The Two Tax System
has been able to hide the "wage tax," tax because the law is diabolically
written to allow for a "credit" for such wage taxes paid against the income
taxes shown on your tax return. When the credit is taken, it appears
that the taxpayer got a "credit" for income taxes previously paid against
the income taxes reported on their tax return. But this is not
taxes are involved here, not one - as the American public has been
fraudulently lead to believe. The Government initiates the deception by
falsely labeling the Chapter that establishes the wage tax as the
"COLLECTION OF INCOME TAX AT SOURCE," while captioning the actual
statute that imposes the tax as "Income tax collected at source".
Obviously, if the imposition of a wage tax were legal, the Government would
not have resorted to such deception to hide the nature of the tax.
The Government felt compelled to
create the "wage tax" (and hide it) because of WWII. During that
war the Government, for the first time, sought to collect income taxes from
America's working, middle class. Up until then, only wealthy Americans
paid income taxes, and they did so by making a lump sum payment (or they could
arrange for three lump sum payments) by March 15th of the year following that
taxable year - i.e. 1938 income taxes were paid in 1939. However, believing that
America's working class would not have the money to pay their income taxes in
the subsequent year, the Government sought to collect income taxes from them in
advance - on a "pay-as-you-go" basis. However, this presented
the Government with a problem.
By law income taxes are collected
on the basis of assessments, which are made only after returns are filed.
Thus, there was no legal way the Federal government could compel the payment of
income taxes before returns were filed and
assessments made. Therefore a "pay-as-you-go" income tax
was out of the question. So the government hit upon another idea which,
for various reasons, was slightly unconstitutional. (But, there was a war
going on, remember?) To solve the problem, Congress
created a new tax, but forgot to tell the American public about it.
Instead they claimed that the new so called "Victory Tax,"
constituted a "pay-as-you-go" income tax, which would only last
for the duration of WW II. What saved the wage tax from being
blatantly unconstitutional (since a direct tax on wages violates the
apportionment provisions of the Constitution) was the ability of wage earners to
get a refund of all the "wage taxes" they paid, as is currently
provided in Code Section 31(a).