Detecting language using up to the first 30 seconds. Use `--language` to specify the language
Detected language: English
[00:00.840 --> 00:02.120]  Welcome to the show.
[00:02.120 --> 00:03.800]  Generally speaking,
[00:03.800 --> 00:06.740]  do you think politicians are good people?
[00:06.740 --> 00:08.540]  Do you trust politicians?
[00:08.540 --> 00:11.160]  I'm guessing most of you answered no
[00:11.160 --> 00:12.340]  to both those questions.
[00:12.340 --> 00:15.160]  So then, I presume it won't surprise you
[00:15.160 --> 00:17.520]  when I tell you that something as commonplace
[00:17.520 --> 00:21.200]  as sales tax, which was enacted by the very politicians
[00:21.200 --> 00:23.320]  you just said you can't trust,
[00:23.320 --> 00:25.280]  does not apply to the vast majority
[00:25.280 --> 00:27.040]  of small businesses in America.
[00:27.040 --> 00:28.520]  If you think I'm crazy,
[00:28.520 --> 00:30.640]  hang out with me for just a bit today
[00:30.640 --> 00:35.640]  and have your mind blown by what sales tax really is
[00:35.640 --> 00:39.040]  and that most businesses don't have to collect sales tax
[00:39.040 --> 00:41.560]  or pass it along to their customers.
[00:41.560 --> 00:45.000]  Depending on the jurisdiction in which a business is located,
[00:45.000 --> 00:47.840]  it could gain a significant price advantage
[00:47.840 --> 00:51.400]  over competitors by not charging its customers
[00:51.400 --> 00:54.920]  eight, 10, or even 12% sales tax
[00:54.960 --> 00:59.680]  simply by knowing the law about sales tax.
[00:59.680 --> 01:03.420]  As I always say, please do not believe me,
[01:03.420 --> 01:05.600]  which is why today, for what I imagine
[01:05.600 --> 01:07.240]  is going to be the very first time
[01:07.240 --> 01:10.960]  you will see the law right before your eyes.
[01:10.960 --> 01:15.960]  The Dr. Reality Vodcast with Dave Champion.
[01:26.940 --> 01:28.400]  Let's start with this.
[01:28.400 --> 01:31.420]  I know all about how the government relies
[01:31.420 --> 01:34.360]  on the public's ignorance of tax law
[01:34.360 --> 01:38.480]  to trick you into paying taxes you do not owe.
[01:38.480 --> 01:40.360]  Not only am I the author of income tax,
[01:40.360 --> 01:42.320]  Shattering the Mist, the bestselling book in America
[01:42.320 --> 01:46.200]  that explains with mountain of incontrovertible evidence
[01:46.200 --> 01:48.920]  that the income tax has never been imposed
[01:48.920 --> 01:52.140]  on ordinary hardworking Americans like you.
[01:52.140 --> 01:54.900]  But I've also been studying tax law generally
[01:54.900 --> 01:57.160]  for three decades.
[01:57.160 --> 01:58.640]  I haven't filed an income tax return
[01:58.640 --> 02:01.480]  or paid a penny of income tax in 32 years.
[02:01.480 --> 02:04.080]  But more to the point of today's presentation,
[02:04.080 --> 02:06.720]  after learning the truth I'm about to reveal to you
[02:06.720 --> 02:09.840]  regarding sales tax, I canceled my resale permit
[02:09.920 --> 02:12.920]  and stopped charging my customer sales tax.
[02:12.920 --> 02:15.600]  That was roughly 30 years ago.
[02:15.600 --> 02:18.440]  So 32 years without income tax
[02:18.440 --> 02:21.560]  and 30 years without sales tax.
[02:21.560 --> 02:26.560]  And here I sit ready to tell you the truth about sales tax.
[02:26.720 --> 02:29.320]  One might reasonably ask what the difference is
[02:29.320 --> 02:33.000]  between me and the guy who's paying income tax
[02:33.000 --> 02:35.020]  and collecting sales tax.
[02:35.020 --> 02:36.520]  Well, that's simple.
[02:36.520 --> 02:39.800]  I know what the law says and he does not.
[02:40.760 --> 02:42.480]  He just took the word of other people
[02:42.480 --> 02:45.360]  who told him he had to do those things.
[02:45.360 --> 02:47.640]  But of course, the people who told him
[02:47.640 --> 02:52.040]  he had to do those things also never read the law.
[02:52.040 --> 02:54.700]  I'm gonna use my story of how I learned the truth
[02:54.700 --> 02:57.160]  about sales tax to share the law and the facts
[02:57.160 --> 02:59.080]  with you today.
[02:59.080 --> 03:01.200]  A few years after I'd learned about the truth
[03:01.200 --> 03:03.520]  of the income tax, I wondered if the government
[03:03.520 --> 03:06.120]  was using the same kind of legal word gains
[03:06.120 --> 03:09.660]  and disinformation to fool people into paying other taxes
[03:09.660 --> 03:13.600]  that they also had not had imposed on them.
[03:13.600 --> 03:16.180]  At the time, I owned a couple of businesses in California
[03:16.180 --> 03:18.220]  and was charging sales tax.
[03:18.220 --> 03:20.880]  So that was a natural place for me to start.
[03:20.880 --> 03:24.240]  The process began with looking at the California statute
[03:24.240 --> 03:28.340]  imposing the sales tax, which is section 6051
[03:28.340 --> 03:30.900]  of the California Revenue and Taxation Code.
[03:30.900 --> 03:33.660]  Thanks to my research into income tax,
[03:33.660 --> 03:37.900]  it only took me a hot second to identify the sales tax issue.
[03:37.900 --> 03:41.820]  Section 6051 reads as follows.
[03:41.820 --> 03:44.580]  For the privilege of selling tangible personal property
[03:44.580 --> 03:49.580]  at retail, a tax is hereby imposed upon blah, blah, blah.
