If we were to liken the income tax to “The Matrix” most people would point to the IRS and say “Agent Smith!” but they would be wrong. The IRS is just the squiddies or sentinels, the mindless search and destroy robots. “Agent Smith” is corporate America. Let me explain.

The nature of the income tax is an indirect tax, a special excise tax on privilege. It is only measured by the income derived from using the privilege. It would be as if I owned a fishing hole, and allowed you to fish in my fishing hole, provided you gave me 10% of your catch by weight. I would have a right to do that, it is my fishing hole. So, if you work for a living, what is the privilege? If you are a non resident alien, work for the federal govt. or a federal corporation or work abroad under protection of the US flag, the answer is obvious. But what about if you work a regular job in the private sector, within the states, and you are a citizen here … where is the privilege? There is none, EXCEPT FOR YOUR PARTICIPATION IN SOCIAL SECURITY. Most of you reading this have been filling out a form W-4 or a 1099 with a Social Security number all of your working life, probably thinking that this was a legal requirement. It is, FOR EMPLOYMENT, but not for merely being hired or working, “employment” having a specific legal definition defined within the revenue codes. The bottom line? “Employed” is using an SSN, just working is NOT.
THERE IS NO LAW PREVENTING THE COMPANY YOU WORK FOR FROM HIRING YOU WITHOUT THAT NUMBER, ITS USE IS TOTALLY VOLUNTARY. Now, the company you work for may have a corporate POLICY in place about not hiring without an SSN, but THERE IS NO LAW. That is why corporate America is “Agent Smith”.

This is no accident, either. From the day withholding for Social Security started in 1937 until Pearl Harbor, corporate America was pressured by the govt. to get 100% participation. People knew it was voluntary then, but, signed up anyways, thinking it to be a good deal. Eventually the few holdouts were singled out for more and more lectures and pressure to sign up. After Pearl Harbor, it was “Everything has changed! You will sign up if you want to keep your job here! We don’t need a lone holdout preventing us from getting a govt. contract!” The trap was shut, and, by July of 1943 when withholding started for federal income tax, there was a virtual 100% participation in Social Security. The workers were told not to worry about the new tax. After all, it was just a “temporary wartime measure” set to expire in two years.

Mainly, the policies of corporate America forcing people into “volunteering” for Social Security and by virtue of that incurring liability for federal and state income taxes is as a result of ignorance and fear at this point, but, within any large corporation, there is an “Agent Smith”, usually a lawyer, who knows exactly what the deal is, acting the part of the gatekeeper.

If someone desires to get the IRS out of their lives, most usually they must create their own work situation such that they can avoid the use of an SSN. If you can work independently, and work for clients who desire a taxpayer ID number to expense out the cost of your labor, you can do this via a subchapter C corp that you control at arms length that handles your invoicing and accounts receiveable, keeping your personal taxpayer ID number, usually an SSN, out of it.

My advice to those who would live life as non taxpayers is to learn as much as possible first. A great place to start is
http://www.originalintent.org Some other sites to visit are http://www.famguardian.org and http://www.thinkfree.ca and click on “FREE MOVIES!”, view all of them in order. The second one explains how the tax works.

Pete