Saturday, April 12, 2008

What Monetary Unit is the Income Tax Based On? PDF Print E-mail
Wednesday, 02 April 2008
Written by Christopher H. Hansen

I was just sent an email that asked me: Has anyone asked the IRS: What monetary unit is the income tax based on? I thought I should respond to this question because it is a very important question and everyone should have the answer.

No need to ask. It is judged in “dollars”. The phrases: “legal tender” and/or “Federal Reserve Note” and/or “Federal reserve note” are not found in the IRC. Search the IRC yourself The “$’ sign is on the 1040 and other forms. The IRC never uses anything but a “$” sign or the word dollar.

The word dollar is currently not defined in law. If you can find a current law that defines the dollar please let me know. Please do not tell me what the Constitutional dollar was/is. I know. It was the Spanish milled dollar and was minted, not by the U.S. mint but, by Spain and was legal tender in the USA until 1857 AD, over 70 years after the Constitution was written. The first U.S. dollar is not and never was the Constitutional “dollar” mentioned in the Constitution as this first U.S. Dollar did not exist until after the Constitution was ratified.

We are currently not on the Silver standard so no definition that includes silver can be the legal definition of what a “dollar” is. The same is true of gold. We are not on the gold standard. Congress removed the USA from the gold standard. We are currently not on a standard which means there is no definition of what a dollar is.

Former US Federal Reserve Chairman Alan Greenspan once stated that “under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth… The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.

This “confiscation through inflation” is also known as taxation without representation or the taking of property by the government without just compensation. It is obviously unconstitutional if authorized by Congress.

The Federal Reserve Note and the Federal reserve note are not defined as dollars anywhere we can find in any federal law. (See quotes form the letters I have received, below)

In a letter I received from the Office of Nevada Senator John Ensign it states:

Black’s Law, Second Pocket Edition (1996)

Federal Reserve Note

Federal reserve note. The paper currency in circulation in the United States.

The notes are issued by the Federal Reserve Banks, are effectively non-interest-bearing promissory notes payable to bearer on demand, and are issued in denominations of $1, $5, $10, $20, $50, $100, $500, $1,000, $5,000, and $10,000

The question must be asked: PAYABLE ON DEMAND IN WHAT? In dollars? If not dollars then what are they payable in?

In the same letter I received from the Office of Nevada Senator John Ensign it states:

Ballentines Law Dictionary, 3rd Edition (1969)

dollar. The legal currency of the United States ; State v Downs, 148 Ind 324, 327 ; the unit of money consisting of one hundred cents . The aggregate of specific coins which add up to one dollar. 36 Am Jlst Money A§ 8. In the absence of qualifying words, it cannot mean promissory notes, bonds, or other evidences of debt. 36 AM Jlst Money A§ 8.

Until the government can tell us what LAW defines what a dollar is, since we now know that Federal Reserve Notes and Frns are NOT “United States Dollar[s]”, all laws calling for taxes or any other fee saying such are to be calculated by or paid in dollars must be null and void.

Why? Because the United States Supreme Court ruled that was so:

Keeping in mind the well-settled rule that the citizen is exempt from taxation unless the same is imposed by clear and unequivocal language, and that where the construction of a tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is sought to be laid. Spreckels Sugar Refining Co. v. McClain,192 U.S. 397, 24 S.Ct. 376, 418, U.S. 1904 AD

A response from Joel Hansen Attorney at law and defense attorney in the Loglia trial states:

In response to your letter of January 17, 2008, I respond :

1. What law establishes the definition of what a dollar is?

Answer: There is no statute in 31 USC that defines what a dollar is .

2.Has any law established what the definition of a dollar is since Black’s Law Dictionary, 4th Edition (1951)

Answer: There is currently no definition made by Congress of the word dollar.

3. Are the letters we received correct when they state that Federal reserve notes are not dollars?

Answer: Yes, in my opinion.

4. Does any branch or agency of the Federal Government or private bank or fund etc . have the authority granted in the Constitution to regulate the value of money?

Answer: According to the Constitution, only Congress has the power to regulate the value of money .

5. Does the United States currently have a monetary system that is a system of equal weights and measures silver?

Answer: No, because the coins issued pursuant to 31 USC 5112 have the same face value as a Susan B . Anthony dollar coin, a Sacajawea dollar coin, and a Presidential dollar coin, yet they all have different weights. The sub dollar coins don’t add up in weight to the cupro-nickel dollar. The $10 gold coins weigh 1/4 of an ounce, while the $50 gold coins weigh one ounce which doesn’t add up either.