[03:50.140 --> 03:52.100]  If you've read Income Tax Shattering the Miss
[03:52.100 --> 03:54.300]  or watched enough of my videos,
[03:54.300 --> 03:57.240]  one word should have jumped out at you.
[03:57.240 --> 03:59.640]  Let's read the opening words again.
[03:59.640 --> 04:03.060]  For the privilege of selling tangible personal property
[04:03.060 --> 04:08.020]  at retail, a tax is hereby imposed, blah, blah, blah.
[04:08.020 --> 04:10.620]  Did any word jump out at you?
[04:10.620 --> 04:14.860]  The word I hope jumped out at you is privilege.
[04:14.860 --> 04:19.040]  For the privilege of selling tangible personal property.
[04:20.240 --> 04:21.780]  If you've read Income Tax Shattering the Miss,
[04:21.780 --> 04:24.420]  you know that when the government imposes a tax
[04:24.420 --> 04:29.420]  upon a privilege, it means a government-granted privilege.
[04:29.540 --> 04:32.200]  If we insert government-granted privilege
[04:32.200 --> 04:33.960]  in place of just the word privilege,
[04:33.960 --> 04:36.080]  the section would look like this.
[04:36.080 --> 04:39.360]  As a condition of exercising a government-granted privilege,
[04:39.360 --> 04:42.160]  a tax is hereby imposed.
[04:42.160 --> 04:43.240]  In case you're unfamiliar
[04:43.240 --> 04:45.600]  with what a government-granted privilege is,
[04:45.600 --> 04:47.200]  allow me to explain.
[04:47.200 --> 04:49.960]  A government-granted privilege is government permission
[04:49.960 --> 04:53.360]  to do something you do not have a right to do
[04:53.360 --> 04:55.080]  and that would be illegal to do
[04:55.080 --> 04:57.240]  without government permission.
[04:57.240 --> 04:58.900]  But here's the thing.
[04:58.900 --> 05:00.360]  Almost everything we do in life
[05:00.360 --> 05:02.520]  are things we have a right to do,
[05:02.520 --> 05:05.320]  most especially when it comes to earning a living.
[05:05.320 --> 05:07.720]  In particular, the US Supreme Court has held
[05:07.720 --> 05:10.200]  that Americans have an unalienable right to acquire,
[05:10.200 --> 05:13.040]  possess, utilize and dispose of property.
[05:13.040 --> 05:15.680]  It also held that we have an unlimited right
[05:15.680 --> 05:18.760]  to contract our labor, to contract for the labor of others
[05:18.760 --> 05:22.760]  and to contract for the acquisition or disposal of property.
[05:22.760 --> 05:25.160]  With that understanding, I decided to write a letter
[05:25.160 --> 05:28.240]  to the head of the California State Board of Equalization,
[05:28.240 --> 05:30.520]  which administers the sales tax.
[05:30.520 --> 05:33.640]  I also sent the letter to the governor, the attorney general
[05:33.640 --> 05:36.840]  and several other officials seeking their legal position
[05:36.840 --> 05:37.920]  on the subject.
[05:37.920 --> 05:40.080]  When writing the letter, I intentionally stayed away
[05:40.080 --> 05:43.760]  from using words I knew had specific legal definitions
[05:43.760 --> 05:45.920]  which might tempt the letter recipients
[05:45.920 --> 05:48.760]  to play legal word games in their response.
[05:48.760 --> 05:53.560]  Examples of such words are business, seller and retail.
[05:53.560 --> 05:55.240]  Here's what I wrote.
[05:55.240 --> 05:57.120]  I'm writing to have you tell me
[05:57.160 --> 05:59.440]  what government granted privilege, if any,
[05:59.440 --> 06:01.880]  I'm exercising in the following scenario
[06:01.880 --> 06:04.160]  that would bring my actions within the jurisdiction
[06:04.160 --> 06:06.880]  of section 6051 of the California Revenue
[06:06.880 --> 06:08.760]  and Taxation Code.
[06:08.760 --> 06:11.280]  On Saturday, I stopped by a garage sale.
[06:11.280 --> 06:13.520]  I see an attractive set of crystal goblets
[06:13.520 --> 06:15.080]  being sold for $50.
[06:15.080 --> 06:19.160]  I give the owner $50 and take possession of my property,
[06:19.160 --> 06:20.440]  the crystal goblets.
[06:20.440 --> 06:22.560]  Monday morning, I placed them in my shop
[06:22.560 --> 06:24.640]  with a price of $250.
[06:24.640 --> 06:26.240]  An hour later, a gentleman sees them
[06:26.240 --> 06:28.360]  and believes $250 is a good price.
[06:28.360 --> 06:32.640]  He gives me $250 and the goblets become his property.
[06:32.640 --> 06:35.640]  He leaves my shop with his property.
[06:35.640 --> 06:37.280]  In this scenario, can you tell me
[06:37.280 --> 06:40.360]  what government granted privilege I exercised
[06:40.360 --> 06:42.400]  that would bring my actions under the jurisdiction
[06:42.400 --> 06:44.800]  of section 6051?
[06:44.800 --> 06:48.320]  That was it, short, sweet and to the point.
[06:48.320 --> 06:49.760]  I received just one reply.
[06:49.760 --> 06:52.040]  It was from the director of the State Board of Equalization
[06:52.040 --> 06:54.040]  and it simply said this.
[06:54.040 --> 06:56.000]  The California Supreme Court has held
[06:56.000 --> 06:59.240]  that California's sales tax law is constitutional.
[07:00.520 --> 07:03.200]  Okay, as I'm sure you discerned,
[07:03.200 --> 07:05.040]  the response I received had nothing to do
[07:05.040 --> 07:06.560]  with the question I asked.
[07:06.560 --> 07:09.320]  I never questioned whether California's sales tax law
[07:09.320 --> 07:12.040]  is constitutional when applied to the people
[07:12.040 --> 07:14.320]  concerning whom it has jurisdiction.
