Historical Evolution of USPI

1. Original Intent Tax Model: 1789-1913

The original model of taxation was based on Original Intent of the Constitution described in the Federalist Paper. That model was too transparent for the liking of the powers that be. This period lasted from 1789 up to about 1913. During this period stamps and licenses were issued to mark the receipt of the privilege being taxed. We had an actual assessment officer, and even an express liability statute. Taxes were mostly indirect excise taxes on imports and not income taxes. The constitution forbids tax on exports from states but not imports.

U.S. Constitution

Article I Legislative Department

Section 9 Powers Denied to Congress

Clause 5. Duties On Exports From States

No Tax or Duty shall be laid on Articles exported from any State.

The Original Intent period instituted at least three Direct income taxes, some of which were declared unconstitutional, some of which were apportioned as required by the constitution, and others not:

  1. 1815: 3 Stat. 164 Ch. 21
  2. 1861: 12 Stat. 292. This act was repealed in 1872 after the famous License Tax Cases, 72 U.S. 462 (1866) declared this tax unconstitutional.
  3. 1894: Wilson-Gorman Tariff Act, 28 Stat. 570, Chap. 349, Section 73. This act was declared unconstitutional by the famous Pollock v. Farmers Loan and Trust, 157 U.S. 429 (1895).

The Pollock case above contains a valuable long history of income tax acts enacted and litigation relating to each act during the Original Intent period.

2. USPI Tax Model: 1913-Present

The U.S. Property Interest (USPI) Tax Model began on the date of the ratification of the Sixteenth Amendment. The Sixteenth Amendment conferred no new taxing powers, according to the U.S. Supreme Court in Stanton v. Baltic Mining, 250 U.S. 103 (1916), so the Amendment was all show. The purpose of the Sixteenth Amendment was to make the public BELIEVE that something had changed when it never actually did.

2.1. Design of the USPI Tax Model

The USPI system is based on consent and property as follows:

  1. The income tax is transformed into a Private Membership Association (PMA) or club you have to volunteer for. Government ID is how you join, and the requirement to provide an SSN to get ID becomes a license to operate as a government agent or officer.
  2. Liability statutes are eliminated and replaced with the laws of property.
    2.1. 26 U.S.C. §6012 implements the common law requirement to return property of another in your custody so its not really a liability statute.
    2.2. 26 C.F.R. §1.1-1 also is not an express liability and even it it was, it is limited to agents of the Secretary of the Treasury working in the Department of Treasury.
    2.3. Not using the word “liable for” in the tax act.
  3. Use the U.C.C. as a method to propose and establish consent. This began in the 1930’s during the dawn of the “Administrative State”. At that point, government became a Merchant offering “privileges” for fees called “income tax”.
  4. Hide or obfuscate the method of consent to join the club.
    4.1. Use “liable to” rather than “liable for”.
    4.2. Never actually define “effectively connected”, but only how to IMPLEMENT it. The purpose is clearly to DONATE private property to a public use.
    4.3. Never define the word “election”.
  5. Call people frivolous who don’t want to join. This is also called “gaslighting” in the psychology profession.
  6. Hide or outlaw ways to unvolunteer. For instance:
    6.1. Those making a USRPI “election” under the FIRPTA act in 26 U.S.C. §897 need the PERMISSION of the Secretary of Treasury.
    6.2. “nonresident alien” description in 26 U.S.C. §7701(b)(1)(B) says what it ISN’T, and not what it IS. Thus, it is a “non-definition” and claiming this status therefore is an OPTING-OUT of being a “taxpayer” if it is also done so as to not be connected to a “trade or business”.
    6.3. Outlawing declaratory judgments that would allow courts to declare people “non-members”. See 28 U.S.C. §2201(a).
  7. Eliminate or prohibit terms to describe non-members. This includes:
    7.1. “nontaxpayer”.
    7.2. “non-person”.
  8. The tax is nongeographical, because Congress has jurisdiction over its property and its officers anywhere in the world.
  9. The tax functions as a RENTAL FEE on property and agents/officers of the national government, but they don’t expressly acknowledge the office. In that sense, Congress is just like Avis Rent-a-car and they run a “rent-an-ident” service. That identity is the status or office you volunteer for.
  10. Enforcement and distraint is limited to agents/officers of the government who volunteer and government property.
    10.1. Agents are are called “taxpayers”. The SSN/TIN is de facto license to be an agent or officer.
    10.2. Property of the national government is anything connected to the SSN/TIN franchise mark.
  11. Everything outside the government corporation is “foreign” and everything inside it is “domestic”.
  12. Financial institutions then become the PRIVATE volunteer recruiters to compel people to volunteer for an office by insisting on an SSN/TIN and a W-4 which are only mandatory for “U.S. person” agents/officers and government “employees” respectively.
  13. Never enacting the U.S. code statutes implementing the tax into positive law. This is done for both Title 26 and Title 42 per the legislative notes under 1 U.S.C. §204. Thus, the tax statutes become mere public policy rather than real law.
  14. Use the SSN/TIN as a de facto license to represent a position in the national government as a “member” but refusing to admit that is its real purpose. See:
    Social Security Administration “franchise” is the license number

