08:55.140 --> 08:58.000]  in performing the act, enjoying the privilege,
[08:58.140 --> 08:59.700]  or engaging in the privilege,
[08:59.700 --> 09:01.500]  which is the subject of the tax
[09:01.500 --> 09:06.460]  and the element of absolute unavoidable demand is lacking.
[09:06.460 --> 09:09.300]  To be clear, when the court says privilege,
[09:09.300 --> 09:11.900]  it means a government-granted privilege.
[09:11.900 --> 09:13.280]  A good way to think about a privilege
[09:13.280 --> 09:15.540]  is it's something you do not have a right to do
[09:15.540 --> 09:17.900]  and which, absent government permission,
[09:17.900 --> 09:20.340]  the activity would be prohibited.
[09:20.340 --> 09:22.620]  What does the court mean when it says,
[09:22.620 --> 09:27.620]  the element of absolute unavoidable demand is lacking?
[09:27.620 --> 09:30.240]  It simply means that if you don't wanna pay an indirect tax,
[09:30.240 --> 09:32.600]  don't engage in the government-granted privilege.
[09:32.600 --> 09:34.480]  Applying this to our previous example,
[09:34.480 --> 09:37.160]  if you don't wanna pay customs duties,
[09:37.160 --> 09:40.000]  don't import goods into the United States.
[09:40.000 --> 09:41.900]  I should add that the courts have held
[09:41.900 --> 09:44.800]  that the activity upon which an indirect tax is imposed
[09:44.800 --> 09:49.800]  must be, in reality, a privilege.
[09:49.800 --> 09:52.760]  In other words, a legislator may not declare a right
[09:52.760 --> 09:56.560]  to be a privilege so that it can impose an indirect tax.
[09:56.580 --> 09:59.740]  The constitutional regulation upon indirect taxes
[09:59.740 --> 10:02.980]  is that, quote, all duties imposed and exercises
[10:02.980 --> 10:05.620]  shall be uniform throughout the United States.
[10:05.620 --> 10:07.720]  What does it mean for indirect taxes
[10:07.720 --> 10:10.280]  to be uniform throughout the United States?
[10:10.280 --> 10:12.020]  It simply means that when the federal government
[10:12.020 --> 10:13.780]  imposes an indirect tax,
[10:13.780 --> 10:17.420]  the same rate must apply in every part of the country.
[10:17.420 --> 10:19.360]  Let's use the government-granted privilege
[10:19.360 --> 10:23.180]  of distilling spirits as an example.
[10:23.180 --> 10:25.820]  The uniformity requirement means
[10:25.820 --> 10:28.400]  whatever the rate of tax is on distilling spirits
[10:28.400 --> 10:31.160]  in Alabama, the rate must be the same
[10:31.160 --> 10:36.040]  when distilling spirits in Alaska or Texas or Michigan.
[10:36.040 --> 10:41.040]  If the tax was $2 per liter in Florida and $3 in Utah,
[10:41.520 --> 10:43.640]  the tax would be unconstitutional.
[10:43.640 --> 10:46.600]  Let's summarize on indirect tax.
[10:46.600 --> 10:49.000]  Indirect taxes are taxes upon the exercise
[10:49.000 --> 10:51.760]  of a government-granted privilege.
[10:51.760 --> 10:54.440]  Indirect taxes can be avoided by not engaging
[10:54.580 --> 10:56.660]  government-granted privileges.
[10:56.660 --> 11:00.220]  Indirect taxes must be uniform throughout the nation.
[11:00.220 --> 11:04.740]  Now that you understand what direct and indirect tax is,
[11:04.740 --> 11:06.540]  let's get to the meat of the issue,
[11:06.540 --> 11:09.800]  which appears in the final sentence of paragraph A,
[11:09.800 --> 11:14.800]  where the court says taxes on income are indirect taxes,
[11:15.900 --> 11:18.020]  and the 16th Amendment confirms
[11:18.020 --> 11:22.760]  that taxes on income need not be apportioned.
[11:22.760 --> 11:25.700]  Let's consider the first six words.
[11:25.700 --> 11:30.700]  Taxes on income are indirect taxes.
[11:30.940 --> 11:34.300]  What the court just said is that the income tax
[11:34.300 --> 11:37.360]  is a tax on the exercise of a government-granted privilege.