[07:14.320 --> 07:17.160]  The non-responsive reply did not surprise me
[07:17.160 --> 07:19.560]  because in the scenario I posed,
[07:19.560 --> 07:22.400]  there is no government granted privilege.
[07:22.400 --> 07:24.760]  The State Board of Equalization was unwilling
[07:24.760 --> 07:27.200]  to acknowledge that in writing.
[07:27.200 --> 07:28.920]  I knew before I sent the letter
[07:28.920 --> 07:30.600]  that I wouldn't get a meaningful response
[07:30.600 --> 07:34.080]  because I already knew what government granted privilege
[07:34.080 --> 07:35.760]  the tax was imposed upon.
[07:35.760 --> 07:37.320]  We'll talk about that in a minute.
[07:37.320 --> 07:39.680]  The day after I received the government's reply,
[07:39.680 --> 07:42.160]  I prepared a letter to the State Board of Equalization
[07:42.160 --> 07:44.520]  that said, quote, please find attached
[07:44.520 --> 07:46.160]  my California resale permit.
[07:46.160 --> 07:48.800]  I am returning it to you and canceling it
[07:48.800 --> 07:52.440]  because I no longer have need of it.
[07:52.440 --> 07:55.240]  From that day on, I have never had a resale permit
[07:55.240 --> 07:57.040]  or charged anyone sales tax.
[07:57.040 --> 08:00.280]  To be clear, I continued selling products to my customers,
[08:00.280 --> 08:02.240]  but I stopped collecting sales tax.
[08:02.240 --> 08:04.360]  Though I was selling product,
[08:04.360 --> 08:06.200]  I was not engaged in the privilege
[08:06.200 --> 08:07.960]  that would have brought me within the jurisdiction
[08:07.960 --> 08:09.920]  of section 6051.
[08:09.920 --> 08:12.480]  Another way to look at it is that there are people
[08:12.480 --> 08:14.440]  selling products in California
[08:14.440 --> 08:17.680]  who are within 6051's jurisdiction
[08:17.680 --> 08:21.000]  and people selling products who are not.
[08:21.040 --> 08:23.280]  That distinction is predicated on whether the person
[08:23.280 --> 08:25.800]  is exercising the government granted privilege
[08:25.800 --> 08:28.400]  to which 6051 applies.
[08:28.400 --> 08:31.880]  As a side note, while California statute
[08:31.880 --> 08:35.240]  is written clearly by using the word privilege,
[08:35.240 --> 08:39.440]  in all 45 states that have sales tax by whatever name,
[08:39.440 --> 08:43.640]  it is based on the same government granted privilege.
[08:43.640 --> 08:45.800]  There is no sales tax law
[08:45.800 --> 08:48.520]  that operates on a different legal basis.
[08:49.320 --> 08:52.280]  Most people believe the government can tax whatever it wants.
[08:52.280 --> 08:56.800]  That is 100% non-factual.
[08:56.800 --> 09:00.680]  As an example, the exercise of unalienable rights
[09:00.680 --> 09:02.120]  can never be taxed.
[09:02.120 --> 09:03.480]  Allow me to explain.
[09:03.480 --> 09:04.680]  In McCullough v. Maryland,
[09:04.680 --> 09:07.120]  the United States Supreme Court stated that, quote,
[09:07.120 --> 09:10.720]  the power to tax is the power to destroy.
[09:11.600 --> 09:14.040]  For that reason, a tax cannot be imposed
[09:14.040 --> 09:16.960]  upon your exercise of an unalienable right.
[09:16.960 --> 09:19.400]  Let's use freedom of speech as an example.
[09:20.280 --> 09:22.440]  Could you exercise freedom of speech
[09:22.440 --> 09:26.760]  if there was a $1 tax imposed on you speaking your mind?
[09:26.760 --> 09:30.160]  How about if the tax was increased to $10?
[09:30.160 --> 09:31.800]  What about $100?
[09:31.800 --> 09:35.000]  How about $5,000?
[09:35.000 --> 09:36.000]  You get the point.
[09:36.000 --> 09:37.400]  No matter what your financial position,
[09:37.400 --> 09:38.360]  there would come a point
[09:38.360 --> 09:40.800]  where you could no longer exercise freedom of speech
[09:40.800 --> 09:43.880]  because you couldn't afford to pay the tax.
[09:43.880 --> 09:46.760]  That exemplifies how the Supreme Court's statement
[09:47.560 --> 09:49.320]  that the power to tax is the power to destroy
[09:49.320 --> 09:52.520]  would operate on your unalienable rights
[09:52.520 --> 09:54.640]  if the government could tax them.
[09:54.640 --> 09:56.360]  Anything I do, or you do,
[09:56.360 --> 09:59.480]  to earn a living is an unalienable right.
[09:59.480 --> 10:01.160]  Let's say I earned my living
[10:01.160 --> 10:04.080]  making and selling metal sculptures.
[10:04.080 --> 10:06.320]  I'd buy the metal, cut it, shape it,
[10:06.320 --> 10:09.160]  weld it, finish it, and sell it.
[10:09.160 --> 10:10.560]  For the sake of this illustration,
[10:10.560 --> 10:13.960]  let's say my average pea sold for $1,000.
[10:14.000 --> 10:17.320]  If the government placed a 9% sales tax on it,
[10:17.320 --> 10:20.040]  I could probably continue to make a living.
[10:20.040 --> 10:22.960]  But how about a 200% sales tax
[10:22.960 --> 10:26.360]  raising the price to $3,000 for my customer?
[10:26.360 --> 10:27.880]  Is it reasonable to presume
[10:27.880 --> 10:30.280]  that a lot of people who would have bought my product
[10:30.280 --> 10:33.520]  at $1,000 would not buy it at $3,000?
