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Guest Post: Welcome to the United States of Orwell, Part 2: Law-Abiding Taxpayers Treated As Criminals
In a follow-up to yesterday's Part 1: Submitted by Charles Hugh Smith of OfTwoMinds,
Welcome to the United States of Orwell, Part 2: Law-Abiding Taxpayers Are Treated as Criminals While the Real Criminals Go Free (March 27, 2012)
Law-abiding taxpayers are treated like criminals while the criminal class of financiers and State apparatchiks are free to loot and pillage muppets and taxpayers alike.
I recently received quite an education about how law-abiding taxpayers are treated by the state of California via dozens upon dozens of emails detailing how the Golden State ransacked the bank accounts of law-abiding taxpayers in other states without notification or due process, as if the citizens being looted were crafty bankers who'd stolen church funds to live tax-free in an offshore tax haven.
As we all know, crafty (and politically protected) bankers are free to loot churches, muppets and the taxpayers at will while taxpayers are looted by lawless government. Here is a typical account of state thievery. It is anonymous for a good reason: As I noted last week, law-abiding citizens are terrified of their governments, local, state and Federal, as they know that these agencies are literally above the law and will exact retribution on anyone who reveals their tyrannical trashing of due process or who questions their feudal pillaging of oppressed debt-serfs. (I previously addressed this topic in Welcome to the Predatory State of California--Even If You Don't Live There March 20, 2012)
I received a letter last year that we owed the state of California's Franchise Tax Board $90,000 for taxes in the year 2008.
We replied to the Franchise Tax board in a similar manner as RT stating that:
-- Did not reside in California in 2008
-- Did not file a State income tax return in California in 2008
-- Did not have any outstanding tax issues with California in 2008
-- Did no business in California in 2008
-- Owned no property in California in 2008
The CA Franchise Tax board responded by putting a lien on us in the state - fortunately, our banks and assets have no business in CA or I am certain our accounts would have been robbed as well.
After a great deal of uncertainty and angst, I found an accountant in CA who advised us that we needed to file a complete CA tax return for 2008 even though we did not owe any tax. We filed the return and received a response that we owed the state $625 to cover the State's collection fees. We paid the fee and within two weeks received a "refund" check for the $625.
On reflection, we felt as if we had been "held up" by some powerful gangsters and if it had not been for an honest tax accountant we would have suffered much financial damage.
This basic story is repeated thousands of times annually, and while California may hold special status as the most predatory, parasitic, due-process-be-damned state, it's clear that other state and local governments are pursuing similar strategies of lawless looting under the cover of tyrannical statutes approved by elected lackeys of the financial aristocracy.
Is financial tyranny "legal" if some state legislature claims it is legal? Or is all financial tyranny above the law, regardless of what the elected toadies and apparatchiks claim? Would the Supreme Court, another set of lackeys, ever rule that a state cannot steal funds from a private bank account without due process other than a concocted claim that the person might owe the state taxes?
Of course it won't, for the Supreme Court has long ago given up restricting government's ability to loot and pillage the citizenry. The Court can't even be roused to defend the Bill of Rights, the most sacred set of civil liberties the nation holds (or held-- the Bill of Rights has been annulled by the Orwellian "national defense" NDAA-- Welcome to the United States of Orwell, Part 1: Our One Last Chance to Preserve the Bill of Rights).
Based on dozens of detailed accounts, I finally figured out how the state of California calculates the tax you owe it.
1. If you ever resided in California or filed a tax return there, even 20 years ago, then any 1099 you receive from anywhere from now until your death is "proof" that you owe tax on that income to California.
2. If you live elsewhere but retain a license to do any kind of business in California, you must be hiding income and therefore you owe substantial taxes to California based on bureaucratic calculations of the average income others with your license earned.
3. If you ever filed a tax return in California, if you stop filing tax returns then you will be targeted and brought to earth as a tax dodger. The only way to escape the lawless wrath of the state's Franchise Tax Board is to keep filing tax returns in California until you die, even if you moved away years ago and earned no income there.