[11:37.360 --> 11:40.260]  The second part of the sentence says
[11:40.260 --> 11:43.420]  the 16th Amendment confirms that taxes on income
[11:43.420 --> 11:46.620]  need not be apportioned.
[11:46.620 --> 11:48.680]  Combined with the first six words,
[11:48.680 --> 11:51.520]  that's the court telling half the Federal Circuit Courts
[11:51.520 --> 11:56.380]  of Appeal that they have been 100% wrong
[11:56.380 --> 11:59.380]  when holding for almost 100 years
[11:59.380 --> 12:02.580]  that income tax is direct tax absent apportionment.
[12:02.580 --> 12:05.660]  In more, SCOTUS corrected the Circuit Courts
[12:05.660 --> 12:10.660]  by explicitly stating income tax is an indirect tax.
[12:11.900 --> 12:14.820]  Ironically, the Moore decision is simply restating
[12:14.820 --> 12:17.500]  what the court said in Bruce Shaver v. Union Pacific Railroad
[12:17.500 --> 12:21.060]  back in 1916, when it was first called upon
[12:21.060 --> 12:23.440]  to settle the meaning of the 16th Amendment.
[12:23.440 --> 12:26.440]  All of these facts and history and much more
[12:26.440 --> 12:30.400]  are covered in detail in Income Tax Shattering the Miss.
[12:30.400 --> 12:34.160]  So far, you've learned what an indirect tax is
[12:34.160 --> 12:37.760]  and that there are three forms of indirect tax,
[12:37.760 --> 12:41.520]  imposts, duties, and exercises.
[12:41.520 --> 12:45.820]  So which of the three forms of indirect tax
[12:45.820 --> 12:47.700]  is the income tax?
[12:47.700 --> 12:49.720]  Before I answer that, please take a moment
[12:49.760 --> 12:51.940]  to subscribe to the channel and hit the like button
[12:51.940 --> 12:55.160]  so the algorithms will show this content to more people.
[12:55.160 --> 12:57.260]  If you believe this information should be known
[12:57.260 --> 13:00.840]  by all Americans, please share it.
[13:00.840 --> 13:02.700]  Together, we can get the truth out.
[13:02.700 --> 13:04.340]  Also, a reminder that at the end,
[13:04.340 --> 13:06.340]  I'll be telling you about the special offers available
[13:06.340 --> 13:08.740]  on Income Tax Shattering the Miss and my other writings.
[13:08.740 --> 13:12.160]  Now, back to the question of which type of indirect tax
[13:12.160 --> 13:14.140]  is the income tax.
[13:14.140 --> 13:16.380]  Many government entities have declared income tax
[13:16.380 --> 13:19.080]  to be an excise, but perhaps the most authoritative
[13:19.080 --> 13:21.660]  is the Supreme Court's Bruce Shaver decision
[13:21.660 --> 13:23.740]  in which Justice White, writing for the court
[13:23.740 --> 13:26.100]  and referencing the earlier Pollock case,
[13:26.100 --> 13:30.780]  pointed out there is no legal basis for the income tax
[13:30.780 --> 13:34.340]  to be considered a direct tax and then said this,
[13:34.340 --> 13:37.140]  taxation on income was in its nature an excise
[13:37.140 --> 13:39.580]  entitled to be enforced as such.
[13:39.580 --> 13:43.140]  White also wrote, the contention that the amendment
[13:43.140 --> 13:45.660]  treats a tax on income as a direct tax
[13:45.660 --> 13:49.080]  and relief from apportionment is also wholly
[13:49.080 --> 13:50.800]  without foundation.
[13:51.800 --> 13:53.800]  You should know that half the circuit courts
[13:53.800 --> 13:56.880]  having held wrongly about the nature of the income tax
[13:56.880 --> 13:59.240]  isn't merely an esoteric issue.
[13:59.240 --> 14:00.920]  It would be hard to overstate the harm
[14:00.920 --> 14:02.840]  those courts have done.
[14:02.840 --> 14:05.960]  By saying income tax is a direct tax,
[14:05.960 --> 14:09.000]  they have been nullifying the essential element
[14:09.000 --> 14:11.860]  of an indirect tax that one can avoid the tax
[14:11.860 --> 14:14.800]  by declining to engage in a privileged activity.
