What do you think Supreme Court Chief Justice John Marshall meant in 1819, when he stated, "The power to tax involves the power to destroy?"

President Grover Cleveland stated in 1886 in his Second Annual Message, "When more of the people's sustenance is exacted through the form of taxation than is necessary to meet the just obligations of government and the expenses of its economical administration, such exaction becomes ruthless extortion and a violation of the fundamental principles of a free government."

The second principle of my campaign is based upon one of our basic inseparable fundamental principles on which our Constitutional Republic is based.

The principle of a truly educated populace armed with truth so we the people can detect incorrect or misleading information being perpetrated upon us is very important to the survival of our American way of life.

Do our own elected government officials have a Constitutional responsibility to tell the American people the truth, so that we the people become an educated electorate?

The answer is, "yes." As unfortunate as it is, however, our own elected officials have been telling us incorrect and/or misleading information concerning our tax system for many years.

We must be aware that all governments get their money by a combination of three principles:

1. From the people in the form of taxation
2. From the creating of their own money
3. Through inflation

The American people that I have talked with concerning taxation feel that the amount of taxes presently being taken by the government is without a doubt excessive. Many of those people conclude that it would be very unpatriotic not to pay taxes. Their reasoning is very patriotic, "we live in the greatest country with the highest standard of living in the world and of course we want our taxes reduced but we accept that taxes are one of the facts of life."

The major fallacy with this patriotic thinking is not in the actual thought process, but the actual misleading conclusion that the American Government allows to be accepted as truth by the unsuspecting American people. In the early part of the first Reagan Administration, President Reagan commissioned a blue ribbon panel of very respected business leaders in the United States, headed by Peter J. Grace. It became known as the Grace Commission and its sole purpose was to report to the President as to where the actual taxes paid by the American people were spent.

In the later part of Reagan's first term, the Grace Commission gave President Reagan its finding that was based on government records and the finding was, Mr. President, "Not one dollar of income tax paid by the people went on any government obligations." President Reagan was astounded and never released the commissions finding to the general public.
So we have another controversy.

We have the Grace Commission informing the President of the United States that not one dollar of people's contributions to income tax was spent on any government obligation. We have the patriotic American citizens thinking that their hard earned tax dollars are going to help pay for some important government expenses.

The patriotic people of the United States, who worked at least 6 months a year in order to pay their perceived income tax are now being told that the government did not use their tax dollars on government obligations. Don't you think that you have the right to be told by your elected officials what the government did with six months of your hard earned money? According to the Grace Commission, the people's tax money paid the interest on the national debt to the Federal Reserve Banking System.

The Federal Reserve is not federal and does not have a reserve of any money anywhere. In 1964, the House Banking and Currency Committee, in a government report entitled, "Primer On Money," made it perfectly clear that the Federal Reserve does not have any money, but they simply create money from thin air and charges the American Government principal and interest.

You must work six months a year to pay very wealthy people who have economic control over the money system of the United States in excess of over $550,000,000,000.00 (5.5 billion to one half trillion dollars a year.) Your six months of work just pays on the interest, not one single penny is ever paid on the principal.

A few short years ago, the United States was the largest creditor nation and now we are the largest debtor nation. The total national debt of the United States far exceeds all the nations of the world combined. Why do our elected officials tell us that they are reducing taxes and then allow the Federal Reserve to double our money supply in the last five years, thus eroding the value of our savings, pension accounts and in general robbing the value of our money? This drastically hurts the middle class and citizens on fixed incomes.

The definition of inflation is simply an increase in the supply of money causing the purchasing power of the dollar to decrease. Inflation is nothing more than the most dangerous type of tax, for it steals the real wealth of the people and government of the United States. The Federal Reserve Banking System is not the inflation fighter it pretends to be, but the culprit who causes inflation in the first place.

Why don't our elected officials tell us the truth about the negative effects of taxation on the economy of the United States? I think that our government officials support our corrupt money and tax system out of ignorance or intentional deception for their own economic gain. Wasn't excessive taxation one of the causes of our revolutionary war with England?

The following is my summation as to one of the principle reasons our once mighty economy is heading down the economic ladder at an accelerating rate. The economic consequence of taxation on any economy is devastating, because excessive taxation and the possibility of further increases in taxation based on past performance is making it next to impossible for our economic system to expand.

Why would investors want to invest money, machines and manpower in our country when our elected officials allow the government to take an ever-increasing percentage of the profits of American companies? It is often charged that the government takes more of the companies' profits than the stockholders receive and the government has not one cent invested. Would you invest your money, machinery and manpower in a country with excess taxation, or little, to no taxation at all?

High taxation is causing our manufacturing plants to move out of the country. To see manufacturing plants relocate in the United States we must lower the tax rate and demand our elected officials give the American worker an even playing field. Another fact that the American people should know is that the American banks finance foreign governments as well as foreign interest with American money and when they default it's simply added to the total national debt, where once again the American working class is called upon to pay the principal and interest. Under the current debt money system being perpetrated on the people by government and banking officials, your tax rate will always have to increase. Are you happy paying 40% to 50% taxes? And based on past performance, your projected future tax rate could be 70% or 75%. I think the American people deserve better than that. Don't you agree?

This decrease in the manufacturing sector of our economy has even greater hidden cost and hardships on the American people because it not only increases unemployment and other government cost, it also decreases the corporate taxes paid to the American Government. The government who is always in need for money can't afford to lose corporate tax revenue and has to replace this loss of revenue by one of three methods. You can be sure that the end results will not be favorable to you, the American people.

