Volume 2, Issue1 January, 2001 16 AMENDMENT SUIT FILED TH On January 18, 2001, we filed the 16th Amendment lawsuit in Oklahoma State Court. Bill Benson flew in from Illinois and we had him file the suit pro se for now to get it in the system. While in OKC, Larry and I met with the only attorney in the state who lists himself as a constitutionalist. We are hopeful that Mr. Dell will become our local counsel. Two major television stations showed up for the filing. did broadcast a lengthy segment that night on the 10:00 evening news. A very fair broadcast. Their reporter and camera man filmed Bill and Larry doing the actual filing and then interviewed Bill for a long time. It all showed up on the news. passed it now?" Bill piped back with: There was a 7-year cap on the ratification of that amendment. The states can't just come back now and try to ratify it. The last question the reporter ask Bill was did he file tax returns? For those who have never seen Bill Benson speak, well, you have missed a rare treat. He looked that reporter square in the eye, looked at the camera and said hell no, he will never file and the feds know exactly where he lives. Bless his heart, the man is a tiger. The reporter looked dazed. Due to the generous donations of countless individuals, purchased a little over $7,000 worth of radio advertising time and blanketed the state about this lawsuit and the rally we held at the capitol the next day, January 19, 2001. Those ads ran from January This reporter wanted to know how come 10-18th and , the biggest oldies the Oklahoma State Legislature couldn't station, actually gave us good plugs the just throw together a resolution and say, day before the rally telling folks to get "Okay, it didn't pass in 1910, but we Volume 2, Issue1 January, 2001 down to the capitol for the rally! It was way The Wallace Institute Quarterly is cool. an official publication of: On the morning of January 18, 2001, we faxed a press release to every newspaper in the state, as well as every television station in the state. We faxed the same press release to 63 radio stations throughout the state. One radio station showed up at the capitol on the 19th for the rally. The weather while I was there was freezing. A big snow storm had just arrived when I got there and things stayed so cold, burrr. The day of the rally dawned clear, but 28 degrees and the wind howling. The Wallace Institute 209 Lincoln Street Huntsville, Alabama 35801 256-533-2535 e-mail: [email protected] http://home.HiWAAY.net/~becraft/ Publisher: Devvy Kidd Advisory Board Member P.O. Box 60543 Sacramento, California 95860 916-928-0199 [email protected] http://www.devvy.com That wind chill factor made things so miserable that our volunteers couldn't stand outside with their signs, it was that cold. Seeing what was coming, Larry and I arranged for the rally to be held indoors and the Oklahoma capitol people set things up so nice and no charge for their services. The front of their capitol is under Editor: construction, so you had to walk about a Larry Becraft half mile to get inside. Needless to say, our high noon-2:00 rally was very poorly Layout & Design: attended: about 50 very enthusiastic folks Mark Stamos who braved absolutely frigid weather to attend. Notice: Larry and Bill gave great speeches and the lone radio station who attended taped everything on audio. Later that evening, we all met at a restaurant and the local concerned citizen group mapped out plans to lobby their legislature and keep this issue going as well as the ones they are working for Oklahoma: judicial accountability being number one. I also took the opportunity to remind them to check their state The Wallace Institute has sent out complimentary copies of the 3rd & 4th quarter newsletters to as many people as we can reach. However, the cost of reproduction and mailing is horrendous. If you would like to continue receiving this newsletter, we ask that you donate at least $5.00 during a quarter to cover the cost of mailing to you. In the future, orders for past issues will require a $4.00 donation to The Wallace Institute. We thank you for your understanding. Volume 2, Issue1 January, 2001 constitution for recalling elected public servants. By now the defendant, Mike Hunter, Secretary of State, has been served and the 30- day clock is ticking on their legal time to respond. We fully expect the state to move for a dismissal and it will be granted. We will then take it to the appellate court. This has always been a case for the higher courts and the locals say the judge we drew is, shall I say, less than sympathetic to anything constitutional. However, we are committed to going to the Oklahoma Supreme Court if necessary. Our next state will be here in California. We anticipate the filing to be around mid-to late March. Larry needs to see what the state's response is going to be so he can massage the complaint for California if necessary. This is a common practice. I would like to point out one more time the meat of this suit: That the State of Oklahoma's legislature did not properly ratify an amendment to the constitution. This fraud unlawfully wiped out apportionment and that the United States Revised Statute 205 is unconstitutional. For those who need a little more help on this apportionment issue, let me use an excerpt from Vivien Kellems: "Since a capitation means a tax of the same amount for every person, this provision makes doubly sure that all federal taxes must be at the same uniform rate for everybody. This limitation that direct taxes be levied by the Federal Government must be in proportion to a census and apportioned among the States in accordance with numbers, is the only provision in the Constitution that is stated twice." The only reason that our Constitution required a census to be taken every ten years, the only reason was to count the people to determine how many Representatives should go to Congress, and how direct taxes should be levied. I wonder how many Americans thought of this in 1950 when those little busybodies came knocking on their doors, asking ten thousand impudent, silly questions which were none of their, or Washington's, business. There is absolutely no power granted in the Constitution which enables a top-heavy bureaucracy of empty-headed simpletons, and worse, to invade the privacy of the American people in such a monstrous manner. This census is just a preview of what is really in store for us if they actually take over, which they most certainly will do unless we uproot and vote them out. The census was to count the people - that was all. The number of people determined the number of Representatives in Congress and the apportionment of direct taxes among the states.... For a long time I asked myself, "Why were Representatives and direct taxes linked together and apportioned among the States in accordance with population?" It was understandable that Representatives should be chosen in accordance with numbers but why should taxes be apportioned the same way? And then one day, out of the blue, it came to me crystal clear. All at once I understood the plan to safeguard the future freedom of the nation, conceived and executed by those scholarly men. Volume 2, Issue1 January, 2001 I read again: "Representatives and direct taxes shall be included within this Union, according to their respective numbers..." "No capitation, or other direct tax shall be laid, unless in proportion to the Census of Enumeration hereinbefore directed to be taken." And in those two sentences our forefathers bound fast the hands of Congress and secured the liberty and freedom of the American people. How? By making it utterly impossible to levy an income tax. others not mentioned were still not the property of the people. However everything in the Constitution was arrived at by compromise. The interests and concerns of the thirteen states varied widely and each delegate was sent to Philadelphia to protect the commerce, industry and agriculture of his particular state. It required months of patient discussion, argument and forbearance to finally produce the finished document, which when completed, comprised a system of government to protect the people in the rights and liberties set down in flaming words in the Declaration of Independence. It is a wonderful document, the best system of government ever devised for human beings, but it could have varied in some respects and still have worked satisfactorily...... An income tax is certainly a direct tax, probably the most direct tax of all since it cannot be shifted by must be paid by the person receiving the income. By specifying that direct taxes must be levied in accordance with the number of people, not upon what they produced, as in the days of ancient Egypt, an income tax was supreme achievement of the simply out of the question. It cannot be The levied upon a man but must be levied combined brains of all those men were written into those two sentences and the upon what he receives. freedom and liberty of the American Our forefathers designed and incorporated people were secured in them. For in those in the Constitution a new system of two sentences the right of the free man to government. It was built upon a own something was made inviolate. This revolutionary idea; the conviction that the was his distinguishing mark, the only government belonged to the people and criterion of freedom in all the world, the existed only by their consent. Its genius right of the common man to retain for lay in the careful system of checks and himself the fruit of his labor. balances among the three departments, the Legislative, the Executive, and the Now this is how it worked. Every man was Judicial. And it went further and given a vote with which he could vote for Representative. Originally only maintained a balance between the powers his of the individual States and the Federal Representatives were elected, Senators Government. In addition it carefully were appointed by the State Legislatures reserved to the States and to the people and it's too bad we changed that provision all rights and powers not specifically (Note: We didn't. Like the 16th delegated, or prohibited to the Federal Amendment, the 17th Amendment is a Government and further stated that fraud--it was never ratified by the states. because certain rights were enumerated in Therefore, we have not had a lawfully the Constitution it did not mean that seated senate since 1913.) Volume 2, Issue1 January, 2001 That Representative having to stand for election every two years was close to the people and responsive to their wishes. That is why he was given the power to tax; all bills of revenue arise in the House. And that is why he must come home every two years and give an accounting to the people. But his power to levy direct taxes was limited by an ironbound restriction: that tax must be apportioned among the States in Accordance with the population. Since all taxes were to be at a uniform rate, Congress simply could not penalize one section of the country, or one group of citizens for the unfair advantage of another. When Congress levied a tax, everybody had to pay and at the same rate. The amount would vary with the wealth of an area, as it does today with the different values of real estate, but the rate was the same for all and the tax was distributed among the States according to population. The men who wrote our Constitution did not found a democracy. They feared the so-called "Democrats" of their day as much as we fear the Communists today. They did not believe in mob rule, or government by the unintelligent, irresponsible mass. They founded a republic and they made certain that the right to vote should be curbed and controlled by the necessity of paying taxes. Scheming politicians could not take taxes from a helpless minority and buy themselves back into office with the votes of the tax exempt majority. When a Representative voted a tax, he voted to tax everybody because the tax was based upon numbers, not upon dollars. This was the most brilliant plan ever conceived for guaranteeing the freedom of a nation. It protected