[14:14.800 --> 14:18.680]  In short, those courts have been dishonestly saying
[14:18.680 --> 14:20.480]  that Americans who are not engaged
[14:20.480 --> 14:22.460]  in a government-granted privilege
[14:22.460 --> 14:24.500]  must still pay the income tax.
[14:24.500 --> 14:26.820]  It would be hard to imagine a corrupt holding
[14:26.820 --> 14:30.140]  more egregious and harmful than that.
[14:30.140 --> 14:32.440]  Now that you know income tax is an excise,
[14:32.440 --> 14:34.300]  what is an excise?
[14:34.300 --> 14:36.300]  In American Airways v. Wallace,
[14:36.300 --> 14:38.740]  a federal court gave the most succinct description
[14:38.740 --> 14:42.780]  of which I am aware when it said the term excise tax
[14:42.780 --> 14:46.400]  and privilege tax are synonymous.
[14:46.400 --> 14:47.880]  As stated in paragraph A,
[14:47.880 --> 14:52.120]  direct taxes are imposed on persons and property.
[14:52.120 --> 14:53.920]  When you exchange your labor for compensation,
[14:53.920 --> 14:58.680]  the compensation you receive is your property.
[14:58.680 --> 15:02.240]  Accordingly, if the tax was upon your income,
[15:02.240 --> 15:03.780]  it would be a direct tax.
[15:03.780 --> 15:05.960]  So we know income tax has not actually
[15:05.960 --> 15:07.600]  been imposed on the income.
[15:08.600 --> 15:10.280]  In U.S. income tax law,
[15:10.300 --> 15:14.660]  the amount of income simply serves as a gauge
[15:14.660 --> 15:17.860]  by which the government determines the value
[15:17.860 --> 15:20.820]  of the privilege being exercised.
[15:20.820 --> 15:23.360]  That's why when a person exercising a privilege
[15:23.360 --> 15:25.560]  upon which income tax has been imposed
[15:25.560 --> 15:27.460]  makes a million dollars,
[15:27.460 --> 15:30.100]  his tax bill will be higher than the person
[15:30.100 --> 15:34.920]  who, exercising the same privilege, netted $250,000.
[15:34.920 --> 15:39.380]  In short, higher income translates into a greater value
[15:39.380 --> 15:43.120]  from the privilege thus more tax is owed.
[15:43.120 --> 15:45.080]  The important takeaway is that the exercise
[15:45.080 --> 15:50.080]  of a privilege is being taxed, not the income itself.
[15:51.500 --> 15:55.580]  Now that you understand direct taxes, indirect taxes,
[15:55.580 --> 15:57.520]  that the income tax is an excise
[15:57.520 --> 16:01.100]  and that the exercise of a privilege is being taxed,
[16:01.100 --> 16:05.280]  you're probably curious as to what privilege
[16:05.280 --> 16:07.840]  is U.S. income taxing.
[16:07.840 --> 16:10.920]  The privilege being taxed under U.S. income tax law
[16:10.920 --> 16:14.220]  is as simple for me to convey to you
[16:14.220 --> 16:16.680]  as it is difficult for people to accept.
[16:17.820 --> 16:20.000]  All I can do today is give it to you straight.
[16:20.000 --> 16:22.560]  To see the mountains of evidence
[16:22.560 --> 16:24.280]  that what I'm about to tell you is true,
[16:24.280 --> 16:26.680]  you'll need to read Income Tax Shattering the Mist.
[16:26.680 --> 16:31.160]  In law, the income tax is known as Subtitle A
[16:31.160 --> 16:34.120]  of United States Code Title 26.
[16:34.120 --> 16:36.680]  In other words, what we call income tax
[16:36.680 --> 16:39.440]  is found in law at Subtitle A.
[16:39.440 --> 16:41.920]  What you're seeing on your screen is Subtitle A
[16:41.920 --> 16:43.540]  entitled Income Tax.
[16:43.540 --> 16:46.300]  You'll notice I've highlighted chapters one and two.
[16:46.300 --> 16:49.280]  Chapter one is titled Normal Taxes and Surtaxes
[16:49.280 --> 16:53.800]  and chapter two is titled Tax on Self-Employment Income.
[16:53.800 --> 16:56.200]  Chapters one and two are what I call
[16:56.200 --> 17:00.260]  the Rules of Computation.
