Happy "Withholding Tax" Day

Tyler Durden's picture

Via Jim Quinn of The Burning Platform blog,

On this day in 1943 the “Current Tax Payment Act”, was passed by Congress. It provides for income taxes on wages and salaries to be withheld by employers from paychecks. The purpose stated was that is was an emergency provision for the War. Sure — but it is still with us today. This act accounts for the uncontrolled growth of government more than any other event!!!

Also on this day in 1963 The Equal Pay Act, P.L. 88-38, is enacted. It guarantees women equal pay for equal work but proves difficult to enforce. “Equal work” is totally subjective but contributes to Lawyer’s full employment.

Milton Friedman, who was a key player in implementing the “tax withholding” system realized what he had done and sought redemption.

“Far more important, without a system of current collection, it would have been impossible to collect the amount of income taxes that we collected during the war. At the time, we concentrated single-mindedly on promoting the war effort. We gave next to no consideration to any longer-run consequences. It never occurred to me at the time that I was helping to develop machinery that would make possible a government that I would come to criticize severely as too large, too intrusive, too destructive of freedom. Yet, that is precisely what I was doing.”

Since defects don’t matter, according to Chaney and others, there is only one reason why the Government doesn’t just print Legal Tender rather than collecting taxes. That reason is to legitimize the $US as the worlds reserve currency.

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Pure Evil's picture


"helping to develop machinery that would make possible a government that I would come to criticize severely as too large, too intrusive, too destructive of freedom"

Friedman sounds like Woodrow Wilson.

I created the monster but I didn't let it out of the cage.

GAAP is crap's picture

So Milty stated he regreted his devils bargain.  Surprising...but I doubt he actually regretted it.


flacon's picture

(Un)intended consequences are a bitch. It's so easy to fuck-it-up, but so hard to undo the damage. Ayn Rand was right, we need to withdraw our productive capacity from this system and let it crash and burn. 

Boris Alatovkrap's picture

For fiat tyranny, all consequence is "unintended", but "necessary". 

garypaul's picture

I don't buy that BS from Milton that he had 'regrets' and I'm happy to see you guys being skeptical too. Occam's Razor is a First Principle: the simplest answer is the correct one, so of course he knew what he was doing (it's so easy to say I'm sorry I didn't mean it).

booboo's picture

Amen brother, aways the late life or death bed confessions of statist. "I didn't know it would turn out this way" Well fuck you, it always does when it involves the state. Fuck you Freidman, Fuck you Wilson, FDR, William F Buckley.

chumbawamba's picture

That tax was then and still is now only applicable to US persons, not Americans.

I am Chumbawamba.

tenpanhandle's picture

That is true but proving you are not a US person before they throw you in jail is the hard part.  They have made it very difficult to unwind your UCC Citizenship.

chumbawamba's picture

Yes, proving you are not something is not only "very difficult", it is impossible.  Why are you so insecure?  Do you need to prove anything to anyone?  If someone accuses you, why not make them proffer up the proof?

I am Chumbawamba.

Pure Evil's picture

Anybody that earns an IRS income from the US and its territories, which is why they want to create a global empire putting everyone under their thumb, is subject to paying taxes to the IRS mafia.

tenpanhandle's picture

by the way... all naturalized citizens are US Citizens.  Makes one wonder if that is the reason for the porous border down south.  Maybe when US Citizens outnumber the residents of these several states then the republic truely changes into mob rule, I mean a democracy.

chumbawamba's picture

Indeed.  However, naturalization is a function of the (union) state.  At any point the naturalized US citizen can revert to the state citizenship they first received before becoming a part of the US collective by voiding their contract with US Inc.

Conversely, any of the people can use their sovereign authority to "naturalize" someone, through marriage, adoption, or other legally binding contracts.

