On February 17, 2010, in Frank Trejo, by trayho

Italics are mine – Frank Trejo – Yesterday’s News Today

The following article by Ed A. Ellison and John William Kurowski written in 1984 and posted by the Justice Times might have been a good answer to the debt problem in our country. But many didn’t see this other than people in the “freedom movement.”

As you read along keep in mind what I’ve said in the past: The International Bankers invented Communism (Socialist/Communist welfare system) for two reasons: To make lots of money (owners of the Fed) and to control people (IRS). It is both parties in Congress along with whomever is president as the ones responsible for promoting America’s slide into unconstitutional government. Read my articles at and learn something millions have never seen nor read. I prove beyond any doubt that America’s monetary system is administered under the 2nd, 4th, and 5th planks of the Communist Manifesto. You know how this was accomplished – 90% of the American people have never read the U.S.Constitution. Small wonder then, that people don’t know when government is violating – how can they with such ignorance. Incidentally, the 10th plank of the Communist Manifesto is “free public education.” We learn the establishment way. We have criminals running government . . . don’t you care? Please spread this blog to others.


Unlike any of the political party gimmicks and schemes currently being offered by career politicians, the State Rate Tax is part of a plan to remedy outright dishonesty, now practiced by the Congress of the United States. As you will see, this plan is not simply another tax proposal, nor a political party creation to maintain the current status quo. It is a revolutionary concept to introduce checks and balances linked to taxation, which will terminate reckless spending by Congress; arrest year end deficits accumulated by Congress; and, preclude inequitable taxation which has been institutionalized by political party loyalists.

Under this plan, the Control of Congress is in part achieved by immediately requiring all federal expenditures to be met by indirect taxation, imposts, duties and excises. Imposts are taxes imposed on imported goods or merchandise; duties are custom charges levied on things brought into the country; excise taxes are inland impositions upon articles of consumption (alcoholic beverages, cigarettes, gasoline, etc.) manufactured for sale or consumption within the country. Excise taxes may also be imposed on illegally earned income (gains or profit); upon income earned through a specific privilege which government has been delegated power to authorize.

The theory behind funding government functions from taxes laid upon articles of consumption, is that citizens are to be free to contribute to government in the manner and frequency by which they spend their money. Taxes on articles of consumption, it must be noted, contain their own check and balance against political corruption, and are the least oppressive of all taxation. A tax on articles of consumption, says Hamilton, number 21 Federalist:

“…may be compared to a fluid, which within time find its level with the means of paying them. The amount to be contributed by each citizen, will in a degree, be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal; and private oppression may always be avoided by a judicious selection of objects proper for such impositions. (I)t is a Signal advantage of taxes on articles of consumption that they contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without defeating the end proposed – this is an extension of the revenue.”

If any particular article of consumption is excessively taxed, it would reduce the volume of its sales and the raising of revenue would be eluded. This check and balance will determine the limit to which each selected article may be taxed. By forcing Congress to select specific articles of consumption, as opposed to a blanket national sales tax, a system of taxation is achieved in which the general public may actively participate in the selection of the specific articles to be taxed, and, to what degree they will taxed.

If, for example, Congress laid a twenty dollar per pound tax on all imported caviar sold in the United States, (an excessive tax even for a luxury article) the wealthy, and merchants dealing in this product would undoubtedly cry “foul” and withdraw their political support from those representatives responsible for the opposition of an excessive tax on caviar. If, however, the tax were moderated to tolerable level, the purchaser’s resistance would also diminish and revenue would be generated!

Another important advantage to labor and industry, when revenue is raised by taxes on specific articles of consumption, is that the necessities of labor (food, shelter, clothing, etc) tools of production, and supplies necessary to conduct business may be excluded from the tax list. This will allow industry and business to flourish unimpeded by taxation; employment to expand, and the welfare of our States’ commerce to be actively protected from oppressive taxation.