[17:00.260 --> 17:02.640]  In other words, for those people enjoying
[17:02.640 --> 17:05.440]  the excise taxable privilege,
[17:05.440 --> 17:08.360]  chapters one and two detail the methods
[17:08.360 --> 17:12.800]  by which to compute how much U.S. income tax is owed
[17:12.800 --> 17:16.780]  for engaging in the privileged activity.
[17:16.780 --> 17:17.960]  This is the same screenshot,
[17:17.960 --> 17:19.800]  but now I've underlined chapter three,
[17:19.800 --> 17:22.000]  which is titled Withholding of Tax
[17:22.000 --> 17:25.540]  on Non-Resident Aliens and Foreign Corporations.
[17:25.540 --> 17:28.740]  Every tax law enacted in U.S. history
[17:28.740 --> 17:31.260]  has a collection mechanism included.
[17:31.260 --> 17:32.980]  When it comes to the income tax,
[17:32.980 --> 17:36.820]  chapters one and two tell you how to determine
[17:36.820 --> 17:41.820]  the amount of tax owed and chapter three explains
[17:42.160 --> 17:44.340]  from whom the tax is to be collected
[17:44.340 --> 17:48.340]  and the mechanisms by which the collection is to take place.
[17:48.340 --> 17:52.880]  In other words, the persons from whom the tax is collected
[17:52.880 --> 17:55.340]  are non-resident aliens and foreign corporations
[17:55.340 --> 17:56.560]  with U.S. source income.
[17:57.500 --> 18:01.960]  This may shock you, but non-resident aliens
[18:01.960 --> 18:05.320]  and foreign corporations receiving U.S. source income
[18:05.320 --> 18:09.440]  are the only persons from whom U.S. law
[18:09.440 --> 18:13.840]  authorizes collection of income tax.
[18:13.840 --> 18:16.240]  The reason for that is the privilege being taxed
[18:16.240 --> 18:18.640]  is foreign persons earning income
[18:18.640 --> 18:20.340]  from within the United States.
[18:20.340 --> 18:22.340]  Non-resident aliens and foreign corporations
[18:22.340 --> 18:24.560]  have no right to earn money in the United States.
[18:24.560 --> 18:26.440]  For them, it's a privilege.
[18:27.320 --> 18:30.040]  And U.S. law imposes the income tax
[18:30.040 --> 18:31.980]  on the exercise of that privilege.
[18:31.980 --> 18:35.240]  For you and I, earning money here is right.
[18:35.240 --> 18:37.600]  For foreign persons, it's a privilege
[18:37.600 --> 18:40.820]  taxed by what the public calls income tax.
[18:40.820 --> 18:43.320]  Right now, I can almost hear some people screaming,
[18:43.320 --> 18:46.240]  that isn't true because the law authorizes
[18:46.240 --> 18:48.620]  income tax to be taken out of my paycheck.
[18:48.620 --> 18:50.600]  So there is a collection mechanism
[18:50.600 --> 18:52.900]  that has nothing to do with foreign persons.
[18:54.060 --> 18:55.240]  Really.
[18:55.240 --> 19:00.040]  So you think the Form W-4 you filled out
[19:00.040 --> 19:01.760]  authorizing the company for which you work
[19:01.760 --> 19:05.640]  to withhold from your paycheck is in law
[19:05.640 --> 19:07.520]  to be used by American citizens earning
[19:07.520 --> 19:10.200]  their own domestic income in a state of the union?
[19:10.200 --> 19:12.080]  Here's a hint for you.
[19:12.080 --> 19:15.960]  Nowhere in U.S. tax law does it say Form W-4
[19:15.960 --> 19:18.160]  is to be used by American citizens
[19:18.160 --> 19:19.900]  earning their own domestic income
[19:19.900 --> 19:22.160]  in the states of the union.
[19:22.160 --> 19:24.940]  Nowhere.
[19:24.940 --> 19:27.380]  Conversely, would you like to guess
[19:27.380 --> 19:32.380]  who in U.S. tax law is instructed to use a W-4?
[19:33.080 --> 19:36.660]  Treasury Decisions 8734-8881
[19:36.660 --> 19:39.540]  and Cumulative Bulletin 1997-44.
[19:39.540 --> 19:42.880]  All command wage withholding is to be affected
[19:42.880 --> 19:47.880]  upon non-resident aliens receiving U.S. source income.