Yes, the mere cessation of filing is "proof" you're hiding income and are a tax dodger whose bank account must be stripped clean. Wells Fargo Bank, a recipient of taxpayer funds in the billions of dollars, deducts $100 or even $150 to do the state's dirty work, and then when it's shown the taxpayer owes the state no taxes, the bank doesn't refund the fee--are you kidding?
The banks and their management are still free to plunder, loot, defraud, pillage, misrepresent risk, assets and liabilities--all backstopped by taxpayer funds. If this isn't the acme of Orwellian reversal, then precisely what is? Taxpayers whose accounts have been looted by the state on the flimsy pretenses listed above must then endure the Kafkaesque torture of pleading with California'a Franchise Tax Board to return the money that was stolen from them without due process.
The Franchise Tax Board tells the powerless taxpayer (let's call him Josef K.) that if he's lucky (and who's lucky when caught in a fearsome web of bureaucracy) his money might trickle back to him in 6 to 8 weeks. The $100 stolen by Wells Fargo-- that's your "penalty" for ever having admitted that you lived in California.
It's like the Hotel California--you can move out any time you like, but you can never leave the tax liability. I am not making this up--I have dozens of detailed accounts of people moving out of California many years ago and having no business or property in the state, yet a 1099 from years past or the mere "failure" to keep filing state returns in perpetuity triggers an unannounced and unexplained raid on their private bank account and/or a lien against any property they own in California.
Then, after much anguish and expense, the trumped-up, totally fabricated, delusional claims of tax liability dissolve and then they begin the bureaucratic nightmare of trying to wrest their money from the rogue state's grasp.
Meanwhile, Federal prosecution of financial fraud has fallen to a 20-year low. Coincidence? No; lack of funding and powerful political protection play roles in protecting the real criminals from any risk. Brown-nosing Republicans have made ceaseless efforts to gut any agencies still clinging to an interest in prosecuting financial crimes, but financial tyranny starts by gutting the statutes themselves so fraud, embezzlement, etc. are no longer crimes.
Not filing a tax return in California even though you moved out of the state 10 years ago, however, is a crime--but as in an Orwellian nightmare, the "law" isn't written down, it is embedded in some bureaucratic rules that are hidden from the taxpaying citizens. It isn't "legal," but since due process has been abolished, who cares what's legal or illegal?
It's actually very simple: whatever the state or Federal government does to you, that's legal. Whatever action you take to protect your rights is illegal.
In case you have any doubts about where our "leadership" is taking us, please review these Assorted quotes by Fascists or about Fascism.
If this recession strikes you as different from previous downturns, you might be interested in my new book An Unconventional Guide to Investing in Troubled Times (print edition) or Kindle ebook format. You can read the ebook on any computer, smart phone, iPad, etc. Click here for links to Kindle apps and Chapter One. The solution in one word: Localism.
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Boy ZeroHedge got mentioned ONCE on Rush Limbaugh, and you immediately became a right-wing propaganda outlet. The cash must smell nice, huh?
You changed the symbol from the original "It's not fascism when we do it" poster's GOP elephant, to a Democratic donkey. (c.f. from 2006; http://www.flickr.com/photos/davedonohue/132443565/)
While one can in no way defend the Obama administration, if YOU are going to chose sides here, by slapping a Democratic donkey on your propaganda, it's only fair to mention that the GOP has led the charge:
E.g. Senate vote tallys:
Gramm-Leech-Bliley (repealed Glass-Steagall): 54 'yes' - 53 Republicans, 1 Democrat; 44 'no' - all Democrats
Dodd-Frank (weak piece of crap, but best Americans could do - Republicans fillibustered anything stronger): 60 'yes' - 57 Democrats, 3 Republicans; 39 'no - all Republicans.
