How you can resist funding the government →
a survey of tactics of historical tax resistance campaigns →
destroy the apparatus of taxation →
modern roadside apparatus in particular
Tax resistance is a staple of nonviolent resistance, but not all tax
resistance is nonviolent. There are also plenty of examples in which people
have taken up arms against the taxing authority, have violently destroyed the
apparatus of tax collecting, or have used threats of violence to intimidate
or inhibit tax collectors.
“Mike The Parking Ticket Geek” … contacted us via Twitter and showed us his website, theexpiredmeter.com, which he used to give people advice on how to beat parking tickets.
The site has become a lightning rod for peoples’ complaints about the new rates and operators.
Mike says the people who are writing to him have a sense of “anger, frustration, rage in some cases.”
To the point where some, it appears, are vandalizing the meters.
Pictures on Mike’s website show meters deliberately smashed, taken apart, spray-painted, or deliberately jammed.
“People suggest taking a quarter, putting some super glue on it, and putting it in the coin slot,” Mike said.
Other tactics mentioned on the site are over-feeding the meters with pennies
so as to make them too full to accept any other coins, spray-painting over
their windows so their status cannot be seen by parking enforcers, filling the
meters with expanding foam, or removing them entirely.
Peter Hendrickson, one of the latest in a long line of constitutionalist tax protester amateur lawyers, got his original tax protester prison term after conspiring to mail a firebomb to the IRS.
And then there are the “suspicious powder” episodes that temporarily shut down IRS facilities from time-to-time.
Though these suspicious powders are always found to be harmless, they’re clearly intended to resemble the anthrax-powder mailings that killed several people — and so are no less violent in practice than a bank robbery using an unloaded gun.
Crowds in Oaxaca State, Mexico, in revolt over new taxes, stoned to death
Diodoro Maldonado, the mayor of Tlacolula.
They attacked him near the gate of his home.
Eight others have been killed and at least 50 injured in riots.
Taxpayers of the city of Oaxaca, the State capital, are holding a general
strike.
They are demanding the resignation of the State Governor, Manuel Heredia,
because of his tax programme.
The Governor armed nearly 3,000 farmers with modern, carbines and marched
them into Oaxaca’s main square to “protect State property” after the first
outbreak of rioting.
The Governor blames Communists for the disorders.
Although the Governor has repealed his tax decree, which would have meant a
sharply increased burden on the State’s poor as well as the rich, an Oaxaca
“citizens’ committee” says that passive resistance will be continued until
he resigns.
Yesterday General Augustin Mustieles said that army tanks and troops of
Mexico’s only motorised brigade, rushed to Oaxaca after police had fired
into a crowd of anti-tax demonstrators should have no trouble in preserving
order.
“But if more trouble develops,” he said, “we will not hesitate to arm more
peasants — 20,000 if necessary.”
Some bits-and-pieces from here-and-there:
Not all tax resistance has to do with grand global issues or conscientious objection; some is just the protest of people who feel they’re getting shafted by a government that takes too much and provides too little.
Case in point: Scott Frisby of Southend.
He says the government has failed to provide even the minimum of services, and so he’s dropping his subscription (or at least 25% of it).
Scroll down to the bottom to read the hilarious response from Southend Council’s customer service department.
The Indianapolis Baptist Temple started refusing to pay federal taxes in , when pastor Gregory Dixon “decided the church would break all ties with the government and no longer act as its agent in withholding taxes from its employees,” citing Constitutional freedom of religion as his mandate for taking his church out from under Uncle Sam’s thumb.
For several years, nothing came of this defiance, but in the early 1990s, the IRS started seeking back taxes, eventually filing liens against the church and against Dixon. The church fought back in court, but lost a series of appeals, finally getting turned down by the U.S. Supreme Court in .
Here’s the story, with links to the court opinions.
A populist form of tax resistance is aimed at speed and red-light cameras that scan license plates of offending vehicles, snap photos of the drivers, and automatically issue traffic tickets.
These cameras are more a revenue-raising program than a safety-encouraging one, and they’re causing lots of resentment.
A driver has racked up dozens of speeding tickets in photo-radar zones on Phoenix-area freeways while sporting monkey and giraffe masks, and is fighting every one by claiming the costumes make it impossible for authorities to prove he was behind the wheel.
It took Arizona state police months to realize the same driver was involved and was refusing to pay the fines.
By the time they did, more than 50 of the tickets had become invalid because the deadline for prosecution had passed.
Arizona began deploying the stationary and mobile cameras on state highways a year ago, and through had issued more than 497,000 tickets.
Of those, about 132,000 recipients had paid the fine of $165 plus a 10 percent penalty, netting the state more than $23 million.
Arizona is the first to deploy such technology on highways statewide.
Many of the remaining tickets are either new, being appealed or have just been ignored. The state didn’t have figures immediately available on the breakdown.
The backlash against the cameras has been fairly constant, however.
Arizonans have used sticky notes, Silly String and even a pickax to sabotage the cameras.
Many believe the shooting death of speed-enforcement van operator Doug Georgianni on on a Phoenix freeway was a result of anger over the cameras, although authorities haven’t made that direct allegation.
“It’s a peaceful act of resistance — that’s what this country was founded on,” VonTesmar said. “I’m not thumbing my nose at DPS, but photo radar is not a DPS officer protecting public safety.
It’s nothing but a speed tax.”
What ever happened to the tollbooth-destroying family of Rebecca and Her Daughters?
Seems they’ve recently been spotted in Arizona.
Excerpts:
Arizona speed cameras incite a mini revolt
A masked man, a citizens group, a judge and other motorists are behind the fight against photo enforcement.
Arizonans drive long distances on their highways, and they like to do it fast.
But since the Grand Canyon State began enforcing speed limits with roadside
cameras, motorists are raging against the machines: They have blocked out the
lenses with Post-it notes or Silly String. During the Christmas holidays,
they covered the cameras with boxes, complete with wrapping paper.
One dissenting citizen went after a camera with a pick ax.
Arizona is the only state to implement “photo enforcement,” as it’s known, on
major highways and is one of 12 states and 52 communities, plus the District
of Columbia, with speed cameras, according to the nonprofit Insurance
Institute for Highway Safety.
The cameras, paired with radar devices, photograph vehicles exceeding the
speed limit by 11 mph or more. A notice of violation — carrying a fine of
$181.50 — is then sent to the address of the vehicle’s registered owner.
Initially, the cameras were thought of as a revenue generator, expected to
bring in more than $90 million in the first fiscal year of operation.
But , the cameras generated about $19 million for
the state’s cash-strapped general fund, according to a report on photo radar
released by the Arizona Office of the Auditor General last month.
As of , only 38% of issued
violations were paid, the report said.
Dave VonTesmar, or perhaps not — who’s to say?
The program was designed to encourage people to pay the fine and not fight
their violations: No points are added to an offender’s license, and it
doesn’t affect insurance.
But, critics note, that hasn’t stopped people from wanting their day in
court. About half of the total violations issued are still pending because
people have ignored the tickets or have requested hearings to challenge them,
according to the state Department of Public Safety.
The violations put an “inordinate” load on the courts, said Terry Stewart, a
court administrator with Maricopa County. People have flocked to request
hearings at Phoenix courts, and at one point last year, one court branch had
cases set up through .
“You just have irate litigants and irate defendants coming in, just mad at
the entire photo enforcement system in general,” said Steven Sarkis, a
Maricopa County justice of the peace.
The most high-profile protester has been Dave VonTesmar, who has achieved
statewide fame through his efforts to fight the tickets with a monkey mask.
The 47-year-old flight attendant has allegedly sped past the cameras at least
40 times.
His defense?
There’s no way to prove that he was the driver wearing the mask, he says.
Lots of people, he adds, drive his car.
VonTesmar, who signed up for the military on his
17th birthday, says he doesn’t fancy himself a
criminal.
Amid empty soda cans on the floor of his white station wagon are various
rubber disguises, including the famous monkey mask, a Frankenstein, koala,
panda bear and a ghost mask that glows in the dark.
So far, four of VonTesmar’s cases have been dismissed, and he’s been found
responsible for seven. The remaining 29 are pending, said VonTesmar’s
attorney, Michael Kielsky.
Another dissenter is John Keegan, a judge for the Arrowhead Justice Court,
who has called the cameras a constitutional violation. He rejects every photo
radar ticket that comes before him.
So far, Keegan says, he’s dismissed more than 7,000 violations, potentially
worth more than $1 million.
In Palmer Park, Maryland, locals have been vandalizing and destroying the speed and red-light cameras that the government has set up to extract money from drivers by means of automatically-generated traffic tickets.
This has led to the amusing spectacle of the police there setting up surveillance cameras to keep an eye on their cameras.
One man literally pulled out a pistol and used the camera for target practice.
Police found another speed camera flipped over—leading police to believe a gang of people committed the crime, considering the weight of the camera.
Then there was the camera set up on a stand, near FedEx Field.
A man walked up to it, cut off one of the legs, and walked away.
… [O]ne of the cameras incinerated.
In another case, a man recently paid his $137 traffic ticket by folding 137 dollar bills into origami pigs, carefully arranging them in Dunkin’ Donuts boxes, and taking them to the police cashier.
The Greek “won’t pay” movement has launched a new phase of its constructive program — reacting to the closure of hospitals and other austerity-prompted decay of the public health system by creating its own
“Social Solidarity Clinic.” The clinic launched with a blood drive.
Not only does the United States itself possess the world’s most threatening and fearful arsenal of weapons by a significant margin, but it also is by far the largest dealer of weapons worldwide.
[T]he U.S.
[sold] $66.3 billion in weapons abroad [in
], a record itself, but also by far the
largest single year increase ever, over the $21.4 billion in 2010.
The sales amounted to about 78 percent of all foreign arms sales on the
entire planet. The second place arms dealer nation is Russia, which sold
less than $5 billion themselves.
Taking a page from the Rebeccaite toolbook, tax resisters in Brittany have taken to destroying tollbooths.
Here’s a great example (video):
Back in Rebecca’s time, toll gates were real wooden gates that barred the roads to drivers until they paid their tolls, and the resisters’ tools were bonnets and axes.
Now, toll gates are automated portals that scan the license plates of passing trucks, and the resisters’ tools are red liberty caps and burning tires full of petrol.
someone snapped this picture of a road tax camera burning in Jugon
The government is billing this as an “ecotax” designed less as a revenue-raiser and more as a way of trying to wean French shipping away from the highways and towards less-polluting transportation options.
But a new group, the “bonnets verts” (green caps) are asking: if the government cares about the environment so much, why has it doubled the tax on people who use public transit?
A new demonstration today, in Carhaix, drew perhaps twice as many people.
It is being accompanied by dozens of blockades of trucks along highways throughout France, with the stated goal of letting cars through but halting commercial transport (this is snarling traffic to the extent that some demonstrators were having difficulty getting to the Carhaix rally).
The language barrier makes it difficult for me to interpret much of the news coming out of the area, but I’m trying to keep up (on the Twitter, it seems that #BonnetsRouges, #RevolteFiscale, and #ReveilCitoyen are the tags to watch today).
The so-called “ecotax” remains a focus of the demonstrations, but there is also a focus on demanding more regional autonomy, and calls for the resignation of the overwhelmingly unpopular French president.
Other opposition groups with their own specific grievances have tried to latch on and put their messages on the agenda (notorious far-right politician Jean-Marie Le Pen put on a red cap at one point), but so far the bonnets rouges seem to be maintaining an ecumenical inclusiveness: protesters of the left and right, believing that Bretagne is being misgoverned and exploited by Paris, are keeping a united front and overlooking their differences.
Some international tax resistance news to wind up the old year:
In northern Italy, a group of small businesses have united under the banner “protesta fiscale ad oltranza” (tax protest to the bitter end) to begin to refuse paying taxes.
We can no longer pay protection money to a phantom state.
Join this group of people who have decided to lift our heads, a group of businesspeople who have had enough of this extortion practiced by a corrupt and criminal class with their legal scam of extorting money from businesspeople, from companies, from Italian households to expend revenues on their own interests, while starving citizens who cannot pay more under threats and victimization from the tormenters of the state.
(Caveat: I pieced this translation together from Google Translate and some educated guesses based on Spanish grammar.)
some of the participants in “protesta fiscale ad oltranza” declaring that they won’t pay any more protection money to the government
[I decided to begin resisting] in December, when I got the bill from INPS [for the social security tax] — about three thousand Euros!
