Preparation Is Already Underway for the Next Financial Crisis
In the six months between March and September 2016, a major event is going to take place in global currency markets.
When it occurs, the International Monetary Fund (IMF) is going to create a new version of their special drawing right (SDR), which will function as the world’s reserve currency. Read on...
An invasive species has infiltrated your hometown. The only way to fight it is to become a "pollinator." Learn how...
Did the Beverly Hillbillies predict the monetary crisis? What does Ireland's potato famine have to do with the collapse of the dollar? How did Joseph really save the Egyptians before the "Seven Lean Years"? Read on...
Yes, we have a lot of fun in our episodes of LFT. But sometimes we have to get back to our basics. And embrace a little… let’s call it ‘wariness’… in order to protect what’s ours. And, of course, help you do the same. Read on…
Are you a deflationist? Or an inflationist? No matter which way you believe the wind will blow, the truth is this: it’s up in the air. But, as Jim Rickards explains, there are things you can do to cover your assets, no matter which one wins the tug-of-war. Read on…
A Note From The Club Director
Your club director went to the ends of the Earth to bring you this month’s inane rambling. While we didn’t quite peer over the edge, we got pretty damn close.Where the Heck is Gorham, Maine?
Late one recent Thursday afternoon, we found ourself sharing a bottle of wine with a dry-humored French fellow who just so happens to run Laissez Faire’s Book Club. Read on...
There are two things you shouldn’t do this Election Day: one, vote; two, buy gold. Why? Chris Campbell explores this and more in today’s Laissez Faire Today. Read on…
America has about 4% of the world’s population, yet houses 25% of the world’s incarcerated. What’s going on here? Chris Campbell digs deep into the industry to figure out the truth. While many blame the private prison industry, the real culprit, says Chris, begins right outside your door. Read on…
“While I heartily subscribe to your premise of pursuing one’s dream,” one reader, Donald J., wrote, “there are alternate perspectives worth considering.”[We’re listening… go on.]“Some wiseguy once said that life is what happens to you while you’re waiting for something better to come along. Milton put it a little more poetically in one of his […]
Want to get rich? Don’t listen to financial “gurus,” says Chris Campbell. In today’s Laissez Faire Today, Chris shares a Zen proverb and shows how understanding it is the only real way to get rich (and live a rich life). Read on…
Receive Faster, Superior Care at Hospitals and Emergency Rooms With These Online Services
The experience of having to go to hospital or an emergency room (ER) is stressful enough.
Unfortunately, due to an overburdened health care system, hospitals and ERs in the U. Read on...
Ben Franklin once said, “An ounce of prevention is worth a pound of cure.” In today’s Laissez Faire Today, you’ll learn about one FREE website that has the potential to not only keep your family safe – but also open your eyes to what’s happening in your own neighborhood. Chris Campbell has all the details. Read on…
All over the world, power is dying. The dictators and tyrants of the world are no longer able to wield it like they once used to. And they’re losing it to the “little guy.” Chris Campbell shows you how to be the king of your castle by taking advantage of this fact. Today, you’ll learn how to grab “power gaps” in the market and channel them into your product idea or project. Read on…
The fireflies along the tidal rivers of Malaysia show "feats of synchrony that occur spontaneously, almost as if nature has an eerie yearning for order." Chris Campbell tells you where else this might occur in the world. Also, new technology may revolutionize the agriculture industry and what we think of as a farm.
Jeff Davis is running for Governor in Hawaii and has an interesting campaign strategy. Also, what motivates hackers is revealed and the findings might surprise you. Finally, Ferguson is discussed in a new light. Chris Campbell has more...
When the government pumps trillions of dollars into the economy, they’re not actually printing the money. It enters as digital entries in banks across the country. It’s made the system fast, responsive, and, unfortunately, vulnerable. Now our money is no longer something we hold in our hands, but something that exists on a very susceptible network.
The so-called recovery is only built on debt and printed cash declares our own Byron King. In the long term, the only option for the government to continue financing it's operations is to print too many dollars. Money printing has it's limits, however. It's Byron's opinion that at some point, perhaps very soon, the government will have to turn to more desperate measures. Namely, capital controls. In the following featured essay, Byron outlines 4 probably ways the government will take your cash and one play you can buy through your broker to prepare today. Read on...
