American Tyranny: Our Tax-Apocalypse-Cause for the Fairtax and the Abolishment of the Irs?

© 2013 by Michael Sawukaytis/Robert Mackovski et al. All rights reserved.

Final Editing by Barbara Scott from Palmetto Review [www.palmettoreview.com]

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.

Published by AuthorHouse 08/27/2013

ISBN: 978-1-4817-3309-0 (sc)

ISBN: 978-1-4817-3308-3 (e)

Library of Congress Control Number: 2013905509

Any people depicted in stock imagery provided by Thinkstock are models, and such images are being used for illustrative purposes only.

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Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.

Exhibits A through J

All exhibits are reproductions of their originals due to book print formatting requirements.

Americans for Fair Taxation [AFFT]

All white papers were provided by AFFT for educational purposes only and are subject to their existing copyrights without endorsement, directly or indirectly, of the other materials contained within this book. Originals may be viewed at FairTax.org, a nonprofit, nonpartisan, grassroots organization solely dedicated to replacing the current tax system. The organization has hundreds of thousands of members and volunteers nationwide. Its plan supports sound economic research, education of citizens and community leaders, and grassroots mobilization efforts. For more information visit the Web page: www.FairTax.org or call 1-800-FAIRTAX.

CONTENTS

Dedications

Personal Acknowledgments

Preface

Introduction

Chapter 1 The Journey Begins

Chapter 2 Government 101

Chapter 3 The History Of American Taxation

Chapter 4 Understanding Our Court System

Chapter 5 Legal Research: Finding The Truth

Chapter 6 Pro Se: Going It Alone

Chapter 7 Brutal Injustice: Tyranny At Its Best

Chapter 8 The Journey Ends

Exhibit A

Sawukaytis v USTC Request for Admissions & Reply

Exhibit B

Frazier v USTC Request for Admissions & Reply

Exhibit C

Freedom of Information Act Response for 96-99

Exhibit D

FairTax Impact on Farming and Ranching

Exhibit E

FairTax Impact on Charitable Giving

Exhibit F

FairTax Impact on Global Economy

Exhibit G

FairTax Impact on Healthcare

Exhibit H

FairTax Impact on New Housing

Exhibit I

FairTax Impact on Interest Rates

Exhibit J

FairTax Impact on Seniors

Exhibit K

FairTax Impact on Small Business

References

DEDICATIONS

This book is dedicated to

All Americans

Who fought and died in the name of Freedom

All Americans

Who have been falsely led into their Peonage

All Americans

Who believe that the rule-of-law prevails and that America

represents liberty and justice for all

All Americans

Who are fighting to re-emancipate the United States of America

PERSONAL ACKNOWLEDGMENTS

To my beautiful wife Violet Sawukaytis for her unconditional love, patience, understanding and support during my 10 years of federal peonage and providing the necessary resources so that this book could be a reality.

To my sons Jason and Lucas Sawukaytis who have been born into a feudal system and may they live to see the end of our tax-apocalypse.

—Michael

PREFACE

Capital Punishment: The Income Tax

Jeff Hayes

2013 marks the 100th anniversary of our current federal income tax enacted in 1913 [a.k.a. 16th Amendment]. For decades our current income tax has developed into a social engineer’s dream come true. Social engineering is when a small population or elite minority tries to influence attitudes and social behaviors of many on a large scale. Politicians are a good example; their numbers are small but their decisions have a big effect. It might sound incredible, but by the time you finish this book, you just might agree that the federal income tax collected today is not the federal income tax enacted by the U.S. Congress in 1913. In fact, this special unauthorized income tax is possibly the root cause for the fact that your freedom, our country, and our economy are gradually being destroyed without you even knowing it.

Constantly raising taxes has become the easiest solution for our politicians because it allows them to avoid having to deal with the real issues and problems that are affecting our nation. Higher taxes allow our leaders, politicians and government from having to make difficult decisions that may cost them their jobs (their prime directive is to keep their jobs). As these politicians cling to their jobs (like cat hair to your sweater), they desperately want to keep their jobs and positions of influence; therefore, they promise more and more money to each special interest group, lobbyist and members of those groups that they are trying to persuade to back them, donate to them and eventually vote for them. Also, remember the revolving door of lobbyists and politicians. Many lobbyists used to be politicians and vice versa. From one side of the fence to the other they go, accumulating and sharing the spoils among one another depending on what hat they wear. Now, as these special interest programs grow, more money is needed. The easiest way to collect money is to tax people, especially the rich, or to impose a stealth tax that hits everyone, including the poor. The definition of rich seems to keep getting broader as more and more people seem to fall into that group It seems the only people that really don’t fall into that are the truly rich, because they can afford the advice of expensive professionals to avoid many taxes via loopholes that were crafted into the Tax Code by our politicians at the suggestion of the lobbyists that are contributing to them. This a favor for a favor relationship continues with no end in sight in a never-ending spiral.