The three ways of money creation are borrow, create or inflate the money supply. When government creates debt in one way or another, it is undermining every pension fund in America, including yours, and all bank deposits and life insurance policies. Don't look for the government to give you security, just look at its past record. Remember, it is only government through politicians who can create debt and make someone else pay the expense. This someone else is you, the American working class.

This increasing tax rate is making it difficult for the free enterprise system to expand, or even continue. Money paid in corporate taxes cannot be used for wages, raw materials, dividends, improvements in capital goods or research and development. Money paid in personal taxes can't be spent on new homes, home improvements, carpeting, clothes, colleges, cars, and vacations. In general it causes your standard of living to decrease. Increasing taxes also discourages wealth creation, by making it cost prohibitive to invest in manufacturing which then curtails national productivity.

Our elected officials tell us they are trying to pass an economic package to revitalize our economy when they are the same elected officials who ran up the debt in the first place.
If the costs associated with debt and cost of borrowing aren't reduced, paying social security recipients, and all pension plans and other obligations will become impossible. This ever-increasing debt and government need for additional money only compounds itself by the government's ability to create even more debt. Debt also increases the need for more government control over the people in direct violation of the Constitution of the United States.

With lower taxation, our companies could afford to sell products more economically, thus increasing their sales, which in turn would have increased production raising the productivity thus increasing employment. With the private sector employing more workers, the government expenses, including welfare, medical and other related costs are decreased.

A good example is a little pizza shop owner with whom I discussed the effects of taxation on his business. I asked the owner, Bob, what he would do if the government told him that taxes were no longer necessary? Bob laughed and he stated, "I would work 40 hours a week instead of 80, I would hire two or three people, start a second pizza shop or buy my wife a new home." Bob then stated, "I am paying at least 50% in taxes and probably more than that."

Another example is a trucking company owner. I asked Tony the same question. He smiled and said, "I would purchase several additional semi trucks and hire three new drivers. I would hire three or four mechanics in my repair shop, remodel our offices and make several other major improvements that I can't afford under the present tax system."

Under the Federal Reserve System, taxes are unnecessary because the government could acquire all the money required by monetizing its own securities and bonds. This is exactly the way the government presently obtains the greatest majority of its money today. Politicians, who are willing to promote this corrupt banking system, are politically endorsed and financed by the Democratic and Republican Parties. The Federal Reserve Banking System creates and loans, with interest, the money our elected officials spend without risking their political careers by avoiding raising taxes to unacceptable levels.

Politicians are not the only benefactors of this crime against the American People. Remember, the bankers have a perpetual flow of hundreds of billions of dollars given to them annually. In Congressional Records, it states the total payment to the bankers for creating and loaning America its money would be more than enough to pay off the national debt. Our elected officials and bankers are in a partnership that enriches the privileged few.

The question that you are probably asking yourself is, if taxes are unnecessary, why am I giving six months of my labor to the government in the form of taxation?

The only logical explanation to that answer is rather shocking. Taxes are used by the American Government primarily as a social and economic weapon for means of control.

Mr. Ruhl, a former Chairman of the Federal Reserve Bank of New York wrote in American Affairs an article entitled, "Taxes For Revenue Are Obsolete." In summation by magazine's editor, the editor states, "given control of the central banking system and an inconvertible currency, a sovereign national government is finally free of money worries and needs no longer levy taxes for the purpose of providing itself with revenue. All taxation, therefore, should be regarded from the point of view of social and economic consequences."

Mr. Ruhl adds further credibility to my statement when he wrote, "Since the Federal Reserve can legally create all the money the government could ever spend, there are only two reasons to tax the people. The first is to reduce the amount of money the people have to spend, thus decreasing inflation by controlling the level of prices. The dollar the government spends becomes purchasing power in the hands of the people who have received them. The people cannot spend the dollars the government takes by taxes and therefore these dollars can no longer be used to acquire the things that are available for sale. Taxation is, therefore, an instrument of the first importance in the administration of any fiscal and monetary policy."

The first reason given by Mr. Ruhl concerning the benefits of taxation on the American People has a little validity. By reducing the total money supply of the people also reduces the total amount of money available to spend on commodities. The objectionable point is why is a private profit seeking Tax-exempt Corporation controlling the buying decisions of the American People. The negatives to the first reason will be discussed in the section on inflation.

The second reason for taxation in Ruhl's article is a redistribution of wealth from the middle and poor to the rich under the disguise of social justice, but the hidden agenda is to control society. Mr. Ruhl wrote, "The second principle purpose of taxation is to redistribute the wealth and income that would result from economic forces working alone. The taxes, which are effective for this purpose, are the progressive income tax, the progressive estate tax, and the gift tax. What these taxes should be depends on public policy with the respect to the distribution of wealth and of income. These taxes should be defended and attacked in terms of their effect on the character of the American life, not as a revenue measure."

If we had an honest money system as in the Constitution of the United States, article one, section eight, paragraph five, the need for government taxes would be greatly reduced or even eliminated. Wouldn't the economic condition of our community be improved if Bob and Tony had spent their money on capitol improvements instead of giving their tax dollars to the government where the great majority of our tax dollars are spent foolishly or end up in the wrong pockets? Imagine the people of the United States hiring, making capitol improvements, and spending their tax dollars the way they desire.

Is it not man's desire to be self-supporting, enabling him to have self-respect by creating his own economic condition based on one's ability and determination for success, and not tax paying slaves or pensioners of the welfare state. When are our elected officials going to realize that they are breaking their oath of office to defend and protect the unalienable rights of the American people from foreign as well as domestic enemies and that they are assisting in eroding the foundation of the American system of government and the free enterprise system.

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