I am Chumbawamba.

jjsilver's picture

Jurisdiction is the key, This is for people who are unaware of who they are and where they are domiciled.


jurisdiction is the key factor


Unraveling Federal Jurisdiction within a State-CSPOA - Constitutional Sheriffs and Peace Officers Association

“Citizenship for Dummies”

The following diagrams are provided to more clearly illustrate the difference between citizenship in
terms of nationality and citizenship in terms of domicile, and how not knowing the difference greatly affects
your legal standing with regard to the Federal government and the Internal Revenue Service.



Also, check out this site regarding what these criminals did around the civil war, he lays it out nicely


jjsilver's picture

It's a rebuttable presumption that can be easily defeated

tenpanhandle's picture

So thought the "Freeman" of Montana before they languished in jail.   I'm not saying it's not doable but IMHO it's not easy unless you are talking about dropping off the grid and going incognito and even then you're always ducking and flinching everytime you hear "Hey You" shouted out.   Don't get me wrong; I'm a freeman at heart, but I own a business and hiding behind a tree or a slogan is bad for business.  Sadly, I guess I'm just a UCC captive at this time.

Chaffinch's picture

Over here in the UK they introduced Income Tax as a way of paying for the wars against Napoleon, in 1799.

It has not yet been repealed.

Offthebeach's picture

I don't pay. Or file. I'm a above Section 8 working poor stiff. I'll never own-own anything.
So, I'm out. Done. My own stimulus, my own QE program.
I charge less, customers get more...local pump priming.

( insert Treasure of Sierra Madres Mexican bandit voice, here.) " Stimulas? We don't got no...we don't need no stink-eeing stimulas!"

So lock me up, or make me work for nothing...whatever. Another serf on strike.

DawgAss's picture

Happy Father's Day next week AND don't forget to pay your Rotten Fucking Quarterly's, unless your Tim G. or Friend!!!!!!!!

Obama, Bernanke, Democrats, Republicans and all the rest can KISS MY ASS....

P Rankmug's picture

Milton was also intellectually responsible for Nixon ending the Bretton-Woods international gold standard so his scientific Monetarism theory could be ushered in as policy.  42 years later, the lunatic mad scientist neo-Keynesians, who have been handed the keys to monetary policy, are putting the final nail in the global financial system coffin.  Thanks Milton.

sunnyside's picture

I told my congressman once that the withholding should be repealed and everyone should just have to pay an estimate quarterly.  He said people wouldn't pay.  I said I know, but they would see it and realize what is being spent and that it actually comes (well some of it) from them.  Withholding makes it as if they don't have a stake in the game.  Hell, make it like a co-pay at the doctors office.  If we want t fix it, then you have to get a large percentage of people invovled.

A Lunatic's picture

Well, we're still at 'war' aren't we..............

Homernomics's picture

Well, we're still at 'war' aren't we?

Yep, and always will be, it's the 'Mercan Way.  War on hunger, poverty, drugs, terror, on and on.


Boris Alatovkrap's picture

You are to forget war on cats.

Manipuflation's picture

I am offended by your use of 'Mercan Way'.  In the future please learn to spell more concisely.  The word you were looking for is 'Merican' unless of course you meant to spell out 'Mercantilist', in which case all is forgiven.  sarc/off and I did not red arrow you.

Clever Name's picture

We've always been at war with...

resurger's picture

Art Cashin -


The task of controlling men in economic detail proved too much for Diocletian's expanding, expensive, and corrupt bureaucracy. To support this officialdom – the army, the courts, public works, and the dole – taxation rose to such heights that people lost the incentive to work or earn, and an erosive contest began between lawyers finding devices to evade taxes and lawyers formulating laws to prevent evasion. Thousands of Romans, to escape the tax gatherer, fled over the frontiers to seek refuge among the barbarians. Seeking to check this elusive mobility and to facilitate regulation and taxation, the government issued decrees binding the peasant to his field and the worker to his shop until all their debts and taxes had been paid. In this and other ways medieval serfdom began."

Now the NSA will make sure your a serf.

Pure Evil's picture

With no escape to any frontiers that might offer refuge among the barbarians.