every person in his right to private property, rich and poor alike, and under this protection we built the richest, most powerful nation on earth. We achieved and maintained for the majority of our people a standard of living undreamed of before, the hope and the envy of the whole world. And we accomplished something even more important: we developed a vigorous, self-reliant, self- respecting race of people. An American citizen would have been ashamed to ask for a handout from his Government. The Government belonged to him, he did not belong to the government. And then what happened? We chucked our carefully safeguarded right to own something out the window, and we passed the income tax amendment. Gone was our apportionment among the States in accordance with population, and also gone was our principle of uniformity. Income "from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration" could be taxed and without limit. And when we passed this income tax amendment the slow, distilled poison of tax slavery dripped into our veins. We sowed the seeds of our national decay which is rapidly coming to maturity before our eyes today. The heritage of freedom so carefully insured for us by our forefathers is gone; it has been taxed away." Miss Kellems book, was written in 1950-51; it can be found through rare book sellers. The full piece may be read at: Volume 2, Issue1 January, 2001 http://www.devvy.com/vivien_20001031.html Because of your generous donations, we had a special commemorative brochure printed up to hand out in Oklahoma City and give to people who heard the commercial and called my office. The response was excellent. This little 10 page booklet is a one- time run and if you'd like a copy (front cover attached), please send $2.00 which will cover the booklet, envelope, postage and about a half dollar for the institute. The reason we offered this little booklet to those who heard the commercial (and they had to spend their own dime to call my office) was to get this information out to the general population. It has worked even better than I had hoped. I also squeezed in a section about where people's "income tax" dollars really go - that should open a few eyes! Geoff Metcalf, talk show host for , both as a commentator and on his daily radio show (1380 am 4:00 pm - 7:00 pm M-Fri here in No., Ca and on the Internet, just go to at 4:00 pm PT and you'll be able to click on), has done an interview with yours truly. This question and answer interview appeared January 28, 2001 on , ranked the #1 web site in the world for the past 82 weeks. This article can be found at: http://www.worldnetdaily.com/news/article.asp ?ARTICLE_ID=21498 Geoff received an e-mail about this piece and I've reproduced it below. Subject: 16th Amendment Ratification in Kentucky Date: Sun, 28 Jan 2001 From: "D.M. Green" <[email protected]> To: <[email protected]> Hi Geoff, Thanks for your recent World Net Daily interview with Devvy Kid concerning the 16th Amendment battle. We in Kentucky have already begun our battle by collecting signatures on petitions to force the legislature to vote on a Resolution correcting the record concerning the ratification of the 16th Amendment in Kentucky. I've attached some of the documents in PDF format. Our goal is to get 30,000 signatures by January in order to force the resolution before the 2002 Legislature. We presently creating a website at www.americanpatriotism.org to get the information out. The website should be active within the next two weeks. Also I have been told by Larry Becraft that a suit has also been filed in Kentucky as well. Just thought you may be interested in this info... For Freedom, David M. Green Executive Director The Institute for American Patriotism Lexington, Kentucky Volume 2, Issue1 January, 2001 I did send Mr. Green the following e-mail about his effort: January 28, 2001 Dear Mr. Green: Geoff forwarded me your e-mail below. I just wanted to pass on to you a piece of information you may wish to discuss with Larry Becraft (256-533-2535) or Bill Benson (708-596-3142). Larry is in Washington, DC right now, but should be back by Tuesday. I applaud your efforts, but you should know that there was a seven-year cap on the ratification of the 16th Amendment. The states had only seven years to ratify it or the process would have to begin again in Congress. As you are aware, we have already filed in the State of Oklahoma. One relief prayed for in the complaint is for the Secretary of State to notify the U.S. Congress that the amendment was not ratified. We do not ask the State Legislature to put together a resolution to correct the fraud because of the seven-year cap. The legal time frame with which Oklahoma could go back and correct the vote has long expired. I am not a lawyer so it would be best to talk this over with Larry and Bill. We'll keep our eye on the efforts of these good people. to be driven out of business and America relies on foreign grown food products, the This case was rejected by the courts and same thing that's happened with oil with the appeal has been filed. As I stated in happen with our food supply. What better our earlier quarterly's from last year, this way to bring a nation to its knees than to is one of the most important lawsuits filed either withhold food or price it so high, the over the past 50 years. All Americans people starve? should be concerned about the situation with our farmers, sadly most aren't. They In any event, this suit is sitting in the court take for granted the mountains of food system right now. If we had a Congress available at any store at any time of the that cared one iota for the U.S. day. If our farmers and ranchers continue Constitution and the plight of the PARITY FOR AGRICULTURE Volume 2, Issue1 January, 2001 American farmer, this problem would have been solved a long time ago. These Republicans have had control of Congress for going on six years now and things have only gotten worse. It's enough to gag a maggot. SSN, even though, by SSA's own admission, no one is required to apply for this number to live and work in the United States. The state has requested and been granted four extensions. Larry is in Washington, DC as I write this and as soon as he gets back, he will file for a summary judgment. Once that is completed, he will go for the same in the other social security case, Pitmann Buck. The state has had their chance, we now intend to push the issue with the court. It's very frustrating to have to wait on the courts. Think about how our plaintiff's feel. However, this is the nature of the beast until the judiciaries, both state and federal, get cleaned up. This won't happen until the people demand it and one excellent group. J.A.I.L. (Jail for Judges) is leading the way. For more information on their organization, contact: http://www.jail4judges.org/ or Attorney Gary Zerman: (661) 259-2570 As luck would have it, here's a fine example of citizen activism and it relates to the national effort underway to clean up our courts: J.A.I.L. News Journal Los Angeles - January 27, 2001 SOCIAL SECURITY CASES As our sponsors and readers of my site know, we have two cases in the Texas courts on the social security, equal protection issue. The first case involves the plumber who can't get a license to practice his profession without giving an LET'S APPLAUD GEORGIA J.A.I.L. Those on our regular subscribers list do not see the network of our national J.A.I.L. leadership. Sometimes we like to lift the curtain and allow you to peek in. Below is such an occasion in which we wish to share with you our successes. Volume 2, Issue1 January, 2001 The following are the words of Army will be as thrilled as we are with Georgia Captain Dennis M. Hatcher (Ret.), the J.A.I.L.'s accomplishments. head of our Georgia State J.A.I.L. Chapter, ([email protected]). We trust you Dear GA. Jailers, In spite of last minute reservations, the [Jan. 23rd] press conference and rally went off well, and we were able to meet 95% of our objectives! No one else from JAIL but Kimberley Brown showed up, and she earned her weight in gold! The best part is this: I was able to pigeon-hole Rep David Lucas like I had wanted (it was reported he was not there, but low and behold I caught him walking down the stairs behind me, as if God put him in my path!). I introduced myself and gave him my J4J spiel. I said we had to put the power of the judiciary back in the hands of the people, he said "I don't know if we can do that, but we can't continue doing business as usual." Guess what he did?...he invited me to speak at the next Judiciary Committee meeting! I'm arranging it with his secretary. Kim introduced me to one of the senior senators, Joe Burton, who came right out of chambers when Kim paged him! We talked and he's on our side! My short speech was taped by channel 11, FOX 5 News, GA Public Television, and 2 others I was unable to identify. I was interviewed by V103 Radio and I passed out nearly 100 J4J cards. Many folks were impressed by my JAIL jacket sent by Sherree from FL and they LOVED the concept of judges in jail, literally! I was stopped 4 times inside the Capitol by people wanting to know what those letters meant and when I told them, they were ecstatic. Each knew of someone, or themselves, who have been victimized by the system. Dozens more watched me and looked at the jacket. Two of the TV camera men actually walked behind me and got shots of the big yellow J.A.I.L. logo! I'm telling you, this was an exciting and wonderful trip. So very productive in such a short time. Kim and I stayed as long as we could, But we were both exhausted by the time 12 noon rolled around! I'll fill you in more later. I really have to rest now. We did good!!! -Dennis- Volume 2, Issue1 January, 2001 It involves the The politicians and judges in this country Michigan. no longer fear the people. I don't mean security/driver's license issue. violence. The people have to put the heat on: recall or by intense public pressure before these maggots will react. Hats off to Dennis. How about you? Yeah, I know, it's the time crunch. Ask me. There's a whole lot more fish still swimming around 'cause I didn't get my line wet one time in 2000. If your house is on fire do you sit on the sofa and watch TV? Of course not. You get up, call the fire department and then get to work with the water buckets. Well, America - our house is on fire. social Future Cases: We desperately want to file a suit on behalf of our commercial fishing families before they are driven off the face of the map. This is a very critical issue involving international treaties. The cost of such a suit would run in the neighborhood of $200,000. Whose industry or occupation is next? I will be shooting a 30-second TV commercial in the next few weeks. We intend to purchase commercial air time on channels like , the and others whose viewing audience are people looking to learn something. This commercial will advertise video and we hope it will bring in good revenues. I have chosen two markets that are conservative enclaves and I believe the commercial will do well in those areas. Buying this air time takes money and every penny you donate is wisely used and we appreciate it very much. GOOD NEWS ON SOCIAL SECURITY NUMBER ISSUE Tell me what's wrong with this picture: One must apply for a social security number, it is not a mandatory number issued by the federal crime syndicate out in DC. You must apply for this number because it's voluntary. However, in most states of the Union, you cannot get a driver's license unless you volunteer into a voluntary federal taxing program called social security. You are For those not on the Internet, I want you to forced into applying for a voluntary know about another very important lawsuit number under a federal program, which that was filed by the Secretary of State for forces you to pay a voluntary tax in order Volume 2, Issue1 January, 2001 to get a state driver's license. In every state in the Union, you can't even get a job without being forced into a federal taxing program that's voluntary. Your right to work is a God-given right that