When they asked me for that money, I felt like an ATM with breast cancer.
So after having paid the INPS contribution every year , I decided not to pay it.
In Italy, Giovanni Paolo Ramonda, general manager of the Community of Pope John ⅩⅩⅢ, spoke at a conference on the theme of “peace is the best defense.”
He called on the government to create a “Ministry of Peace” and to allow taxpayers to choose to direct their taxes there instead of to military spending, and, “in the absence of this… we call on everyone to perform war tax resistance.”
Mr Lester told the court that domestic and international laws stipulate that when war is illegal, the collection and payment of council tax to the government is a war crime.
Mr Lester argued that the money going to Havant council went into a central pot of government cash.
He told magistrates: “International law applicable to the U.K. as well as our own domestic legislation forbids me from becoming party to criminal acts being committed on an ongoing basis by the U.K. government.
“It overrides any otherwise lawful requirement placed upon me by U.K. government.
I submit it is beyond the scope of the powers of any public body, in this case Havant Borough Council, to require anyone to commit a crime.”
He added: “I am not trying to achieve national chaos.
I am trying to achieve the end of this country’s illegal and immoral use of war.”
Lester lost his court case and is appealing.
In Malakasa, Greece, the mayor, deputy mayor, and aldermen were among those arrested at a toll gate protest at which the protesters raised the gates and waved cars through, and later destroyed some of the tollbooths.
In another action in , the mayor of Pelasgias took a city-owned bulldozer and knocked down the railings along the roadside leading up to a tollbooth, creating a bypass around it.
A movement that is resisting increased fares on government-run monopoly public transit, which I first noticed in Mexico under the name “Pos Me Salto” has gone thoroughly international.
In Rio de Janiero, Brazil, protesters of the passe livre movement occupied the central station:
After marching peacefully from the Candelaria area dozens of activists from the Black Block group sprinted off and entered the station before police could close the gates.
They smashed turnstiles, waved flags and entreated commuters to enter the train system without paying.
Riot police and station security temporarily regained territory with pepper spray and percussion grenades, but after a brief hiatus the demonstrators regained control of the concourse and started drumming, dancing and singing as passengers — many clutching handkerchiefs to their faces because of the pungent police gas in the terminal — passed by without paying.
“I totally support this protest,” said Fabiana Aragon, a red-faced, teary-eyed health worker who was heading home after work.
The 43-year-old said she spent almost a third of her 1,000 reals income on transport fares but still had to endure long delays, dirty trains and hot, crowded carriages without air conditioning.
“The situation now is absurd.”
Meanwhile, in London, England, a mini fare strike was launched to support the unions of transit employees.
The government is hoping to cut back on ticket booth workers in favor of vending machines; the union, naturally, disapproves.
As part of the union’s pressure tactics, they have decided on periodic “revenue actions:”
This means that station staff will refuse to carry out “revenue duties”, including selling and checking tickets.
Ticket office windows will be closed and ticket machines will be powered down.
Revenue Inspectors will not conduct checks and issue penalty fares, and, except in cases where crowd control means it’s unsafe to do so, ticket gates will be kept open.
In other words… free travel!
Resources are being organized with sample letters, flyers, and volunteer counselors who will inform and assist anyone who wants to stop paying a tax we consider illegitimate.
“We expect a lot of participation, with tens of thousands of people participating and sending a strong warning to those responsible.”
In Catalonia, the nationalist movement is pressing for a referendum on independence from Spain, though one which the Spanish government has already said it has no intentions of honoring (or even permitting).
The movement has long been engaging in sporadic, and mostly symbolic, tax resistance actions.
Recently the Catalan National Assembly considered launching a fresh tax resistance campaign.
With this campaign (“From disobedience to sovereignty”) the ANC proposes that rather than paying taxes to the national Treasury to pay them into the Catalan Government, to initiate a “progressive disengagement from the State.”
Stephen Ruth discovered that Suffolk County officials had unsafely manipulated the timing of traffic lights to trick drivers into running red lights and increase the revenue from the ticket-issuing red-light cameras.
He was so furious that he not only blew the whistle, but he cut the wires to the cameras to foil the scheme.
American war tax resister Frances Crowe is 98 years old.
That didn’t stop her from getting arrested in a civil disobedience action against a planned natural gas pipeline.
She was convicted, and is now refusing to pay the fine.
Welt wonders where Thoreau would find himself in today’s political landscape, and concludes: “He belongs to nobody; he cannot be monopolized by any party. ‘The only obligation which I have a right to assume,’ said Thoreau, ‘is to do at any time what I think right.’ Ideologies, even progressive ones, bothered him.”
The Den Plirono movement is still sending out its Harry Tuttle-like engineers to reconnect the power to families who have lost electricity for failure to keep up with the tax hikes the government has added to utility bills.
Here’s an aspect of the recently-passed federal tax reform legislation that had previously escaped my notice:
People who became disabled early in life, and their families, have for a few years been able to establish something called an ABLE Account.
These are a bit like Roth retirement accounts — the money you put into the accounts is taxed just like the rest of your income, but any returns on that money are not — but you can spend the money in the account on a variety of expenses connected with coping with the disability.
Anyway, these accounts aren’t entirely new, but what is new is that people who contribute to these accounts now qualify for the Retirement Savings Tax Credit, which can be really valuable for low-income tax resisters.
I hope to have some big news to share with you soon, but until then here are some links of interest to tax resisters that have accumulated during my absence:
Claire Wolfe, on the downhill slope of her recent book project Basics of Resistance, gives me a shout-out over at her Practical Freedomista blog:
In addition to being a personal inspiration, he’s written about other tax resisters like Ammon Hennacy, who conducted a One-Man Revolution and Henry David Thoreau, who wasn’t the pacifist some imagine.
If you’re looking for helpful information from a man who has walked the walk, David’s blog is a good place to start.
Barakaldo Digital reports on the outreach actions
of war tax resisters from Barakaldo, Biscay.
“They have protested that the ‘diversion of public resources’ to military
expenses or bank bailouts ‘translates into a town like Barakaldo, with high
rates of unemployment, poverty, and precariousness, with many deficits in
social services.’ ” The Spanish government, under pressure from the
U.S., says it
plans to double its defense spending so as to take on a higher percentage
of the total NATO
budget. Concerned Basque taxpayers are encouraged to contact their Office
of Tax Resistance in Bilbao.
Boycott, Divestment, Sanctions (BDS)
is a technique for applying economic pressure to states, usually from
without, by trying through multiple avenues to deny them economic
resources. The tactic was famously applied to apartheid South Africa, and
is now enjoying a resurgence in the attempt to curb Israel’s oppressive
policies towards Palestianians. But isn’t it overdue to BDS the U.S.?
I’m seeing some signs of organized tax resistance as part of the ongoing protests in Nicaragua, which are aimed at the unpopular policies and the general repressiveness of the Sandinista government:
Attorney Julio Francisco Báez has produced a video for Nicaraguans who want to participate in tax resistance.
When we talk about civil disobedience in the Mercado Oriental, we are talking about not paying city taxes, not paying Conmema [vendor fees], not paying trash, not paying any tax that has anything to do with government entities.
First, as disobedience, and second, because it is prioritizing the salaries of the workers.
Of course [we fear reprisals].
We know that this dictatorial government always takes reprisals against anyone who rises up.
The merchants are afraid.
I am afraid.
It’s normal, but in this moment we have to put aside any fear of economic loss.
Student protest leaders called for tax resistance and boycotts of businesses owned by the ruling family as part of a nonviolent resistance campaign.
Alex Tabarrok has an amusing post demonstrating the sort of magical thinking that progressives sometimes have about taxes and government spending.
Some people every year get it into their heads that it would be a good idea to donate money to the U.S. government to help it pay down the national debt.
That debt stands at something like $21,000,000,000,000, so those donations, though they amount to millions of dollars a year (go figure), only pay down something like 0.00001% of this amount.
People may be wising up, though.
These voluntary contributions seem to be sharply down this year.
There’s an interesting trend suddenly emerging in which consumer brands are trying to get a public relations boost by taking action against the government or stepping in to replace it.
In these cases: Country Time Lemonade offering to provide free legal assistance to children who are fined or otherwise harassed by The Man for setting up lemonade stands, and Domino’s Pizza filling potholes that have gone unfilled by the ostensibly responsible governments.
Under the Jacob Zuma regime in South Africa, the tax agency became so corrupt and unwilling to confront tax evasion by political elites, that a country with high “tax morale” (relative willingness by citizens to pay taxes voluntarily) has now become one in which “more and more South Africans have simply stopped paying their taxes…
In the eyes of many experts, the government’s — and the country’s — ability to right itself is at stake.”
Breizh-Info reports on the craze of destroying traffic ticket issuing bots in France.
While the Bonnets Rouges of Brittany probably deserve some credit for getting the ball rolling on this, the acts have spread to other regions of France.
And “with rare exceptions,” says the reporter, “the culprits are never found or denounced.”
A peace activist convicted for his role in a demonstration against the Navy base being constructed on Jeju Island has refused to pay his fine, opting to serve 46 days in prison instead.
In the face of the massacre by the Ortega-Murillo government of the
Nicaraguan people, from the University Alliance for Democracy and Justice
we call on the private sector and to Nicaraguan society in general, to
strengthen their actions of tax resistance and to stand firm in the face
of state violence, declaring a general strike for 48 hours or until the
Ortega-Murillo government complies with the following conditions:
Stop the cruel paramilitary repression in Masaya and other
territories besieged by the National Guard and Sandinista Youth shock
troops.
Send invitations to the United Nations High Commissioner for Human
Rights, the European Union, and the Inter-American Commission on
Human Rights, to establish permanent missions of these organizations
in our country.
The call is to use every civic mechanism we have at our disposal to curb
these criminal acts of the Ortega-Murillo government.
We cannot live normal lives while they massacre our brothers!
A
survey of thousands of smokers in California showed that more than a
third of them had used legal methods to get around the state’s prohibitive
excise tax on tobacco, and nearly one in five had used illegal techniques.
And that survey was taken before a $2-per-pack hike in the tax
rate took effect. “About a third of cigarettes in California are estimated
to be from out-of-state (and thus tax-avoiding) sources.”
One of the features of the big tax law that Republicans passed last year
was one that caps the tax deduction for state and local taxes. This has
the effect of raising taxes on wealthier people from high-tax states.
These tend to be the Democrat-leaning, wealthier, coastal states, and so
this has been seen as partially a partisan poke at the Democrat’s donor
base and a thumb-in-the-eye at blue states in general — increasing the
amount they’re subsidizing their red cousins. But blue state lawmakers are
getting creative and trying to deny the U.S. Treasury this extra tax money.
Some of these workarounds would even have the effect of allowing people to
deduct more than before.
Today, some of the international tax resistance news that’s been collecting in my bookmarks in recent weeks:
Nicaragua
The tumult in Nicaragua continues.
The University Alliance for Democracy and Justice has called on businesses to join a prolonged tax strike and a short general strike, aimed at forcing the resignation of President Ortega.
The statement from the group accused the organized business sector of being “accomplices” and “complicit” with the Ortega regime because of their inaction thus far.
Tips for economically punishing the Daniel Ortega regime
Tips for practicing autonomous tax resistance
To win freedom by nonviolent means is not easy work.
The force holding the Ortega-Murillo dictatorship together is money and with our taxes we are fueling that repressive force that treats us as though we were inferior beings, with hatred and contempt.
The police do not protect us, they attack us, and incredibly we pay them to do it.
No more!
As citizens we can reduce our monetary contributions to this regime by making a tax boycott.
Here is a list of tax resistance methods that we can practice in our daily lives:
Limit your purchases to tax-exempt items
Domestic fruits and vegetables, unpackaged rice and sugar, domestic vegetable oil, eggs, bread, milk, and cheese.
Domestic meat and cuts of meat other than loins or steaks.
Personal hygiene and household products produced in Nicaragua.
Do not ask for a bill for your purchase.
If it’s a “vandal” business, they will be free not to report the tax on your purchase.
[Vice President Rosario Murillo has called anti-regime protesters “vandals.”]
Buy from the informal sector.
Small businesses, stretches of the marketplace, groceries and businesses under the fixed-fee system.
You can ask the business-owner which tax system they fall under if you have any doubt.
Reduce purchases made with credit or debit cards.
The government keeps 1.5% of every purchase made with a card.
Reduce your spending on entertainment activities and on the consumption of alcohol.