Americans expatriate because they want to get out of the country. Corporations expatriate for similar reasons. Clem Chambers explains...
In a 2009 article, the Huffington Post went into considerable detail about the number of people with PhD degrees in economics employed by the Board of Governors of the Federal Reserve System. This is the government’s branch of the Federal Reserve. It is not one of the 12 regional Federal Reserve banks, all of which […]
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar.The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in […]
The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance or the get-rich-quick adventurer. They will die poor.– Jesse Livermore, How to Trade in StocksThe trouble with capitalism’s guardians is that they have no […]
John Foust, a Democrat running for the 10th congressional seat in Northern Virginia, is — like Gov. Terry McAuliffe and other state Democrats — gung-ho to expand Medicaid. His wife’s position is, shall we say, a bit more nuanced.Foust has slammed his opponent, Republican Del. Barbara Comstock, for her opposition to expansion. He has spoken […]
The midterm election season is upon us, and it’s a tossup whether the Republicans will win the Senate, or if President Obama, seemingly oblivious as conflict flares up around the world, will, through his continuous campaigning, keep Harry Reid in his majority leader seat.The only thing we know for sure is that sociopaths will be […]
Alexander Hamilton was America’s first Secretary of Treasury under President George Washington. When he first entered office in 1789, America was an agricultural nation of just 4 million still broke from its financially costly victory over the British Empire in the Revolutionary War.The states had accumulated relatively massive debts to finance that war, which mostly […]
A great technology solves a problem that we didn’t know we had. It makes us aware of deprivations we didn’t know existed until we discover the new thing. Once discovered, we can’t go back.People in the 1950s, for example, never missed the smart phone. They were pleased to have a phone at all. But today, […]
Fifty years after the 1929 crash, a group of money managers and investment thinkers put together a collection of essays looking back at that experience. The result was a distillation of some pretty fine investment wisdom. Timely, I think, to review now.One of the contributors was Arthur Zeikel, then with Merrill Lynch. The title of […]
Although the mainstream media have turned its attention away from the wreckage of Obamacare, don’t think for a second that all is well.As the politicos in D.C. focus their attention on the midterm elections in November, now is a great time to study, prepare, and seek out the most affordable, accessible, and highest quality options […]
Turn on the tube and economic ignorance seems to be everywhere. There is constant shilling for more government. Business is demonized. Man is said to be trashing the environment. “Workers and women are oppressed” is the constant mantra.And members of the clueless media nod their heads in unison.Only John Stossel has provided the fresh air […]
Have you ever heard the claim that paying income tax is voluntary? The term “voluntary” is variously used in government documents, including the 1040 form itself, and some very naive people have actually taken this to mean that they don’t have to pay if they don’t want to. They think that “voluntary” actually means voluntary, as in the free exercise of human volition.
It’s an odd position that seems not to comprehend the meaning of the word “tax.” What makes a tax different from a contribution or a trade is that the revenue is extracted by force. You can choose not to comply just as you can choose to resist arrest. But then you must face the consequences. A truly voluntary tax is like a friendly insult, a peaceful war or a healthy cancer. The two words just don’t go together.
By the way, this point doesn’t apply to just the income tax. It is true for all taxes. You sometimes hear that excise taxes are voluntary because no one is forcing you to buy the taxed good or service. This is false. The point is that if you buy gasoline, cigarettes or anything else that is taxed at the point of sale, you have no choice but to fund the government with part of your purchase price. That is not voluntary.
Yet many people, convinced that they should take the government at its word, persist in believing otherwise. The courts have been dealing with these people for decades. They file what the government calls “frivolous lawsuits.” In fact, the IRS has heard this claim enough to actually address it on a special webpage it has created to address these and other far-flung claims made by people who imagine that they have a right to keep what they earn.