no government can take away, yet it's being done every day and it must stop. in DC. You must apply for this number because it's voluntary. However, in most states of the Union, you cannot get a driver's license unless you volunteer into a voluntary tax program called social security. You are forced into applying for a number to force you to pay And you people out in America say you're a voluntary tax in order to get a state driver's license. In every state in the Union, free? In a pig's ear. you can't even get a job without being Now for the good news: The Secretary of forced into a federal taxing program that's State for Michigan has filed a lawsuit to voluntary. Your right to work is a stop this shotgun wedding scenario. She God-given right that no government can has also cited the epidemic regarding take away, yet it's being done every day identity theft that's occurring with social and it must stop. security numbers, ruining people's lives and turning the whole scheme into one Tom just couldn't seem to grasp the gigantic mess. I hope you will send Ms. problem. He came back with "it's a federal Miller an e-mail in support of her efforts issue." Well, son, it isn't, it's a state's rights since her governor, and fellow issue: The Congress lacks the authority to Republican, John Engler, is against force the states to force it's citizenry into volunteering for a federal tax program stopping this gross injustice. under the politically correct excuse of I spoke with Gov. Engler's staffer on tracking dead-beat dads or individuals will January 5, 2001. This fellow, Tom, be refused the right to drive. explained to me that Gov. Engler, was in opposition to Secretary Miller's lawsuit Remember the Mack and Lopez decisions because it would cost the state about handed down by the U.S. Supreme Court? $900 million dollars annually in federal The court found in both cases that funds. My response to Tom was that Congress had overstepped it's bounds and Engler's motives were purely financial and this "dead beat dad" law is another classic he doesn't give a rat about privacy or the case. It's as classic as will be the idiocy of law. Tom shot right back with the reason inviting the feds into the states on how they want this number is to states conduct their voting and the type of cross-reference in order to hunt down equipment they use - no, no and no. deadbeat dads under this new federal law People had better fight this one big time. that Billy Clinton signed. The U.S. Constitution does not authorize the feds into the states on this voting issue, period. Bad, bad, news. I outlined for Tom what I did above: One must apply for a social security Regular readers to this site know that currently has two social number, it is not a mandatory number issued by the federal crime syndicate out security cases in the Texas court system. One deals with this dead beat dad Volume 2, Issue1 January, 2001 I realize that delinquent child support is a problem. I raised my daughter from the age of 6 on, without any and the few years Brandy's father paid, it was a constant battle. But, I worked and I took care of my girl without trashing your rights along the way. The states can figure out a way to A grown man or woman for that matter solve the problem and Congress has no (there are mothers who make more than authority to pass laws in this area. This is the father and are required to pay child why we have these cases in Texas - to fight support), who have grown children, are for everyone's rights. forced into applying for a voluntary federal taxation program (social security) or be Gov. Engler's boy tried to tell me that it denied the right to drive in their state. was okay because the number (SS) Even if they have this insidious number, wouldn't appear on the license. Big deal. they are being forced to give it in order to The bottom line is what I outlined above enjoy the right to drive in their state. This and it must stop. The next thing you know, is wrong, period. you'll be forced to use a national id card or chip in order to buy food or other The governor's boy, as I said, just blew necessities, but will be denied if you this off as if it were of no consequence - refuse. We must fight this and fight hard. it's all about federal funding, period. These We are little better than indentured people, bureaucrats and politicians alike, servants. have lived in their little worlds for so long, they no longer recognize things like As a matter of fact, after I pressed this God-given rights, the Bill of Rights or the rationale with the governor's boy, he piped state and federal constitutions. Whatever up and said what difference does it make is politically expedient, popular or brings to me since I am not a voter in the state of in federal bucks, that's where their Michigan, why do I care? I told him that I loyalty lies. This is not in keeping with the care about being free and that California principles this nation was founded upon has done the same thing to its citizenry. I and certainly none of them seem to told Tom that I would like for him to add understand the concept of equal my vote to the scoreboard in support of this lawsuit. He didn't want to talk protection for everyone. anymore, quite a reversal from the sweet Contrary to the famous words of Mr. beginning of our phone conversation. Spock in one of those Star Trek movies, "The needs of the few outweigh the needs If you'd like to give Gov. Engler a piece of of the many," that is not the case in our your mind, politely, have at it: Republic: Everyone gets treated equally http://www.migov.state.mi.us/ and the rights of even one simply cannot be trashed to chase down child support or any other area for the benefit of a few. I hope everyone will take a moment to call That's how it is in a democracy (mob rule), Secretary Miller or send an e-mail to let her know you support this lawsuit. I spoke but we are a constitutional Republic. malarkey. Yes, fathers who shirk their financial responsibility should be pursued, but not by forcing everyone in the country to give up their rights and privacy or being forced into volunteering into a federal tax program. This is wrong, period. Volume 2, Issue1 January, 2001 with one of her staffer's today, Elizabeth Boyd. She was most interested in our cases and I ended up e-mailing her some information with the recommendation that she contact Larry on Monday when he returns to Alabama; he's in Oklahoma right now. Our cases and this one in Michigan are very important, so I hope you'll take the time to give Secretary Miller your support via an e-mail or by phone. explained the intent of the law to identify parents delinquent in child support payments is commendable but that the means did not justify the end. "This is a law that is seriously flawed and will do more harm in Michigan than good," Secretary Miller said. "The majority of Michigan drivers are law-abiding citizens and to require them to provide the state with their Social Security numbers in the http://www.sos.state.mi.us/mailwebmaster.html limited hope that a deadbeat parent will be identified is outrageous. I will not sit Press Release: idly by while residents' privacy is invaded by an intrusive, ineffective and unfunded From Secretary of State, Candice Miller's mandate." office: Secretary Miller added the federal law http://www.sos.state.mi.us/pressrel/active/010 raises questions about its ability to protect 104-1n.html the welfare of Michigan children. She explained that Michigan's efforts to collect FOR IMMEDIATE RELEASE delinquent child support have consistently January 4, 2001 ranked it one of the best in the nation. Secretary Miller Files a Lawsuit to Protect Michigan Residents' privacy. Contact: Elizabeth Boyd Telephone: 517/373-2520 Radio Hotline: 517/241-2800 In 1998, for example, Michigan had the highest total distributed collections of all states. The Michigan Department of State had petitioned the U.S. Department of Health and Human Services for an exemption in Secretary of State Candice S. Miller today May and August 2000. The department fought back to protect residents' privacy submitted an addendum to the second by filing a lawsuit in U.S. District Court to request in September 2000. block a provision of the federal Welfare Reform Act that requires states to record Secretary Miller argued in her exemption residents' Social Security numbers on requests that the collection of Social driver license applications. Security numbers would violate the strong interest her department has in protecting Secretary Miller is seeking a temporary customer privacy. The process would be restraining order and injunctive relief after expensive and counterproductive to recently learning her requests to obtain a measures already in place by the state to federal exemption were denied. She called track those owing child support. the federal provision an invasion of personal privacy carrying substantial risks which outweigh the benefits. She Volume 2, Issue1 January, 2001 This provision of federal law applies only to citizens with driver licenses, which severely limits the ability to locate deadbeat parents. Consequently in Michigan, more than 4 million people would be overlooked because the databases containing records of suspended drivers, state identification card holders and those on the Qualified Voter File would be excluded from any search. "This requirement constitutes an unnecessary government invasion into personal privacy," concluded Secretary Miller. "I hope the courts agree with me." http://www.sos.state.mi.us/pressrel/active/010 104-1n.html updated: January 05, 2001 Printz/Mack case on the Brady Bill: http://www.devvy.com/printz.html If you would like to find out just how badly Currently, the Michigan Family social security cheats you, go to: Independence Agency (FIA) conducts searches of all Secretary of State http://www.heritage.org/news/2000/nr082100.html databases for deadbeat parents using a name, or even part of a name. It is successful in obtaining an identification 90 percent of the time, according to figures from FIA and the Secretary of State. The Secretary of State estimates that success rate would drop to about 60 percent under the federal law primarily because searches would be limited to only residents with driver licenses. Other problems with the federal identified by Secretary Miller include: law States would not be required to verify the Social Security numbers collected by their Department of Motor Vehicles or Secretary of State offices are correct. The law represents a significant duplication of effort because both the Internal Revenue Service and Michigan Department of Treasury already have databases of Social Security numbers. The law places the majority at risk for possible misuse of their Social Security numbers and identity fraud in attempts to target a minority guilty of delinquent child support payments. There is only one solution to social security: Let it die a natural death. Let those who need to stay in the system, stay. Eventually those in the system will pass away, as we all do, and the entire program will just go away. Get rid of NAFTA & GATT and let those tariffs pay for this program they can. Stop everyone from getting into the system - since it's voluntary to begin with - and let it die out. Stop the insanity. Volume 2, Issue1 January, 2001 NOW COMES the State of Michigan, This is a Ponzi scheme that will never be anything more than dooming the elderly Department of State, by and through its into poverty and forcing our children to attorneys, Jennifer M. Granholm, Attorney General, and Matthew C. Keck, Assistant support "our old age." Attorney General, and as its Complaint I say stop it and free our people. Stop the states as follows political fighting and all the rest over this mess. It can be done. It's our money, our JURISDICTION AND VENUE lives and our decision to make about our 1. This Court has jurisdiction over this retirement. action pursuant to 28 U.S.C. 1331, as Stand up and let your voice be heard. this action arises under the Constitution so we can and the laws of the United States, Support including