6. Is the letter from Assemblyman Beers correct when he states that even though Federal reserve notes are, by law, to be redeemable in “lawful money” that they are only redeemable in Federal reserve notes which are not dollars?

Answer: I agree with Assemblyman Beers’ conclusion .

7. Are all forms of legal tender dollars?

Answer: No . Pennies, nickels, dimes, quarters, and half dollars are all legal tender .

8. What law establishes the Federal reserve note as the monetary unit of measurement in the United States?

Answer: No such law exists, as far as I have been able to determine.

9. What law establishes the Federal reserve note as the monetary unit of measurement to judge other forms of United States legal tender to establish “fair market value”?

Answer: No such congressional statute or public law exists that I am aware of. But some courts have used FRN’s as the standard of value to measure the market value of gold and silver coins.

Very truly yours, Joel F. Hansen

A letter I received from Nevada Assemblyman Robert Beers states:

Dear Christopher,

According to a monograph written by Edwin Vieira, Jr ., even those who purport to print our money don’t really know what a dollar is. No statute defines - or ever has defined - the “one dollar” Federal Reserve Note “FRN” as the “dollar,” or even as a species of “dollar.” Moreover, the United States Code provides that FRNs “shall be redeemed in lawful money on demand at the Treasury Department of the United States… or at any Federal Reserve bank.” Thus, FRNs are not themselves “lawful money” - otherwise, they would not be “redeemable in lawful money.” And if FRNs are not even “lawful money,” it is inconceivable that they are somehow “dollars,” the very units in which all “United States money is expressed.”

People are confused on this point because of the insidious manner in which FRNs “evolved” - actually, degenerated is a more appropriate verb - from the late 1920s until today. FRNs of Series 1928 through Series 1950E carried the obligation “The United States of America will pay to the bearer on demand [some number of] dollars.” Prior to 1934, the notes carried the inscription “Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank .” After 1934, the notes carried the inscription “this note… is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank” (post-1934). Starting with Series 1963, the words “will pay to the bearer on demand” no longer appear; and each FRN simply states a particular denomination in “dollars.”

The replies you received to your query from both John Ensign’s office and the Treasury Department reveal just how confused this situation is . Being a man who considers his word his bond, I would have to say that the FRN is and remains a contract; whether or not the government chooses to admit this… they printed the things. At the top of the

contract they proudly proclaim it to be a Federal Reserve Note. At the bottom they declare the value, as in the dollar bill as One Dollar. The value of goods or services the note may purchase has changed, albeit not for the better.

However, if you hold a 1900 $20 gold piece, you can still purchase what that coin could buy when it was minted.

The situation with coinage is more complex, but equally (if not more) confusing. The United States Code provides for three different types of coinage denominated in “dollars”: namely, base-metallic coinage, gold coinage, and silver coinage. The base-metallic coinage consists of “a dollar coin,” weighing “8 .1 grams,” “a half dollar coin,” weighing “11.34 grams” ; “a quarter coin,” weighing “5 .67 grams” : and “a dime coin,” weighing “2.268 grams.” All of these coins are composed of copper and nickel. The weights of the dime, the quarter, and the half dollar are in the correct arithmetical proportions, the one to each of the others. But the “dollar” is disproportionately light (or the other coins disproportionately heavy) . In this series of base metallic coins, then, the questions naturally arise: Is the “dollar” a cupro-nickel coin weighing “8 .1 grams”? Or is it two cupro- nickel coins (or four or ten coins) collectively weighing 22.68 grams? Or is it both? Or is it neither, but something else altogether, to which the weights of these coins are irrelevant?

Similarly, the gold coinage consists of “a fifty dollar gold coin” that “weighs 33 .931 grams, and contains one troy ounce of fine gold” ; “a twenty-five dollar gold coin” that “contains one-half ounce of fine gold” ; “a ten dollar gold coin” that “contains one fourth ounce of fine gold” ; and “a five dollar gold coin” that “contains one tenth ounce of fine gold.” The “fifty dollar,” “twenty-five dollar,” and “five dollar” coins are in the correct arithmetical proportions each to the others. But the “ten dollar” coin is not. Therefore, is a “dollar” one-fiftieth or one-fortieth of an ounce of gold? It appears to be undecided. I would have to say that, based on the oath I took when I assumed this office; the US Government has not upheld its part on a contract begun back when it first began printing monetary notes. We still trade the notes for goods and services, but the trust is no longer there.