[10:33.520 --> 10:35.600]  The tax would have a negative impact
[10:35.600 --> 10:38.760]  on my ability to earn a living and sustain myself.
[10:38.760 --> 10:41.640]  How about if the tax was 500%
[10:41.640 --> 10:44.600]  raising the price to $6,000?
[10:44.600 --> 10:48.560]  At that point, I'd likely be unable to sell anything,
[10:48.560 --> 10:51.760]  and thus the tax would have destroyed my livelihood.
[10:51.760 --> 10:54.840]  It is for that reason that anything I do, or you do,
[10:54.840 --> 10:57.520]  to earn a living cannot be taxed.
[10:57.520 --> 10:58.920]  The Supreme Court has stated
[10:58.920 --> 11:02.720]  that if a thing is the rightful object of taxation,
[11:02.720 --> 11:04.200]  then the rate of tax is completely
[11:04.200 --> 11:06.040]  at the discretion of the legislature.
[11:06.040 --> 11:09.720]  In other words, if a legislature can tax a thing at 1%,
[11:09.720 --> 11:13.320]  it is free to tax that thing at 1,000%.
[11:13.320 --> 11:15.640]  Now, someone might say,
[11:15.640 --> 11:18.440]  but the legislature would never do that.
[11:18.440 --> 11:22.360]  Well, perhaps it would, perhaps it wouldn't.
[11:22.360 --> 11:24.460]  But that's not the point.
[11:24.460 --> 11:26.840]  The point is that in America,
[11:26.840 --> 11:30.000]  the exercise of inalienable rights cannot be taxed
[11:30.000 --> 11:34.040]  so that we don't find ourselves having to hope
[11:34.040 --> 11:36.800]  a legislature does not destroy our livelihoods
[11:36.800 --> 11:38.240]  through taxation.
[11:38.240 --> 11:40.560]  To ensure that cannot happen,
[11:40.560 --> 11:45.560]  all legislatures are without authority to tax our rights.
[11:45.920 --> 11:47.040]  Back in the mid-90s,
[11:47.040 --> 11:49.480]  when I stopped charging my customers sales tax,
[11:49.480 --> 11:51.800]  I was surprised to receive calls from a few of them
[11:51.800 --> 11:56.800]  expressing concern that they were not being charged sales tax.
[11:56.960 --> 11:58.440]  I hadn't expected that.
[11:59.280 --> 12:00.840]  It turned out they were concerned
[12:00.840 --> 12:04.120]  that the state was going to come after them for the tax.
[12:04.120 --> 12:06.120]  In response to those concerns,
[12:06.120 --> 12:08.440]  we discussed the sales tax statutes
[12:08.440 --> 12:10.400]  and I showed them that the tax was imposed
[12:10.400 --> 12:12.600]  solely on the seller.
[12:12.600 --> 12:14.600]  I explained that I had determined the tax
[12:14.600 --> 12:17.120]  did not apply to me, so they were off the hook.
[12:17.120 --> 12:20.280]  Once they understood the state could not come after them,
[12:20.280 --> 12:23.960]  they were totally cool with not being charged sales tax.
[12:23.960 --> 12:27.080]  Now, some business people may be thinking,
[12:27.080 --> 12:29.440]  but Dave, if I don't have a resale permit,
[12:29.440 --> 12:32.600]  I may have to pay sales tax on the materials or products
[12:32.600 --> 12:34.240]  I'll be selling to my customers.
[12:34.240 --> 12:35.880]  That will increase my cost of goods
[12:35.880 --> 12:37.960]  and that's not good for my business.
[12:38.840 --> 12:40.880]  So that's obviously something I had to consider
[12:40.880 --> 12:42.160]  back in the day.
[12:42.160 --> 12:45.400]  Let's take a look at some simple math.
[12:45.400 --> 12:47.160]  A quick note before I continue,
[12:47.160 --> 12:48.800]  if you enjoy this kind of knowledge
[12:48.800 --> 12:50.600]  that you'll never get from any source
[12:50.600 --> 12:51.720]  other than this channel,
[12:51.720 --> 12:54.320]  please take a moment to subscribe and hit the like button
[12:54.320 --> 12:57.240]  so the algorithm show this content to more people.
[12:57.240 --> 13:00.320]  Also, I just kicked off my big Christmas special,
[13:00.320 --> 13:02.640]  which I will inscribe and autograph
[13:02.640 --> 13:04.800]  your copy of income tax shattering the mess
[13:04.800 --> 13:07.080]  and body science if it's included
[13:07.080 --> 13:09.440]  with income tax shattering the mess in your order.
[13:09.440 --> 13:11.680]  In addition to the inscription and autograph,
[13:11.680 --> 13:14.200]  you get free shipping on any of my writings
[13:14.200 --> 13:16.960]  as long as income tax shattering the mess is included.
[13:16.960 --> 13:20.480]  Simply use the coupon code XMUS25 at checkout.
[13:20.480 --> 13:21.640]  More on that later.
[13:22.640 --> 13:26.000]  Let's say you and your competitor both buy a widget
[13:26.000 --> 13:28.240]  at wholesale for $100,
[13:28.240 --> 13:32.000]  but you're paying 8% sales tax on the wholesale level
[13:32.000 --> 13:35.280]  because you know the lawn don't have a resale permit.
[13:35.280 --> 13:38.360]  That means your competitor's cost of goods is $100
[13:38.360 --> 13:41.560]  while yours is 108.
[13:41.560 --> 13:44.800]  Now, let's presume you both keystone your product.
[13:44.800 --> 13:48.040]  So your competitor's pre-sale tax price
[13:48.040 --> 13:52.920]  for his customers is $200 while yours is $216.
[13:52.920 --> 13:56.920]  But since you're not adding sales tax to your price,
[13:56.920 --> 14:01.440]  the out the door price to your customers is $216.
