Federal Reserve Notes Not Taxable Income

Title 26 of the US Code is the Internal Revenue Code. Sections 1271-1275 deal with assessing a tax on debt instruments. Section 1275 defines debt instrument: 26USC §1275(a)(1)(A) Except as provided in subparagraph (B), the term "debt instrument" means a bond, debenture, note, or certificate of other evidence of indebtedness. The Federal Reserve Notes we all trade as money are, by this definition "debt instruments." Now that we know the status of our money, let's look at section 1274: 26USC §1274(3)(D) (3) Exceptions This section shall not apply to (D) Debt instruments which are publicly traded or issued for publicly traded property. Our money is based on debt instruments that are publicly traded and issued for publicly traded property, so it appears to be excluded from taxation according to these rules http://www.mainemediaresources.com/cr_april04.htm#jurisdiction ----------------------------------------------------------------------------------

Failure to File - Not a Crime
"We'd better not let the word get out...We'll keep it among ourselves." - Chief Justice William Rhenquist In the oral arguments at the US Supreme Court for United States vs. Craft (No. 00-1831) the following dialogue between Chief Justice Rhenquist and US Attorney Kent Jones took place regarding the criminality of failure to file income tax: RHENQUIST: What about criminal procedures? Are there any criminal procedures for -MR. JONES: I -RHENQUIST: -- failure, continued failure to file-MR JONES: Of course, if you file a return, then you're not exposing yourself to any criminal obligations, and if you don't file a return, it would be -- I'm not familiar with a statute that makes that a crime by itself... I'm not an expert on criminal tax matters, but it's my impression that that would not by itself be a crime. 1

well. I stand -RHENQUIST: We'll keep it among ourselves. Using bank notes (money) is licensed money laundering.htm#jurisdiction ---------------------------------------------------------------------------------DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED FOR NON-NEGOTIABLE NON-REDEEMABLE FEDERAL RESERVE NOTES OF FACE VALUE Taxes – Not Lawful: The Government Cannot and Does Not Tax Credit. drugs. which is not taxable. The Government maintains jurisdiction over the use and transfer of these notes. you are correcting the inherent error on the front of any check and converting it into a “bill of exchange”. Debt. but I'll check. they are NOT “money” per se. but that does not necessarily make them subject to taxes – remember. The complete text of this oral argument can be found at: www. In such an exchange there are no ‘buys” or “sales” or financial gains. When you receive a check.gov/oral_arguments/argument_transcripts/00-1831.pdf http://www. or Barter: Federal Reserve notes are licensed for use as money. guns. it says “dollars” on the front. I thought it was a crime. due to licensing or chartering of banks. If you endorse it openly or directly.supremecourtus. just like trafficking in alcohol. JONES: All right.mainemediaresources. they are licensed “as” money. even though there are none in existence. plain and simple. In other words.com/cr_april04. you are testifying that you have agreed that you received “dollars of valuable substance”. tobacco. (Laughter) MR. just a private trade. or exchange transaction of two different kinds of "things" for equal value. When you stamp or write: DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED FOR NON-NEGOTIABLE NON-REDEEMABLE FEDERAL RESERVE NOTES OF FACE VALUE. 2 . but effectively this really only means they are a medium of exchange for discharge of public and private debt. you are conducting a barter.RHENQUIST: We'd better not let the word get out. There are many types of commercial paper that properly prepared can discharge debt other than bank notes but few know how to use them.

the term "security" may be taken to (A) a share of stock in a corporation. merely with credit or notes of worthless. you would do well to understand the honing and care of a good blade. This is all based upon what is lawful money of value for private use by the public. nonredeemable securities (promissory notes). There are no lawful dollars in existence. or (B) a right to subscribe for. yet intervened when Peter used his! You must exhaust administrative remedy first! Making Checks a Non-Taxable Event: Everyone that receives checks of any kind. should have a stamp that prints: “DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED FOR NON-NEGOTIABLE NON-REDEEMABLE FEDERAL RESERVE NOTES OF FACE VALUE”. instead of a sword. 4 You have not been paid anything of substance. non-negotiable. 2 You receive a negotiable instrument in exchange for your work or produce (a check). If you wish to use such a sharp pen. note. or to receive. Start with a study of the life of the Master who told his disciples to sell their cloaks to buy a sword. Checks endorsed with this additional statement prior to deposit are not taxable income BECAUSE THE INHERENT ERROR ON THEIR FACE HAS BEEN CORRECTED. or certificate. or cash it at a bank in exchange for Federal Reserve notes. only credit and debt ledger entries. or other evidence of indebtedness. with interest coupons or in registered form. or (C) a bond. Ignorance is curable: Here are some observations that few realize: 1 You work for a company or you produce something of value. mean: For purposes of this article. debenture. issued by a corporation or by a government or political subdivision thereof. a share of stock in a corporation. and no one actually gets paid for anything with anything of valuable substance.So here we have cut a Gordian knot with a pen. 3 You have to deposit it for “credit”. 3 .

The Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. and obligations of the Government. Treasury notes. because they are legal tender. Federal Reserve notes are not redeemable in gold. The notes have no value in and of themselves. includes all bonds. of whatever denomination. Since there is no more real "money" to be 4 . What you receive in exchange for your company draft (paycheck) is absolutely nothing. but only for what they will buy or be exchanged for. Federal Reserve notes are legal tender currency notes. silver certificates.Now you have been given "evidences of debt" for your work. fractional notes. or drafts for money. The alleged dollars are valueless so you exchanged your labour for valueless paper that has a registered lien on it already. checks. It must pay for them in full. certificates of indebtedness. The Federal Reserve obtains the notes from the United States Mint. Federal Reserve notes are "backed" by all the goods and services in the economy inasmuch as this is the collateral against which they are issued as “credit instruments”. silver or any other commodity. national bank currency. A chartered bank can obtain Federal Reserve notes from the Federal Reserve whenever it wishes. which then become liabilities of the Federal Reserve. and receive no real backing by anything. by drawing down its account with the Federal Reserve. Federal Reserve bank notes. coupons. The Federal Reserve issues them into circulation pursuant to the Federal Reserve Act. United States Bonds. issued under any Act including the Federal Reserve Act. to be issued at the discretion of the Federal Reserve Board for the purpose of making advances to chartered banks are defined as obligations of the United States Government. It pays the Mint for the cost of producing the notes. and on the collateral specifically held against them. drawn by or upon authorized officers of the government. You have never made "income" but received evidences of debt. Federal Reserve notes. The government admits to the fact that Federal Reserve notes are evidence of debt. dollar for dollar. The terms "obligation or other security” of the government. This provides backing for the note issue. Federal Reserve notes. certificates of deposit. stamps and other representatives of value. bills. The idea is that Federal Reserve notes represent a first lien on all the assets of the Chartered Banks. gold certificates. In another sense.

at the pleasure of the holder. you cannot go into a bank or anywhere else and demand gold or silver coin or anything of real value for a Federal Reserve note. upon their presentation to the bank for redemption. or the Law of nations that says so. and when accepted as such. if presentation is made. and as such they instantly lose the character of money. But this consent and usage are based upon the plausible convertibility of such notes into coin or valuable substance. Perhaps the most important aspect is that you have never received any income in "money". and circulate as such. So long as they are in fact what they purport to be. under the same supposition. is contractual. but failure of the bank by which they are issued to redeem its bills openly. or in reality. To stand by. binds you. Their circulation as currency ceases with the usage and consent upon which it rested. Silent acquiescence in the breach of a treaty binds a nation. or payment had been made in base or adulterated coin. It is only upon this fictional idea that they can honestly be tendered as money. they are worthless in conformity. or in the Municipal Law of men. have you received any income that is reportable for filing a tax form? Have you objected openly that you do not accept Bank of Canada notes as "payment" for your labour? Or have you consented openly? But is express consent necessary? There is nothing in the law which says so. payable on demand. only by the general consent and usage of the community. Silence is and gives consent. There is nothing in the practice of men. or in the practice of nations. and see another sell your property. and the notes become the mere dishonoured and depreciated evidences of debt. Ergo. and is the rule of business and law. 5 . Bank notes are the representative of money. thus binding you to the related obligations of tax. A tender of bills is as good as one of coin. So the issue is. unless the bills are objected to. avows any alleged value. or prejudice the other. the bank MUST fail by reason of definition! The Federal Reserve Act admits the notes are worthless and not redeemable at par or at any other value for that matter.redeemed then. Express consent then. This is the vital principle which sustains their character as money. but notes that are evidences of debt issued with a lien already on them. Simple endorsement of a check without correcting the inherent error. Not only WILL the bank fail. except in the wishful imaginations of the deceived. is not necessary. the mutual mistake of facts should no more be permitted to benefit one party. than if the notes had been spurious. thereby taking them out of the realm of money. as they are a debt obligation. albeit tacit consent to the error. in silence. common consent gives them the ordinary attributes of money.

com/RenderCaesar.html [Liberally edited] 6 .an I.O.naturalgod.U. issued by a private banking system and that are indeed trademarked as such. http://www.

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