Seize Mars's picture

Friedman was a shitbag. He did what Statists always do. Afterwards he lied when he said he regretted it.

The so-called Chicago school of economics is another Statist lie and distraction. An analogy would be GLD; the purpose is to draw fiat away frm physical, and back into fiat. Similarly in intellectual capital - the Chicago school is a lie designed to distract attention from von Mises and Rothbard.

If you want to know WHY capital moves around like it does, you must understand Austrain business cycle theory. The Austrains are the only ones who actually understand what interest rates do to an economy.

Kirk2NCC1701's picture

I'm a reasonable and fair person, but I'm getting Sooooo tired of Tribal Lies and Deceptions.

If you're not 'in', you're not in.

Fuku Ben's picture

The never ending fraud will not be discontinued voluntarily

Therefore the US and the world is in a perpetual state of war


Dre4dwolf's picture

The govt is falling apart, the euro is falling apart, the stock market has more mood swings than a woman in a 9 month term.

All this govt "fat" will melt away once they can no longer justify it.... the Executive branch has already lost all credibility...as has congress and the senate.... the majority of people see the govt that we have now as a phony usurper . . . 

shovelhead's picture

Yeah, I'm pretty overwhelmed by all these mass resignations by Congress and the Executive branch...

Dre4dwolf's picture

It doesn't matter if they resign or not, no one takes any laws they pass seriously anymore, they are just morons sitting in chairs collecting paychecks funded by govt debt at this point, the Fed is sending these morons paychecks.... not us.... the Fed is stealing our money and using it to pretend it runs a government in this mass of land generally known as America.

Do you care what laws these morns pass anymore?

For gods-sake they are sneaking in Laws/Bills "Monsanto Protection Act", thats like a "Bill Gates Protection Act" that lets "bill gates steal credit card information", it doesn't make any sense, and by any measure no law made for the sole purpose of protection ONE person/Corporation from the reprucusions of their crimes is a just and right law... Laws like "the monsanto protection Act" are completely Void and Null, they are fraudulant laws.... laws either apply TO EVERYONE or NO ONE, because if they don't apply to everyone, than well you have an arristocracy/royal class of people who are exempt from the law and can commit any crime they want.... this is SERIOUS.

Do the police even know the law to enforce it?


The only step that remains for the general public is to refuse to pay tax bills and ignore / label all letters with the IRS Letter Head as Spam Mail.

Make them work for the money they demand from you, don't pay anyone who is not holding a court order/decision, take every tax bill to court.... it costs like 30$ to go to court....... make them work for it.


Simply refuse to pay them money till they return to a sensible state of mind/organization and stop trying to force the NWO Globalization crap on us.

This isn't the govt people voted for.... even if you voted for Obama, you voted against Endless Wars, Drone Strikes, etc.... the only thing people voted for was Health Care, but even that now, liberals who voted for that are seeing that it was a stupid idea and that they were better off with an open non-govt system.


Obama is losing support, not gaining it.

People are tired of Red AND Blue, they are looking for a Purple Party at this point, a party for the people, which is dangerous because that usually endsup forming some kind of crazy power-madman who promises the world and then literally tries to take it over.

We have to avoid becoming a complete socialist state at all costs, and the best way to start, is to start holding people, congress, Banks,Bankers,IRS etc... ACCOUNTABLE and to REFUSE their demands/laws/bills until they get in line with what is RIGHT and JUST.


As far as I am concerned, right now, anyone paying taxes to the irs after all the fraud/scandals and years of abusive practices is a traitor or just doesn't give a shit/thinks someone else will hold them accountable and that "its not their problem".

Until everyone protests, Nothing is going to change, and rights and freedoms will continue to be stripped away till this country is a complete totalitarian state.


For freedom to exist, you need to have the freedom to refuse to pay your oppressors.

If you don't have the basic human right to refuse to pay taxes to a govt you don't agree with, then you are just a slave.