[14:01.440 --> 14:04.080]  Your competitor is adding 8% sales tax
[14:04.080 --> 14:06.800]  to his $200 pre-tax number,
[14:06.800 --> 14:11.800]  making the out the door price to his customers also $216.
[14:11.920 --> 14:14.200]  In other words, while he's not paying sales tax
[14:14.200 --> 14:16.100]  at the wholesale level and you are,
[14:16.100 --> 14:18.680]  the out the door price to the customer of both companies
[14:18.680 --> 14:21.840]  is identical at $216.
[14:21.840 --> 14:24.920]  In short, there is no competitive disadvantage to you
[14:24.920 --> 14:27.600]  because you're paying sales tax at the wholesale level.
[14:27.600 --> 14:29.440]  But here's the kicker.
[14:29.440 --> 14:32.480]  His profit is $100 per widget sold
[14:32.480 --> 14:36.500]  while yours is 108 per widget sold.
[14:36.500 --> 14:39.200]  In other words, by not charging sales tax
[14:39.200 --> 14:41.760]  and with each party's retail price being the same,
[14:41.760 --> 14:45.920]  you're clearing 8% more profit than your competitor.
[14:46.960 --> 14:49.320]  But Dave, some people will cry.
[14:49.320 --> 14:51.340]  What if my supplier won't sell to me
[14:51.340 --> 14:53.420]  without a resale permit?
[14:53.420 --> 14:55.720]  Okay, so I obviously can't problem solve
[14:55.720 --> 14:58.160]  everyone's individual's concern in a podcast,
[14:58.160 --> 15:00.640]  but there are ways to tackle these kinds of things.
[15:00.640 --> 15:02.080]  If you'd like my help navigating
[15:02.080 --> 15:05.080]  how to make the transition away from sales tax,
[15:05.080 --> 15:06.600]  a tax that doesn't apply to you,
[15:06.600 --> 15:09.320]  reach out to me at Dave at DrReality.News.
[15:09.320 --> 15:10.640]  I'll get you handled.
[15:10.640 --> 15:15.560]  So what is the privilege one must be exercising
[15:15.560 --> 15:19.520]  to fall within the state's sales tax jurisdiction?
[15:19.520 --> 15:21.920]  Before I get into that specific point,
[15:21.920 --> 15:24.540]  a critical constitutional point to understand
[15:24.540 --> 15:25.920]  is that the Supreme Court has held
[15:25.920 --> 15:28.160]  that a citizen of a state has a right
[15:28.160 --> 15:31.640]  to conduct his business affairs throughout the nation,
[15:31.640 --> 15:34.280]  most pointedly without a tax being imposed on him
[15:34.280 --> 15:36.480]  by any state as he travels
[15:36.480 --> 15:39.040]  throughout the country earning his living.
[15:39.040 --> 15:42.240]  Now, here's a news flash.
[15:42.240 --> 15:45.880]  That is not true for corporations.
[15:46.720 --> 15:49.440]  As an example, a corporation created
[15:49.440 --> 15:52.560]  under the laws of Alabama does not have a right
[15:52.560 --> 15:54.480]  to do business in Ohio.
[15:54.480 --> 15:56.200]  If the Alabama corporation wants
[15:56.200 --> 15:58.560]  to extend its business operation into Ohio,
[15:58.560 --> 16:00.680]  it must submit an application
[16:00.680 --> 16:02.840]  to the Ohio Secretary of State's office
[16:02.840 --> 16:07.840]  seeking permission to do business in Ohio.
[16:08.000 --> 16:10.600]  That's because a corporation created
[16:10.600 --> 16:13.940]  under an Alabama law is considered in law
[16:13.940 --> 16:18.320]  a foreign corporation to every state other than Alabama,
[16:18.320 --> 16:20.960]  and a foreign corporation must obtain permission
[16:20.960 --> 16:25.800]  from the government of a state in which it wants to operate.
[16:25.800 --> 16:28.200]  A moment ago, I said that a foreign corporation
[16:28.200 --> 16:32.040]  must obtain permission for doing business in another state.
[16:32.040 --> 16:36.320]  I wanna focus your attention on the phrase doing business.
[16:36.320 --> 16:38.020]  I draw your attention to that phrase
[16:38.020 --> 16:39.800]  because in income tax shattering the mess,
[16:39.800 --> 16:41.800]  there was a rather detailed discussion
[16:41.800 --> 16:45.820]  of what the phrase doing business means in law.
[16:45.820 --> 16:47.880]  Well, you can read it all in income tax shattering the mess.
[16:47.880 --> 16:51.920]  The upshot is that in law, the phrase doing business
[16:51.920 --> 16:55.800]  means business conducted by a foreign corporation
[16:55.800 --> 16:58.760]  within a host jurisdiction.
[16:58.760 --> 17:01.440]  Because a foreign corporation must seek consent
[17:01.440 --> 17:04.760]  from the state in which it intends doing business,
[17:04.760 --> 17:07.760]  obviously it has no right to do so.
[17:07.760 --> 17:09.120]  If it has no right to do so
[17:09.120 --> 17:11.920]  and must obtain the state's permission,
[17:11.920 --> 17:14.160]  then that foreign corporation operating
[17:14.160 --> 17:19.160]  within the host state is a government-granted privilege.
[17:20.200 --> 17:22.760]  And that is the government-granted privilege
[17:22.760 --> 17:25.760]  upon which all sales tax is imposed.
[17:25.760 --> 17:28.720]  Another way to think about it is that sales tax
[17:28.720 --> 17:30.760]  is a protectionist measure.
[17:30.760 --> 17:34.000]  Large out-of-state corporations can come into the state
[17:34.000 --> 17:36.200]  and compete with citizens of the states
[17:36.200 --> 17:37.480]  and domestic corporations,
[17:37.480 --> 17:40.640]  but the out-of-state corporation will be subject to a tax
[17:40.640 --> 17:42.960]  that increases their price to the public
[17:42.960 --> 17:45.520]  and therefore, at least in theory,
[17:45.520 --> 17:47.960]  levels the playing field in terms of competing
[17:47.960 --> 17:50.360]  with in-state businesses.