House vote tally on Gramm-Leech-Bliley: 243 yes, 57 no. The 57 'no' votes were 50 Democrat, 7 Republican
Same with NAFTA, the Patriot Act, the 2006 Patriot Act renewal, etc..
Fuck Rush... Fuck Donkeys... & Fuck Elephants...
& most of all... FUCK FACISM!
~ Snake Plissken
http://4.bp.blogspot.com/_nkKi0Vm3Azw/TFZK2XVyCxI/AAAAAAAAAEk/SkaUhM_I38w/s1600/SnakePlissken.jpg
Shhh or you'll get your account deleted.....
The narrative is set by ZH, no other opinions are possible.
Did Mr limbaah condemn or support ZH?
I'm guessing he approves their message.
13 down arrows for stating provable facts, Those 13 are the same people who try to debate you by shouting louder than you regardless of the argument.
The sheep look up: Baaaahhhh
This isn't a problem if you close your bank account. I wonder when people will realize buying money orders and check cashing fees is a HELL OF A LOT CHEAPER, in the short and long run, than bailing out banks for trillions that never existed? lol
You make an excellent point, problem is getting more than two people to agree on anything. In my opinion things will have to get so horrible for us that we have no choice but to act, and then it will probably be in a very destructive manner.
Done and done.
The teller asked me why I was closing my accounts, after several minutes of explanation Im pretty sure she regreted asking, especially when the other people in line started asking if what I was saying was true.
That's more of a US problem I think. Over here our banks are pretty damned awesome. The highest fee I ever paid over here to a bank was the maximum transfer fee to a non-local non-affiliated bank and that was like $5 for a $50k transfer. I can go to my bank and pull out all my cash at any time. ATMs just spit out cash up to $3k a day without any issue at all. The banks themselves ensure your security via a gauntlet of paperwork... it can be annoying, but it's all in your best interests. Just goes on and on and on. No tricks, no hidden fees, the fee schedules are right where you expect them to be, and tons of access to just about any bond/security/precious metal you want to snap up.
Can your awesome banks help me buy some organs of political prisoners? I'd like a liver and some braaaaiiiins. Tibetan, please (better karma).
Are we not Muppets?... WHAT IS THE LAW? to pay unto death. to submit to authority.
If you complain about getting screwed over on taxes, you are probably a terrorist
I moved to CA. in 1972, just out of the Service. It was a paradise.
40 years of socialism have turned it into a shithole.
Laughed as I read this and saw the ad stating that California property taxes are due April 10. Use your mastercard.
People here are buying their groceries with Mastercard.
The machine is fractals- fed, state, local- TPTB will always do what they can to keep themselves up over the worker bees. SSN where initially promised to not be used as ID numbers; anyone still believe that? NDAA-'nuff said. Cali is not unique in going after money they have no right to- New York State is also aggressive. Ever push an issue before a local fiefdom? I have. Tried to get the town of Independenc, ky to enforce their zoning law on a guy operating a junkyard on land zoned residential (and had been for 25 years). The town held a hearing where the guy did not have to pay the $500 fee that normal schmucks like me have to pay. They asked why he never filed to operate his business. He responded, "I didn't think you'd let me." Midway into the hearing, the zoning official (who had told me when I mentioned that I was going to have an attorney to represent my interests in shutting this guy down, "you won't need one -I will be representing your side") Stated that she "had a headache" and was excused. The zoning board than rapidly found that the guy would be allowed to keep operating, but not on weekends. Turns out, this womans father was a friend of the junkyard operator. Weeks later, I got a notice of violation for storing my boat on my property- that it was a known fact that boats "brought down property values". For me to appeal- $500. AND THAT IS HOW THE GAME IS PLAYED. The taxpayer always loses to the TPTB. Corzines et al of the world only go down when there buddies get bounced out of power. Remeber the brit trader who lost all those billions- lock him up and throw away the key. Corzine? Nahhh....
I guess I call BS on this.