the Personal Responsibility and continue getting these cases into court: Work Opportunity Reconciliation Act of 1996 ("PRWORA"), Pub. Law No. 104-193, http://www.devvy.com/wform2.html 110 Stat. 2105, Article I, Section 8 of the Lawsuit filed by Secretary Miller: United States Constitution, the Tenth Amendment to the United States UNITED STATES DISTRICT COURT Constitution, and the Declaratory WESTERN DISTRICT OF MICHIGAN, Judgment Act, 28 U.S.C. 2201; pursuant STATE OF MICHIGAN, DEPARTMENT OF to the fact that the United States is a STATE, party; and pursuant to the Administrative Plaintiff, Procedure Act, 5 U.S.C. 702. v UNITED STATES OF AMERICA, 2. Venue is proper in this Judicial District DEPARTMENT OF HEALTH AND HUMAN pursuant to 28 U.S.C. 1391(e). SERVICES, and DONNA E. SHALALA, in her capacity as Secretary of the PARTIES Department of Health and Human Services, 3. The Plaintiff is the State of Michigan, Defendants. Department of State ("State of Michigan"), one of the several States of the United Matthew C. Keck (P60239) States of America. The State of Michigan Assistant Attorney General has been injured by the unconstitutional Attorney for Plaintiff action of Congress in passing Section State Affairs Division 466(a)(13)(A) of the Social Security Act P.O. Box 30217 [42 U.S.C. 666(a)(13)(A)]. Further, the Lansing, Michigan 48909 State of Michigan, if it is deemed by the Defendants to have failed to comply with (517) 373-1162 the provisions of Section 466(a)(13)(A) is subject to federal withholding of COMPLAINT approximately $900 million, representing aid to Michigan families and children in need and causing injury to the State of Volume 2, Issue1 January, 2001 Michigan and its interests. Finally, the State of Michigan has been denied an exemption from the provisions of Section 466(a)(13)(A) in violation of the Administrative Procedures Act. requiring that the social security number of- (A) any applicant for a professional license, commercial driver's license, occupational license, or marriage license 4. The Defendant United States of America be recorded on the application. . . . is an entity created and limited by the United States Constitution. For purposes of subparagraph (A), if a State allows the use of a number other 5. The Defendant Department of Health than the social security number, the State and Human Services ("DHHS") is a federal shall so advise any applicants. agency charged with the responsibility of implementing and enforcing the provisions 9. Title III was amended by the Balanced Budget Act of 1997, Pub. Law No. 105-33, of Section 466. Section 5536 (1)(A), which struck the word 6. The Defendant Secretary Donna E. "commercial" so that the provision would Shalala ("Secretary"), in her official apply to all driver's license applications. capacity, is the duly-appointed Secretary of Health and Human Services and is 10. While the financial cost cannot be responsible for the agency she oversees measured exactly, the unreimbursed cost and the approval or denial of exemption to the State of Michigan for collecting requests. The Secretary also has the social security numbers on all driver's discretionary authority to withhold federal license applications is estimated to be $20 funds from the State of Michigan for million. failure to comply with the provisions of 11. The State of Michigan currently PRWORA. employs a database system that is more efficient and effective than any system that GENERAL ALLEGATIONS would use the collection of social security 7. Title III, the Child Support Enforcement numbers. Provisions of PRWORA, Pub. Law No. 104-193, 110 Stat. 2105, became 12. Pursuant to Title I, Part A, of effective August 22, 1996, with varying PRWORA, as codified in 42 U.S.C. enforcement dates depending on state 602(a)(2) and 609 (a) and Title III, Part D, legislature schedules. as codified in 42 U.S.C. 654(20)(A), the State of Michigan could lose over $900 8. Section 466(a) of the Social Security million if the Secretary finds that the State Act (42 U.S.C. 666(a)) was amended by of Michigan is not in compliance with the Section 317 of Pub. Law No. 104-193 to provisions of PRWORA and does not certify that it is in compliance. Attachment "A" is read: a letter from DHHS threatening the loss of (13) Recording of Social Security Number Temporary Assistance to Needy Families in Certain Family Matters. Procedures ("TANF") block grant funding for failure to comply with the provisions of PRWORA in Volume 2, Issue1 January, 2001 addition to the loss of approximately $20 million in "incentive" funds. support than any other person in the population. 13. Even if the State of Michigan does implement the provisions of Title III with respect to the collection of social security numbers on driver's license applications, the State of Michigan could lose a substantial sum because it will make the State of Michigan's system for enforcement of child support less cost effective. The State of Michigan will be damaged because the cost effectiveness of the State of Michigan's system for child support enforcement is one of the factors used to determine funding levels. 19. The collection of social security numbers on driver's licenses applications is not reasonably related to the collection and enforcement of child support orders. COUNT I VIOLATION OF CONSTITUTION SPENDING CLAUSE U.S. 20. PRWORA controls over $900 million in TANF block grant money and an additional $20 million in federal grant money for child support enforcement. 21. The requirements of PRWORA are overly coercive of state government. The State Legislature and its public officials have been conscripted into service for the federal government's program. 22. There is no effective means to obtain 14. The State of Michigan realleges an exemption to PRWORA as, upon information and belief, only one limited paragraphs 1 through 13. request for an exemption has been 15. PRWORA does not define driver's granted. Hence, the statute does not license application or suggest the contain any safety valve. consequences of a person's failure to II VIOLATION OF TENTH provide a social security number on an COUNT application. There is no provision for how AMENDMENT the collection of social security numbers is to be used and there are no implementing 23. The State of Michigan realleges paragraphs 1 through 22. regulations. 16. PRWORA is so ambiguous that the 24. The Tenth Amendment to the United State of Michigan cannot know the States Constitution provides: consequences of its decision to participate in the program. The powers not delegated to the United States by the Constitution, nor prohibited 17. There is no evidence that persons who by it to the States, are reserved to the drive are more likely to be delinquent States respectively, or to the people. payers of child support than any other 25. In enacting the final amendment of the person in the population. Bill of Rights, the framers of the 18. There is no evidence that persons who Constitution sought to create a system of have social security numbers are more dual sovereignty whereby a power hungry likely to be delinquent payers of child Volume 2, Issue1 January, 2001 national government was limited in its procedures by which a state may request ability to control the several States. an exemption. 26. The United States Congress has exceeded its authority by moving beyond its limited Spending Clause powers and interfering with the sovereignty of the State of Michigan. 30. According to OCSE AT-97-02, the disapproval of an exemption request is not subject to administrative appeal. 31. Attachment "B" is the State of Michigan's exemption request. The request COUNT III ADMINISTRATIVE was sent on August 10, 2000, and PROCEDURES ACT followed the procedures outlined in OCSE AT-97-02. 27. The State of Michigan realleges paragraphs 1 through 26. 32. Attachment "C" is a letter denying the State of Michigan's exemption request. 28. 42 U.S.C. 666(d) provides that: 33. The denial letter (Attachment "C") is a If a State demonstrates to the satisfaction final agency action for which there is no of the Secretary, through the presentation other adequate remedy in a court and is to the Secretary of such data pertaining to subject to judicial review. caseloads, processing times, administrative costs, and average support 34. The Administrative Procedures Act, as collections, and such other data or codified at 5 U.S.C. 701-706, provides for estimates as the Secretary may specify, judicial review of administrative decisions that the enactment of any law or the use of and procedures. Section 702 states: any procedure or procedures required by or pursuant to this section will not A person suffering legal wrong because of increase the effectiveness and efficiency of agency action, or adversely affected or the State child support enforcement aggrieved by agency action within the program, the Secretary may exempt the meaning of a relevant statute, is entitled to State, subject to the Secretary's continuing judicial review thereof. review and to termination of the exemption should circumstances change, from the 35. The State of Michigan has been requirement to enact the law or use the aggrieved by this agency action in that it is procedure or procedures involved. faced with the Hobson's choice of losing a substantial amount of federal funding or 29. The Office of Child Support and spending a large sum of money for Enforcement ("OCSE"), a division of the implementation of a law that is Administration for Children and Families constitutionally flawed. ("ACF"), a division of DHHS has issued an Action Transmittal regarding exemption 36. The denial of the State of Michigan's requests. OCSE AT-97-02 establishes the exemption request is arbitrary, capricious and an abuse of discretion. Volume 2, Issue1 January, 2001 37. The denial of the State of Michigan's their social security number absent exemption request is a violation of the legitimate justification. United States and Michigan Constitutions. 47. Because of the private nature of a 38. The denial of the State of Michigan's person's social security number, each exemption request is unwarranted by the person has a fundamental interest in protecting his/her social security number facts. from unnecessary disclosure. 39. The denial of the State of Michigan's exemption request is in excess of the 48. The State of Michigan has a substantial interest in protecting the Secretary's statutory authority. fundamental rights of its citizens by following the requirements of due process COUNT IV VIOLATION OF STATE AND FEDERAL CONSTITUTION RIGHT TO under the 5th and 14th amendments to the PRIVACY United States Constitution and the due process provisions of the Michigan 40. The State of Michigan realleges Constitution. paragraphs 1 through 39. 49. The United States does not have an 41. Michigan was one of the first important or substantial interest in jurisdictions to acknowledge the concept obtaining social security numbers on of a fundamental right to privacy. driver's license applications. 42. There is a fundamental right to privacy 50. The United States has not established secured to the people under the Michigan a sufficiently close relationship between and United States Constitutions. the collection of social security numbers on driver's license applications and the 43. A person's social security number is a collection of child support. highly sensitive and confidential piece of personal information. 