Assemblyman Bob Beers, 355 Cavalla Street, Henderson, NV 89074

In a letter signed by Russell L. Munk, Assistant General Counsel on letter head that states: DEPARTMENT OF THE TREASURY, OFFICE OF THE GENERAL COUNSEL that was allowed into evidence in the first Kahre/Loglia trial it states:

This is to respond to your letter of November 23, 1976 in which you request a definition for the dollar as distinguished from a Federal Reserve note.

Federal Reserve notes are not dollars. Those notes are denominated in dollars, which are the unit of account of United States money. The Coinage Act of 1792 established the dollar as the basic unit of United States currency…

In a letter to Bret Ogilvie, a member of the Independent American Party of Nevada, Congressman Dean Heller states:

To begin with, I apologize for the confusion my previous letter caused. To clarify, 31 U.S.C. 5116(b)(2) does in fact address the sale of silver and not the dollar. As you pointed out, **31 U.S.C. 5112(e) contains the most accurate definition of a dollar coin, which by statute must contain .999 ounce fine silver…[T]he U.S. Code does not contain a specific definition of a dollar bill…

So the law was so confusing a Congressman got it wrong and then he can only give the “most accurate definition of a dollar coin” and there is no “specific definition of a dollar bill.” MOST accurate? No specific definition? Law is to be in “clear and unequivocal” language, say the U.S. Supreme Court.

And now we have the Email from Mrs. King answer this question: “If I received a $50 American Gold Eagle (legal tender) as a wage, would I need to claim $50 on my tax return or the market value?”

Mrs. King EMPLOYEE ID: 59-05667, Tel.:(800)829-1040 msg#: 1771288 answered the question:

The Answer To Your Question Is: The coin which you received in lieu of wages is reported as taxable income on your Form W-2, Wage and Tax Statement, for the year. The amount of wage you received for the coin ($50) is your basis in the coin… Until you sell your capital asset (American Gold Eagle coin), you have no income to report to the Internal Revenue Service (IRS). At the point in time when you decide to sell the coin you will have to pay capital gain taxes on the difference between the basis of the coin and the sales price of the coin;assuming the sales price is more than the basis… In summary, you will only be reporting your wages of $50. The American Gold Eagle is now your capital asset (collectible), and any gain or loss on the coin will not be reported as income or loss until you dispose of the coin.

For the whole response from Mrs. King CLICK HERE

So again, anyone with a brain must ask: What do we judge the value of the $50 American Gold Eagle coin by? If we sell it for Federal Reserve Notes do we have a gain or a loss? Remember that according to Russell L. Munk, Assistant General Counsel for the U.S. Department of the Treasury “Federal Reserve notes are not dollars.” So if we sell the $50 American Gold Eagle coin for irredeemable (See assemblyman Beers letter) Federal Reserve Notes that are “effectively non-interest-bearing promissory notes payable to bearer on demand” (in what?) and we know that dollars, according to Senator Ensign’s office, cannot mean “promissory notes, bonds, or other evidences of debt” then I am guessing that we have a loss because we no longer have any “dollars” or anything of intrinsic value (like the one ounce gold coin) and can, at best, hope to sell the irredeemable promissory notes we received for the $50 American Gold Eagle coin for another $50 American Gold Eagle coin if the “market value” of the “promissory notes” as not changed due to the never ending printing (intentional inflation so the Fed can confiscate your property)of these “promissory notes” by the private bank known as The Federal Reserve which has made the exchange rate between the $50 American Gold Eagle coin to go from 250 Federal Reserve notes to about 1000 Federal reserve notes in less than 4 years.

The IRS has no power to determine what a dollar is. The IRS is allegedly an executive branch bureau (?(The IRS was never established by law. Only the Office of the Commissioner of the internal revenue was ever created by Congress)) and therefore must act only as authorized under law.

The President’s authority to act, as with the exercise of any governmental power, “must stem either from an act of Congress or from the Constitution itself.” Medellin v. Texas 2008 WL 762533, (2008)

[T]hat whensoever the general government assumes undelegated powers, its acts are unauthoritative, void, and of no force The Kentucky Resolutions of 1798

If the IRS cannot site the law that answers the following questions then they have no authority to make any determinations whatsoever concerning what a dollar is or what Americans must use to determine the value of their wages.

So again we ask. Show us the law.

Show us the law on that answers the following questions:

1. What is a dollar?

2. What law says that we are to judge the “market value” of anything in Federal reserve notes or some form Congressionally established monetary measurement?

