Why You Pay Taxes: Unraveling the Trust System
The obligation to pay taxes on labor, a fundamental right protected by the U.S. Constitution, stems from a complex trust framework established through historical events. This guide reveals how the government’s bankruptcy, corporate structure, and the strawman system have transformed Americans into debtors, and it provides actionable strategies to navigate this system and assert your financial sovereignty.The Historical Context: A Shift to Corporate GovernanceTo understand why labor is taxed despite constitutional protections, we must revisit key historical events:
- 1861: Dissolution of Congress: During the Civil War, seven Southern states walked out of Congress on March 27, 1861, dissolving the legislative branch’s quorum. President Lincoln reconvened Congress under Executive Order No. 2 in April 1861, establishing martial-law jurisdiction. This “color of law” governance, operating under the “law of necessity,” replaced the de jure Republican form of government with a corporate structure (see maxims: “Necessity knows no law”; “In time of war, laws are silent”).
- 1868: 14th Amendment: The unratified 14th Amendment created a cestui que trust, declaring all individuals “citizens of the United States” subject to a private, commercial jurisdiction. Section 4 ensures the public debt to bankers “shall not be questioned,” pledging citizens as assets to finance the national debt.
- 1871: Incorporation of the District of Columbia: On February 21, 1871, Congress formed a private corporation, the “United States Government,” trademarking names like “U.S.,” “USA,” and “America” (16 Stat. 419, reorganized 20 Stat. 102). This corporation operates under a Federal Constitution of 1871, treating citizens as vessels in commerce.
- 1913: Federal Reserve Act: When bonds backing the government’s debt came due, bankers refused to refinance, leading to the Federal Reserve Act of 1913. This surrendered control of the money supply to private bankers, replacing United States Notes (backed by gold/silver) with Federal Reserve Notes (debt instruments).
- 1933: Bankruptcy Declaration: Facing insolvency, President Roosevelt declared the U.S. bankrupt via the Emergency Banking Relief Act (amending the Trading with the Enemy Act) and HJR 192 (June 5, 1933). Senate Document 43 (73rd Congress, 1st Session) confirmed that all property belongs to the state, with individuals holding only “mere-user” rights.
- Strawman as a Corporate Entity: Your ALL-CAPS name (e.g., JOHN H. DOE) is a corporate fiction created at birth, pledged as collateral for the national debt. By signing IRS forms, you act as the fiduciary trustee for this entity, agreeing to pay taxes on its commercial activities.
- Labor as a Privilege: The 14th Amendment redefines citizens as “vessels” in commerce, stripping constitutional rights and granting “civil rights” (privileges) that can be taxed and regulated. The Supreme Court’s Erie Railroad v. Tompkins (1938) confirmed that federal courts operate under private, commercial law, not common law, leaving citizens without standing to claim constitutional protections.
- Prepaid Debt System: Under HJR 192, all debts are prepaid through accounting adjustments, as no lawful money (gold/silver) exists. Federal Reserve Notes are debt instruments, and your labor is pledged to pay interest to the Federal Reserve, depleting the U.S. Treasury’s gold reserves.
- Mere-User Status: Senate Document 43 (1933) states that all property belongs to the state, with individuals holding only “mere-user” rights. Failure to pay taxes or fees can result in the state reclaiming your home, car, or other assets.
- Debtors in Bankruptcy: As a 14th Amendment citizen, you are a debtor under Chapter 11 bankruptcy, with no standing in law to claim ownership or constitutional rights. Courts, operating as Title 11 Bankruptcy Tribunals, enforce commercial obligations, not constitutional protections.
- File a UCC-1 Financing Statement: File with your state’s Secretary of State to claim equitable title over your strawman, establishing yourself as a secured party creditor (see our Secured Party Creditor Process).
- Challenge Tax Obligations: Use strategies like Accepted for Value (AFV) to endorse IRS documents as negotiable instruments, authorizing debt discharge under trust law (see our Accepted for Value: A Step-by-Step Guide).
- Assert Private Jurisdiction: Declare your status as a living individual, distinct from the strawman, through notices or affidavits to avoid contracting into corporate jurisdiction.
- Research Legal Foundations: Verify these principles using primary sources like HJR 192, 14th Amendment, and 18 USC 511 on govinfo.gov or legal databases like Westlaw.