[19:48.080 --> 19:50.820]  Would you care to guess how many Treasury Decisions
[19:50.820 --> 19:53.420]  or Cumulative Bulletins say Form W-4
[19:53.480 --> 19:55.160]  is to be used by American citizens
[19:55.160 --> 19:58.160]  earning their own domestic income in the states of the union?
[19:59.400 --> 20:01.560]  In case you haven't figured it all out yet,
[20:01.560 --> 20:04.840]  the answer is zero.
[20:04.840 --> 20:07.720]  No mechanism to collect income tax from Americans
[20:07.720 --> 20:10.600]  earning their own domestic income exists in law
[20:10.600 --> 20:14.320]  because the privileged tax called income tax
[20:14.320 --> 20:17.780]  cannot be and has not been imposed
[20:17.780 --> 20:21.120]  on your right to earn a living.
[20:21.120 --> 20:22.880]  You can find tons of evidence
[20:22.880 --> 20:25.380]  concerning the true legal purpose of the Form W-4
[20:25.380 --> 20:27.020]  in income tax shattering the mess,
[20:27.020 --> 20:29.180]  but I will share something quick and simple
[20:29.180 --> 20:30.460]  with you right now.
[20:30.460 --> 20:33.460]  Generally speaking, statutes and regulations
[20:33.460 --> 20:35.540]  are the only authoritative legal source
[20:35.540 --> 20:37.300]  of which Americans are aware,
[20:37.300 --> 20:40.020]  so it may surprise you to learn
[20:40.020 --> 20:43.500]  that who is to file a Form 1040
[20:43.500 --> 20:47.580]  is never addressed in income tax statutes
[20:47.580 --> 20:49.740]  or in income tax regulations.
[20:49.760 --> 20:53.560]  In other words, Americans can search endlessly in the law
[20:53.560 --> 20:55.160]  for a legal instruction concerning
[20:55.160 --> 20:59.400]  who is to file a Form 1040 and never find it.
[20:59.400 --> 21:01.760]  To find who is required to file a Form 1040,
[21:01.760 --> 21:05.160]  you have to drill down past the statutes and regulations
[21:05.160 --> 21:07.440]  to Treasury decisions written and published
[21:07.440 --> 21:09.400]  by the Secretary of the Treasury.
[21:09.400 --> 21:11.040]  It is in Treasury decisions
[21:11.040 --> 21:14.240]  we find the US government's legal determination
[21:14.240 --> 21:18.440]  of who is required to file by law a Form 1040.
[21:18.440 --> 21:21.100]  The Form 1040 was created by the Treasury Department
[21:21.100 --> 21:22.780]  in 1913.
[21:22.780 --> 21:27.020]  Since then, the Secretary has issued 11 Treasury decisions
[21:27.020 --> 21:31.100]  stating that Form 1040 is to be used by non-resident aliens
[21:31.100 --> 21:34.140]  or the non-resident alien's domestic agent.
[21:34.140 --> 21:38.460]  The Secretary has issued zero Treasury decisions
[21:38.460 --> 21:40.820]  saying Form 1040 is to be used by anyone
[21:40.820 --> 21:43.220]  other than non-resident aliens
[21:43.220 --> 21:45.700]  or the non-resident alien's domestic agent.
[21:45.720 --> 21:49.600]  In other words, the legal requirement to file a Form 1040
[21:49.600 --> 21:53.280]  applies exclusively to non-resident aliens
[21:53.280 --> 21:55.520]  or the non-resident alien's domestic agent.
[21:55.520 --> 21:58.780]  Understanding that, now let's look at the instructions
[21:58.780 --> 22:01.440]  for the Form W-4.
[22:01.440 --> 22:04.480]  On page two, the third paragraph is entitled,
[22:04.480 --> 22:07.760]  exemptions from withholding and says the following.
[22:08.840 --> 22:12.440]  You may claim exemption from withholding for 2024
[22:12.440 --> 22:14.640]  if you meet both of the following conditions.
[22:14.640 --> 22:18.100]  You had no federal income tax liability in 2023,
[22:18.100 --> 22:20.740]  and you expect to have no federal income tax liability
[22:20.740 --> 22:22.460]  in 2024.
[22:22.460 --> 22:26.060]  You had no federal income tax liability in 2023
[22:26.060 --> 22:31.060]  if your total tax on line 24 on your 2023 Form 1040
[22:33.460 --> 22:38.460]  or 1040-S-R is zero.