If you do consume alcohol, try to do so in places that do not issue invoices.
In general such places are where the drinks are less expensive.
If you are going to eat out, try to do so in traditional places, not in the chain restaurants.
Buy only what you need.
The regime urges “normalcy” in order to encourage consumption.
These methods will be effective if enough people join in for a considerable time.
In addition, they will help you to save, which is welcome in these times of crisis.
You will demonstrate our solidarity with the suffering of political prisoners and with the families of the victims who keep crying out for justice to a system that has no intention of giving it to them.
Share this notice
#SOSNicaragua
Elsewhere
Robert McGee has published another in his series of studies of attitudes across cultures about the ethics of tax evasion. The latest probes
Chinese business students — those studying in the United States and in China.
TheNewspaper.com continues to do great work in tracking down examples of people disabling traffic-ticket-generating speed- and red-light-cameras, including, recently:
Examples from France and Italy of paint, tape, boxes, fire, gunshots, power saws, and wire-clippers being put to good use.
Examples from France, Italy, and Russia of bags, taped posters, fire, power-drills, battering, spray paint, toppling, blocking, and disemboweling as techniques for disabling the cameras.
When the Kenyan government slapped a 16% tax on petroleum products, petroleum transporters launched a strike, leading to fuel shortages in Nairobi.
“Kenya’s energy regulator has revoked the license of the Kenya Independent Petroleum Distributors Association for allegedly leading the fuel boycott,” a news report says, “equating their action to economic sabotage.”
Attorney Carlos Muriete has called on residents of La Rioja, Argentina to stop paying property and vehicle taxes to protest inadequate municipal services.
“The city is wrecked, there are craters that cars fall into and serious accidents can occur, it is dirty, full of rats, sewage is running in the streets, there is no control of the dogs and the health of the people is in danger,” he said.
War Tax Resistance
Some war tax resisters are very public with their resistance, and consider protest and confrontation with the powers that be to be crucial parts of how they make their stand.
Others are more private and understated, refusing to pay but not making a lot of hullabaloo about it. On the NWTRCC blog, Erica Leigh examines public vs. quiet resistance.
War tax resister Larry Bassett looks at “the power of war tax resistance in 2018” — trying to measure the effects of his own resistance and that of the war tax resistance movement.
(As found on Facebook and at Citizen Truth.)
A flash from the past in the Lewis Center, Ohio, ThisWeek Community News gives us a glimpse of a war tax resistance tactic used in the United States during World War Ⅰ.
The government had put a war tax on rail travel, but apparently the tax only applied on tickets above a certain threshold value.
So some travelers split tickets, buying tickets from point A to point B and then point B to point C to avoid paying the war tax that would have applied on a ticket from point A to point C.
Tax Resistance Internationally
Nicaragua’s Blue & White National Unity group has called for a consumer strike and energy strike.
The consumer strike is meant to last three days and aims particularly at those consumer goods like fuel, alcoholic beverages, sodas, and tobacco that are most taxed.
People are also encouraged to not use any utility power from 7 a.m. to 8 p.m., indefinitely.
The group seeks the release of 400 political prisoners.
The Zimbabwe Congress for Trade Union went ahead with an anti-tax demonstration, which the government had banned under the pretense that public gatherings would contribute to a cholera outbreak.
The government of Zimbabwe is trying to impose a 2% tax on all electronic funds transfers and is attempting to force citizens who hold their savings in foreign currency to convert that money into the notoriously hyperinflating Zimbabwean currency.
Police raided the headquarters of the group and arrested 35 of its leaders in advance of the protests.
A report on
migrants from Central America reminds us that fleeing ruinous and
immoral taxation is among the motives causing people to flee. The case
of Guillermo, who as a Central American teenager became the head of his
family, is one example:
Criminal organizations targeted and killed Guillermo’s cousin. The
relative had failed to pay a gang’s “war tax” — money the gang extorts
from people through threats of violence.
They then turned their attention to Guillermo for payment.
In , he was kidnapped and beaten by two
uniformed police officers carrying out the gang’s orders. Their message
was clear: Pay the war tax or face the murder and rape of his siblings.
He realized that as long as they stayed in the region, they would never
be free from gang violence — or the gangs’ attempts to pull them into a
life of crime.
Instead, he fled with his siblings on a 1,500-mile journey to the United
States where he crossed the border, legally, as an asylum-seeker. But here
he faces the threats of yet more criminal government gangs, this time in
Trump’s ICE,
the farcical court system set up to deny refuge in asylum cases, and the
for-profit prison systems that exploit and abuse immigrant detainees.
Drivers’ war on speed cameras and other traffic-ticket-generating robots
continues:
The economy has been chugging along pretty well for a while now, the job
market is tight, and individual income tax receipts are up in the United
States. So why has the budget deficit jumped up 17%?
Two reasons, mainly: the recently passed tax law has led to a sharp
reduction in receipts from corporate income tax, and Congress has been
spending up a storm. Also, interest on the national debt continues to balloon, rising 24% just .
Some tabs that have passed my browser in recent days:
War Tax Resistance Can Look Like Opposition To State Tax Giveaways For Wealthy Corporations writes Lisa Savage at Went 2 the Bridge.
Government military spending sometimes takes the form of “tax expenditures” — credits, deductions, and other such subsidies provided through the tax code rather than as overt budget spending.
This can put principled war tax resisters in the strange position of opposing tax breaks that might reduce government revenue when those tax breaks are disguised military spending boosts.
Specifically, Savage reviews the campaign to stop the state of Maine from giving $60 million in tax breaks to General Dynamics.
U.S. Immigrations and Customs Enforcement created a “Victims of Immigration Crime Engagement” office to help promote the bigoted fantasies of the Trump administration, and launched a hotline people could use to report crimes by immigrants.
That hotline was immediately swamped by prank calls.
“Prank calls fully upended the system, leaving operators unable to answer more than 98 percent of incoming calls during the protest as the media relations team attempted to contain the narrative.”
Once in a blue moon, a tax resister receives a summons from the IRS, demanding that the resister show up at an agency office and bring along a bunch of documents that describe their finances and assets.
Some resisters acquiesce, not feeling they have anything to hide, and not wanting to make this their battle.
Others have successfully raised Fifth Amendment objections to being forced to testify against themselves in this way.
If you’ve ever wondered what might happen if you just said “no” and left it at that, consider the case of Ronald Conner.
Conner is one of those sovereign-citizen, “show me the law” types, and he just flat-out refused to cooperate.
A judge then ordered him to, he continued to refuse, so the judge locked him up for contempt of court.
He’s been behind bars for a year and a half now, and shows no sign of giving in.
With some fanfare, the IRS rolled out a “Taxpayer Bill of Rights” some years back.
But because there was no mechanism included for taxpayers to enforce these rights against the agency, it was widely seen as decorative rather than substantial.
The Temple Law Review Symposium took a closer look, and tried to discover ways that taxpayers might wield the federal Taxpayer Bill of Rights (and its state-level cousins) against tax agencies.
The global grassroots campaign against traffic-ticket-generating robots continues:
In England, France, and Italy fire, a trash bin, and paint were among the tools used to disable the cameras.
Some links from here and there:
The Literary Atlas of Wales has created an interesting interactive map-based exploration of the Rebecca Riots of the mid-19th century — a grassroots rebellion that focused on destroying the tollgates that were going up all over Wales: Plotting the Rebecca Riots.
Having been thwarted by the bonnets rouges (red caps) in its attempt to add a mileage tax to truck transport, the French government has attempted to attach an increased tax to vehicle fuel.
Now a gilets jaunes (yellow vests) movement has arisen to try to repeat the bonnets rouges’ success.
The movement is organizing a highway blockade for .
Fuel tax protests are ramping up in New Zealand as well.
In general, fuel taxes, carbon taxes, and other such “ecotaxes” seem to be a hard sell.
The Greek “won’t pay” movement continues to deploy guerrilla electricians to reconnect the power at households that have gone dark because of their inability or unwillingness to pay the inflated prices of the state utility monopoly.
The grassroots war on traffic ticket issuing speed cameras continues:
Perhaps in tribute to the yellow vests movement (see above), a resister in France blocked a speed camera with a yellow safety vest.
Other resisters in France used bags, bubble wrap, fire, and paint to disable cameras, while a South African resister set such a camera on fire.
The gilets jaunes movement in France, with its street protests and blockades, has been getting all the press — and has indeed forced significant and painful concessions from the government, while it has grown beyond the control of its founders.
But under the radar (or upon the radars, as it were), another significant protest has been taking place: the widespread disabling of traffic-ticket-generating roadside cameras.
Many other cameras have been only temporarily disabled, for example by having a yellow vest taped over the lens.
Law enforcement can quickly bring these back into service.
But others have been painted over, which necessitates hundreds of euros of repair time.
The ones that have been utterly destroyed must be replaced at a cost of tens of thousands of euros.
This in addition to the loss of revenue from foregone traffic fines, which can be tens of thousands of euros per day per camera.
Several of the many recent reports from around France and French territories:
“It is a nonviolent act, like our movement.
Our goal is not to degrade anything, but to make the government understand that we can no longer make ends meet,” says Yvan, a gilet jaune from the beginning.
His colleague Christophe shares the same point of view: “This gesture does not damage radars and is essentially symbolic.
This is currently the only way we have to stop the state racket.
If the device does not flash, it means less money in the state coffers.”
Bouzonville: a blanket to “protect” the radar. (The radar outpost was covered with a blanket, while a nearby hand-written sign advised people to protect radars this way from the coming winter cold.)
The variety of methods used in these attacks, even in the same area — with attackers sometimes destroying or further-damaging radars that have already been taken out of service by other methods — suggests that it is relatively spontaneous, unorganized, and attracts many practitioners.
While I’ve been studying my Aristotle, links have been piling up in my bookmarks.
Here are some of them:
A new documentary film called The Pacifist is doing the festival circuit.
It concerns war tax resister Larry Bassett, his large act of income tax resistance and redirection, and his attempts to provoke the U.S. government to respond to his stand.
It features interviews of Bassett, interspersed with historical footage from government propaganda films encouraging people to pay their taxes to keep the war machine going, and with a collage of contemporary news footage about American militarism.
It does a good job of helping you get to know Bassett better and to learn about the history of his pacifism and his war tax resistance stand.
Finland evidently publishes the taxable income of every citizen as a public record that any busybody can browse through.
Do you suppose more or fewer people would resist their taxes if such a practice were typical?
Ruth Benn considers issues of taxation, privacy, and openness about our finances at NWTRCC’s blog.
Because of the repeated [budget] cuts, the IRS has drastically stopped pursuing “nonfilers” who do not submit their tax returns.
The number of investigations into nonfilers fell from 2.4 million in to 362,000 in .
The agency has also drastically reduced its investigations of filers who do not pay their tax debts.
In , the IRS let $482 million in old tax debt lapse, but by , that number increased to $8.3 billion.
The federal government “shutdown” is also taking its toll on the IRS.
At a time of year when the agency is usually bulking up its temporary workforce and preparing for income tax filing season, instead it’s sending most of its workforce home, and making the rest work without pay.
Protests by employees are planned, and there’s also a lawsuit in the works that claims forcing the agency workers to work without pay violates labor laws.
There’s a strange feature of Obamacare.
If your income is low, the government subsidizes your health insurance premium.
But if your income is higher than you thought it would be, you’re supposed to pay some of that subsidy back when you file your taxes.
But there’s a limit to how much you have to pay back.
Because of this, the government is paying out about a billion dollars in subsidies that people don’t qualify for and yet will never have to repay.
Furloughed IRS workers protest the federal government “shutdown” that delayed their paychecks.
The U.S. federal government “shutdown” forced the IRS to furlough 88% of its employees.
The agency then recalled about half of them, calling them “essential employees”, so they could back up Trump’s last-minute promise that the IRS would still send out tax refunds even without an operating budget.
The government has only reopened temporarily.
The political conflict underlying the kerfluffle was never resolved, and Congress will either have to pass a budget or another short-term spending patch (and President Bluster will have to sign it) by the middle of next month or the whole “shutdown” impasse begins again.
Some tabs that have slid through my browser in recent days:
Irlanda Jerez
Irlanda Jerez, a leader of the tax resistance movement in Nicaragua against the Ortega/Murillo tyranny, was arrested by masked police last July and has been held prisoner since then.
She has said she has been drugged while in captivity, and the latest reports from her family say that she has been beaten so badly by her captors that she is currently bedridden.