Disenchanted's picture

color of law:


the appearance of an act being performed based upon legal right or enforcement of statute, when in reality no such right exists. An outstanding example is found in the civil rights acts which penalize law enforcement officers for violating civil rights by making arrests "under color of law" of peaceful protestors or to disrupt voter registration. It could apply to phony traffic arrests in order to raise revenue from fines or extort payoffs to forget the ticket.

lolmao500's picture

That's because you were a dumbass. RULE NUMBER ONE OF CIVILIZATION: never give an inch to the government or they will take a light year.

RickC's picture

Two areas of disagreement.  When Cheney said deficits don't matter he was referring to reelection politics.   Not only was he right, Obama's reelection just proved that in spades.

The second are is that Keynesian Economics and the concept of unlimitied borrowing to help "aggregate demand" is a larger enabler of big governemt that tax withholding.  Keynesian economics dispenses with the need to raise all the revenue required for enlarging govedrnment.

q99x2's picture

Just my personal opinion but I think you should be allowed to not pay taxes when the people collecting the taxes use the money to kill you.

Racer's picture

And they charge you income tax, and then when you spend the money that is left, they tax you again with fuel tax around 60% probably and VAT at 20% on most things, 5% on electricity and gas. Road tax on your car. And tax on the insurance that is compulsory if you drive said car.

We are nothing more than slaves.

Dre4dwolf's picture

The problem is, cars are these giant cages of rolling steel.

Back in the day, cars topped out at 40 MPH and most didn't have seatbelts, there are videos of people in cars back in the early days where they crash into brick walls/poles at top speed, fly out of the car, hit the pavement, brush themselves off and get back in the car.

Thats how cars should be! they shouldn't be these 90 mph death machines, most of the cars on the road in local areas never go more than 25 ~ 35 mph and usually travel to school, grocery store and back home...... these are the cars that should be selling for around 2000~ 7000$ tops, but Americans are stupid and demand hummers and sporty 4 doors with 300 HP.

There should be laws in place, where if your vehicles top speed is under 45MPH and the Gross Weight of your car is under 1200 lB that you don't need insurance or licenses! 


The problem is, there is no incentive to drive a small vehicle like that because you are going to pay just as much to all the crap as if you were driving a hummer stretch limo.

mofreedom's picture

has it been 70 years already, damn that leech is huge today.

Dre4dwolf's picture

Shit should of been burned off first day.

jtlien's picture

 from answers.com about Paul 1 of Russia (Son of Catherine the Great)

He also endeavored to impose restrictions on the exploitation of serf labor by pronouncing that landlords should demand only three days of corvée per week on their land. Three days were to be reserved for the peasants' own plots, and Sunday was to be observed as the Sabbath. This decree appears not to have significantly modified serf exploitation in the short run, and the secular shift from quitrent to corvée, begun in the mid-eighteenth century, continued apace until the abolition of serfdom in 1861, at least in the central heartland. But the decree constituted at least a symbolic challenge to noble serf owners, the very people who, through the early nineteenth century, dominated the upper rungs of the imperial service system known as the Table of Ranks.

Read more: http://www.answers.com/topic/paul-i#ixzz2Vkhg1e4H So for a Russian Serf you get  an effective 3/7 tax or 42.8% tax rate.   So if your combined Federal, State and Local tax adds to more than that, you are no better than a 19th century Russian serf.
rustymason's picture

"It never occurred to me at the time that I was helping to develop machinery that would make possible a government that I would come to criticize severely as too large, too intrusive, too destructive of freedom."

Really? I'm sure millions of regular people at the time made precisely that objection, but they were ignored, just we were ignored who decried the Patriot Act (sic), warning that it would lead to spying and military action against Americans on U.S. soil. Friedman is full of it. If we could easily see the result of such actions, so did he and so did his tribe.

machineh's picture

What do the last four heads of the IRS have in common with Uncle Miltie?

Turin Turambar's picture

The Stato Institute slobbers all over this guy. He's great for a quote , but far from the best (he supported fiat currency) in defense of liberty. I'll stick with Rothbardians and the Mises Institute, thank you very much.