[22:38.860 --> 22:43.400]  In other words, to properly fill out a Form W-4,
[22:43.400 --> 22:47.520]  you have to be a person who files a Form 1040,
[22:47.520 --> 22:50.500]  which is only to be filed by non-resident aliens
[22:50.500 --> 22:53.000]  or the non-resident alien's domestic agent.
[22:53.000 --> 22:55.760]  On page three, we find a section entitled,
[22:55.760 --> 22:58.100]  step four B deduction worksheet,
[22:58.100 --> 23:00.820]  the purpose of which is to assist those who are required
[23:00.820 --> 23:04.800]  to file a W-4 in claiming the correct amount of deductions.
[23:04.800 --> 23:07.120]  This is how it explains a person is to come up
[23:07.120 --> 23:10.560]  with the correct level of deductions.
[23:10.560 --> 23:14.280]  Enter an estimate of your 2024 itemized deductions
[23:14.280 --> 23:17.760]  from schedule A Form 1040.
[23:18.820 --> 23:21.840]  We'll also point out that Form 1040 and W-4
[23:21.840 --> 23:24.500]  share the same OMB control number
[23:24.500 --> 23:26.920]  because both forms deal with the same issue,
[23:26.920 --> 23:30.780]  the collection of US source income from non-resident aliens.
[23:32.020 --> 23:34.940]  It should be clear that the only people required
[23:34.940 --> 23:37.260]  to submit a Form W-4 are the same people
[23:37.260 --> 23:39.360]  who are required to file a 1040,
[23:39.360 --> 23:40.720]  which are non-resident aliens
[23:40.720 --> 23:43.120]  for whom receiving US source income
[23:43.120 --> 23:46.380]  is the privilege being taxed.
[23:46.380 --> 23:47.280]  We've covered a lot of ground,
[23:47.280 --> 23:49.400]  so let's take a moment to recap.
[23:49.400 --> 23:50.440]  I said the Moore decision
[23:50.440 --> 23:53.080]  would change the course of US history.
[23:53.080 --> 23:56.280]  I said the media had not covered the profound implications
[23:56.280 --> 23:58.680]  of what really matters about the Moore decision,
[23:58.680 --> 24:00.600]  and this would be your first exposure
[24:00.600 --> 24:03.120]  to that profound implication.
[24:03.120 --> 24:06.060]  You learned that a direct tax is upon persons and property,
[24:06.060 --> 24:07.320]  must be apportioned,
[24:07.320 --> 24:10.440]  and Congress has never enacted a direct tax.
[24:10.440 --> 24:12.560]  You learned that an indirect tax is defined
[24:12.560 --> 24:15.720]  by its lack of absolute unavoidable demand,
[24:15.720 --> 24:17.460]  and you can avoid an indirect tax
[24:17.460 --> 24:21.160]  by not engaging in specific activities taxed.
[24:21.160 --> 24:23.280]  You learned that one of the three forms
[24:23.280 --> 24:25.620]  of indirect tax is an excise.
[24:25.620 --> 24:27.320]  You learned that an excise is a tax
[24:27.320 --> 24:30.180]  upon the exercise of a government-granted privilege.
[24:30.180 --> 24:32.720]  You learned that the income tax is an excise,
[24:32.720 --> 24:35.080]  which means the income tax is upon the exercise
[24:35.080 --> 24:36.920]  of a government-granted privilege.
[24:36.920 --> 24:38.840]  You learned that the privilege being taxed
[24:38.840 --> 24:41.880]  by US income tax law is non-resident aliens
[24:41.880 --> 24:45.240]  and foreign corporations receiving US source income.
[24:45.240 --> 24:47.900]  You learned income tax collection mechanisms
[24:47.900 --> 24:51.160]  operate exclusively on the US source income
[24:51.160 --> 24:52.800]  of foreign persons.
[24:52.800 --> 24:56.160]  You learned that a form W-4 is to be used exclusively
[24:56.160 --> 24:59.440]  by a non-resident alien receiving US source income.
[24:59.440 --> 25:00.880]  Today, you learned a good deal
[25:00.880 --> 25:04.160]  of really important information in a short period of time.
[25:04.160 --> 25:06.080]  The conclusion of all you learned
[25:06.080 --> 25:07.960]  is that the income tax has never been imposed on you,
[25:07.960 --> 25:09.480]  and you don't know it.
