More Forgotten History - The Price Of Our Short Memories

This priceless cartoon warning from 1934 just arrived in my inbox - Thanks Dad!

Note that this was published in response to government "recovery efforts" during the last depression.  Sure rings-true today - don't it!

===>> Click here for the original Forgotten History post

Forgotten History - The Price Of Our Short Memories

My things to blog about and favorite essays lists have grown out of control over the last several weeks (150+ new entries just over the weekend past).  In reviewing my lists I made a couple of observations... 1)  despite the wide range of topics, there is a common thread tying them together - government encroachment upon our liberties; and 2)  decades, or more, of history that demonstrates an incremental erosion of our liberties - and that those erosions are by design.  In fact, we have been warned repeatedly that this was planned and that it was underway.

Our short memories seem to cause us to view each "new" news item as only that which is happening today.  Any effort by an astute journalist to wrap up current news with history, and draw conclusions contrary to the governments talking points, results in the conspiracy theory claim by those in the mainstream, or from among the herd.

So, just how much history does it take to lose the theory qualifier?  I don't know... how many times can you accommodate, may I have bite please, before your plate is empty?

Re: Obamacare is not a Law in Pursuance of the Constitution

It took only minutes to receive a complaint about my last post where I stated:

Laws not made in pursuance of the Constitution (like obamacare) are not law within the several States and neither the States, nor the People, are obligated to obey them.

Rather than defending my position on obamacare, I invite you to review the position of our congress-critters...

Where in the Constitution...

Where in the Constitution, Part 2...

And the mother of all lists...

Aren't they impressive?  It is sad, that it is so funny.  These are the people sworn to uphold the Constitution?  Sounds like they're holding it up to the flames!

Get your nullification on!

The idea of nullification, once all but forgotten, is gaining steam.  Basically, nullification occurs when a State government says "hey, wait a minute Washington, you're overstepping the power granted to you by the Constitution - and we will not allow you to impose that law/tax/mandate upon us."

Opponents of nullification usually cite VI.1.2 (the supremacy clause) of the Constitution to argue-away the idea of a State's authority to nullify federal law:

Article VI; Paragraph 2

This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.  [emphasis added]

Those that oppose nullification would have us believe that VI.1.2 makes the federal government superior to the governments of the several States.  That is NOT what VI.1.2 states.  The above emphasized text makes it clear that only those laws made in Pursuance of the Constitution shall the supreme Law of the Land.  Laws made in pursuance of the Constitution are those made under the authority delegated, by the States, to the federal government in Article I; Section 8.  Laws not made in pursuance of the Constitution (like obamacare) are not law within the several States and neither the States, nor the People, are obligated to obey them.

See also:   Amendment IX and Amendment X

Liberty begins at home, not in Washington.  The protection of our liberty must be performed at home.  There's much fanfare around federal elections, but the most important elections are those that seat your state and local representatives.  By supporting candidates that will jealously guard your liberty you can stack your government with those that will resist federal usurpation.

Tom Woods is the 21st century poster boy for nullification.  Well worth 25 minutes to hear what he has to say...


If you don't have 25 minutes right now, here's a 7 minute bit...
Tom Woods on Freedom Watch 07/03/10 p.2/5

The Tenth Amendment Center is a tremendous resource for information on nullification.

Is Obamacare the pathway to a VAT?

Part I - Expansive Reporting

My intent was never to rant about taxes here at 3 Boxes (I do that enough elsewhere), but this little tidbit from page 737 of H.R. 3590 The Patient Protection and Affordable Care Act deserves some attention...

SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS.
     (a) IN GENERAL.—Section 6041 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new sub-
sections:
     ‘‘(h) APPLICATION TO CORPORATIONS.—Notwithstanding any
regulation prescribed by the Secretary before the date of the enact-
ment of this subsection, for purposes of this section the term ‘person’
includes any corporation that is not an organization exempt from
tax under section 501(a).
     ‘‘(i) REGULATIONS.—The Secretary may prescribe such regula-
tions and other guidance as may be appropriate or necessary to
carry out the purposes of this section, including rules to prevent
duplicative reporting of transactions.’’.
     (b) PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS.—
Subsection (a) of section 6041 of the Internal Revenue Code of
1986 is amended—
           (1) by inserting ‘‘amounts in consideration for property,’’
     after ‘‘wages,’’,
           (2) by inserting ‘‘gross proceeds,’’ after ‘‘emoluments, or
     other’’, and
           (3) by inserting ‘‘gross proceeds,’’ after ‘‘setting forth the
     amount of such’’.
     (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to payments made after December 31, 2011.

Unless you often need to read the IRC, the impact of the above amendment to 26USC6041 is probably not clear.  Let's put it in context...

Section 6041 of the code today:

§ 6041. Information at source

(a)  Payments of $600 or more
All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042 (a)(1), 6044 (a)(1), 6047 (e), 6049 (a), or 6050N (a) applies, and other than payments with respect to which a statement is required under the authority of section 6042 (a)(2), 6044 (a)(2), or 6045), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment.

OK, payments of $600 or more.  Now you get it, we're talking about Form 1099 - normally reserved to independent contractors/consultants or freelancers.  Not any more.  The changes to 6041, effective 2012, will expand the forms of considered payments to include any transaction and, by way of the new Subsection (h), will enlarge the payee types to include every form of entity - less those excluded by 26USC501(a).  That means that businesses will be required to "1099" every vendor and service provider that they paid > $600 during the course of the year.  Every one!  The cleaning service, every supplier, every freight carrier, every shipper (probably not the USPS though), the outfit that caters in lunch, the pizza place around the corner, the utility company, your accountant, your attorney, your mechanic, the phone company, your ISP and, of course, those guys that you traditionally 1099.  Basically - "every swinging richard".  But your business is not the only business required to do this.  For every 1099 you send to a vendor they will receive dozens, 100's or 1000's more - and your business, depending on size, can expect to receive dozens, 100's or 1000's of 1099's too.  Paperwork nightmare, eh? And just how do you harmonize your books with all those 1099's?

The good news:  Legislation regarding reporting credit card transactions takes hold next year so payments by credit card will likely be exempted.  The bad news about the good news:  You will need to sort out the payment methods used, for each payee, to get to the 1099-able amount - sheesh!

Want to tell the IRS what you think?  Good, they've invited your comments here.

Remember that this amendment to the IRC comes from the Obamacare bill.  No doubt Congress believes increased reporting will increase tax revenue and PRESTO! - Obamacare is funded.  Not a chance.  I do not believe that these new reporting requirements will do much to "increase compliance" or to increase tax revenue.  Nor do I believe that was the intent.

I believe that the real amendment here is not to Sec. 6041, but to American bookkeeping and accounting practices, an absolute necessity for the implementation of VAT - where tax is applied to every transaction.

More to come in part II - "Incrementalism and the Elephant".

The Census v.s. the right to be left alone...

Please complete and mail back the enclosed census form today...

...And that's just what I did, scratched in 03 for question #1, leaving the rest blank, and stuffed the form in the postage paid envelope and stuck it in the mailbox.  Done.

My census experience left me wondering what others are saying.  A quick search turned up this pearl, "The Sole and Express Purpose of the Census",
from the Tenth Amendment Center (one of my favorites).  It turns out that the piece is re-blog of "Are the Additional Questions on the Census and American Community Survey just Another Usurpation of Power? By Robert Greenslade".  I took some time to read a few of Mr. Greenslade's other essays.  The guy is smart and has plenty to say.  Please check out his work (link above), the archive links are listed on the right side of the page.  Enjoy!