[17:50.360 --> 17:54.560]  Of course, that presumes native businesses
[17:54.560 --> 17:56.760]  are smart enough to understand the law,
[17:56.760 --> 17:59.680]  understand what privilege is being taxed,
[17:59.680 --> 18:01.480]  and steer clear of it.
[18:01.480 --> 18:03.920]  But of course, all we need to do is look around
[18:03.920 --> 18:06.880]  to see that native businesses are not smart enough
[18:06.880 --> 18:09.400]  to steer clear of a law that doesn't apply to them.
[18:09.400 --> 18:12.320]  Since I used California's sales tax statute as our example,
[18:12.320 --> 18:14.960]  let's use California again to consider the lack
[18:14.960 --> 18:19.560]  of intelligence or perhaps I should say lack of curiosity
[18:19.560 --> 18:20.960]  in the business community.
[18:20.960 --> 18:23.520]  There are roughly two million small businesses
[18:23.520 --> 18:24.960]  in California.
[18:24.960 --> 18:27.680]  How many of those two million business owners
[18:27.680 --> 18:30.640]  do you imagine have punched up section 6051
[18:30.640 --> 18:32.360]  on the internet and read it?
[18:32.360 --> 18:35.840]  How many business owners wonder what government-granted
[18:35.840 --> 18:40.120]  privilege they are exercising by selling their goods?
[18:40.120 --> 18:42.800]  How many of those business owners have asked the state
[18:42.800 --> 18:46.160]  to explain to what government-granted privilege
[18:46.160 --> 18:49.320]  the sales tax applies?
[18:49.320 --> 18:52.200]  We don't have the answers to those questions,
[18:52.200 --> 18:55.700]  but I guess we're talking about single digits.
[18:55.700 --> 19:00.640]  So only single digits out of two million business owners
[19:00.640 --> 19:01.920]  have shown any curiosity
[19:01.920 --> 19:04.600]  to read and understand sales tax law.
[19:04.600 --> 19:09.320]  Then people say the government is the problem.
[19:09.320 --> 19:11.800]  Not long ago, a gentleman shared with me
[19:11.800 --> 19:13.920]  that someone should take the federal government to court
[19:13.920 --> 19:17.780]  arguing that the income tax must be ruled unconstitutional
[19:17.780 --> 19:20.920]  because of the government's deception on the subject.
[19:20.920 --> 19:23.320]  In response to his remark, I asked him to pretend
[19:23.320 --> 19:24.560]  that he and I were on the phone
[19:24.560 --> 19:26.840]  with a retired federal judge.
[19:26.840 --> 19:30.600]  On this pretend call, he was going to repeat his assertion
[19:30.600 --> 19:34.000]  that the tax must be declared unconstitutional
[19:34.000 --> 19:36.120]  because of government deception
[19:36.240 --> 19:39.600]  and I was going to role play the judge.
[19:39.600 --> 19:43.080]  After he repeated his premise, speaking as the judge,
[19:43.080 --> 19:47.360]  I asked, have you read income tax shadowing the miss?
[19:47.360 --> 19:48.960]  He replied, I have.
[19:48.960 --> 19:51.980]  I asked, what conclusion did you reach
[19:51.980 --> 19:53.760]  about the income tax?
[19:53.760 --> 19:57.200]  He replied, I realized that Americans don't know income tax
[19:57.200 --> 19:58.740]  on their personal earnings.
[20:00.080 --> 20:04.040]  As the judge, I said, on what did you base that conclusion?
[20:04.040 --> 20:05.200]  To which he responded,
[20:05.240 --> 20:07.280]  I based it on the 400 pages of evidence
[20:07.280 --> 20:09.160]  in income tax shadowing the miss.
[20:09.160 --> 20:11.720]  As the judge, I then asked,
[20:11.720 --> 20:14.120]  where do you think Mr. Champion got all the evidence
[20:14.120 --> 20:16.220]  you found in income tax shadowing the miss?
[20:17.520 --> 20:19.960]  The point of that exercise was to show him
[20:19.960 --> 20:24.360]  that all the information is there for everyone to see.
[20:24.360 --> 20:25.700]  But as we just established
[20:25.700 --> 20:27.760]  when considering California business owners,
[20:27.760 --> 20:29.680]  Americans never bothered to look.
[20:29.680 --> 20:34.160]  They just blindly do whatever some guy tells them to do.
[20:34.160 --> 20:35.440]  And guess what?
[20:35.440 --> 20:39.640]  Those people have never read section 6051
[20:39.640 --> 20:44.000]  or wondered what government granted privilege 6051 applies
[20:44.000 --> 20:47.160]  to or asked the state to tell them
[20:47.160 --> 20:50.340]  what privilege the tax applies to.
[20:50.340 --> 20:52.800]  What the American people do in terms of sales tax
[20:52.800 --> 20:55.920]  and income tax is the very definition
[20:55.920 --> 20:58.920]  of the blind leading the blind.
[20:58.920 --> 20:59.760]  As you discovered today,
[20:59.760 --> 21:02.480]  the sales tax issue isn't complex.
[21:02.480 --> 21:03.760]  It merely requires people to know
[21:03.760 --> 21:06.640]  what their rights are and ask pertinent questions.
[21:06.640 --> 21:08.120]  On the other hand,
[21:08.120 --> 21:12.680]  income tax law has been intentionally structured
[21:12.680 --> 21:14.500]  to obscure the truth and make it appear
[21:14.500 --> 21:16.440]  to be an impenetrable maze.
