Privacy From the Tax Man (1997)

By Kyle Rearden

Today’s article is a chapter within Bill Kaysing’s 1997, Privacy: How to Get It, How to Enjoy It.” As part of an upcoming article about the notorious federal income tax, I figured some background material would be useful, at the very least, from a historical perspective, if nothing else. This republication of Kaysing’s chapter is hereby done under the intention of Fair Use; no copyright infringement intended.

Image from Bill Kaysing’s privacy book is hereby used under the intention of Fair Use; no copyright infringement intended.

There is one difference between a tax collector and a taxidermist: a taxidermist leaves the hide.

Property Taxes

To put it simply, do now own anything which warrants taxes. If you have a house you do not want to give up, then stop paying taxes on it. You will have five years to redeem the property. In that length of time, the house will probably appreciate enough to pay off the taxes when sold. In the meantime, there are no tax worries. You can invest your money in raw land, plant trees and other forms of vegetation, and come out way ahead by promoting the appreciation of farm land. Don’t forget: It is not necessary to pay taxes on that land, either!

Sales Tax

Buy at flea markets, from private parties or by mail order from another state. It is wise not to buy anything new anyway; news items always cost more and usually have “bugs” in them. Let someone else get the bugs out before you take over ownership.

Social Security Tax

Work for yourself and simply ignore this type of tax. The author has worked “independently” for 14 years and never received one piece of correspondence regarding this tax. An individual can always deduct himself from Social Security by pleading religious reasons (like the Amish and other sects do). Just write to the Social Security office in Baltimore; ask for a form which allows exemption from taxes for religious reasons. If the office does not reply, simply do not pay…it is that easy. If the office does send a form, fill it out; return it; and you are free!

Unemployment Tax

This is another classic “shuck.” Again, work for yourself and will not have to pay. Alternatively, do what some seasonal workers do for a lifestyle: Just work enough quarters to draw the maximum benefits and then take time off. These people call it “rocking chair money.” It is easy to do if you are fruit picker, cannery worker, or other seasonal employee who can be laid off regularly.

Inheritance Tax

There is a good book on this subject: HOW TO AVOID PROBATE. Get it and see for yourself. Alternatively, if you feel the wings of the angel of death beating against your frail body, transfer everything you own to the people you would like to have it after you depart. Also, joint ownership takes care of this problem.

Telephone Tax

An individual can deduct this tax from his bill. The company will seldom give you any static. After all, company employees are just the unpaid collectors of the tax.

Gasoline Tax

The purchase of a diesel car – powered by fuel bought from a farmer or a boat operator (who buys it without that road tax attached) – is a good idea. Buying a bicycle is an even better idea, though.

Excise Tax

This is the tax in fur and other items some simple souls say are “unnecessary.” This choice is purely personal.

Inventory Tax

If the state in which you reside has such a tax, just move to a state that does not promote this nuisance. Otherwise, it is possible to hide an inventory where it cannot be assessed.

Miscellaneous Taxes

There are hundreds of other taxes – ranging from county, school and bonding taxes to cigarette, booze and business license taxes. To avoid this “tax trap,” an individual must structure his lifestyle to circumvent these aforementioned commitments. For example, when a person quits smoking, he is finished paying taxes on tobacco. The same goes for liquor.

Many people pay practically no taxes at all. It can be done…and when an individual accomplishes this objective, he has the added satisfaction of knowing he has outsmarted the rotten tax collectors. This is not the philosophy of a lonely group of disgruntled rebels. It’s the current trend…

Trend Toward Tax Avoidance

The Internal Revenue Service is working hard to dig up more information on the “underground economy.” This new trend is non-criminal, off-the-record businesses provides untaxed income totaling more than $100 billion annually, according to IRS estimates.

The newly-recognized underground economy has been in existence for generations. It’s really quite commonplace, based on work paid for mostly in cash and not reported to the government. This “irregular economy” usually provides labor or a service at a cheaper rate than “regular” business sources. Often, the workers are employed by friends, relatives or neighbors.

The noncriminal underground economy provides an enormous variety of jobs, service and cottage industries. Some of the basic categories include: babysitting, lawn care, house painting, carpentry, roofing, electrical repair, plumbing, auto repair, construction, catering, photography, artwork and part-time bookkeeping and secretarial work.

The government has developed a sudden, keen interest in this segment of the economy because it realizes that the bureaucracy is missing out on billions of tax dollars. However, IRS estimates of the underground economy’s earning capabilities are quite modest when compared to others.

For example, Peter Gutmann, chairman of the department of economics at Baruch College of the City University of New York, reports that statistics on currency circulation show an annual, “off-the-books” economy of $200 billion. That’s 10 percent of the legal gross national product! Gutmann believes that this money is not reported because of “public contempt for the tax system and government regulations.”

Many people believe there is nothing illegal about participating in this so-called underground economy. It’s a form of self-defense and self-preservation in “a very taxing time.” As good ol’ Calvin Coolidge once said, “Collecting more taxes than is absolutely necessary is legalized robbery.”

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