Why do the states Violate
federal law
concerning taxing
Federal Reserve Note's (FRN's)?
I have to ask why it is that the states violates federal law. I will prove in 2 sections of the United States Code that Obligations of the United States are tax exempt by the states. Obligation you say what is that? Well here is how the USC defines the term United States Obligation. (Note only change is in text color and size for pointing out.)
United States Code
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 1 - GENERAL PROVISIONS
US Code as of: 01/23/00
Sec. 8. Obligation or other security of the United States defined
The term ''obligation or other security of the United States'' includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps.
Now get that old $1 out and look at the top what's it say? Federal Reserve Note. So there we have it folks an obligation of the United States can in one form be a Federal Reserve Note (Hereinafter FRN(s))or hence money. Now what's this about you ask? Well read the next section and see for your self that FRN's are exempt from state taxation where FRN's are used in the computation of the tax.
United States Code
TITLE 31 - MONEY AND FINANCE
SUBTITLE III - FINANCIAL MANAGEMENT
CHAPTER 31 - PUBLIC DEBT
SUBCHAPTER II - ADMINISTRATIVE
US Code as of: 01/05/99
Sec. 3124. Exemption from taxation
(a) Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except -
(1) a nondiscriminatory franchise tax or another nonproperty tax instead of a franchise tax, imposed on a corporation; and
(2) an estate or inheritance tax.
(b) The tax status of interest on obligations and dividends, earnings, or other income from evidences of ownership issued by the Government or an agency and the tax treatment of gain and loss from the disposition of those obligations and evidences of ownership is decided under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.). An obligation that the Federal Housing Administration had agreed, under a contract made before March 1, 1941, to issue at a future date, has the tax exemption privileges provided by the authorizing law at the time of the contract. This subsection does not apply to obligations and evidences of ownership issued by the District of Columbia, a territory or possession of the United States, or a department, agency, instrumentality, or political subdivision of the District, territory, or possession.
So there we have it folks. Now ask yourself why do the states have a sales tax? Are not FRN's used in the computation of the sales tax? Hum? Let's see I buy a item for $1.00 (FRN of course) and there's a tax now how do we go about computing a tax on the sale of an item if we can't use the FRN to calculate? Obvious it's based on a percentage of the amount paid so we can't without using an FRN to calculate the tax. So why does the State violate the law? Humm it also says the interest on the obligation well funny don't they require you to include you bank and investment interest on the tax returns each year? How about income tax? The above clearly states also if it requires the obligation it's exempt. Well let's see you get paid most by check. How does that check eventually get cashed out as? FRN's we're right back at square one. So why is it the state violates the law in fact all but 9 states (Thank God Tennessee woke up a while back and protested their state trying to break federal law. Here read it for yourself. Tennessee Tax Protest Trust me it's worth the read it's not very long either)have an income tax and most (not sure of exact number) have a sales tax of some form. Face it people we're being had. It's all right there for your review with included links. nothings edited as you will find out if you choose. So why do we have taxes in the states involving FRN's?????