The agency writes:
“The word ‘voluntary,’ as used in Flora and in IRS publications, refers to our system of allowing taxpayers initially to determine the correct amount of tax and complete the appropriate returns, rather than have the government determine tax for them from the outset. The requirement to file an income tax return is not voluntary and is clearly set forth in Internal Revenue Code 6011(a), 6012(a), et seq. and 6072(a). See also Treas. Reg. § 1.6011-1(a).
“Any taxpayer who has received more than a statutorily determined amount of gross income is obligated to file a return. Failure to file a tax return could subject the noncomplying individual to criminal penalties, including fines and imprisonment, as well as civil penalties. “[A]lthough Treasury regulations establish voluntary compliance as the general method of income tax collection, Congress gave the secretary of the Treasury the power to enforce the income tax laws through involuntary collection…The IRS’ efforts to obtain compliance with the tax laws are entirely proper.” United States v. Tedder, 787 F.2d 540, 542 (10th Cir. 1986).”
In other words, you are free to comply. If you choose not to comply, you could go to prison. As proof that this is law, the agency cites court cases from 1938-88. Guess what? The courts, as creations of the government, have sided with the government’s right to collect taxes from your income. But you say that this is not fair. This is not just. This is un-American. This contradicts the government’s own claim that its system is voluntary.
Well, if you are writing the dictionary, you get to define words however you want to define them. However the government uses language, the reality is that the money is being taken from you without your consent. The only real difference between the robber (such as what was once called a “highwayman”) and the government, as Lysander Spooner said, is that the robber doesn’t claim to be doing this for your own good:
“The highwayman takes solely upon himself the responsibility, danger and crime of his own act. He does not pretend that he has any rightful claim to your money, or that he intends to use it for your own benefit. He does not pretend to be anything but a robber. He has not acquired impudence enough to profess to be merely a ‘protector,’ and that he takes men’s money against their will, merely to enable him to ‘protect’ those infatuated travelers who feel perfectly able to protect themselves, or do not appreciate his peculiar system of protection. He is too sensible a man to make such professions as these. Furthermore, having taken your money, he leaves you, as you wish him to do. He does not persist in following you on the road against your will, assuming to be your rightful ‘sovereign’ on account of the ‘protection’ he affords you. He does not keep ‘protecting’ you by commanding you to bow down and serve him; by requiring you to do this, and forbidding you to do that; by robbing you of more money as often as he finds it for his interest or pleasure to do so; and by branding you as a rebel, a traitor and an enemy to your country, and shooting you down without mercy if you dispute his authority or resist his demands. He is too much of a gentleman to be guilty of such impostures and insults and villainies as these. In short, he does not, in addition to robbing you, attempt to make you either his dupe or his slave.”
What strikes me about the legions of marginalized people who file “frivolous” lawsuits is not that they hate the government, as people often believe. It is not that they have lost confidence in the system or otherwise treat their public servants as their enemies.
My impression is exactly the opposite. They have actually underestimated the depth of the problem with the system. They believe that the courts really are independent and will side against the interests of the government. They imagine that the system is surely and fundamentally just and fair, and once challenged, it will take their side. They imagine that agencies of the government will stick to their word. They imagine that the system is not so corrupt as to not give them a fair hearing.
Keep in mind that there was no income tax in this country for the 126 years after the Constitution was ratified, except for a brief period during the Civil War. Even after the Constitution was amended to make income taxes possible, only a few actually paid. It was much later before it hit most every American. Before that, your income was your own, period. Imagine! Most people can’t.
The 16th Amendment represented a fundamental change in the nature of the American regime. From that point forward, there was a shift in ownership over national wealth. It belonged first to the government, and then to you only as the administrative apparatus permits.
These “frivolous” people who claim taxes are voluntary are doing what good citizens do. They are reading founding documents. They study the American Revolution. They contemplate the words of Jefferson, Paine, Madison and all the others. They take their words and ideas seriously. They look at the current system and see that it resembles the founding vision only in the most superficial ways. And they imagine that it is their right, as Americans and as human beings, to stand up to the powers that be.
What they lack is that critical intelligence to comprehend that the present regime does not agree. There is no real consent of the governed. There is no authentic social contract. The government isn’t really of, by and for the people. To realize this is the beginning of true political wisdom. On this core point, it appears that both libertarians and the tax police are in full agreement.