Monday, February 05, 2007

"Taxpayers" owe us $300 billion

The distance between how much revenue the IRS is supposed to collect, and the actual money the IRS collected, is widening. And how much Congress will spend is related to the estimated value of what revenue the IRS was suppose to collect. So it will result in a larger and larger deficits.

So lawmakers found an idea. They made up a word--the "tax gap"--which means the $300 billion "taxpayers owe" the government in taxes which they never paid. Now, only one problem left: finding ways to collect it.

Now, the rest of the LA Times article talks about the different ways to lower or close the tax gap. There's no mention of finding ways for Congress to curb spending; only finding ways to milk the people out of their hard-earned money.

But, there is one interesting dilemma. Does government require the average American to pay the tax in the first place? If the government didn't require the people to pay the tax, the people don't have to pay. And the core of the dilemma is there is no law requiring the average American to pay a tax. There is no law.

The LA Times says, "The government has a much better chance of collecting the money it is owed (sic) if a portion of it is withheld in advance and if the income is reported by two sources--taxpayers and their employers." I agree. But the reason I think it is better not to file is the government only can charge you with "willful failure to file..." (26 USC 7203); the only charge in Title 26 which is a misdemeanor. But, here is the charge: "Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall..."

Now, I have three rebuttals on willful failure to file. First, the first three words in this charge are, "Any person required". From looking at my post, I am not required to file, supply, or pay. In fact, I am not required to do anything! Second, the key word is "willful", and the defense is found in the Supreme Court decision on Cheek v. United States [below Held:] In other words, if I have a "good-faith belief" that the law does not require me to file or pay, I can't be guilty of 26 USC 7203.

And finally, if I don't file or pay, the average person assumes I am guilty of a crime. But "failure to file or pay" is not a crime; only "willful failure to file...or pay". There is no crime not to file or pay with a clean conscience. All of this with one charge.

I urge you to read my post in full. It is long, but it is easy to understand. Then you will realise my title is a misnomer. I am not a "taxpayer"; I am a "nontaxpayer" [.pdf]. Which one are you?

UPDATE: If you don't believe me, ask the Wesley Snipes' team. They have the "Mistaken Identity" videos for you to see--part 1 and 2 [less than 20 minutes total]. They believe what's in my post too.


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