Torture, arbitrary arrests, and repressive brutality are frequently relied upon by the regime, amounting to “crimes against humanity,” according to Amnesty International.
The pace of destruction of automated traffic ticket radars in France has slowed, perhaps just indicating that the low-hanging fruit have already been taken (as the government had stopped repairing frequently-targeted radars).
Still:
12 of the 42 radars in Indre-et-Loire are completely out of service.
Eight of those were set aflame.
Of the remaining thirty, these are regularly covered with bags or otherwise masked so that they don’t work.
At any time, more than half are not operating.
The radars issued less than half as many tickets last year than they had the year before.
You are a war-tax resister.
How did you come to that decision, and what have its consequences been?
Julia Butterfly Hill:
About 10 years ago I sued three corporations for creating an ad using my image without my permission to sell a hand-held wireless device.
I wasn’t looking for personal gain — I was planning to give all the money away — but I felt that their using my life and my work to promote consumption was against everything I stood for.
We settled out of court, and I found out that I would have a federal tax liability of about $175,000 on the settlement.
Everyone told me just to pay it, but I couldn’t stomach it.
This was right as the Bush administration was beating the war drums after September 11. I marched in the streets in San Francisco with hundreds of thousands of other people, and we shut down the Federal Building and the financial district.
We caused creative mayhem all day.
In the back of my mind the whole time was the thought that all these hundreds of thousands of protestors were eventually going to go home and feed with their tax dollars the very same machine they were protesting.
I made the decision that day that I was not going to give that $175,000 to the IRS.
It turned out to be the largest single instance of war-tax resistance in history.
There’s never been a larger single nonpayment of taxes in protest of a war.
Defying the IRS
is a scary prospect, so I took my time.
I did my research.
I went to the national War Resisters League, and I talked to people who had done war-tax resistance.
I did everything I could to educate myself and keep the people I work with safe, because they were not signing up for the same choice.
I took myself off all the governing boards I was on, including the one for my own organization, because my presence on the board could hurt it.
I took myself off salary at my own organization.
I did whatever I could to protect the people I work with.
And then I filed my taxes.
Along with my nonpayment I wrote a letter that said I was not
refusing to pay my taxes — I was redirecting them.
I’m not against paying taxes.
I believe in what we can do when we pool our money together for the collective good.
But the same is true for the collective bad, because our taxes were being spent not only toward war in Iraq but toward war on this planet.
With penalties, interest, and fees, I now owe more than four
hundred thousand dollars.
I cannot own anything, or the IRS will take it.
I face jail every single day.
Although they’re not technically allowed to throw people in prison for not paying their taxes, because we don’t have debtors’ prisons anymore, they could take me to court and claim I’m evading my taxes, which I’m not.
I’m consciously redirecting my money to causes I believe in.
The IRS
hasn’t gone so far as to file formal charges, but they have taken me to tax court twice now to try to scare me into submission.
They don’t seem to realize that trying to scare me into submission doesn’t work.
The MOON:
How come? It works on just about everyone else.
Hill:
[Laughs.]
You know, my father came out to California while I was
doing my tree-sit and gave a press conference.
He said, “If Maxxam Corporation thinks they can outwait my daughter, they don’t know my daughter very well.”
If you try to threaten or scare me, it only makes me more
determined.
If Maxxam Corporation had left me alone, it’s quite possible I might have given up before they did.
I’d like to think I wouldn’t have, but I do know that their harassing me and degrading me in the press — all the things they did to try to make me come down — only deepened my commitment.
The same is true with the IRS.
I didn’t decide to become a tax resister lightly.
I knew going into this that it would alter the rest of my life; that I would have to be creative in providing for my own needs.
I knew that I was risking prison.
So the threats from the IRS didn’t take me by surprise.
They only strengthened my resolve.
The MOON:
Do you have attorneys who represent you when you have to go to tax
court?
Hill:
I did at the beginning.
I wanted to make sure I’d done everything
correctly, so that it was clear that I am not evading my taxes but redirecting them.
I wanted to demonstrate that I was making this choice with the utmost integrity.
But I don’t have the money to keep paying for lawyers.
If they were to drag me back into court now, I’d probably go without one, because I understand my legal rights as well as the risks of representing myself.
Trump’s tariffs, in addition to being economically foolhardy and otherwise ridiculous, are also something of a conundrum for war tax resisters.
It is difficult to discover how much of one’s purchases are going towards these taxes that are largely hidden from the end-consumer.
At NWTRCC’s blog, Lincoln Rice begins an investigation into the current state of tariffs.
In other news:
American anti-abortion tax resister Michael Bowman has won another court victory.
Prosecutors had tried to charge him with felony tax evasion, but a judge ruled that Bowman had been up-front about his resistance, not trying to conceal income or deceive the government and so the felony charge was not appropriate.
Bowman is making legal arguments based on the Religious Freedom Restoration Act and the Supreme Court’s Hobby Lobby decision.
Those arguments have not yet been addressed by the court, but are similar to those being entertained by those war tax resisters who hope to legalize a form of conscientious objection to military taxation.
“Maybe it’s time for California’s taxpayers to go on strike,”
says Jon Coupal in an op-ed in the Orange County
Register. Coupal is president of the Howard Jarvis Taxpayers
Association (Howard Jarvis is known for his promotion of the “Proposition
13” legal tax revolt in California in the 1970s). He believes California
taxpayers should be concerned at the power public sector labor unions have
to get ever more tax money without accountability. He seems to be raising
the specter of a tax strike only rhetorically, alas: “I’m curious as to
what would happen if, in reaction to the teachers’ strikes in
L.A., Oakland and
Sacramento, taxpayers decided to go on strike?”
TheNewspaper.com continues to do remarkable work
chronicling the global phenomenon of fed-up drivers attacking and disabling
the robot radar cameras that automatically generate traffic tickets.
The Pacifist, a documentary about war tax resister Larry Bassett, has now been released and is viewable on Amazon’s streaming service.
Peter J. Reilly looks at the latest report from the Treasury Inspector General for Tax Administration and concludes that complying with the tax law has become a sucker’s game.
He notes for example the hundreds of thousands of cases where gig economy workers received 1099-K forms indicating they had earned income, but filed no corresponding schedule C forms reporting that income — and how few examples of this obvious discrepancy the IRS bothered to follow up on.
He sees the same pattern in cases where one ex-spouse declares an alimony deduction but the other does not declare the alimony as income.
And even in the case of crazy “show me the law” tax refusers, the IRS seems to lack the resources or the willpower to pursue them.
At National Review, Daniel J. Pilla tries to dig past the initial hype about anti-abortion tax resister Michael Bowman’s recent court victories to discern what that really adds up to from a legal point of view and what implications this has for other conscientious objectors to tax-funded activities.
Some links that have slid past my browser window in recent days:
The War Resisters League’s pie chart flyer:
“Where Your Income Tax Money Really Goes”
has been updated for the proposed 2020 federal budget. The flyers, which
show about half of the federal non-trust-fund budget going to pay for past
and present military-related expenses, are good conversation-starters,
especially during tax season as people in the United States tally up how
much they’ve been contributing to this budget over the year.
NWTRCC
is keeping a running tally of
“Tax Day” actions taking
place in the
U.S.
The head of the police in Paris was dismissed and the government brought in
the army, while banning protests in French cities, as it attempts to quell
the frequent outbreaks of gilets jaunes protests.
Meanwhile, the
destruction of
traffic cameras
continues in France, and to a lesser extent elsewhere.
Some notes about the new Qualified Business Income deduction, the IRS budget request, tax evasion of “gig economy” workers, the ongoing fake-IRS phone scam, and the difficulty of resisting tariffs.
Some ideas and resources to help you with your outreach.
Announcements on the death of Joffre Stewart, a memorial service for Tom Wilson, the upcoming NWTRCC national gathering in D.C., and stats about NWTRCC’s social media presence.
A new initiative launched with a splash in Catalonia under the name Ni 1 euro x a la repressió (“Not one euro for repression”).
Modeled on the Spanish war tax resistance movement, it is urging people to redirect the taxes that would otherwise go to pay for the Spanish monarchy, the judiciary and state prosecutor, and the internal security services.
The aim is to stop financial support for the Spanish suppression of Catalan independence.
The website is splashy, and its interactive how-to-resist page in particular seems worth emulating by other similar resistance campaigns.
The epidemic of destruction of automated traffic ticket machines along the roadways of France continues. According to the latest figures, government revenue from these cameras has dropped dramatically.
The government believes it has lost €660 million in expected ticket revenue so far, and that’s in addition to the costs to repair or replace the damaged machines.
Some tabs that have passed through my browser in recent days:
War tax resisters in the United States celebrated “Tax Day” with the usual protests, penny polls, leafletting, and other methods of outreach.
The Berkeley Daily Planet covered the People’s Life Fund annual granting ceremony in which they redirected $15,000 in taxes from the federal government to local charitable groups.
The refusal to collaborate economically with the state, in the financing
of military spending and other things that we consider socially unjust
or harmful, empowers us and allows us, collectively and cooperatively,
to show our opposition to certain state policies, to generate a social
debate about the model of society that we want, while at the same time to
promote the construction of “another possible world” by giving economic
support in solidarity with other transformative struggles that exist in
our society and elsewhere.
Mike Causey, at Federal News Network, adds another article to the growing consensus that the IRS is in a world of pain. Causey includes a long quote from an anonymous “long-time career IRS manager” who says:
…There are barely enough people left keeping the lights on to barely
allow enough people to barely meet far reduced goals.… Millions of
dollars of production are lost due to not having hundreds of dollars of
resources on a regular basis.
Most of the personnel with most of the talent and experience have retired
or fled to the private sector…
The Republican tax reform legislation does seem to have cut taxes for just
about everyone. But only a minority of people think they personally got a tax cut.
This may be in part because of Democratic talking points about the cuts
having only gone to the wealthy — they seem to have hit their target and
sown doubt about what the legislation accomplished. It may also be because
tax refunds haven’t gotten any bigger for the typical taxpayer,
and changes in tax withholding aren’t salient enough to make an impression.
This may also erode tax morale by contributing to the impression that
lawmakers are jiggering the tax code to favor the other guy.
A majority of Americans
believe the federal tax system is not fair, and among Democrats in
particular, perceptions of the fairness of the federal tax system are lower
than they have been in recent memory.
Automated traffic-ticket-dispensing radar cameras in France have undergone
an extraordinary wave of attacks by frustrated motorists. Statistics on the
extent of the attacks and their effect on government revenue continue to
come in. The latest show that revenue from radar vans in particular dropped 42% last year.
The IRS is hoping to get a bunch of new funding for a desperately-needed computer modernization effort. Problem is, this isn’t the first time, and the last couple of times they’ve gotten a bunch of new funding for desperately-needed computer modernization efforts, they’ve bungled it badly. Will Congress let them take another swing? Do they have a choice?
Meanwhile, the Spanish war tax resistance movement is also gearing up for tax season.
El Salto reports,
“Tax resistance is designed as a tool of civil disobedience that allows us
to overcome the role of mere spectators or victims of these policies, and
become active agents in the denunciation of military spending in particular
and militarism in general.” Apparently, the government is responding more
forcefully with fines against war tax resisters
this year, and the campaign is ramping up its legal support and counseling to counter this.
Property owners in Denton County, Texas have been taking advantage of a law
that permits them to challenge their property tax appraisal, and have been
overwhelming the system with such protests.
War tax resister Tom Shea has died. Fellow resister Robert Burrowes penned
an obituary notice here.
Some tabs that have slid across my browser in recent days:
International Tax Resistance
A driver in Saudi Araba films himself attacking a traffic ticket robot with a pistol.
You may remember that Indian Prime Minister Modi abruptly removed high-denomination bank notes from the ranks of legal tender in . This was meant to strike a knockout-blow at the underground economy by forcing people to use more legible, traceable economic transactions than anonymous cash. It doesn’t seem to have worked. Despite the significant short-term inconvenience and blow to the economy, the amount of cash currency in circulation quickly recovered to its previous levels and is now back on-trend to where it was before the experiment. You may have heard calls to eliminate the U.S. $100 bill, for similar motives. This experience may discourage such an effort.
The National War Tax Resistance Coordinating Committee held a national conference in Washington, D.C. .
Here’s a write-up by one of the attendees. Unfortunately they got tangled up in ongoing actions by leftist activists who were trying to occupy the Venezualan embassy there on behalf of the brutal, disastrous Maduro regime.