[25:09.480 --> 25:11.520]  That brings us back to the statement I made
[25:11.520 --> 25:13.720]  in the introduction, which was that the more decision
[25:13.720 --> 25:16.680]  will change the future of our nation.
[25:16.680 --> 25:21.680]  Roughly 160 million Americans file a form 1040 every year.
[25:22.180 --> 25:25.120]  As an aside, I should mention that form 1120
[25:25.120 --> 25:27.540]  is to be used by a foreign corporation
[25:27.540 --> 25:29.840]  to report the tax out on US source income.
[25:29.840 --> 25:32.960]  Form 1065 is to be used by foreign partnerships
[25:32.960 --> 25:34.520]  to report US source income,
[25:34.520 --> 25:37.720]  and form K-1 is to be used to report US source income
[25:37.720 --> 25:40.840]  distributed to members of the foreign partnership.
[25:40.840 --> 25:42.440]  But back to the main point,
[25:43.520 --> 25:46.920]  if all 160 million Americans learned the truth
[25:46.920 --> 25:48.120]  contained in the more decision
[25:48.120 --> 25:50.360]  and in income tax shattering the mess,
[25:50.360 --> 25:53.520]  and therefore stopped paying income tax,
[25:53.520 --> 25:54.920]  I think we all agree
[25:54.920 --> 25:57.200]  that would change the future of our nation.
[25:57.200 --> 25:59.240]  Yet, when I talk about the more decision
[25:59.240 --> 26:01.120]  changing the future of our country,
[26:01.120 --> 26:06.000]  that's predicated on my countrymen doing two things.
[26:06.000 --> 26:09.540]  One, learning about the truly significant part
[26:09.540 --> 26:10.380]  of the more decision,
[26:10.380 --> 26:15.380]  and two, having the spine to act on the truth.
[26:17.280 --> 26:19.880]  From the day almost 32 years ago
[26:19.880 --> 26:22.200]  that I realized Congress has never imposed
[26:22.200 --> 26:24.160]  the income tax on me,
[26:24.160 --> 26:26.200]  there was no power on earth
[26:26.200 --> 26:27.840]  that could make me file a 1040
[26:27.840 --> 26:31.000]  or pay income tax ever again.
[26:31.000 --> 26:33.680]  It simply isn't within me
[26:33.680 --> 26:38.520]  to allow my servant government to steal from me.
[26:39.800 --> 26:42.880]  Yet, I'm aware many Americans
[26:42.880 --> 26:46.080]  don't feel the indignation I felt and still feel
[26:46.080 --> 26:49.400]  about the government defrauding the American people.
[26:49.400 --> 26:50.960]  In light of more,
[26:50.960 --> 26:55.080]  will Americans pull their heads out of their asses
[26:55.080 --> 26:57.800]  and learn the truth of the income tax?
[26:57.800 --> 26:59.280]  Let's say the message takes off
[26:59.280 --> 27:01.160]  and our fellow citizens hear about it.
[27:02.480 --> 27:03.320]  What then?
[27:04.360 --> 27:08.000]  The founding fathers risked everything
[27:08.000 --> 27:09.800]  to fight for personal liberty.
[27:09.800 --> 27:13.240]  Today, concerning the truth of the income tax,
[27:13.240 --> 27:15.440]  Americans don't have to fight at all.
[27:16.360 --> 27:21.360]  All Americans need to do to stand up for liberty today is,
[27:22.380 --> 27:23.220]  are you ready?
[27:24.520 --> 27:27.320]  Follow the law.
[27:28.320 --> 27:30.600]  That said, I never suggest anyone walk away
[27:30.600 --> 27:32.400]  from the income tax until they've read
[27:32.400 --> 27:34.040]  Income Tax Shattering the Miss
[27:34.040 --> 27:35.760]  because this is not a matter concerning
[27:35.760 --> 27:37.840]  which anyone should go off half-cocked.
[27:37.840 --> 27:40.080]  You should know what the law says,
[27:40.080 --> 27:41.920]  how it operates,
[27:41.920 --> 27:44.400]  how the scam is being played on you,
[27:44.400 --> 27:47.160]  and with that knowledge, how to walk away safely.
[27:47.160 --> 27:50.800]  Income Tax Shattering the Miss gives you all of that.