See, you and I need to and are forced to make tough decisions in our lives. If our income falls or we spend too much, we are forced to cut back in one way or another. But this concept is foreign to our government and politicians. All they have to do is raise taxes and demonize someone. But if you are never forced to cut anything and you continually expand spending, you will continually have to raise taxes and borrow money that future generations will have to pay. One feeds the other (kind of like that picture of the snake eating its own tail). Taxing people as a solution to our many problems as a nation creates a lazy, bloated and inefficient government that does not care about waste or abuse. A government that does not do its job has no incentive to create sustainable solutions. The easiest path for our politicians is to tax. It’s the laziest path, and the most destructive path. All one has to do is turn on the television for the scandal de jour.

Raising taxes kills economic growth. Since the government doesn’t really produce anything, every dollar it taxes out of the private sector economy is one less dollar that the economy can use for growth, jobs or any other expansion. Once the government taxes this money out of circulation, it is taken out of the private economy; however the private economy is what makes the world go around. The more you take out, the smaller that pie will get for us and the larger the pie will get for the greedy government to gorge on. Our government does not know when to stop. It’s like a permanent leech attached to the body of the taxpayer and it will suck our nation dry. The government is like a heroin addict who will never stop if you continually feed them more drugs. The difference with our situation is that heroin addicts usually end up destroying themselves or their loved ones. However, in our case, the politicians don’t suffer at all, but destroy everyone else. In our case, this means that our nation and its people are the ones that will eventually suffer the consequences for the irresponsible actions of our so called leaders.

Contrary to current law (Congressional Budget Act of 1974), our Federal Government has not passed a balanced budget since April 2009. It has borrowed almost $7 trillion over the last 4 years and over 11 trillion in the last 12 years, yet tax revenue is at its highest. Our government has no intention of acting responsibly—monetarily or economically. All they know how to do it tax, spend and waste—and not necessarily in that order.

Our government has never been successful at redistributing success or accomplishment; it only succeeds in redistributing misery, poverty and hardship by enslaving the masses through taxes and financial enslavement—peonage.

Nearly 100 years ago, Americans had to work 21 days to pay off their regular tax bill and only paid 5.9% of their incomes in taxes that mainly affected the wealthy. In 2012, an average worker has to work 107 days (January 1 to April 17) and pays nearly 30% of his/her income to pay off his/her regular tax bill for the year. Welcome to American Peonage.

This book is intended to expose the most malicious social crime of the century perpetrated in the name of freedom and democracy, created by Congress and enforced by the IRS. The chapters and its insights are based on a young man’s actual journey to the U.S. Supreme Court confirming his American peonage after learning the truth about our federal income tax system and his desire to constitutionally comply. His determination included years of research at the University of Michigan law library, reviewing court records and studying U.S. tax history, case law, court rules, court procedures, and how to write briefs. By the end of his journey, he experienced the highest level of brutal injustice and unjust sanctions, and in the process, lost practically everything he has ever owned, and most importantly his freedom and dignity. After being punished for complying with the law, he has been found liable for a special income tax that was never enacted by Congress. Welcome to American Tyranny and the life of an American Peon: His name is Michael Sawukaytis.

READER’S NOTE

For those of you that have an engineering degree, you will notice that the construction of this book is based on a very common manufacturing principle called DMAIC. It is an acronym for five organized steps to solve a problem and fix it permanently. These steps are: Define, Measure [gauge], Analyze, Improve, and Control. Practically every corporation uses these principles to create higher productivity and reduce waste. For this book, this principle is being applied to explain our present federal income tax system.

Chapters 1-3 define the problems with our federal income tax system by discussing the negative impact it has on our society, our economy, our liberty, our revenue and explain the history of our tax laws and how they were derived.

Chapters 4-6 gauge our federal income tax system by first explaining how our court system operates, followed by reviewing legal research on the 16th Amendment and finally describing the required work scope for an individual to litigate without an attorney.

Chapter 7 analyzes what type of federal income tax is collected today based on actual litigation performed by the author at every judicial level of the Federal Government.

Chapter 8 explains how to improve and control our federal tax system, our economy and freedom with the huge benefits that a simpler tax has to offer.

DISCLAIMER

Please note that nothing in this book should be construed as legal advice or solicitation of any kind. This book DOES NOT provide any legal advice or assistance whatsoever. Please note that the intent of this book is for educational and informational purposes only and to tell a story and explain a journey through the use of our First Amendment Right to Freedom of Speech and Expression. For legal advice, please seek the guidance of a competent licensed attorney.