51. Section 466(a)(13)(A) violates the fundamental right to privacy protected by 44. The United States Code provides the United States and Michigan numerous limits to the ability of Constitutions. government entities and other persons to collect and use social security numbers. RELIEF REQUESTED 45. Social security numbers are often used to commit various crimes of identity theft and misappropriation. WHEREFORE, the State of Michigan respectfully requests that it be granted a temporary restraining order, preliminary injunction, and permanent injunction 46. Because of the important character preventing the federal government from and the danger of abuse of social security enforcing Section 466(a)(13)(A) against numbers, people have a reasonable the State of Michigan or reducing the expectation of privacy in not releasing amount of federal aid to be received by the State of Michigan pursuant to the Volume 2, Issue1 January, 2001 provisions of PRWORA. Further, the State of Michigan requests that the Secretary be compelled to grant the State of Michigan an exemption from the requirement that it comply with Section 466(a)(13)(A). the 16th Amendment lawsuit in state court in Oklahoma City on January 18, 2001. They also know there is no other remedy left to the people on this issue, period. The fraudulent ratification, which unlawfully wiped out apportionment, is where the trouble all began and it's roots are with the state legislatures. In the alternative, the State of Michigan respectfully requests that this Court declare Section 466(a)(13)(A) to be unconstitutional and to award any such Below is some history from the other relief as the Court deems equitable , Senate, February 10, and just. 1910. It is an interesting discussion on this proposed 16th Amendment. Respectfully submitted, Some critters in Congress want to repeal JENNIFER M. GRANHOLM the 16th Amendment. You don't need to Attorney General repeal a law that doesn't exist. Some Matthew C. Keck (P60239) choose to sell un-taxing or de-taxing Assistant Attorney General programs that are a paper game with Title State Affairs Division 26 of the Internal Revenue Code. We know Attorney for Plaintiff that the IRS was never created by an Act P.O. Box 30217 of Congress or any law Lansing, Michigan 48909 Tel: (517) 373-1162 (http://www.devvy.com/irs_20000208.ht ml), so why bother to play games with Dated: January 4, 2001 these people? Go for the jugular and that's will do in about what S:SAD/AC/cases/MCK/2000066671A/Co two weeks in Oklahoma City, then mplaint California, then a third state still to be determined. Both Larry and I sent Miller's office material on equal protection. One of the The discussion below is quite interesting pieces I sent Miller, and please for those as I'm sure you'll agree once you read it. on the Internet, this is for those who don't One thing you'll notice throughout this have computer access, a piece from the senate session: These senators beat the Congressional Record back in 1910 when drum for states rights. This is 1910, three the income tax was being discussed. This years prior to the fraudulent ratification of piece was chock full of support for state's the 17th Amendment. These senators were rights: appointed by their state legislatures and represented the interests of the states. A LOOK BACK IN TIME (16th With the fraudulent ratification of the 17th AMENDMENT) Amendment, U.S. Senators are now "elected" and answer only to those who pay (http://www.devvy.com/16update_20001 the most for their favors. 226.html), readers know that we will file Volume 2, Issue1 January, 2001 It is also important to note that while Senator Borah is for the 16th Amendment, he is a state's rights advocate. One really must know the political affiliations and equally important, the relationship and affiliations of these senators with the great Unseen Hand back then who conspired to do three things following this discussion: 1913: The VICE-PRESIDENT. With objection, Senate resolution 175 will be laid before the Senate. 1. Fraudulently ratify the 16th Amendment, wiping out apportionment Resolved, That the Committee on the Judiciary be and is hereby, directed to report to the Senate as part as may be practicable whether, in the opinion of the committee, the proposed amendment to the Constitution of the United States, as submitted to the States for ratification at the special session, would, if adopted, authorize Congress to lay a tax upon incomes derived from state bonds and other municipal securities or would authorize Congress to tax the instrumentalities or means and property of the State or the salary of state officers. 2. Fraudulently ratify the 17th Amendment and strip the states of their unquestioned representation in Congress by their legislature appointing two U.S. Senators for each state 3. Hijack the wealth of our nation by getting the "Federal" Reserve Act of 1913 passed. The Secretary read the resolution submitted by Mr. Borah on the 8th instant, as follows: Senate resolution 175. If you would like to read the best written work, fully documented on this conspiracy Mr. BORAH. Mr. President, a few weeks to set up a central bank during this exact is ago one of our most distinguished and time period, justly celebrated of public men, Governor the book; call 503-824- 2050 to order. Hughes, of New York, sent a message to The other very, very interesting thing the New York legislature recommending about this session of the senate is their against the ratification of the proposed description of what this proposed "income amendment to the Constitution providing tax" amendment means referencing "from for levying an income tax without apportionment. It has been assumed by whatever sources derived." the public press, since the message of the , Senate, February 10, governor, that it would be impossible, in view of his declaration, to secure the 1910, pgs 1694-1699 enactment of the amendment. So firm a hold has the governor of New York upon INCOME TAX. the public mind and so high is the esteem in which he is held as a lawyer that it was Mr. BORAH. I ask consent to call up regarded as in a nature conclusive against Senate resolution 175. the amendment. After some considerable consideration of the matter it occurs to me that there are at least two sides to the Volume 2, Issue1 January, 2001 controversy, and, in my own opinion, the grounds stated for the rejection are not such as should prevail against the amendment. The government stated in his message as follows: I am in favor of conferring upon the Federal Government the power to lay and collect an income tax without apportionment among the States according to population * * *. But the power to tax incomes should not be granted in such terms as to subject to federal taxation the incomes derived from bonds issued by the State itself or those issued by municipal governments organized under the State's authority * * *. You are called upon to deal with a specific proposal to amend the Constitution * * *. that was urged to the language contained in the taxing power of the National Constitution at the time of its submission to the thirteen States for ratification. It was contended upon the part of those who opposed its adoption that the language of the National Constitution was such as to enable the National Government to impose a tax upon the instrumentalities and means of state governments, to thereby embarrass the state governments, and in the end to practically destroy them as independent and separate sovereignties. The argument was based in those days upon the plenary power which was given to the National Government to tax, it being contended that the language conveyed power to tax all property of whatever kind or from whatever source derived, and that this would give the power to tax the instrumentalities and means of the State. This proposal is that the Federal Government shall have the power to lay When Mr. Hamilton came to answer and collect taxes on incomes "from that argument in his Federalist articles he whatever source derived." did not recede from the proposition that The contention of the governor being full power had been given to the Federal that if this proposed amendment should Government to tax. He stated that the be adopted it would confer upon the power of the Federal Government to tax Government the power to levy an income was without limit, unqualified, plenary, tax upon incomes derived from state and and that it should be so; that it was municipal bonds; and it would follow, intended to do so; and that that was the although he does not so state, as a matter only reasonable construction which could of logic and a matter of law, that it would be placed upon it. He gave his reasons in confer the power to levy an income tax the following statement, quoting from the upon the salaries of state officers, thirty-first number of the Federalist: executive, judicial and legislative. In other words, the position of the governor is that it would confer upon the National Government the power to tax the instrumentalities and means of state government, and for that reason he opposes it. It is curious to observe, Mr. President, that this is precisely the same objection Volume 2, Issue1 January, 2001 I submit for the consideration of the Senate, first, that this amendment, if adopted, will add nothing to the power of the National Government to lay and collect taxes in the way of power; that the power of the National Government at the present time, as I have said, is full, complete, As revenue is the essential engine by unlimited, and unfettered, save as to which the means of answering the national exports from the States, which has nothing exigencies must be procured, the power of to do with the argument here. procuring that article in its full extent must It is true that there are two rules with necessarily be comprehended in that of reference to the manner in which the providing for those exigencies. As theories and practice conspire to prove that the Congress shall exercise the power - that of power of procuring revenue is unavailing uniformity and that of apportionment - as when exercised over the States in their to the power itself, putting aside for the collective capacities, the Federal moment the manner of its exercise, I Government must of necessity be vested submit that the power is at the present with an unqualified power of taxation in time vested in Congress without any limitation, unfettered in every sense of the the ordinary modes. term. I am not going to assume that the effect of this tax would be any other than that which Governor Hughes suggests. For the purpose of the remarks I propose to make today I shall assume that it would have the effect for which it is contended without discussing that questions. Secondly, I invite the attention of the Senate to the proposition that the words "from whatever source derived" add nothing to the force or strength of the amendment itself. When the Constitution says that the Congress shall have power to lay and collect taxes, it conveys all the The amendment which has been power that it would convey if it said "shall have power to lay and collect taxes upon submitted as follows: property from whatever source derived." If Congress shall have power to lay and we should have said in this amendment collect taxes on incomes from whatever that Congress shall have power to lay and source derived without apportionment collect taxes upon incomes without among the several States and without apportionment, it would necessarily, in constitutional parlance, include all regard to any census or enumeration. incomes of whatever nature or from The words upon which the governor whatever source derived. lays stress are "from whatever source I reason from this basis: We find in the derived," believing them to include Constitution at the present time this power incomes from the sources I have that Congress shall have power to lay and suggested. collect taxes, and the court has held that it includes taxes upon all kinds of property Volume 2, Issue1 January, 2001 and from whatever source it may be derived. Therefore the adding of the words "from whatever source derived" does not amplify the power conferred or make it mean any other than it would mean if the words had been entirely omitted from the amendment. Third, the amendment did not deal, does not purport to deal, and was not intended to deal with the question of power. It intended to deal, and does deal, alone with the manner of exercising that power which is already complete, that which is already without limit. The sole obstacle to be removed by those who sought to change the Constitution was that of apportionment. No one has ever contended that it was not within the power of Congress to lay a tax upon incomes. That