Under the proposed State Rate Tax plan, the expenses of the federal government – those specifically authorized by the Constitution of the United States, which are clearly enumerated and subjoined to Article 1, Section 8, Clauses 2 through 18 – are to be founded by indirect taxation! If the annual expenditures for these constitutionally authorized functions of Congress exceed the revenue raised from imposts, duties and excises, then, and only then, shall Congress be required to impose the State Rate Tax in order to preclude Congress from adding a year end deficit to the national debt.

The State Rate Tax is a direct tax required to be imposed if an annual deficit occurs. This tax is to raise a sum certain (annual deficit) and each states’ share is to be calculated upon its number of representatives (votes) in Congress. The tax is to be used only if imposts, duties and excises fail to meet Congress’ annual expenditures.

Upon imposition of the State Rate Tax, the Secretary of the United States Treasury, to extinguish an annual deficit, would submit a bill to each state’s capitol for its apportioned share of this deficit. Each state would be left free to raise its apportioned share within a time specified by Congress. In the event there is a surplus of money in the United States Treasury at the close of a fiscal year (i.e. there is no deficit) this surplus would be applied to a sinking fund to reduce or extinguish the national debt. If there is no deficit, nor a national debt, any surpluses raised from imposts duties and excise taxes may be returned to the states by the rule of apportionment.


The annual cost of maintaining a federal income tax collection agency (IRS) whose budget is about $3 billion, would be almost totally abolished, and the annual cost to the nation, both in time and resources, to record confidential financial transactions of our nations’ entire population, under a pretext of raising revenue, would also be ended by the State Rate Tax.


The State Rate Tax, because it is a tax imposed upon the state governments by a fixed formula, and not upon people or their property, will abolish the present system of federal income taxation and all the dishonorable tax sheltering gimmicks and lobbying of Congress to create special interest tax legislation. Special interest tax legislation has caused a dangerous rise in political factions throughout America, and has led our nation to become politically disunited. By establishing a fixed rule for direct taxation, there is no allowance for political disunity to be bred through the creation of tax loopholes and special interest tax sheltering gimmicks created by Congress. This will help to bring the States closer together to solve America’s real social and economic problems, and reduce political disunity bred among the people by Congress.


In view of the alarming development recently occurring in our nation, by which the power of taxation has been blatantly used to control and regulate into extinction a number of small fundamentalist churches and their schools, the State Rate Tax will come as a blessing to our nations’ religious community; it will preserve their religious freedom guaranteed by the First Amendment of our Constitution and shield the Amendment from being weakened under the cloak of raising revenue.


There is no question as to a states legislature being the best judge as to the mode of raising a federally imposed direct tax. The State Legislature being closer to the people, is better informed to disburse such a burden in an equitable manner, taking into account unique geographical and economic circumstances, and molding taxation accordingly. The State Rate Tax allows each State to be its own judge in deciding how its share of this federal burden shall be raised, and will protect all people, rich and poor alike, from the costs of the federal government being raised and collected by Congress in an unjust, arbitrary manner; it puts the control of such an important and personal matter into the hands of the peoples’ local representatives who must meet this obligation.

Under this plan a balance is achieved in which equitable taxation will be the final result. If a state government should impose inequitable taxation, even if it is only resorted to when raising a states’ share of the apportioned direct tax imposed by Congress, and the state government insists on distributing its burden selectively upon the States’ productive citizens or its small businesses at rates which become intolerable. These citizens, or small businesses, are able to flee from such taxation to states whose administrations respect the productive members of society, and which offer equitable systems of raising revenue.

The freedom of a states’ business community to flee oppressive taxation is an important check and balance to prevent the power of taxation being used to destroy. As it is now practiced, productive citizens have no where to flee to escape federal taxation, and so, Congress is left to engage in mischief and manipulate taxation so as to seek out hard working wage earners, or small businesses, asking them to pay a disproportionate burden of federal expenditures, regardless of where they may live.


Those in opposition to the State Rate Tax claim the system would place an unfair tax burden upon those states having the greatest voting strength in Congress. The fact is, the State Tax Rate is not to be imposed except upon dire emergency as previously outlined, and indirect taxes are to be Congress’ primary source of revenue. However, the states having the larger voting strength in Congress, are required to pay a proportionate share of this direct tax based upon their larger voting strength, will also have a greater say in the policies Congress adopts, and a larger population to absorb their burden if the State Rate Tax is imposed.