It has been a disappointing thing to see groups like NWTRCC, CodePink, Veterans for Peace, and United for Peace and Justice carrying water for the cruel Maduro tyranny as though that were the only way to oppose disingenuous U.S. machinations there.
It puts a shameful stain on what’s left of the U.S. peace movement every time a group like this uses a phrase like “the legitimate democratic Maduro government of Venezuela”.
A number of items that have been in the news lately concern how the U.S. tax system has become increasingly corrupt and imbalanced in favor of wealthy tax evaders.
Stories like this tend to damage what’s known in tax wonk circles as “taxpayer morale” — the willingness of citizens to pay their taxes without evasion or the necessity of harsh arm-twisting and draconian oversight.
For example:
The New York Times pointed out that in California, local governments and corporations have rigged the sales tax system in such a way that a portion of the sales tax people pay is gifted to the same companies who collect it.
In other words, the sales tax becomes a “bonus profit” to those companies, collected from consumers and enforced by law.
Millions of former U.S. tax filers appear to have dropped out — not filing returns in the last filing season.
One theory is that the tax reform legislation that came into effect last year caused some people to owe where they hadn’t before, or to owe more, and that they decided not to file as a result.
Three million people who received refunds in didn’t file at all in .
There’s been another report put out about the “tax gap” (the difference between what’s owed and what’s collected) in the U.S.
However it still uses largely stale numbers, updating them largely based on estimates and trends rather than evidence.
Some links from here and there:
Logan Marie Glitterbomb, at the Center for a Stateless Society, advocates a campaign of gradually transitioning to cryptocurrency as a way of facilitating war tax resistance.
Such a campaign would “allow for us to take direct action against the war machine, by refusing to fund it.
The campaign encourages people to move at least $1 of fiat per day into their choice of cryptocurrency.
The goal is to aid individuals in a gradual transition away from fiat and into using crypto as their primary currency without asking people to dive in all at once.”
The Civic Alliance for Justice and Democracy, a movement opposing the Ortega regime in Nicaragua, is trying to gather support for a civil disobedience campaign that would feature tax resistance as a key tactic: “Tax resistance to withhold economic oxygen from the regime for repression.”
The “Blue and White National Unity” group has signed on to the call.
They hope to pressure the regime to release political prisoners and to fulfill agreements it made in negotiations during previous strikes.
The Ortega regime released 100 political prisoners to try to lure the opposition back to the negotiating table (not including tax resistance leader Irlanda Jerez, who has been tortured in prison, and is still being held).
The IRS is redesigning its W-4 form.
This is the form that employees fill out when they start a new job, or when they want to change how much tax is withheld from their paychecks.
The new form, though still in the drafting process, looks like it’s going to be much more complicated.
This may also, alas, complicate the process for people wanting to get started with tax resistance by reducing the amount withheld from their paychecks.
I thought this was interesting: I’d heard that the IRS could step in and claim top priority in a bankruptcy — pushing other creditors aside as it helps itself to what’s left of your assets.
But what I didn’t realize is that this apparently only applies to the tax part of your tax debt: not to any interest & penalties the IRS has applied.
For those, the agency has to get in line like everyone else.
The rich already pay high tax rates. The tax code is already progressive.
I hear this all the time from right- and neoliberal-leaning tax blogs and
think tanks. This is usually followed by some graph or statistic showing
that “the top” n% of taxpayers (by adjusted gross income or
some other declared income measure) pay 90% of income taxes, or something
like that: Q.E.D.
But this is sleight-of-hand. To show that the tax rates are
progressive isn’t enough. To make the case that the rich are paying “their
share” of income taxes you have to also demonstrate that they are paying
those rates on all of their income, not just on that portion of income they
haven’t managed to shelter from taxation. So, in this regard, I was
interested in this new paper on
Tax Evasion and Inequality.
It took advantage of a tax haven data leak, and existing records of tax
audits in Scandinavia, to get a snapshot of how the very wealthy avoid
having much of their assets subjected to taxation in the first place. They
may pay high rates on what’s left over, but that isn’t the same as paying
high rates in the first place. “[W]e find that the 0.01 percent richest
households evade about 25 percent of their taxes. By contrast, tax evasion
detected in stratified random tax audits is less than 5 percent throughout
the distribution.”
An editorial cartoon shows Nicaraguan president Daniel Ortega trying to take down tax resistance leader Irlanda Jerez, while his wife, vice president Rosario Murillo yells “Bite her, pinch her, pound her, but do something!”
Nicaraguan tax resistance leader Irlanda Jerez was released from prison as part of a government amnesty of political prisoners in the run up to negotiations with the opposition.
Jerez says she was drugged, tortured, and sexually assaulted while in prison, and that her home was sacked and her family attacked by government-aligned paramilitary forces soon after her release.
Her children are now refugees.
Torture, arbitrary arrests, and repressive brutality are frequently relied upon by the Ortega regime, amounting to “crimes against humanity,” according to Amnesty International.
She has renewed her call for mass civil disobedience. “We’re ready to pay any price necessary to free Nicaragua.”
Residents of Faradje, in the Democratic Republic of the Congo, are threatening a tax strike to pressure the government to take action against the incursions of Wodaabe nomadic cattle-herders from neighboring South Sudan into the land they use for agriculture.
Nina Olson, who has been an energetic within-the-system voice for U.S. federal taxpayer rights as head of the official National Taxpayer Advocate Service, has retired from that position, but can’t keep away from the game.
She’s formed a non-governmental nonprofit — the Center for Taxpayer Rights — to do similar work.
Businesses in Pakistan are on strike to protest a sales tax increase.
An IRS building in Kansas City, Missouri was shut down by a hazmat team because of “a brown substance on a package” discovered by an employee.
Some international tax resistance news of note:
The “Extinction Rebellion” movement’s London branch is launching a tax strike to protest the city’s funding of projects that exacerbate climate change. They intend to begin withholding 20% of their council tax once they have a critical mass of signers-on to their strike proposal. The withheld funds will be redirected to a project to create a new city plan with a focus on ecological sustainability. They have created a London Tax Rebellion Information Booklet to support the campaign. They were inspired by Extinction Rebellion activist Imogen May who refused to pay council tax as part of her protest.
The “Extinction Rebellion” group launched its council tax strike in London at its “summer uprising” .
The group is trying to get the government to stop spending money on transportation and infrastructure projects that exacerbate climate change, and are taking the lead by redirecting their taxes to greener projects in an act of civil disobedience.
Here is some coverage of the tax strike launch in Al Jazeera and from Financial Times.
Some 17,000 taxpayers in Catalonia also are paying their federal taxes to the Catalan tax agency rather than the Spanish one, in acts of civil disobedience.
There’s a tax strike underway in Beni, North Kivu to protest the failure of the government of the Democratic Republic of the Congo to provide security in the region.
More roadside traffic ticket generating speed cameras have been attacked in recent weeks, in South Arica and France.
Spain has moved on to using drones instead.
There’s not a lot of meat on the bones here, but Andrew Leahey connects the dots and shows how Trump’s contempt for paying his own taxes and his undermining of the prestige of government are likely to undermine “tax morale” in the United States with long-term consequences for how willing traditionally sheepish American taxpayers are to cough up their tribute.
Of the furloughed workers surveyed, more than 35% missed a rent or mortgage payment, 30% went to a food pantry, 72% experienced mental health issues, 42% wanted to make a career change and 65% were very or somewhat concerned about their finances post-shutdown.
In the open-ended response portion of the survey, an employee wrote, “We are U.S.A. citizens that have families to support.
Often we hear we deserve it, because we work for IRS.
We are doing a job that is dictated by Congress.
It is surprising how people seem to want others to hurt.
It is sort of sickening.”
Another employee described going back to work during tax season:
“With a month of catch up at my busiest season, it is so stressful.
This is the first time in 15 years I am exhausted after work and do not want to go in the mornings.
That was never the case before.”
Some links from here and there:
There’s a new National War Tax Resistance Coordinating Committee newsletter
out, with content that includes:
Joining an “Extinction Rebellion” protest — Ruth Benn says that while XR is “a little too focused on its own brand” there may be some common ground to be found with the climate emergency protesters and the war tax resistance movement.
American anti-abortion tax resister Michael E. Bowman is back in the news. Among the latest details are that Bowman was first targeted by the IRS because of his involvement in a tax protest scheme cooked up by Joseph Saladino. He is trying a Religious Freedom Restoration Act defense (which is also a long-shot contemplated by some U.S. war tax resisters), and is also putting forward the theory that because he got away with not filing returns for eighteen years, he therefore had a reasonable belief that what he was doing was lawful. Bowman has had some success in court in the past, with a judge ruling that his actions of cashing his paychecks rather than depositing them (so as to avoid IRS levies) did not constitute criminal evasion.
The IRS seems to be getting more aggressive about trying to get passports revoked from people who have large tax debts. Under the law, if a taxpayer owes more than $52,000 and isn’t doing anything about it, the agency is supposed to inform the State Department. The State Department is then required to not issue or renew a passport to the scofflaw, and may also revoke their existing passport. The IRS is trying to convince State to put that “may” to use. The agency says it plans to send out Letter 6152 (“Notice of Intent to Request U.S. Department of State Revoke Your Passport”) to some tax delinquents, after which it will lobby the State Department to take stronger action (of this advice State can still, as far as I can tell, take it or leave it).
YouTuber Alexis Buschmann has started to offer spoken-word interpretations of some of NWTRCC’s introductory war tax resistance material on her video blog. This could be a useful resource for people who prefer to get their information in the podcast/audiobook style rather than through text. Here’s a sample:
American anti-abortion tax resister Michael Bowman continues his streak of courtroom luck. This time, a hung jury foiled the government’s attempt to convict him of misdemeanor charges of failure to file. (In an earlier victory, the court threw out an additional charge of felony tax evasion.) The government may decide to refile the misdemeanor charges and try again. “They put me on the stand,” said Bowman, “they know what kind of witness I am. And round two, they haven’t seen anything yet; I’ve learned.”
Bowman’s attorney tried at one point to advance the argument that the Religious Freedom Restoration Act requires the government to accommodate Bowman’s sincere religious objection to paying for abortion with his taxes. Although the courts have rejected such arguments in the past with reference to war tax resisters, the Supreme Court’s subsequent Hobby Lobby ruling seemed to possibly open the door to reconsidering this. The trial court disagreed.
Rutgers International Institute for Peace has begun releasing a Digital Library of Nonviolent Resistance with items from their archives. Among these is Organizing Tax Resistance, co-written by a team from Nonviolence International and Karen Marysdaughter from NWTRCC.
The Delta Amacuro (Venezuela) state Chamber of Commerce has launched a tax strike to protest what they say are extralegal and “confiscatory” municipal taxes.
The Nkafu branch of La Société Civile has signed on to the latest tax resistance campaign in the east Congo to protest the government’s inability or unwillingness to provide security in the region.
In other news, the group ADNic is promoting a Nicaraguan tax resistance / consumer strike campaign with a series of graphics. Here are some examples (translations mine):
Tax resistance: Education and Outreach. Step 5: Take an active role in tax resistance and keep in mind that Ortega uses your taxes to kill. #ConsumerStrike #SOSNicaragua
Tax Resistance. This Is Their Profit. Rum: 36%, Beers: 42%, Liquors: 37%, Grain alcohol: 42%, Cigarettes: 309%, Tobacco: 43%. By reducing your consumption you strike a direct blow against the regime. Taxes are their lifeblood! #ConsumerStrike, National Unity
In other news:
One of the tools the
IRS
uses against tax scofflaws like myself is to file a federal tax lien in the
local court system of the scofflaw. This puts creditors and the local legal
system on notice that the
IRS
intends to step in and assert its rights to seize money. This can make it
difficult to get credit, and also makes it easier for the feds to seize
anything awarded by the courts in lawsuits, probate resolution,
etc. However
(and this is where it gets interesting and newsworthy), filing a lien costs
money. And the
IRS
thinks several California counties are charging them too much, and so they
have started to refuse to pay. In response, some counties are refusing to
process the
IRS
liens. Alas, this filing fee, and the standoff between the bureaucracies,
also applies to paperwork to release a previously-filed lien. So
this doesn’t always work in the scofflaw’s favor. Here’s some news
coverage:
War tax resister Larry Bassett was interviewed on the Parallax Views podcast.