power has belonged to Congress from its organization, under the original taxing power of Congress. Whether apportioned or unapportioned was a matter of discussion, and concerning which courts and lawyers differed; but the power to impose an income tax upon all property, "from whatever source derived," was never doubted, so far as I know, by either court or lawyers in this country. As a basis, therefore, of my argument today, I desire to show that the power of Congress to tax is at the present time unlimited, and has been so construed; that, so far as express provisions of the Constitution are concerned, there is no reason why we could not impose a tax upon state bonds and municipal bonds or upon the salaries of state officers at the present time. If the governor were asked why we do not impose a tax upon state bonds at the present time, to what provision of the Constitution would he direct our attention? If the governor were asked what limitation is there upon the taxing power of Congress, to what provision of the Constitution or language therein would he direct our attention? If the governor were asked upon what principle the Supreme Court has held that you can not tax the instrumentalities of the State, to what principle would he direct our attention? If he were asked what change is being made by this amendment in that principle upon which the court has held that you can not tax the income from state bonds, what change could he possibly suggest? In other words, Mr. President, the principles upon which the Supreme Court has held that notwithstanding the completeness of the taxing power now in Congress you can not tax the instrumentalities of a State are principles which are imbedded in, interwoven with, and a part of the texture of the whole instrument, are in no sense changed by this amendment, nor could they be by any words which are contained in it. The Supreme Court of the (7 Wall., 433) , said: The taxing power is given in the most comprehensive terms. The only limitations imposed are that direct taxes, including the capitation tax, shall be apportioned; that duties, imposts and excises shall be uniform, and no duty shall be imposed upon articles exported from any State. With these exceptions -- That is, uniformity and apportionment and exports from States -- the exercise of the power is in all respects unfettered. Volume 2, Issue1 January, 2001 It will be conceded that the question of exports is not involved in this controversy, and can not be. The, if we apportion an income tax at this time, under what prohibition or limitation of the Constitution are we inhibited from laying it upon state bonds? I ask that question so as to disclose more fully as I proceed that the reasoning is based upon principles which are not affected by this amendment, and which can not possibly be so, because of the language employed. Again, the Supreme Court said, in (8 Wall): In Mr. Pomeroy's work on the Constitution, volume 1, page 188, he says: That is the announcement by a constitutional writer of the principle which has been embedded in the decisions of the Supreme Court of the United States from the time the great Chief Justice Marshall first took hold of the taxing clause and construed it. Yea more, it has been a part and parcel of the accepted jurisprudence of this country since Alexander Hamilton interpreted the Constitution in the articles known as the "Federalist." I ask, if today under the present taxing clause of the Constitution we can tax all property of whatever species, from whatever source derived, what inhibition is there against our taxing every state bond of the State of New York, and the municipal bonds of New York, at the present time, so far as the provision of the Constitution is concerned? Certainly no one will contend that the present taxing clause is not full enough to cover all property, of whatever kind and from whatever source derived. It has always been so construed. If it were to be construed alone, it would undoubtedly be sufficient to enable us to tax state bonds. But it can not be construed standing alone; neither could this amendment. The rules of construction which control this present unlimited taxing clause would control in the same way and for precisely the same reasons the proposed amendment. In the late case of U.S. 515) the Supreme Court said: (173 Volume 2, Issue1 January, 2001 Again, in Chief Justice Marshall said: I say, therefore, that already Congress is given absolute power; and if the reasoning of the distinguished governor (4 Pet., 514) were correct, the language being full and complete, conveying all power, we could tax state bonds and municipal securities and state salaries at the present time. Mr. Hamilton, in his Report on Manufactures, said: But there is another controlling reason why we can not do so, which reason is omitted in the message and which is not affected by this amendment in any manner. The first time the question arose as to power of one sovereignty to tax the means or instrumentalities of another sovereignty was in the case of . In that case, as all lawyers well remember, there was an attempt on the part of the State of Maryland to tax the stock of the United States Bank. The United States Bank having been organized as an instrumentality of the national Government to carry out certain functions of granted power, it was held that it was not a taxable article. In that case Chief Justice Marshall considered this question and gave us the basis upon which has been built the entire structure of law which prevents one nationality from taxing the instrumentalities and means of another. In the first place, it was admitted by the Chief Justice that there was no provision of the Constitution which controlled the subject matter. It was stated by the Chief Justice that there was neither any limitation nor grant of power which prevented the States from taxing the instrumentalities of the National Government, and he stated in his decision that, therefore, the taxing power of the National Government being complete, the inhibition had to be found somewhere other than that of the taxing clause itself. Volume 2, Issue1 January, 2001 He said, In Wheat.): (4 was written. Those designs and purposes were to create a national government in its own sphere, independent and separate and distinct from the state governments, and to create the state sovereignties, which in their reserved powers are separate, distinct, and independent of the National Government. There is one thing that we overlook in arguing this question, and it seems to me to be the vice of the distinguished governor's argument. It is that the state governments, in their separate and independent sovereignties, in their Upon what principle, stated a little reserved powers, are just as much beyond more fully, but never more the jurisdiction and control of the National comprehensively, did the Chief Justice Government as the National Government argue that you could not tax the in its sovereignty is beyond the control and instrumentalities of Government? Upon the jurisdiction of the state governments. theory that the Constitution as a whole created two separate and distinct In a later case, in sovereignties independent of each other in (18 Wall., 31), the Supreme Court their specific and reserved powers, and said: that however full the grant of power of taxation might be in the Constitution, there must always be subtracted from that power the right of the different sovereignties to perform their functions as such. In other words, said the Chief Justice, to construe it otherwise would be to rend the whole fabric into shreds. It was not, therefore, because of the fact that the taxing clause of the Constitution had any limitations either express or implied in its language, it was not because the language failed to convey all the power of the National Government to tax. But because of the universal rule that every component part of the Constitution must be construed in the light of every other part of it; and that it all must be construed as a whole in the light of the designs and purposes and objects to be accomplished when the instrument Again, the court in (17 Wall., 327) said: Volume 2, Issue1 January, 2001 I call attention also to the following citations and authorities, all bearing out the same line of reasoning: (Hare proceedings not otherwise provided for in this section." It was held that a tax could not be required upon a saloon keeper's bond required by the statutes of the State, notwithstanding the law. The court said: , from Mr. Story: on the Constitution, vol. 1, p. 265). This clause with reference to taxation is without any express restriction except that already referred to and explained uniformity and apportionment and exports in the State. Despite this, it has been decided that the United States can not tax the salary of a state officer or a state municipal corporation or process of state courts or a railroad owned by a State. This decision rests upon the strong ground that the power of Congress--even under this full grant as contained in the language of the Constitution--to pass a tax law is restricted to a law which is necessary and proper to carry its taxing power into effect, and as taxation of a state franchise by the Federal Government is an infringement upon the reserve power and autonomy of the State, and as the power to tax with limitation is the power to destroy, execution by the I desire to call attention to the United States of a power which involves . the total destruction of state functions was language in the case of not only not proper, but radically This is the case where the question first improper. (Tucker.) arose as to the power of the national Government to tax the instrumentalities of The revenue act of 1898 ( the State. The case of McCulloch was a , 100 Fed. Rep. 70) provided that a case where the State was undertaking to stamp act of 50 cents should be imposed tax the state instrumentalities; and the upon "all bonds of any description except argument upon which the court rests its such as may be required in legal conclusion controls this proposition clearly Volume 2, Issue1 January, 2001 and distinctly in the face of any language passed a statute specifically covering the contained in this amendment. The court salaries of all officers. Congress had (11 Wall): passed the act under a power in the said in Constitution which had been held, and was held, and was held in that case, to be without limitation. We have, therefore, the lawmaking body of the government exercising the power conferred upon it by the Constitution to tax property of all kinds and from whatever sources, specifically taxing, in so many words, the property which was exempted by the decision of the court, and not exempted because the language of the Constitution failed to cover the property, not exempted because the court found somewhere in the language a lack of power to put a tax upon this particular kind of property, but exempted for the reason, as said by the court in practically so many words, that there must be subtracted from this unlimited power the right of the state government to exist and perform its functions. We are discussing now the question of taxing the state means. It is admitted that there is no express provision in the Constitution that prohibits the General Government from taxing the means and instrumentalities of a State, nor is there any prohibiting the State from taxing the means and instrumentalities of the Government. In both cases the exemption rests upon necessary implication and is upheld by the great law of self-preservation, as any government whose means employed in conducting its operations, if subject to the control of another and distinct government, can exist only at the mercy of that government. That being true, when we should have this amendment adopted what would we have? We would have the unlimited power of the National Government to tax still unimpaired. We will assume that it does convey all the power to the Government that could be conveyed for the purpose of taxing, nevertheless we would fall back upon the principle