By matching each states’ share of the direct tax to its voting strength, no state can use its voting strength to increase the burden of taxation upon other states without also increasing its own burden of taxation in a similar fashion! Thus, the voting strength of each state can in no way be used as an economic advantage when the State Rate Tax is invoked; each state pays according to its voting strength as required by Article 1, Section 2, Clause 3; Article 1, Section 9, Clause 4 of the United States Constitution, and this was the intention of our Founding Fathers.

IN CONCLUSION (finally!)

Congress has never been granted a blanket power or unlimited power to tax the people. Congress has no power to directly tax one, for the benefit of another, a violation of voluntary association; nor a power to be benevolent at home or abroad at the expense of the American citizen through a tax on his money (property) or other property. Our Founding Fathers gave us a free country and meant for us to remain free, and gave us the tools with which to keep us free. The tools of the Constitution and the checks and balances it provides are to protect the sovereignty of the Citizen.

There has never been a grant of power from the people to the Congress to tax the people of the United States. The State Rate Tax is the constitutionally provided limited power of direct taxation permitted to Congress by the will of the people. And, we will continue to suffer as a nation until we demand our Constitution be followed…end of article

Whew! That was a lot. But importantly, it is historical information that gives you an insight as to how our Founding Fathers gave thought to complex issues of taxation. Unfortunately, things have gotten so out of hand that the only answer, I think, is to declare bankruptcy, repudiate all debt, get rid of the Federal Reserve, reduce government to things specified in the Constitution, get rid of government controlling our schools, teach our young the Bill of Rights, repeal the 17th Amendment and put us back to a constitutional monetary system – absent the International Bankers. Of course, there is much more but we can’t continue living under a system without law and order. All the perplexities that abound are what we get in a “democracy” – the worse form of government according to Aristotle. Constitutional government is the answer. We must defeat the Democrats in Nov.

You may consider forwarding this to your elected representatives it may trigger new thought…I love you America.

Visit my other web for humor in my bio. or 602-359-5229

The following is an article written by the same people a year earlier – I failed to copy it then.

Back in the Tax Rebel days (60s 70s 80s) people such as the ones who wrote these articles were harassed by the IRS. It was because of the “Tax Rebels” that the Treasury Dept., which has jurisdiction over the IRS finally included an Inspector General in 1989. But it is no good – nothing ever seems to stop the IRS (KGB). If you stay with this blog you’ll discover the real reason for the IRS. We have a criminal government because all three branches have been subverted. What we have in place is the International Bankers socialistic/communistic welfare system that replaced our Constitutional Republican form of government. Read my blog and you’ll learn how and why the Bankers invented communism in 1848. We’ve been communized and millions are not aware. Although both parties are at fault it is the Democratic Party that has become the lap dog of world communists (International Bankers) Obama was Americas’ first practicing communist and now Trump is reversing all of Obama’s communistic programs. And witness how the criminal system is attempting to stop him.


The State Rate Tax (an answer to the Flat Rate Tax, Gross Income Tax, a Value Added Tax, etc.) is an ingenious, yet simple, efficient and equitable method of financing the expenses of the United States Government. The State Rate Tax requires no court litigation regarding non-taxable earnings; no lobbying Congress for the preferential creation of tax exemptions; no massive police force or agents, to audit, collect and enforce the payment of taxes; no tax returns to be filed, and it will return fiscal responsibility to the Congress of the United States, which perhaps is its most important feature. The State Rate Tax will act as an anchor to save what is now a runaway ship. (Trillions in debt)

The operation of the State Rate Tax is a simple enough for a fourth grade student to understand, yet, the checks and balances in provides against the abuses involved in the powers of taxation are far reaching, and a guardian against the enemies of a competitive, free enterprise system.