2.2. Chronology in perfecting the USPI Tax Model

During this period the following transitions to the laws of property were slowly but steadily implemented:

  1. 1866: License Tax Cases, 72 U.S. 462 (1866) declared first income tax unconstitutional. It was enacted in 1862 to fund the Civil War. This case famously held: “Congress cannot authorize a trade or business in a state in order to tax it.” Yet, even to this day, the I.R.C. Subtitle A income tax behaves as an indirect excise tax on a “trade or business”.
  2. 1872: First income tax repealed. The office of Assessor was eliminated in 1872 after the Civil War. The people assess themselves by filing a return. 26 U.S.C. §6012.
  3. 1895: Pollock v. Farmers Loan and Trust declared attempt to institute the second income tax unconstitutional because it was a direct tax on property. Pollock properly averred their status as a nonresident alien.
  4. 1907: Ellis v. United States, 206 U.S. 246, 254-256 (1907); SOURCE: https://scholar.google.com/scholar_case?case=14609257976025296442. SCOTUS declared that federal criminal law can be enforced extraterritorially so long as public property, including public contracts, are involved. As long as the income tax is a franchise or excise, and as long as those participating are officers of the government under the franchise contract, the criminal provisions of the I.R.C. can be enforced within the exclusive jurisdiction of a constitutional state. Thus, “in the United States” means INSIDE the corporation as an officer or agent of that corporation, including a stockholder or a contractor. See:
    “in the United States”, FTSIG
    https://ftsig.org/in-the-united-states/
  5. 1909: Corporation Excise Tax Act of August 5, 1909, c. 6, 36 Stat. 11, 112. Corporation Tax Act of 1909 was not intended to be and is not, in any proper sense, an income tax law. This Court had decided in the Pollock case that the income tax law of 1894 amounted in effect to a direct tax upon property, and was invalid because not apportioned according to populations, as prescribed by the Constitution. The Act of 1909 avoided this difficulty by imposing not an income tax, but an excise tax upon the conduct of business in a corporate capacity, measuring, however, the amount of tax by the income of the corporation, with certain qualifications prescribed by the act itself.  Flint v. Stone-Tracy Co., 220 U.S. 107; McCoach v. Minehill Co., 228 U.S. 295; United States v. Whitridge, (decided at this term, ante, p. 144). Read Stratton’s Independence v. Howbert, 231 U.S. 399 (1913) for details on this act. Stratton’s held that the tax was an excise tax upon a franchise or privilege, and that the privileges was operating as a corporation.
  6. 1913: Sixteenth Amendment ratified. It expanded the definition of property, which originally meant real estate to include personal property as well.
  7. 1913: Federal Reserve Act, 38 Stat. 251, H.R. 7837, 12 U.S.C. §221 et. seq. enacted on Dec. 23, 1913 during Christmas recess with only SIX senators present, not forming a legitimate quorum. Click here for Wikipedia history.
  8. 1914: First 1040 tax form introduced.
  9. 1916: Brushaber v. Union Pacific Railroad Company, 240 U.S. 1 (1916) acknowledged political citizens of a state of the Union as nonresident aliens.
  10. 1916: 1040 Form instructions acknowledge nonresident aliens.
  11. 1917: 1040 Form removes reference to nonresident aliens.
  12. 1920: 1040 Form adds question: “Are you a citizen or resident of the United States?”.
  13. 1924: Cook v. Tait, 265 U.S. 47 (1924). Income tax declared WORLD WIDE in scope by ex president Taft serving as Supreme Court Justice. This was based on the 1921 filing of Cook in which he checked “Yes” to the question of whether he was a “citizen of the United States?”.