enunciated in the McCulloch case and in , upon the principle that it is not within the jurisdiction of the National Government to exercise control over the state functions or the functions of a separate and individual sovereignty; that unlimited power to tax covering property or incomes from What were the conditions under which whatever source derived will never be this decision was rendered, and what were construed, so long as we have an the facts? In the first place, Congress had indestructible union of indestructible Volume 2, Issue1 January, 2001 States, so as to embarrass or destroy each The Internal Revenue Act of 1864 also other. The fullest taxing power must be construed in the light of the objects, provided that no instrument or document designs, purposes, and schemes of the should be admitted into any court until the requisite stamps should be affixed. The Constitution of the whole. term "any court" covered all courts, and it But it seems to me that this question was quite clear that the lawmakers has been even more definitely determined intended it to apply to all courts. and decided. The income tax law of 1864 Notwithstanding the language of the specifically provided for the laying of a tax statute, notwithstanding its broad and upon salaries, also to tax incomes derived comprehensive language, it was construed from any kind of property. The language in the light of relationship between the was quite as broad and comprehensive as State and the National Government and it the language of the proposed amendment was held this could not apply to state , 97 Mass, in which we are at present interested. The courts. ( Supreme Court held unanimously that this 457; , 101 Mass. 243; income tax of 1864 was constitutional, 43 N.Y. 40; , and it said over and over again that there 43Tenn, 325). was positively no limitation upon the power of the National Government to tax; But, Mr, President, it seems to me that that all property was subject to taxation. the question has been brought nearer to So under this constitutional power to tax the present hour and more definitely everything Congress passes an act presented in the famous Pollock case specifically taxing salaries and properties itself. We remember that in the Pollock from whatever source derived. case the income tax law of 1894 was involved. The statute of 1984 had Now, if the constitutional provision was incorporated in it almost the identical unfettered, and Congress, under this language which is found in this unfettered power, specifically laid a tax amendment, covering property of whatever upon salaries and incomes from whatever kind and incomes from property of source derived, were they not in as strong whatever kind. a position to assert the right to tax state officers' salaries as they would be were That law was passed upon in the light this amendment passed? Yet, of the general taxing power of Congress. It notwithstanding this express provision of was brought to the attention of the court Congress under this full taxing power of that included in some of the incomes was the Constitution, it was held that you could income from state bonds. There were two not tax the state instrumentalities. In other things upon which the court in that case words, that while the language was were not divided. The first was that there unequivocal and unambiguous and the was no limitation upon the power of power was unquestioned, so far as the Congress, as contained in the clause of the taxing provision alone was concerned, Constitution, as to what kind of property such provision and such an act of should be taxed and what should not. Congress must be construed in the light of the fact that we are a dual Government. Volume 2, Issue1 January, 2001 On the first proposition it was held that the power was unlimited. The second proposition was that, notwithstanding that fact, Congress could not pass an act which would cover the incomes derived from state bonds or salaries of state officers. I desire to read a quotation from both the affirmative and the dissenting opinion. Mr. Fuller, Chief Justice, said in the Pollock case: The basis of the court's opinion rested upon the proposition that there was an admittedly unlimited power, and under this unlimited power Congress had passed an act covering this specific kind of property. It would be interesting to go back and read the act of 1894 to observe with what fullness the statute covers the same kind of property which we are seeking here to tax; and yet, notwithstanding the fact that the court The power of Congress to tax is a started in on its reasoning upon the basis very extensive power. It is given in the that there was no limit in Congress to tax, Constitution with only one exception and and that Congress had under its full power only two qualifications. Congress can not exercised its privilege to tax, it fell back to , and argued tax exports, and it must impose direct the case of taxes by the rule of apportionment and that you could not construe a component indirect taxes by the rule of uniformity. part of the Constitution with disregard of Thus limited, and thus only, it reaches the instrument as a whole. Without every subject and may be exercised at repeating here what I have said, the court discretion. adopted and accepted to its full extent the reasoning in the case of , Mr. Justice White said: and again announced that the doctrine must prevail that one sovereignty could not interfere with the instrumentalities of another. In other words, Mr. President, when this amendment says "from whatever source derived," that must be a source within the jurisdiction and taxing power of the nationality which lays the tax. I undertake to say, without fear of successful contradiction from the authorities, that the National Government has no more jurisdiction as a governmental fact over the functions of a state government than it has over the property across the line in Canada as a territorial fact. They are not within its power or control. Until we revise the Constitution as a whole, take the instrument up and revise it and definitely announce that these separate and Volume 2, Issue1 January, 2001 independent sovereignties are no longer to be so, no court will ever hold that you can interpret the taxing clause of the Constitution so as to destroy these sovereignties. As Judge Nelson said in one case: Take this ruling of the Chief Justice, which has been repeated in substance and in principle so often since, put it down by the side of the proposed amendment to the Constitution, and construe that amendment in the light of that principle, that only those things over which each sovereignty has jurisdiction and control are subject to taxation, what possible fear can there arise in the mind of any man that the Supreme Court will say that out of the words "from whatever source derived" comes the power to do as Marshall said, "rend the whole fabric into shreds?" Justice Brewer in a noted case said: These words must always be construed in the light of these principles; that is, as expressing authority which belongs to the jurisdiction which undertakes to lay the tax. In conclusion, on this phase of the subject, I submit: Chief Justice Marshall, in laying down the rule of taxation in the case to which I have already called attention, saying in another part of the decision: First. That the proposed amendment adds nothing to the taxing power of the National Government. This power was complete, unfettered, plenary before. It can be no more than that should this proposed amendment be adopted. Second. The proposed amendment does not deal or purport to deal with the question of power which is already complete, but simply with the manner and method of exercising and using that power. Volume 2, Issue1 January, 2001 Third. No one has ever questioned the power of the National Government to lay an income tax, for, as was said by Justice White, the question has always been "whether an admittedly unlimited power to tax has been established according to the instruction as to the method," and it was to remedy the method alone that the amendment was submitted. Fourth. The words "from whatever source" add nothing to the force of the amendment. It would, in constitutional parlance, be just the same if it said "to lay and collect taxes on incomes without apportionment," for who could then say that you would not have the right to pay taxes upon all incomes? The present taxing power would not be a particle stronger if it stated "to lay and collect taxes upon all property from whatever source." Fifth. To construe the proposed amendment so as to enable us to tax the instrumentalities of the State would do violence to the rules laid down by the Supreme Court for a hundred years, wrench the whole Constitution from its harmonious proportions and destroy the object and purpose for which the whole instrument was framed. established by the men who helped to write it has received the approval of an undivided court time and time again. During that period there sat upon the bench of the Supreme Court some of the greatest lawyers of that or any other period of this or any other country. During that period wealth had not become so domineering and so powerful and so determined to have its own way. During that period this Government had the power to impose the burdens and expenses of government upon consumption and upon all forms of wealth, and we did so. In 1984-95 these precedents were overturned. This Constitution received a construction unknown to its makers. In the fact of two powerful dissenting opinions, assented to by two other judges, the starling and astounding doctrine was announced that the framers of the Republic had made it impossible to levy a tax upon some forms of wealth even in time of war; that the builders of this government had made it impossible to dispose and divide the burden of government between consumption and the different forms of wealth. At the last session we were called upon to express our assent to that interpretation of the Constitution, by express act to declare our acceptance of it. Under majority rule there was submitted this amendment to cover and eliminate that supposed hideous defect in the fundamental law. Sixth. To construe it to cover those incomes from sources within the jurisdiction and control of the sovereignty laying the tax is to construe it in harmony Now, Mr. President, the scheme and with the principles given us by Marhsall and followed from that hour to this. plan is to defeat that amendment. Having, as a legislative body, solemnly declared Mr. President, the history of the our acceptance of this construction of the income tax since 1894 has not been one Constitution, thereby making it practically which any citizen can recite with pride. impossible to again appeal to the courts, if For nearly one hundred years the this amendment can bow be defeated this construction of the Constitution as Government of the people, for the people, Volume 2, Issue1 January, 2001 and by the people will stand alone among all the civilized nations of the earth shorn of the power to divide the burden of government between consumption and the different forms of wealth. This is the scheme and the plan; and, unfortunately, the great governor of New York has given much aid and comfort to the cause by reason of his high standards among the people of the country. increasing everywhere, and learn that, after all, this entire burden must be borne by what they eat and what they wear, and that certain forms of wealth which breed luxury, idleness, and idiocy go untaxed, they will not listen to you when you are called upon to plead with them against radical changes in our form of government which will be submitted to this country within the next fifty years. Mr. President, no one ever saw this country in just the condition it is today. Never since this Government was launched has there been such a universally restless spirit among the masses of the people, such persistent inquiries, such ugly questioning. No part of the Government seems above challenge or criticism, and it is fast becoming popular in