INTRODUCTION

PEONAGE

Title 18 United States Code Section 1581

It is unlawful to hold a person in debt servitude, or peonage, which is closely related to involuntary servitude. Title 18 USC Section 1581 prohibits using force, the threat of force, or the threat of legal coercion [legal coercion is prohibited?] to compel a person to work against his/her will. In addition, the victim’s involuntary servitude must be tied to the payment of a debt.

Peonage did not lose its legal sanction until 1910, when the U.S. Supreme Court declared in Bailey v. Alabama¹ such state laws to be in violation of the Thirteenth and Fourteenth amendments. In spite of the laws, even as late as 1960, sharecroppers in the Deep South were pressured to pay off old debts or taxes through peonage. Peonage is interpreted in the Constitution as holding a person in debt servitude. This practice, though illegal, is being found again in the U.S. in relation to the smuggling of illegal immigrants into the country. The immigrants are then placed in garment sweat shops or other small businesses to work off their transportation debt. The current law states that those found enforcing peonage on another can be fined or imprisoned up to ten years.

The federal income tax was specifically sold by congress to only soak the rich in order to pay down federal debt. Today, basically all Americans are compelled to work to pay down the federal debt. How is that, you ask? The IRS’ threat [coercion] of fines and imprisonment exists 24 hours a day. You cannot work as an American citizen without this threat. If you do not fork over a portion of your wage income², the IRS will use threat to surrender a portion of your wage income and if you don’t comply, the IRS will just take it forcibly and involuntarily³. You see, even more dangerous than the power to tax is the government’s power of force combined with their taxing power. If you do not pay the enforcer voluntarily, the IRS may not break your leg, but they sure have the power to ruin you and your family’s lives and bring down the full weight of the government on your head. Actually that broken leg doesn’t sound too bad now.

"The only difference between a tax man and a

taxidermist is that the taxidermist leaves the skin."

—Mark Twain

CHAPTER 1

THE JOURNEY BEGINS

People try to live within their income so they can afford to pay taxes to a government that can’t live within its income.

Robert Half

_______________________________________

There is definitely something wrong in the world today. The world as we know it appears to be losing faith in the United States of America as a leader in freedom through democracy. For many years, our nation’s good values have been over-shadowed by the news amplifying our domestic problems, in turn hurting our international reputation. Not too long ago, when people saw an American soldier walking down the street, he was welcomed with open arms, for his mere presence meant that truth, justice, and freedom was sure to follow. Today the world appears to view the presence of American soldiers as occupiers or aggressors rather than liberators; a concept that most Americans can’t comprehend because we are freedom fighters… Right? The whole world must be wrong… Right?

Unfortunately—thanks to our liberal, negative based media and its social justice agenda, all our internal problems are magnified, leading the entire world to believe that we:

•   Start more wars than we prevent

•   Threaten economic suffering to those that ignore our demands

•   Threaten physical harm (war) to those that ignore our demands

•   Practice peonage rather than freedom

What? . . . . Peonage? . . . . No way? . . . . Think again.

What separates us most from the rest of the world is our system of taxation, such as federal income taxes, Social Security taxes, Medicare payroll taxes, self-employment taxes, and hidden taxes. Isn’t it ironic that the birth of the United States was based upon tax abuse by England, and today the United States practices the largest scale tax collecting abuse against their citizens all over the world? As an American you can expect to surrender half or more of your gross income to federal, state, local, and sales taxes combined. The U.S. is the only major country in the world that collects world-wide income from its non-resident U.S. Citizens and restricts cash flow/gifts from all travelers when traveling to and from the 50 United States.

According to the United States Department of Labor, Bureau of Labor Statistics (2010), the national debt equates to $44,900 per U.S. person. However, according to the USA Today investigative report [2011], the debt does not include unlisted liabilities, unfunded retirements and pensions, new health care commitments; therefore, the actual federal tax debt liability is a whopping $558,800 per U.S. household. Since the size of a household in 2010 is 2.53 people⁴; each person is actually born with $220,870 of federal tax debt, not $44,900! No matter how you slice it, Congress is out of control, and there appears to be no end in sight until our economy totally collapses or we change our tax and spend culture. Currently, our government is borrowing money the likes of which has never been seen before, and spending it even faster.

Every day each American works under the threat of coercion by the IRS that compels them to work under involuntary conditions to pay off our federal debt, which by the way, they neglect to tell you, can never really be paid off anyway. This method of collecting can be viewed as involuntary servitude. Pursuant to 18 USC § 1584, federal law forbids it, but for some reason the legislative and judicial branches make no effort to stop the IRS from doing