[21:16.440 --> 21:21.440]  But since 2010, that has no longer been an obstacle
[21:21.920 --> 21:23.600]  to understanding income tax law
[21:23.600 --> 21:26.520]  because the American people have had income tax
[21:26.520 --> 21:29.880]  shadowing the miss to lay it out clearly for them.
[21:29.880 --> 21:32.520]  Earlier, I said that after I got California's
[21:32.520 --> 21:36.160]  nonsense response, I canceled my resale permit.
[21:36.160 --> 21:37.400]  Why did I do that?
[21:37.400 --> 21:40.600]  Because applying for a resale permit is you attesting
[21:40.600 --> 21:43.680]  that you are a person who is exercising
[21:43.680 --> 21:45.020]  the government granted privilege
[21:45.020 --> 21:47.520]  to which the sales tax applies.
[21:47.520 --> 21:49.020]  The state takes your word for that
[21:49.020 --> 21:51.360]  and issues you a resale permit.
[21:51.360 --> 21:54.860]  As long as that permit remains operative in law,
[21:54.860 --> 21:57.140]  you are exercising the privilege
[21:57.140 --> 21:58.840]  and you will be held accountable
[21:58.840 --> 22:01.460]  for all the requirements made of a permit holder
[22:01.460 --> 22:02.680]  by the state.
[22:02.680 --> 22:04.580]  Once I knew what the privilege was
[22:04.580 --> 22:06.540]  and the government refused to address
[22:06.540 --> 22:08.340]  the jurisdiction of 6051,
[22:08.340 --> 22:10.400]  I told the state I was no longer exercising
[22:10.400 --> 22:12.060]  the 6051 privilege.
[22:12.060 --> 22:14.980]  I told them that by canceling the permit.
[22:16.000 --> 22:19.820]  How many of you think government is trustworthy?
[22:19.820 --> 22:21.460]  I'm guessing almost none of you.
[22:21.460 --> 22:23.300]  Polling shows that trust in government
[22:23.300 --> 22:25.140]  is at an all time low.
[22:25.140 --> 22:30.140]  So then, why don't Americans look this stuff up?
[22:30.340 --> 22:34.100]  Is there some weird thought process people have
[22:34.100 --> 22:37.380]  in which the government is not to be trusted
[22:37.380 --> 22:39.820]  except in tax matters?
[22:39.820 --> 22:42.180]  I would posit the distrust of the government
[22:42.180 --> 22:45.780]  should be at its very highest when considering taxation
[22:45.780 --> 22:48.340]  because the entire government shit show
[22:48.340 --> 22:50.440]  is funded with your money.
[22:51.300 --> 22:53.680]  Let's use income tax as an example.
[22:53.680 --> 22:56.660]  The federal government brings in $3 trillion a year
[22:56.660 --> 22:57.940]  from income tax.
[22:57.940 --> 22:59.820]  Having been in this space for three decades
[22:59.820 --> 23:01.700]  and being the national expert on the limited scope
[23:01.700 --> 23:02.520]  of the income tax,
[23:02.520 --> 23:05.300]  my estimate is that if all Americans
[23:05.300 --> 23:07.020]  pulled their heads out of their asses,
[23:07.020 --> 23:08.660]  read a single book,
[23:08.660 --> 23:11.920]  knew what the law actually says and acted on it,
[23:11.920 --> 23:16.300]  that $3 trillion would drop to somewhere in the range
[23:16.300 --> 23:20.580]  of $150 billion,
[23:20.580 --> 23:24.080]  which is just 5% of 3 trillion.
[23:24.080 --> 23:26.580]  Yes, you heard that right.
[23:26.580 --> 23:30.020]  I estimate that 95% of federal income taxes
[23:30.020 --> 23:32.900]  paid by people who do not owe it,
[23:32.900 --> 23:37.900]  but are too lazy or perhaps cowardly to read a book.
[23:37.980 --> 23:39.400]  Phrase another way,
[23:39.400 --> 23:42.980]  because Americans are too lazy or cowardly to read a book,
[23:42.980 --> 23:47.980]  they allow $2.85 trillion of their money
[23:48.060 --> 23:50.740]  to be removed from the US economy,
[23:50.740 --> 23:54.700]  removed from their families and their businesses
[23:54.700 --> 23:55.980]  out of ignorance,
[23:55.980 --> 24:00.980]  out of the unwillingness to read a single fucking book.
[24:01.020 --> 24:01.860]  Wow.
[24:03.060 --> 24:05.300]  People have different definitions of insanity,
[24:05.300 --> 24:08.580]  but I'd say that allowing $2.85 trillion
[24:08.580 --> 24:11.100]  to be removed from their homes and businesses
[24:11.100 --> 24:12.420]  because they refuse to read a book
[24:12.420 --> 24:15.460]  is certainly one definition of insanity.
[24:16.540 --> 24:20.080]  All that distrust people say they have in government,
[24:20.080 --> 24:23.220]  all the things they say they don't like about government
[24:23.220 --> 24:25.820]  and don't want the government doing.
[24:25.820 --> 24:29.180]  Their apathy, ignorance, and in some cases cowardice
[24:29.180 --> 24:32.820]  is allowing those things to continue.
[24:33.740 --> 24:36.020]  In his essay entitled Civil Disobedience,
[24:36.020 --> 24:38.140]  Henry David Thoreau said this,
[24:38.140 --> 24:42.060]  if a thousand men were not to pay their tax bills this year,
[24:42.060 --> 24:45.220]  that would not be a violent and bloody measure
[24:45.220 --> 24:48.300]  as it would be to pay them and enable the state
[24:48.300 --> 24:51.040]  to commit violence and shed innocent blood.
[24:51.040 --> 24:56.040]  This is, in fact, the definition of a peaceable revolution.
[24:57.320 --> 24:58.640]  End quote.
[24:58.640 --> 25:00.260]  But here's the great thing.