I left California in the late 1980's and never had the problems written about here. I WAS asked to file a return for the year after I left. submitted a zero return and was never asked for a subsequent return.
So your sample size is 1. No disrespect meant (and I didn't rank you down), but that's a small pool, don't you think?
what about US Constitutional abiding income tax non-payers?
Always have to pop in here and remind people: Kalifornia is and always has been the testing ground for every sort of leftist social experiment and illegal corporate stunt known to man. The precidents that get set here definitely get picked up by other states, and sometimes the Fed. Kalifornia is like a perfect greenhouse to experiment with growing any and all sorts of dispicable, anti-Constitutional, meat-eating plants. Once perfected however, these meat-eaters are spewed all over the nation.
Example deregulated energy market that lead to rolling blackouts in 99-2000. who was behind that? Enron.
Kalifornia Uber Alles
Poverty and desperation always breeds gangs of thugs.
Had a friend who was in the military in CA many years ago. They tried to tap his military retirement by getting his current state to grab money for them. Disgusting.
Always copy your current State Attny General on any letter to another state concerning tax issues. All states hate to be ransacked by another state.
d
"Wells Fargo Bank, a recipient of taxpayer funds in the billions of dollars, deducts $100 or even $150 to do the state's dirty work..."
Yet another reason why I'm glad to be away from that arrogant bank.
Still, it never ceases to amaze me. As we speak, our lofty media is encouraging any voice of dissent to either side with Obama or Romney, both of whom have the same major backers -- like, literally the last time I checked their four largest donors were the exact same banking entities. That little issue never made it into the debates. Hold your shock.
The bathroom is the last bastion of American freedom. Southpark anyone?
Caligula goes fascist.
http://www.youtube.com/watch?v=LX6kVRsdXW4
Didn't Wells launder big-time cash for one of the big-time Mexican drug cartels? This is just expanding a successful line of business.
Criminals are just capitalists who couldn't bribe a politician.
newsflash! we are living in an empire. not a democracy. The republic is dead. we are now officialy rome. we have been since 911. all this partisan banter is a glaring reminder of how naive people are even on zerohedge. only the billionaires on up have any say in the matter now.
“The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it comes stronger than their democratic state itself. That, in its essence, is fascism - ownership of government by an individual, by a group,”
--Franklin D. Roosevelt
"Law abiding tax-payers" lmao...Cal just thought the suckers would be up for continuing their tithe
Tax payment being voluntary n'all
http://www.time4thetruth.info/p/dean-clifford.html
I'm just sitting back and waiting for this to drop into my lap. Lived in cali for just over a year, filed 2 returns with them total.
The trick is to check into what all they get access to at the FTB. If you register to vote, if you renew a license, basically if you have any interaction with the state at all in any capacity, they use the exact same notion that the US likes to use in all its dealings.
"Everyone wants to live in California, even if you leave you'll obviously be coming back!"
The US does this to us expats as well. Get married to a foreign national? Visas become impossible, they insist on green cards (opening up taxation). Filing your taxes? If you're poor, no problem. Once you have any real income overseas file at your own peril if you dont go get your spouse a TIN so they can track their details and take one more step towards declaring them a "us person". It's all a crock. The system is designed to take in as much information as possible and add on as many potential taxpayers as possible and it's really fucking creepy and a pain in the ass.
If you have a kid overseas, do them a favor and DONT register them with the embassy until they have the ability to decide for themselves if they even want that shit in their lives.
Back in the early 80s my credit union account suddenly went to zero. After a personal trip there and speaking with an officer I was told that the CA FTB had seized it. A further trip to downtown San Diego and meeting at the local FTB office I was told that I had not filed a return which caused the action. Another trip home to pick up my copy of said return and another trip down to the FTB office to present it to them. They took a copy and sent it in for processing and validation. Some days later my account was restored with no apology.
This stuff happens with no due process and I would guess with the dismal financial position of the state that it is only becoming more frequent as the post indicates.
America is a Free Country. Just give them all your money.