some parts of this country to scoff at the Constitution itself. A restless, unquiet, dissatisfied, and --worst of all--a suspicious public mind is the public mind of today. I hope, therefore, Mr. President, that the governors of the States and legislatures of this country will do their duty and see that this amendment is adopted; that they will meet this matter, whether there is a division among them or not as to when it should be exercised, upon the basis that it is a power that ought not to be taken away from the Government. The people should bestir themselves upon this vital matter before it is too late. It would be nothing less than a You can defeat this amendment; and I catastrophe for this amendment to be fear, from the men who are gathering to defeated, if we are, out of a false idea of the crusade, that it will be defeated. Some courtesy, to be deprived of appealing to of those who are proposing to encompass the court. I is the people's fight, and no its defeat will not stop on the hither side of one should be misled by the utterly proposition that this this disreputable means to accomplish unfounded their purpose. They are vitally involved. amendment contains the power to But when you shall have accomplished embarrass and destroy the States and your purpose and the people shall have "rend the whole fabric into shreds." ascertained how their rights have been manipulated away, it will go far toward Mr. BROWN. Mr. President, I inquire if exciting to renewed force and strength that the question is on the adoption of the feeling of wrath and class hatred which is resolution? If so, I ask the Senator from already too strong in this country. Idaho [Borah] to permit his resolution to lie on the table. I desire to address the When those who are ill able to bear the Senate on the subject, but not this burden of government see the expenses of afternoon. the Government constantly increasing, when they see the creation of larger navies The VICE-PRESIDENT. I hope that the and larger armies, the burden of expenses Senator from Nebraska [Mr. Brown], who Volume 2, Issue1 January, 2001 had the honor to offer this amendment, will assent to the doctrine announced by the Senator from Idaho [Mr. Borah]. Speaking for myself, I voted for that resolution, believing what the Senator so well expressed, and if the Senator from Nebraska, as the author of the amendment, will give his approval to that doctrine I think it will materially strengthen our case. I hope the Senator from Nebraska will not hesitate to express his adherence to that doctrine. Mr. BROWN. Mr. President, I was not hesitating to express my opinion upon the subject; I was waiting for the Senator to get through. I have a very well-defined notion in my own mind with respect to the amendment and with respect to the argument to which we have just listened, as well as with respect to the argument from the State of New York. My own judgment is that the words against which complaint is lodged, "from whatever source derived," neither add to nor take away from the power of the Government to reach the incomes of the country, provided the proposed amendment is adopted. But I further maintain, Mr. President, and I shall do so at some length with the indulgence of the Senate, that, without regard to whether or not the proposed amendment will reach the incomes of state officers or the incomes arising from state securities, nevertheless the amendment should be adopted. income shall be reached may become one of the reasons why the amendment should be adopted. I want to say further, before leaving the subject, that I do not agree with my friend from Idaho that this amendment will be defeated. I agree with him that there is an assault and fight being made against its ratification and adoption, but I am not here, as a friend of the cause, predicting that it will be defeated. I have too much confidence in the patriotism of the American people to believe that they will refuse to confer upon their Government a power that is exercised by every civilized nation on the face of the earth. I do not care whether you agree to the economic policy of taxing incomes in times of peace or not, the American people want their Government to have the power to protect itself in times of trouble, and the exercise of that power may become necessary for the Government's preservation. I ask the Senator to let the amendment lie on the table. Mr. BAILEY. The Senator has no doubt in his mind that the state governments are as much the Government of the American people as the General Government? Mr. BROWN. Yes, indeed, they are, Mr. President. Mr. BAILEY. Mr. President, I only want to add that the sincere friends of the I am not so clear, Mr. President, but income tax are not likely to favor a that the very fact that the proposed construction of this amendment which will amendment makes no exception of any put an argument in the mouths of its income does not commend it to public opponents to accomplish its defeat. Of approval. So that, conceding for the course I do not mean to intimate - for I moment that this amendment would believed that I would not intimate it; I confer a power to reach state securities, would say it - I do not mean to intimate nevertheless, the fact that every man's that the Senator from Nebraska is trying to Volume 2, Issue1 January, 2001 aid the opponents of the income tax amendment. I think when he takes time to address the Senate at length he will express practically the same views which have been expressed by the Senator from Idaho. I have no doubt myself-- The VICE-PRESIDENT. Without objection, the resolution will lie on the table. *** Of course, Mr. Brown's comments above are pure poppycock: Patriotism and Mr. BROWN. Mr. President -Americans protecting itself. That was not the purpose of the 16th Amendment. Once The VICE-PRESIDENT. Does the the central bank was to come into being, Senator from Texas yield to the Senator there had to be a pipeline to feed it and from Nebraska? the 16th Amendment was that vessel. Mr. Brown was shameless in his blarney. Mr. BAILEY. Certainly. Remember where America went shortly after this time period: To a war Americans Mr. BROWN. I hope the Senator did not didn't want - WWI. It was all orchestrated understand me to express any dissent by the international banking cartel and from the argument made by my friend the paper trail is a million pages long. from Idaho -Additionally, the state legislatures of the Mr. BAILEY. Oh, no; I was saying that I Union also flushed these grandiose ideas. feel sure -As anyone who has read Bill Benson's Mr. BROWN. But assuming that the research work, , point made by the governor of New York is the 16th Amendment to the U.S. practical; still the amendment should be Constitution, the so-called "income tax ratified. amendment" was never ratified by the states of the Union and there are 17,000 Mr. BAILEY. I assume --and this was certified, notarized documents to prove it. distinctly stated --that the Senator from Eleven states didn't even vote on it and Nebraska will agree with the Senator from New York certainly never ratified it. Idaho. My own opinion is that there can Oklahoma actually changed the language not be any rational ground for dissent, and of the amendment as submitted by I would regret very much to see any one of Washington to mean the exact opposite. those who believed it unnecessary to amend the Constitution, but who, There was a big uproar about the census overwhelmed by a majority on that point, this past year. People like me refused to finally assented to the submission of this answer all the questions except one: How amendment, giving aid and comfort to many people live in your house? That was those who are now arguing against its the only constitutional question on any adoption by putting a construction upon it one of the three different census formed that no court, in my judgment will ever mailed out. This is what the constitution sanction. says: Count people in the house hold in order to determine the number of representatives for Congress. All the other questions were nothing more than finding Volume 2, Issue1 January, 2001 out how much more welfare programs could be continued and expanded by the federal government. as long as the cattle out there say or do nothing to challenge these unconstitutional intrusions, the power mad in Washington, DC and the state The Republicans have held the majority in legislatures will continue to turn this Congress since January of 1995. They nation into a socialist nightmare with a knew what this census form would say and totalitarian crack-down not far off. they could have stopped it dead in its tracks. But they didn't because they're I keep referring people back to the just as guilty as the Democrats of wonderful speech by Davy Crockett: spending what they have no authorization http://www.devvy.com/crockett.html to do. *** That's about it for this quarter. I'm sorry this was so late in getting out. I decided rather than send it the 1st of January, I'd wait so we could give you a detailed recap of what happened in OKC on January 18th & 19th. As always, I need to ask you to please honor your commitment for a monthly sponsorship. If everyone gives a little, it will give us the financial support we must have to fight for your rights. We ask that folks be sure to donate at least $5.00 a quarter or we can't continue to send you a copy of these educational newsletters with updates about our cases. SUPPORT US And, the icing on the cake: A full-length movie script has been written about Bill Conklin's 5th Amendment battles and Joe Banister. There are three minor characters Allegedly it is against the law not to in this movie: yours truly, Larry Becraft answer the questions on the census forms. and Bill Benson. is a How come people like me haven't been great movie script. The web site is being charged for refusing to answer all but the constructed right now first question? Because the sleezy people (www.withoutdueprocess.com) and in Congress know that this census eventually there will be a trailer. For those interrogation would have been shot down of you unfamiliar with a movie trailer, in a court of law as unconstitutional. The check out the best I've ever seen: 2000 Census is nothing more than a joke www.thepatriot.com and any claim to accuracy is a joke. But, Volume 2, Issue1 January, 2001 Charles Welty, the author of the screenplay and who is spearheading this very serious effort, has done amazing things over the past few months. The money is starting to roll in from investors (you can be one, too--just call Charles at 714-479-0976). This is very serious money, a very serious project and one heck of an exciting thing about to happen. For those skeptics who think this movie won't make it, let me remind you: was made for something like six mil and grossed more than $200 million in six weeks. has the potential to do the same. I have been involved with this for months now and it is truly one of the more wonderful things to materialize in a long time. Movies have the ability to reach millions of people. Well acted, they can sell the message. Because the screenplay is based on true stories (Bill Conklin and not only Joe Banister), it will have that much more was in theaters across the country, it was selling power. This movie will go to video one of four documentaries nominated for and syndication worldwide. an Oscar in 1999. I forced myself to watch that yearly drivel just to see the The institute needs more funding to buy is not a those television ads I mentioned earlier presentation. documentary, it is a true story with lots of (which I pray will provide us with good action packed in for entertainment value, cash flow so I don't constantly have to ask but the real message about the IRS, etc., for donations) and to file that treaty case will be dropped right into the lap of the for the fishing families. Please be American people. is carried in every generous in your contributions and we Blockbuster Video nationwide. The Blair thank you for your support. Witch Project movie was also an indie. It
© Copyright 2026 Paperzz