[25:00.260 --> 25:02.540]  While Thoreau was speaking about engaging
[25:02.540 --> 25:04.840]  in an act of civil disobedience,
[25:04.840 --> 25:08.460]  today to stop paying income tax or sales tax,
[25:08.460 --> 25:11.640]  you do not need to engage in civil disobedience.
[25:11.640 --> 25:12.640]  Quite the opposite.
[25:12.640 --> 25:17.060]  All you need to do is know the law and follow it.
[25:17.060 --> 25:21.800]  It's so insane this isn't being done.
[25:21.800 --> 25:24.920]  Where might you find income tax law laid out
[25:24.920 --> 25:27.960]  with crystal clarity in a way every American can understand
[25:27.960 --> 25:30.960]  and see for themselves that it has never been imposed
[25:30.960 --> 25:33.520]  on ordinary hardworking Americans like you?
[25:34.420 --> 25:37.280]  Income tax shattering the myths, of course.
[25:37.280 --> 25:39.340]  Did I mention it also contains a section
[25:39.340 --> 25:41.720]  specifically about sales tax?
[25:41.720 --> 25:43.680]  It does, which means you can learn the truth
[25:43.680 --> 25:46.140]  about the income tax and see the facts
[25:46.140 --> 25:49.160]  we've been discussing today concerning sales tax.
[25:49.160 --> 25:50.600]  This is a great time to get a copy
[25:50.600 --> 25:51.620]  of income tax shattering the myths
[25:51.620 --> 25:55.400]  because I'm running my annual big Christmas special.
[25:55.400 --> 25:58.680]  When you use the coupon code XMAS25 at checkout,
[25:58.680 --> 26:01.440]  I'll inscribe and autograph your copy
[26:01.440 --> 26:02.700]  of income tax shattering the myths
[26:02.700 --> 26:05.160]  and you get free shipping.
[26:05.160 --> 26:06.120]  But that's not all.
[26:06.120 --> 26:08.640]  If your order also contains body science,
[26:08.640 --> 26:11.160]  I'll inscribe and autograph both books.
[26:11.160 --> 26:14.160]  I'm going to suggest you purchase the four pack
[26:14.180 --> 26:16.740]  containing income tax shattering the myths,
[26:16.740 --> 26:19.420]  the business guide to payroll withholding,
[26:19.420 --> 26:23.260]  the business handbook for forms W9, 1099 in US person
[26:23.260 --> 26:25.060]  and body science.
[26:25.060 --> 26:26.500]  The first reason to get the four pack
[26:26.500 --> 26:28.700]  is the price is deeply discounted
[26:28.700 --> 26:30.620]  from purchasing the four items individually.
[26:30.620 --> 26:32.580]  The second reason is that in addition
[26:32.580 --> 26:34.580]  to it being deeply discounted,
[26:34.580 --> 26:37.860]  when you use the code XMAS25, you'll get free shipping
[26:37.860 --> 26:40.460]  and I'll inscribe and autograph your books.
[26:40.460 --> 26:42.100]  A quick word about body science,
[26:42.120 --> 26:46.080]  which is my groundbreaking work on human physiology.
[26:46.080 --> 26:49.720]  Body science destroys the establishment narrative
[26:49.720 --> 26:51.560]  about what makes you unhealthy
[26:51.560 --> 26:54.640]  and shows you how to get astoundingly healthy.
[26:54.640 --> 26:57.040]  Body science gives you the science of getting
[26:57.040 --> 26:59.180]  and staying healthy presented in a way
[26:59.180 --> 27:01.320]  that everyone can understand.
[27:01.320 --> 27:03.480]  If you're sincere about getting and staying healthy
[27:03.480 --> 27:06.300]  and you want that for you and people you care about,
[27:06.300 --> 27:07.880]  you need to read body science.
[27:07.880 --> 27:09.360]  I practice what I preach.
[27:09.360 --> 27:11.760]  I adhere to everything you'll discover in body science
[27:12.420 --> 27:15.100]  and at 66 years old, I'm as healthy as I was at 26.
[27:15.100 --> 27:17.180]  I am in perfect health.
[27:17.180 --> 27:19.580]  No chronic diseases, no big pharma products
[27:19.580 --> 27:22.500]  and I haven't been sick a day in almost a decade.
[27:22.500 --> 27:24.620]  Whether it's learning the truth about the income tax
[27:24.620 --> 27:28.220]  or sales tax or a host of other constitutional issues
[27:28.220 --> 27:31.500]  or finally discovering the truth about human physiology
[27:31.500 --> 27:33.560]  and with that knowledge, being able to get
[27:33.560 --> 27:36.140]  and stay incredibly healthy at any age,
[27:36.140 --> 27:38.540]  not only are these great books for you,
[27:38.540 --> 27:40.800]  but they also make wonderful Christmas gifts.
[27:40.820 --> 27:45.820]  So go to drreality.news and pick up a copy
[27:46.300 --> 27:47.900]  of income tax shattering the mist,
[27:47.900 --> 27:50.060]  body science or the four pack.
[27:50.060 --> 27:52.580]  Remember to use the coupon code XMAS25
[27:52.580 --> 27:55.660]  to have me personally inscribe and autograph your books
[27:55.660 --> 27:57.740]  and get free shipping on any order
[27:57.740 --> 27:59.940]  containing income tax shattering the mist.
[27:59.940 --> 28:02.620]  Also, purchasing any of my writings helps me
[28:02.620 --> 28:05.180]  to continue to be here for you with these revealing
[28:05.180 --> 28:07.420]  and thought provoking presentations.
[28:07.420 --> 28:09.900]  If you found today's content intriguing
[28:10.000 --> 28:12.320]  and compelling, please help spread the word
[28:12.320 --> 28:14.960]  by sharing this video far and wide.
[28:14.960 --> 28:17.140]  Thank you for sharing your time with me today.
[28:17.140 --> 28:19.640]  I hope you consider it time well spent.