The imposition of a State Rate Tax is as follows: If the Congress of the United States approved a 400 billion dollar budget, say for the year of 1984, this budget would then be met by the Secretary of the Treasurer (Treasury?) of the United States computing a bill to be submitted to the Capitols of each State, to be paid out of the treasury of each State. Each State’s share of the total budget of the United States would be computed according to, or based upon each state’s voting strength in the House of Representatives.

State, Number of Representatives, State’s Apportioned Share of the United States Budget of 400 Billion Dollars.
New York – 39 – 8.96% of 400 billion dollars
California – 43 – 9.88% of 400 billion dollars
Pennsylvania – 25 – 5.74% of 400 billion dollars
Maryland – 8 – 1.83% of 400 billion dollars
Virginia – 10 – 2.29% of 400 billion dollars
Delaware – 1 – .22% of 400 billion dollars
Upon receiving its itemized statement from the Treasurer of the United States, each state treasurer would then be required to transfer its state’s “apportioned share of the United States budget, out of its own treasury into the Treasury of the United States upon demand; thereby funding the functions of the United States Government.

In the event that an emergency should arise outside of the budget in the middle of the year, and the United States Congress approved an additional revenue raising bill, which normal indirect taxes (imposts, duties, and excises) could not meet, the State Rate Tax would again be imposed on the States by the previous described formula.

At this point it is worthy to note, whatever the United States Government’s legitimate functions are, there can be no question that Congress must be able to finance these functions without restraint. Under the State Rate Tax, Congress being compelled to bill the State Governments, and prohibited from from taxing the citizens directly, is granted the means to finance its functions unimpeded, yet denied the opportunity to engage in mischief and use the awesome power of a direct tax upon individuals for purposes other than raising necessary revenue.

Having thus identified the most obvious defect in which Congress now raises its revenue, a defect having to mushroomed into a plague in recent years where countless groups stalk our nation’s capital, exh factions group exerting pressure on Congress to escape the burden of taxation, such pressure causing our Congress to convulse, it remains to be shown whether the State Rate Tax (having obviously cured the plague of faction) is also a viable solution in other respects.

In having Congress tax the State Government directly, rather than the citizen, the cause which now brings factious groups to lobby Congress is removed! Congress will be totally circumvented from created preferential tax legislation under the State Rate Tax, and the Internal Revenue Code which expresses thousands of pages of “preferential tax legislation” will have become a nightmare of the past. (End of article)

Folks, there are only two reasons why bankers invented communism. 1 – to make lots of money (Federal Reserve Act – privately own Federal Reserve Board) this is the 5th Plank of the Communist Manifest. It’s called the Central Bank. The other reason is to control people . . . hence the IRS. This is the 2nd plank of the Manifesto. – the more you make the more they take. In our country its called the 16th Amendment – the Graduated Income Tax. It’s really a Ponzi racket. And should you raise hell against this communist welfare system you’ll be attacked by the IRS – recall the attack upon the Tea Party people. The IRS destroyed the Tax Rebels of yesterday and the Spotlight Magazine . . . a newspaper that reported most all the crimes being committed by government and it always gave you an update as to the voting in Congress.

So, whether you believe or not the fact remains that the monetary system of the United States is administered under the 5th, 4th, and 2nd planks of the Communist Manifesto. Bankers bankrolled two Communist – Karl Marx and Friedrich Engels (in 1848) to write the 10 planks. The Communist Manifesto is for slavery whereas the Bill of Rights is for freedom and liberty. But it is the criminals in Congress through the years that have subverted our Constitutional Republic and now we’re saddled with a socialist/communist welfare state.

It was President Wilson who turned over the monetary system to the bankers in 1913. And it was President Roosevelt who expanded the socialist/communist state beginning in the early 1930s. Along comes LBJ in the 1960s which exploded the welfare system beyond belief. His programs have cost Americans trillions of dollars with no end in sight. Remember, of the two parties it is the Democratic Party who has done the most damage to our Constitution. Throw in a few Republicans who are better known as RINOS. They are the ones who cross the aisle and kiss the Democrats ass.
Frank – 602-359-5229 Visit my other blog for many other interesting articles –


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