Bassett is the subject of the recent documentary film
The Pacifist and is responsible for the largest
known individual act of war tax resistance, in terms of the amount of
dollars resisted at once.
Another Treasury Inspector General for Tax Administration report points out
that reduced IRS
resources means collapsing tax enforcement capability.
“As more taxpayers experience little to no consequences for non-filing, the
long-term impacts may include potential erosion of the voluntary compliance
rate.”
The IRS
issued an update to its estimate of the “tax gap” (the difference between how much tax people are supposed to pay and how much they do pay).
The upshot is that they think little has changed: people pay about 84% of
what the agency believes they owe. However, the last time I looked at the
details of one of these “tax gap”
reports, I noticed a lot of hand-waving, guesswork, and extrapolation, and
only a little empirical data collection, so I would recommend taking these
numbers with a grain of salt.
More attacks on traffic ticket issuing radar cameras — in France & Italy; Mexico, Germany, and France; and France again.
Revenue from the cameras is only half of what the government had hoped for
and budgeted for in France this year, and the government has had to divert
some of that money to installing more heavily-fortified cameras.
The National War Tax Resistance Coordinating Committee is holding a national conference and committee meeting in Oregon.
This meeting will include a special focus on cooperation between the war tax resistance movement and climate/environmental activism.
He put in a kind word for war tax resisters:
“If a cellphone, burger, or cup of coffee isn’t worth the price to me, I can choose not to buy it.
Were you ever given an ‘unsubscribe’ option from American Empire?
If I want to stop paying to subsidize the brutal Saudi war in Yemen for instance I have very few options.
There is of course a noble tradition of war tax resistance in the United States, with Henry David Thoreau refusing to pay poll taxes that he believed funded the Mexican-American War and Noam Chomsky and others resisting taxes during the Vietnam War, but tax resisters face repression, they risk incarceration, they risk garnishing of their wages, they risk having their property seized, and even moving out of the United States isn’t enough to avoid paying for American Empire:
When you criticize U.S. foreign policy you might get told ‘hey if you don’t like it you can leave’ — well even if you leave you still are seen as owing taxes to the U.S. government unless you go through a costly process of renouncing your citizenship.
And that’s ignoring that there are also funds gained through inflation, through the printing of money, that’s a tax on everyone who holds U.S. dollars…”
I noticed a campaign calling itself “Tax Resistance” suddenly appear on-line.
It has appropriated photos from the U.S. war tax resistance movement, but it seems to be directed at potential war tax resisters in the U.K.
Its Twitter account was suspended before I could even take a look at it.
Its Facebook page is spare and generic.
There’s no indication who’s behind it.
I’ve got a suspicious eyebrow raised, but will keep my eyes on it.
Attacks by motorists on traffic ticket machines continue worldwide.
Some recent examples:
Remember Ed & Elaine Brown?
The “show me the law”-style tax protesters who became causes célèbres in constitutionalist/sovereign-citizen circles?
They were arrested after a long siege of their New Hampshire home about a decade ago and given lengthy — essentially life — prison terms.
But one of the major charges against them was based on a law that was declared to be unconstitutionally vague in an unrelated Supreme Court case, and so now the Browns will be resentenced and may soon be released as a result.
The government of Ontario is protesting the Canadian federal government’s carbon taxes by mandating that gas stations put stickers on the pumps that point out how carbon taxes are rising and contributing to the price of gasoline.
Ontario is also spending millions of dollars on legal battles opposing the tax.
As I mentioned a month ago, the IRS and some California county governments have been at loggerheads over the fees counties charge to entities that want to file liens.
The counties have been tacking on extra filing fees to pay for tangentially-related government expenses, and the IRS has said it doesn’t intend to pay such extra charges when it files its federal tax liens.
This led to a standoff in which some of the counties started to refuse to process IRS paperwork.
It looks like the IRS was the first to blink.
Human attacks on the traffic-ticket generating robot camera hordes continue
to keep hope alive in the hearts of the rebellion, lately in
The Nouvelle Société Civile du Congo has called for a complete tax strike in North Kivu to protest the government’s failure to provide security in the region.
The human war on traffic-ticket-generating robots continues, with the robot hordes taking casualties in Germany, Italy, and France in recent weeks.
In France, according to a new government report, 17,886 photo radar devices have been attacked over the past two years.
The Tax Foundation has run the numbers to show how increases in cigarette taxes cause increases in cigarette smuggling to match.
For example, more than half of the cigarettes smoked in New York have been smuggled in from outside the state to evade taxes.
Rogge shares some of her tactics for reducing the effectiveness of
IRS
reprisals (excerpt):
The IRS has seized my car and checking account funds and has repeatedly levied my wages.
My strategy has been to work several jobs, so that if a permanent levy were placed on my wages at one work-place, I could either reduce my hours at that job or quit and still have a backup job.
When I’ve had the money, I’ve paid rent, health insurance, and food bills in advance.
Some tabs that have crossed my browser in recent days:
Pete Brace, an environmental activist from the
U.K., stopped
filing his tax return in , relying on a
law that makes it a crime to encourage or assist the commission of various
crimes (such as crimes facilitated by taxpaying, thanks to government
negligence about climate change).
Brace shares his
correspondence with Her Majesty’s Revenue & Customs at his
website. This may be helpful to other resisters trying to navigate that
government’s tax collection bureaucracy, and perhaps also a source of
inspiration to climate change activists curious about adding tax resistance
to their set of tactics.
Some more details are emerging about the tax strike launched in Lebanon.
The activists have been testing the waters for some time now to see how
much support they can expect, but now seem to be putting a broad tax strike
into effect including municipal taxes, income taxes, value-added taxes,
government-run utility bills, and traffic tickets. Businesses are being
encouraged to pay wages in cash to facilitate resistance by their
employees.
The
IRS
routinely conducts these face-to-face visits. The primary factors of
these visits are to make contact with taxpayers who have a previously
known tax issue that wasn’t resolved through mail contact. The first
face-to-face contact from a revenue officer is almost always
unannounced.
The article notes that the
IRS
will announce that it plans to conduct such visits in a particular area
ahead of time (how this announcement will be made is left vague).
I noted a news mention of some “sovereign citizen”-style tax resisters
from Florida. One thing that caught my eye was their insistence that
they’re “aboriginal indigenous Moorish Americans” which I remember from the bizarre mythology
of the Nuwaubian cult which I’d investigated years ago. But I was also
intrigued by the outline of their interesting fraud, which involved
claiming to the
IRS
that they’d won the lottery but (apparently) had had too much money
withheld for taxes, and so were due a refund. “The
IRS
paid them $3.4 million before the agency realized the pair had never
purchased a winning ticket, prosecutors say.” Flush with success, they
pushed their luck, claiming to win the lottery year after year after year,
and not giving up even after the
IRS
raided the home of one of the schemers.
The Greek government is considering extreme measures to crack down on a
culture of tax evasion. The Prime Minister has proposed
legislation that
would require people to use traceable, electronic payment systems rather
than cash for many transactions. One way they would enforce this would
be that if a Greek citizen did not spend at least 30% of their income via
these traceable means, they would be subject to an additional 22% tax on
the untraced portion.
James Maule loves a story about a disgruntled taxpayer paying in a wagonload of small change. The latest story comes with a couple of twists: first, the county anticipated such protests and has an official policy of refusing to accept large payments in coins; second, over the course of the protest it was discovered that the tax assessor was sitting on 8,600 unread emails, which may explain why less-theatrical avenues of protest failed to work.
Speed camera vandals continue their bold assaults on traffic-ticket robots in Europe. The latest reports are of several attacks in France and Italy, and several more in France. Fire seems to have become a more popular weapon as winter has come on.
A retrospective of the history of the Project Learn School notes that the school, an independent cooperative, got a $5,000 loan from a war tax resistance redirection fund at a critical moment at its founding, and has been in operation for fifty years now.
Lebanon
I’m working off of Google Translate, and not an actual knowledge of Lebanese Arabic, but I think this says something like “No taxes for the power authority.
Gather in front of the TVA building to press the authority and confirm our demands, starting at six in the morning.
#مش_دافعين” The TVA building is home to the Finance Ministry.
I’ve been frustrated at the lack of detail in the English-language reporting out of Lebanon about the tax strike there.
It’s difficult to know how widespread it is, how central it is to the larger protest movement, or which tax resistance tactics are most prominent.
But here is some reporting:
“Protesters Are Wielding the Ultimate Weapon” (Haaretz) — “[T]he people behind the tax protest aren’t prepared to sit tight and wait patiently. They are calling on the Lebanese to stop paying their electricity and water bills, municipal taxes, fines and even their bank loans payments.” But who these people are goes unsaid. The reporter just quotes from a recently-created anonymous Twitter account. The article does have a good analysis of why the government power monopoly and its utility bills are a major focus of the protests.
If you’re a Facebook user, you can visit the Facebook page of Conscience U.K. and can view videos there from the 15th International Conference on War Tax Resistance and Peace Tax Campaigns that took place earlier this year.
Meanwhile, in France, Washington D.C., and Malta drivers have attacked and disabled ticket-issuing traffic cameras in recent weeks.
In other news…
The New York Times reports on how some clever fraudsters used an opaque scheme called “cum-ex trading” to get tens of billions of dollars in double-tax refunds from European countries.
The war on speed radar cameras continues, with recent attacks in France and Italy. The French government is trying to refortify the cameras with designs that are resistant to attack, but these too are being knocked out of service as fast as they are deployed.
A while back I noted that the IRS was in a tussle with some county governments over the fees those governments were charging to file liens (including tax liens). The IRS refused to pay a portion of the fees, and so the counties refused to register the agency’s liens. It looks like the IRS was the one to blink in this stand-off.
In Goma, North Kivu a group calling itself Lutte pour le Changement / LUCHA (“Struggle for Change”), has called on merchants at the Alanine market to stop paying their market taxes in protest against the government’s unwillingness to address unsanitary conditions there.
The heartening human rebellion against traffic ticket issuing robots continues.
In recent weeks, speed cameras have been disabled by human rebels in Canada, Italy, and France, yet more in England, Italy, France, Canada, and Belgium, and several more in France, where, in spite of the hundreds of speed cameras destroyed and the government’s warning that this would make the roads more dangerous, traffic fatalities have fallen during the rebellion.
A “men’s magazine” I’d never heard of before called MEL has published “The Case for an American Tax Strike” with the delightful subhead: “Nice oligarchy you’ve got there. Be a shame if we quit paying for it…”
The Democratic Republic of the Congo doesn’t make it into my news feed very often for other reasons, but the provinces of North and South Kivu seem to throw tax strikes every other week.
The tactic seems to be well-established there as a way for the people to regulate and check the political power of the government.
In the latest example, residents of the city of Kamituga met and decided to refuse to pay taxes until the government repairs the road that connects that city to the rest of the province.
They have been joined by Baraka and Fizi.
Latest estimates from the Cost of Wars project put the price tag of the War on Iraq to U.S. taxpayers at some $2,000,000,000,000 so far, “roughly $8,000 per U.S. taxpayer, representing 9 percent of the national debt.”
Protesters in South Kivu were denied a permit to march and were stopped by a line of police when they tried. So they did as they do in Kivu, and announced a tax strike.
Attacks on traffic-ticket-issuing robot cameras continue around Europe, with machines destroyed or disabled in Italy and France in recent weeks.
Meanwhile in New York City, protesters held up signs warning drivers about speed camera placements.
A homeowner in Cornwall stopped paying council tax when her property was made worthless by damage from a leaking water pipe the council refuses to fix.
The council relented and wrote off some of the back taxes but she keeps resisting, and they’re fighting her again.
Taxing rich people redistributes their wealth to defense contractors, which are owned and run by rich people.
About 40 percent of discretionary spending goes to federal contractors; a primary result of a wealth tax or a much higher tax rate on the wealthy will be a recirculation among corporate titans.
Service on the national debt totaled $325 billion, so a significant and ever-growing portion of the money obtained in the apparent pursuit of equality will be redistributed to bondholders, or recirculated through the world banking system.
The governments of China and Japan each own over a trillion dollars in U.S. debt, for example, and so we’ll be taxing American rich people and redistributing their wealth to foreign governments, and to rich people elsewhere in the world.
protest marchers in South Kivu
In other news…
Tax resisters in South Kivu have supplemented their campaign, which started , with a shutdown of the airport and with protest marches.
Fire, spray paint, stickers, a burning tire, projectiles, and saws are among the tools drivers have been using in recent attacks on speed radar ticketing machines in Italy, The Netherlands, and France.