3. What law explains how we determine the “market value” of a Federal reserve note or any other “legal tender”?

4. What law explains to Americans what “market value” is and what law tells us what Congressionally established monetary measurement we are to use to determine the market value of our wages or capital gains?

5. What law explains what date during the year are we to judge the “market value” of a $50 American Gold Eagle coin if we exchange it for some other form of “legal tender”?

6. What law explains what form of Congressionally established monetary measurement “legal tender” are we required to judge the value of the $50 face value American Gold Eagle legal tender coin?

7. What law explains what we do if we sell 1000 Federal reserve notes we received “in lieu of wages” for $50 face value American Gold Eagle legal tender coin do we have a loss of 950 dollars?

8. What law explains what we should do if we receive “in lieu of wages” golden dollars and we sell them for Silver Liberty dollars? Do we have a loss or a gain?

9. What law restricts Americans from judging the loss or gain of selling $50 American Gold Eagle coins by the face value of Silver Liberty legal tender ONE DOLLAR face value coins?

10 What law restricts Americans from judging the loss or gain of selling $50 face value American Gold Eagle legal tender coins?

11 What law restricts Americans from judging the value of the Federal Reserve notes they receive “in lieu of wages” in $50 face value American Gold Eagle legal tender coins?

12. What law explains to Americans what to do if we receive 750 Presidential ONE DOLLAR COINS “in lieu of wages” and exchange them for one $50 American Gold Eagle. Have we sustained a 700 dollar loss? What law explains exactly how to make such a judgment and what Congressionally established monetary measurement are American required by law to use to make such a determination?

And of course the most important question is:

12. Since Federal Reserve notes have not been defined as dollars by law and cannot because they are only promissory notes to be redeemable in lawful money and therefore are not dollars, by which of the many U.S. legal tender dollars that have a wide variety of intrinsic values, weights and measures are Americans required, by law, to use, if we are “U.S. Taxpayers,” to judge our gross income by or is there some other other Congressionally established monetary measurement we are required by law to make such a determination?

Do we use golden dollars, Presidential ONE DOLLAR COINS, $50 face value ONE OUNCE American Gold Eagle legal tender coin, the quarter ounce $10 face value American Gold Eagle coin, or the what Congressman Dean Heller called “the most accurate definition of a dollar coin, which by statute must contain .999 ounce fine silver…” the Silver Liberty legal tender ONE DOLLAR face value coins?

Are you confused? Well if you are, there is hope. Remember this: The maxims of law state:

Quod dubitas, ne feceris. “When you doubt, do not act,” and Misera est servitus, ubi jus est vagum aut incertum. “It is a miserable slavery where the law is vague or uncertain.”

13th. Amendment to the U.S. Constitution: Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

And also remember that the Supreme Court has ruled:

Keeping in mind the well-settled rule that the citizen is exempt from taxation unless the same is imposed by clear and unequivocal language, and that where the construction of a tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is sought to be laid. Spreckels Sugar Refining Co. v. McClain,192 U.S. 397, 24 S.Ct. 376, 418, U.S. 1904 AD

Maybe now you should take the time to write your Congresscritters, State Senators and Assemblymen, Governors, State Treasurers, Attorneys, Accountants and even the IRS (if you are a “Taxpayer”) and ask these questions. Maybe you can get more complete answers. I have asked and I have, herein, given you the answers (not the non-answers claiming to be answers) I received. Or will you do nothing?

The only thing necessary for the triumph of evil is for good men to do nothing. –Edmund Burke

If you get different answers PLEASE send them to me so that I can post them. Americans should be able to know the law. If they cannot know the law then there is no law but only the whim and caprice of men mascaraing as public servants and judges like Prosecutor Damm and Judge Jones both of the Kahre/Loglia trial fame.

A nation of lemmings and sheep, unwilling to learn what the laws say and mean, deserves the tyranny it tolerates. –C.F. Charpentier

Are you a lemming or a Patriot willing to pledge your life, fortune and sacred honor to give the next generation of Americans the liberty the Founding fathers fought and died for to give to you and that most Americans have sold for paper fiat fraudulent money used for “confiscation through inflation.”

Wake up. Join the IAP. Encourage others to join the IAP. Run for office. Write letters. Refuse to file income tax returns until you get the answers to the questions above. Don’t just ask, DEMAND answers from your Congresscritters. DO SOMETHING! The freedom you rescue may be your own!

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