  14. 1926: Internal Revenue Code first codified.
  15. 1933: FDR declares national emergency and banking holiday. Gold outlawed by FDR by executive order. Executive Orders can only affect people INSIDE the government (meaning “DOMESTIC”). They cannot affect the general public.
  16. 1935: Express licenses were eliminated. The SSN/TIN replaces these in 1935 with the Social Security Act. TINs aren’t called licenses, but they function as de facto licenses.
  17. 1939: Public Salary Tax Act, 53 Stat. 574, authorized STATUTORY “States” (territories) to tax public officers of the national government. It was never meaningfully codified, probably because it would violate the separation of powers. Click here to read the hearings.
  18. 1939: Internal Revenue Code of 1939 codified/published. It REPEALED all prior tax acts when codified. It was not published in the PUBLIC laws or the PRIVATE laws volumes of the Statutes at Large. Instead, it was published as a SEPARATE volume so you couldn’t tell if it was PUBLIC or PRIVATE.
  19. 1942: First year the 1040 form asks for the SSN.
  20. 1942: W-2 implemented as part of the Victory Tax. This allowed people to volunteer to be treated “AS IF” they are government statutory “employees”. 26 U.S.C. §3402(p).
  21. 1953: U.S. Supreme Court in Howard v. Commissioners, 344 U.S. 624, 626, 73 S.Ct. 465, 97 L.Ed. 617 (1953) authorized states to enforce state income tax on federal land, thus DESTROYING the separation of powers. This is treason. This case is the entire basis of state income tax. It is the ONLY reason that federal gross income can transfer to a state return in the case of nonresident aliens.
  22. 1954: Internal Revenue Code of 1954 codified published. It REMOVED the phrase “gains, profits, and” from the definition of “gross income” in I.R.C. Section 61. Compare Internal Revenue Code of 1939 Section 22(a) for proof. This created the false appearance that ALL EARNINGS, which are property and capital, are “income” in a Sixteenth Amendment or Constitutional Sense. See:
    Proof of Facts: Capital v. Income, Section 8
    https://ftsig.org/proof-of-facts-capital-v-income/#8._Congressional
  23. 1962: “U.S. person” added to the Internal Revenue Code. Public Law 87-834, 76 Stat. 988, Section 7(h).
  24. 1967: First year the 1040NR return is published.
  25. 1980: First use of “national of the United States” on the 1040NR return.
  26. 1984-2017: “U.S. national” replaces “national of the United States” on the 1040NR return.
  27. 1986: Internal Revenue Code of 1986 codified/published.
  28. 2018: “U.S. national” removed from the 1040NR form.

Every attempt to institute an income tax during this era relied on developing methods to volunteer, without describing them as such so as not to alert the participants. You see this obfuscation, for instance, in the definition of “effectively connected” in 26 U.S.C. §864(c) which describes how to IMPLEMENT “effectively connected” but not its PURPOSE.

3. Further historical research

  1. Prior Year Products, IRS. Goes back to 1913
    https://www.irs.gov/prior-year-forms-and-instructions
  2. Historical Federal Income Tax Acts, Family Guardian
    https://famguardian.org/PublishedAuthors/Govt/HistoricalActs/HistFedIncTaxActs.htm
  3. Great IRS Hoax, Form #11.302, Section 6: History of Federal Income Tax Fraud, Racketeering, and Extortion in the USA
    https://famguardian.org/Publications/GreatIRSHoax/GreatIRSHoax.htm
  4. History-Family Guardian Fellowship
    https://famguardian.org/TaxFreedom/FormsInstr-History.htm