A new (I think) site — ProuMonarquia.cat (with associated hashtag #ProuMonarquia) — is coordinating nationalist tax resistance in Catalonia.
The site recommends that people redirect the amount of their federal taxes that would go to the support of the Spanish monarchy and to the state security apparatus that represses Catalan independence, giving that amount instead to the separatist Council for the Catalan Republic.
Some links that have floated through my facemask in recent days:
Thousands of IRS Employees Are Currently Home With Pay, But Not Working is the sort of headline that brings a smile to my face.
The gist of the accompanying article is that most of the IRS workforce has been sent home to avoid infecting one another at the office, but only a minority of the employees are equipped to work from home.
The rest continue to collect paychecks, but have nothing to do.
People are travelling less, commuting less, and shipping less. As a result, people are burning less motor vehicle fuel, and as a result large drops in gasoline excise tax revenue are expected.
The hashtag #RebeliónFiscal is trending on the Twitter, as small business owners in Argentina plot a tax strike.
The business owners are upset that the government has offered them no tax relief as business activity has gone into an epidemic-induced slump.
They’re joined by antiauthoritarian activists and by the general public, who are throwing coordinated cacerolazos (noisy pot-and-pan banging protests) from the windows of their apartments as they remain sequestered.
Now, while mostly at home, we find plenty of things to do, but running out to a big demonstration is not one of them.
This got me thinking about war tax resistance as a perfect protest for the isolated.
That led me to think of the many individual acts of resistance in antiwar history and thus to Ammon Hennacy and his “one man revolution.”
April 15th — the usual federal income tax return filing deadline in the U.S. — was in the more whimper than bang category this year.
The powers that be decided to extend the filing deadline to , and for that and other reasons, taxes are less on people’s minds than usual this time of year.
But here are some items that have recently come to my attention:
The U.S. government is sending out “stimulus” payments willy-nilly.
Thousands of dollars in forgivable “loans” are being made available to businesses (though it’s something of a crapshoot which businesses will and won’t get them), and most Americans are also getting some free money as well.
The individual stimulus checks are already starting to go out.
Americans who got tax refunds direct-deposited in their bank accounts last time they filed their taxes were the first to see money.
The rest of us have to wait a bit.
There was some worry that people who are so poor that they don’t have to file tax returns would be overlooked, but the IRS has created a method for non-filers to apply for the stimulus money too.
Businesses in Mexico are threatening a tax strike to pressure the government into granting tax relief or other financial aid during the pandemic crisis, and some state governors there are also making noise about withholding taxes from the federation.
A similar movement is sweeping Argentina. A viral video, featuring small business-owners complaining that they cannot survive if 60% of their earnings are swept up by the government and their businesses are locked down, has touched a nerve, and the #RebeliónFiscal has spread like wildfire.
The Catalan independence movement has relaunched a federal tax resistance campaign. Former Catalan president Carles Puigdemont has asked Catalonians to redirect the portion of their federal taxes that would otherwise go to support the Spanish monarchy, giving that money instead to the “Republican Fund for Solidarity Action” which will devote the funds to CoViD-19 relief efforts. The campaign is organized via the #ProuMonarquia site.
I’m used to seeing on-again/off-again tax strikes in the Kivu region of the Democratic Republic of the Congo. Now the tactic seems to have spread to Ituri. Though a local government committee denounced the idea, a more grassroots group has insisted on withholding taxes until the government takes steps to improve security in the region.
During the Great Depression, property taxes went up even as people became increasingly unable to pay. A result was organized taxpayer leagues and property tax strikes. Stephen Mihm, at Bloomberg Opinion, wonders whether such tax revolts might return as businesses shutter and rent strikes bloom, reducing the ability to pay of property owners.
Attacks on traffic ticket robots continue in Europe, with recent attacks in France and Italy and yet more in France. The number of tickets and the revenue from them were both down about 25% last year in France.
Some links that have bubbled up in my browser over the past few weeks as I’ve been on my Brethren binge:
Businesses in Chattanooga, Tennesseee held a one-day strike in support of #BlackLivesMatter, as a way to withhold sales tax dollars in order to pressure the city government to redirect funding from the police department to less-nefarious uses.
American war tax resister Ed Agro has died.
Agro was one of the founders of the New England War Tax Resistance regional group, and was also the admin behind the wtr-s war tax resistance email list.
Richard Yoder responds in a letter: “I am grateful that there seems to be a renewed emphasis on the historic peace witness of the Mennonite tradition, including war-tax resistance and redirecting of our tax dollars to life-giving activities. The nature of warfare has changed from the past when the military needed our bodies to now needing our dollars to pay for high-tech warfare. So in the same way Mennonites in the past found a way to say no to participating in war through conscientious objection, we now need to do the same with our tax dollars.”
A Glasgow man whose apartment keeps getting flooded has accused the city of negligence for signing off on the building’s construction, and is refusing to pay his council tax as a pressure tactic.
In the United States, prisoners are supposed to file income tax returns like anyone else.
And unless the law says otherwise, the same tax rules apply to them.
When Congress passed the last stimulus bill, giving taxpayers a tax credit and then pre-paying that credit to them by mailing out checks, prisoners were among those who benefited.
Because that was the law.
Israeli musician Hemi Rudner has gone on tax strike to protest the lack of government support for the self-employed during the pandemic shutdown.
I’m a normal citizen.
And aside from a joint here and there, I abide by the law, love my country, and of course, pay taxes.
Around half of my income has gone to the state for decades already.
Only God knows how many meetings I’ve funded.
Myself, and millions of other citizens in the State of Israel, are stuck in a horrible situation, where in addition to fears about our health, we don’t have any way to make a living and support our families.
In other Western countries independent workers get an economic safety net as an integral part of their rights.
In Israel, the tyrannical government toys with us as if we’re invisible, like there are no faces behind the masks.
I want to say that as long as we don’t receive our rights as citizens, without the terrible and discouraging bureaucracy, I’m declaring that I’m not paying taxes to the State of Israel.
I call on all Israelis to do the same.
Maybe then, at the end of the day, something will change here.
Gwen Jaspers issues a call to Defund the Pentagon, and says this we don’t have to wait for the politicians to act: “We may even decide, eventually with trusted supporters, not to pay for the Pentagon’s war budget by omitting the amount from our tax payment that the Pentagon receives — a whopping 50 percent or more of what we pay in federal income taxes.”
As the (delayed) approaches, J.D. Tuccille asks taxpayers to consider what they get for their money: public health incompetence, abusive security forces, and economic instability.
Kay Bell, at Don’t Mess with Taxes, reports on how the IRS’s fleet of private debt collection companies tangled with the wrong guy. The victim, who did not actually owe the IRS anything (his debts had been discharged in bankruptcy), sued the debt collectors for illegal harassment and won.
Neighbors of a homeless encampment in a park in Vancouver are threatening to withhold their taxes to pressure the government to do something about it.
The Vancouver Sun painted this as a NIMBY-hostility-to-the-homeless issue, but one of the neighbors took to Twitter to explain that they’re trying to pressure the government not to act against the homeless encampment, but in assistance of those who live there.
In the wake of the enormous explosion at the Port of Beirut, protests by enraged citizens have led to the collapse of the Lebanese government.
the announcement from Em Sherif that it would be refusing to pay its taxes and instead redirecting the money to worthy charities
Dany Chakour, owner of the Em Sherif restaurants, has gone a step further.
He says his restaurants will no longer pay taxes to the corrupt and inept government of Lebanon, but will instead pay that money directly to non-governmental organizations that are actually helping people.
“We decided to help the NGOs who are the only ones helping on the ground,” Chakour said.
“We won’t pay the government, that’s for sure.”
And he says other business owners are thinking of following his lead.
Chakour says he intends to file his value-added tax returns as usual, but without including the demanded 11% payment.
Instead he will indicate the charities he funded with the money.
I’ve covered the case of anti-abortion tax resister Michael Bowman a few times before.
He managed to get a hung jury in his previous trial, but then the judge decided he’d prefer a conviction and so refused to allow Bowman to present key parts of his defense during the retrial.
That strikes me as a significant thumb on the scales of justice, but such is how things go in the United States these days.
In any case, at his retrial without benefit of a jury Bowman was convicted and was recently sentenced to probation and $138,026 in restitution.
He says also that the court case has financially ruined him.
He plans to appeal.
War tax resister Alan Barnett has died.
Barnett organized a phone tax resistance group in California during the Vietnam War that included hundreds of resisters.
Spray paint seems to be the tool of choice in the latest human attacks on traffic ticket robots.
People blinded the cameras with paint in the United States, Germany, and France, while other methods were used elsewhere in France.
Another tax strike in South Kivu, as the Federation of Businesses of Congo organized a hartal in Baraka that includes tax resistance along with a general strike.
The human rebellion against traffic ticket robots continues, with robots taking casualties in France & Germany and more in France in recent weeks.
Some recent links of note:
Earn less money so you owe less taxes and fund less of the government’s bad deeds, or earn more money so you can donate more to good causes and offset the damage done by your taxes? Such a decision becomes even more complex when your finances are entwined with those of a partner. Lindsey Britt thinks over her options at NWTRCC’s blog.
The Congressional Budget Office recently released its projections for what the U.S. federal government budget is likely to look like in the future based on current law and economic conditions.
It is an eye-opener.
Last year when they issued their report, they thought the U.S. government debt would be about 79½% of the nation’s gross domestic product, a number that raised eyebrows at the time.
But that was before the coronavirus.
Now they say the number will be upwards of 98% — a level the country has not seen since the all-out mobilization for World War Ⅱ.
And it just keeps climbing from there.
By 2050 it is projected to nearly double to 195%.
This is because government spending as a percentage of GDP is expected to rise, from “rising interest costs and the costs associated with an aging population and excess health-care cost growth”.
The federal budget deficit this year is projected to be $3.3 trillion, which is just freaking unprecedented.
“It is hard to overestimate what a dismal fiscal future the Congressional Budget Office foresees.”
Catalan separatists, on the other hand, seem to be turning up the heat.
They have identified a set of basic infrastructure companies that are in favor of Catalan secession and that are working to disentangle their Catalan operations from the Spanish state: companies in the telecom, energy, petrol, insurance, and banking sectors for example.
They are encouraging people in Catalonia to shift their consumption to those companies, and also to pay their federal taxes through the Catalan tax agency, as a way of easing the eventual transition to independence.
Some tabs that have slid through my browser in recent days:
As you may have heard, The New York Times finally got ahold of Donald Trump’s tax returns.
They show that he didn’t pay income taxes most years, and when he did in recent years it was token amounts ($750).
This seems to be largely because of grandiose business losses combined with sketchy deductions for business expenses (like $70,000 in annual hair care, or “consulting fees” to his family).
The upshot of this to us here at The Picket Line is that this contributes to the public impression that the rich evade taxes with impunity and that taxpaying is for suckers, thus degrading “taxpayer morale” and the willingness of taxpayers to cough up their tribute voluntarily.
See ♇ 25 November 2012 for more about attacks on the pillars of taxpayer compliance.
Some recent links of note:
As I reported back in July the IRS was refusing to issue stimulus payments to people in prison, and was trying to claw back the payments it had already issued — even though the law did not authorize the agency to do these things.
Now a court has granted an injunction against the IRS, ordering it to release the funds to the unjustly robbed prisoners.
The human revolt against traffic ticket robots continues, with robots taking casualties from rebels armed with spray paint, an angle grinder, and hot tar in Canada and France in recent weeks.
Ruth Benn, at NWTRCC’s blog, takes aim at the “All or Nothing Syndrome” in which some people give up on doing war tax resistance at all because they don’t feel capable of going all-in and resisting everything.
Peace activists in Ireland who broke into Shannon Airport to decommission U.S. military aircraft stationed there have been found not guilty by a jury, who apparently agreed with the defense argument that they were lawfully justified in their actions.
Some tabs that have festooned my browser in recent days:
Rob Greenfield has announced that “as an act of civil disobedience I will not pay federal income taxes for my lifetime.”
He seems to have stopped paying in but only now made a formal announcement, in part prompted by the news stories about President Trump’s frequent non-payment of federal taxes.
Greenfield is fond of bold and flashy lifestyle experiments.
For example, he lived for a year on only foraged food.
He’s cycled across the United States multiple times on a bamboo-frame bicycle.
He lives on a poverty-line income while donating the income from his media appearances to charity.