[27:50.800 --> 27:52.040]  Here's how to get your discount
[27:52.040 --> 27:53.480]  on Income Tax Shattering the Miss.
[27:53.480 --> 27:56.680]  First is the big Christmas special.
[27:56.680 --> 27:58.760]  If you use the code EXIMUS24,
[27:58.760 --> 28:01.080]  not only do you get 10% off everything
[28:01.080 --> 28:03.380]  on my doctorreality.news website,
[28:03.380 --> 28:06.140]  but if your order includes Income Tax Shattering the Miss
[28:06.140 --> 28:08.000]  and or body science,
[28:08.000 --> 28:11.040]  I will personally inscribe and autograph them for you.
[28:11.040 --> 28:12.560]  I recently put out a presentation
[28:12.560 --> 28:15.560]  comparing and contrasting income tax
[28:15.560 --> 28:17.480]  with the tariffs you'll be paying
[28:17.480 --> 28:19.520]  in the not too distant future.
[28:19.520 --> 28:21.440]  In that presentation, I make the point
[28:21.440 --> 28:23.760]  that the tariffs are coming
[28:23.760 --> 28:27.360]  and will double some Americans' federal tax burden.
[28:27.360 --> 28:29.680]  Even those who won't see a doubling of their tax burden
[28:29.680 --> 28:34.160]  will absolutely be paying tariff taxes they cannot avoid.
[28:34.160 --> 28:36.160]  In light of an increased tax burden
[28:36.160 --> 28:39.720]  coming to every American household in America,
[28:39.720 --> 28:41.800]  would this not be the exact right time
[28:41.800 --> 28:43.280]  to get informed and put your plan together
[28:43.280 --> 28:45.880]  to safely walk away from the income tax?
[28:45.880 --> 28:48.320]  I'll put the link to the tariff video down in the notes.
[28:48.320 --> 28:50.720]  There is a special discount right now
[28:50.720 --> 28:53.140]  for those who believe this is the right time
[28:53.140 --> 28:55.180]  to exit the income tax scam.
[28:55.180 --> 28:58.760]  If you use the code tariffs at checkout,
[28:58.760 --> 29:01.080]  you will get free shipping on any order
[29:01.080 --> 29:04.740]  that contains a copy of Income Tax Shattering the Miss.
[29:04.740 --> 29:06.500]  I suggest people get the four pack,
[29:06.500 --> 29:09.500]  which includes Income Tax Shattering the Miss,
[29:09.500 --> 29:13.740]  body science, the business guide to payroll withholding,
[29:13.740 --> 29:15.860]  and the W9 1099 handbook.
[29:15.860 --> 29:17.180]  The price of the four pack
[29:17.180 --> 29:19.380]  has already been deeply discounted,
[29:19.380 --> 29:21.880]  and with this special, you also get free shipping.
[29:22.760 --> 29:25.280]  Body science is my groundbreaking work
[29:25.280 --> 29:27.000]  on health and human physiology.
[29:27.000 --> 29:28.700]  I don't want to get into a full-throated description
[29:28.700 --> 29:31.120]  of body science here today, so I'll simply say
[29:31.120 --> 29:33.560]  that if you do not want to get chronic diseases,
[29:33.560 --> 29:35.560]  such as heart disease, hypertension,
[29:35.560 --> 29:38.840]  insulin resistance, obesity, diabetes, or Alzheimer's,
[29:38.840 --> 29:40.480]  or if you have any of those diseases
[29:40.480 --> 29:45.480]  and want to eradicate them, you have to read body science.
[29:45.480 --> 29:47.680]  I live by everything you'll find in body science,
[29:47.680 --> 29:50.760]  and at 65, I'm as healthy as I was when I was 20,
[29:50.760 --> 29:53.480]  and I don't take a single Big Pharma product.
[29:53.480 --> 29:55.440]  I know that wasn't a terribly informative description,
[29:55.440 --> 29:57.460]  but I'm trying to keep this short.
[29:57.460 --> 30:00.280]  You have my word that body science
[30:00.280 --> 30:01.880]  and Income Tax Shattering the Miss
[30:01.880 --> 30:04.480]  will be two of the most intriguing
[30:04.480 --> 30:07.440]  and fascinating books you will ever have read.
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[30:38.580 --> 30:40.140]  Thank you for sharing your time with me.
[30:40.140 --> 30:42.440]  I hope you found the time well spent.