That’s all just the start.
The president of the Tuscany branch of Confcommercio (the Italian General Confederation of Enterprises, Professional Activities and Self-Employment), Anna Lapini, announced that fifty thousand Tuscan businesses will stop paying taxes and duties.
“Our companies have no more resources, and we prefer to continue to pay employees and suppliers as a priority over a state that does not understand — indeed tramples on — our reasons for existing.”
Lapini explained that the group was resorting to a tax strike “for the same reasons for which Mahatma Gandhi or the founding fathers of the United States or the French people during the revolution used it in other times.”
The strike went into effect on when a set of taxes came due, and striking businesses refused to pay.
“If working is no longer a right, paying taxes is no longer a duty,” reads one Italian protest sign.
The human war on traffic ticket robots continues, with brave mortal renegades defeating the mechanical hordes in Italy, Canada, and France (where one “device has not been able to operate for more than a week without being attacked since it was installed two years ago”), Germany, France, and Australia (where a “GoFundMe was set up to pay for a lawyer to help the… driver arrested for the camera’s destruction”), France, Guadeloupe, and Germany and France again.
Predictably, the prohibitively high cigarette taxes in states like New York and California has led to increases in smuggling to evade the taxes, with more than half of the cigarettes consumed in New York now being smuggled in from low-tax areas.
The IRS is still (improperly) threatening people with frivolous filing penalties if they send letters of protest along with their tax returns.
The new QR-codes that the IRS has started to include on past-due notices present a possible security issue for some tax resisters.
An appeals court affirmed that you cannot discharge federal tax debt in bankruptcy if you have willfully “attempted in any manner to evade or defeat” the tax.
Now that Democrats have more power in Washington, will the long decline of the IRS budget slow or reverse?
Could be.
Increasing collections could give the new administration more money to work with.
Unionized government employees are usually reliable Democratic voters.
It’s become the fashion to run more social programs out of the IRS via tax incentives (e.g. Obamacare).
The Democratic base is peeved about wealthy people and companies not paying their “fair share.”
All of this suggests the new administration has motives to increase the agency budget.
And the Wall Street Journal says there are already plans in the works to slip an IRS budget boost into a bill that boosts the per-child tax credit.
On the other hand, the Democratic majority in Congress is razor-thin, and making the IRS bigger and more powerful isn’t all that popular among the marginal voters.
Let’s wait and see.
Some recent links of note:
The Mennonite Church USA is holding a Cost ☮f War webinar .
Mennonite war tax resisters will be among the presenters.
The war tax resistance movement in Spain does a periodic census of war tax resisters there, asking them how much they resisted and, if they redirected the taxes, where they redirected.
I don’t know how representative census-responders are of the war tax resistance movement there.
I have a feeling that if we tried the same thing in the United States, we’d get a pretty small percentage of resisters responding.
We’re not very good survey people.
But anyway, according to their census the 258 people who responded to the Spanish survey redirected €18,088 to 92 different projects.
The average resister redirected €70.
Follow the link for more details.
Peter J. Reilly, at his Forbes tax blog, writes about the “hey hey just don’t pay” tax strategy.
He writes about war tax resisters who see their tax debts erased by the statute of limitations and notes:
I find this situation demoralizing.
I believe that making an effort to be reasonably tax compliant (Perfection is impossible unless your situation is pretty simple) is one of the duties of good citizenship.
I also used to believe that it was prudent even for people who are of the “taxation is theft” school of thought.
I am doubtful of the latter now.
It is still too risky for my taste, but I can’t make the argument that scofflaws are being reckless.
Money, even in tiny amounts, talks. If money — money from a growing number of tax rebels — refuses to go where the government is trying to put it, then together we can make a difference.
That’s why I’m appealing to other self-employed writers to join me in this tax resistance.
Rogers is part of “The Earth Tax Strike” group, which is holding its withheld taxes in an escrow account which they say they’ll pay when the government meets their demands.
In the wake of the recent military coup in Myanmar, Financial Times reports that some domestic and foreign businesses have begun to boycott companies that are too close to the military regime.
Tax resistance is heating up in Myanmar in the wake of the military coup there.
The national legislature passed a law suspending tax collection and ordered government departments to stop collecting taxes, though the head of the central tax agency downplayed this.
There are also campaigns afoot to boycott lottery tickets, stop using sales tax stamps, and stop paying government monopoly utility bills.
Consumer pressure forced one restaurant chain to make a public statement that customers were welcome to refuse to pay sales tax in its restaurants.
You can learn more about the Extinction Rebellion U.K. project #MoneyRebellion in its latest newsletter.
Among its projects is Earth Tax Strike — a coordinated tax resistance campaign designed to pressure the government to enact more sensible environmental policies.
Here is an example of a letter the resisters will be sending to the government to explain their refusal and their demands.
The IRS continues to exceed its authority by assessing “frivolous filing penalties” against people who write them letters that protest how their tax dollars are spent — even if those letters aren’t “filings” at all, or are accompanied by filings that are accurate and complete and that don’t assert any “frivolous” positions.
This has understandably intimidated some people from petitioning their government for redress of grievances in this fashion.
Small loss though that may be, Ruth Benn urges us to not roll over too quickly: “if we want to make a statement about refusing to pay for war, hassles come with the territory and are actually the least of the risks that a resister could face.”
The U.S. government has been sending out stimulus payments as direct-deposits, as checks, or as debit cards.
It would do this even if the recipient was behind on their taxes and owed the goverment money: it did not deduct what you owed from the stimulus you received.
If the IRS couldn’t find you, though, or didn’t think you qualified for a payment, there was a backup option: you could apply for the stimulus on your tax return.
However if you did that, the IRS would treat it as any other deduction or credit, and offset it against the taxes you owed.
Which put people who had to use this backup at a disadvantage… or at least it did so until recently:
The IRS now says it will not offset such stimulus credits against federal tax debts.
The IRS, after insisting that it would stick with the April 15th tax filing deadline this year, finally threw in the towel and extended it to .
Part of what convinced them? They are still trying to finish up last year’s returns, and a growing backlog of taxpayer correspondence.
There were also some significant tax changes in the recently-signed stimulus bill (such as big changes to the child tax credit, and exemption of a large hunk of unemployment benefits from taxable income) that threw a wrench into things even as tax filing season was already officially underway.
Some recent links of interest:
War tax resister Lindsey Britt reminds readers of the Brattleboro Commons that “our taxes are our legacy.” Excerpt:
Taxes are part of a legacy that each person creates which will shape the world long after their death.
But with a large portion of tax money in the United States directly paying for weapons of death and destruction, all of us owe it to ourselves to consider the legacy that we are creating with our role in the war machine.
The decay of enforcement at the IRS has come to the notice of the very wealthy, who are hiding their wealth from the tax collector with impunity.
This in turn came to the attention of a few economics researchers, who compared the data from a variety of audits of people in the top-earning 1% to show that tax evasion is rampant among the ultra-rich.
And that study has come to the attention of journalists and pundits, who summarize the news in this way: “An underfunded and overworked IRS has enabled a handful of plutocratic tax cheats to live large at the expense of everyone else.” This is the sort of thing that causes “taxpayer morale” to collapse.
The city government of Vic, the capital of the Osona comarca in Catalonia, has decided to stop remitting its taxes to the Spanish federal government, and will instead send those taxes to the Catalan government.
In doing so, they are joining the Catalan nationalist “Jo Pago a Catalunya” tax resistance campaign.
Currently, the Catalan government forwards these taxes to Spain, so this is mostly a symbolic campaign.
But when enough people and institutions pay their taxes through the Catalan government, that government will be empowered to stop forwarding these taxes to the federal government as part of their declaration of independence.
In Defence of Marxism has reprinted Rob Sewell’s recap of the “We Won’t Pay” anti-poll-tax movement that brought down the Thatcher government, from the point of view of the Militant Tendency, which played a major (and controversial) role in that movement.
Groups in the Ituri province of the Democratic Republic of the Congo have launched a tax resistance campaign aiming at forcing the resignation of the governor, who they say has made the security situation worse in the province.
Some recent tax resistance links of note:
Long-time war tax resisters Arcadi Oliveres and David Zarembka have died.
Oliveres was one of the founders of the modern war tax resistance movement in Spain, while Zarembka was one of those who helped NWTRCC get off the ground in the United States, serving as its first treasurer.
More info:
Chuck Faber’s tribute to David Zarembka on A Friendly Letter, including autobiographical writings from Zarembka himself that go into his five decades of war tax resistance in detail
In my last update I noted that the city government of Vic had decided to stop remitting its taxes to the Spanish federal government, instead sending those taxes to the independence-minded Catalan government.
Vic has now been joined by Girona, capital of Girona province, as well as some other medium-sized towns.
The U.S. State Department can refuse to give you a passport or can revoke your existing passport if the IRS tells them you’re way behind on your taxes and aren’t doing anything about it.
And the IRS can make this happen just by notifying the State Department.
Is that unconstitutional? To take away your fundamental right to travel without due process of law?
Paul L. Caron, at TaxProf Blog, investigates the issue and a recent test case that did a poor job of trying to test it in Tax Court.
Caron doesn’t think the constitutionality argument will work, even if it is raised more competently in a more receptive legal forum.
For one thing, the right of an American citizen to travel internationally is not very well protected by American law: the courts do not consider it to be all that important.
For that reason, the courts’ threshold for what they consider sufficient “due process” to deprive you of such a right is pretty low.
President Biden has now come out and said explicitly what had been suspected: that he hopes to help fund his spending spree by increasing IRS enforcement spending, as part of a sock-it-to-big-business plan that also includes increasing corporate tax rates, broadening the corporate tax base, and eliminating big business loopholes.
We’ll have to keep an eye on this as it burbles through the legislative tract.
Some more details have emerged about the Biden administration plan to beef up the IRS enforcement budget.
Treasury Secretary Janet Yellen says the administration is seeking a $1.2 billion / 10.4% total increase in the agency budget, most of which would go to tax enforcement.
Every once in a while, the IRS crunches the numbers and tries to figure out the size of the “tax gap” — the difference between what Americans owe and what they actually cough up.
The problem is that there are a lot of unknowns — unpaid taxes that the government currently has no way of knowing that it is owed.
So it has to make guesses and extrapolations.
Now, in testimony to a Congressional committee, IRS Commissioner Charles Rettig has admitted what I’ve long suspected: the agency’s estimates of the “tax gap” have been far too low and the real number is more than double what has been reported.
Meanwhile, the IRS is still struggling to get through its backlog of tax year income tax return filings as this year’s tax filing season hits its peak.
This is further complicated this year by the agency’s role in administering a new stimulus check dispersal, and last-minute retroactive changes to the tax laws that made some already-filed returns incorrect and that gave the agency responsibility for rolling out a new tax credit.
Our movement has only scratched the surface of what non-violent civil disobedience can achieve.
While they deceive and seek to oppress us further, we can take a stand against their ecocidal leadership — by simply withholding council tax then telling the world why we’ve done it.
The campaign is asking local groups in the U.K. to demand that their local councils declare a climate emergency and suspend projects that are ecologically irresponsible.
Another detail of the Biden administration’s plan to beef up IRS tax enforcement has come out.
They hope to force banks to report information about everyone’s bank accounts: how much came into and out of each account over the year.
This would help them identify income sources that people and businesses fail to report on their tax returns.
But it would also put more bank accounts on the agency’s radar.
Currently, they only seem to be very aware of interest-earning bank accounts, via the reporting of this interest on annual 1099 filings.
This has allowed some tax resisters to have bank accounts that are relatively invisible to the IRS (and thereby less-vulnerable to seizure) by having non-interest-bearing accounts.
The proposed reporting changes might remove this protection.
Catalan separatists have amplified their tax resistance campaign.
For some time now the Catalan National Assembly has been promoting a campaign in which individuals, businesses, and (an increasing number of) municipalities would redirect their national taxes from Spain to the Catalan regional government.
That government would forward those taxes along to Spain, so the effect of this (and its risk) was minor, but in theory if the Catalan regional government decided to pull the trigger on political independence, this would establish the groundwork for fiscal independence as well.
But now, the separatist “Council for the Republic” is trying to push things further: asking resisters to redirect €300 of their taxes from the government to the Republican Fund for Solidarity Action.
That money will not be forwarded to Madrid, and so this is a more confrontational act of civil disobedience.
Attorney Peter Goldberger will discuss the prospects for people who might try to assert that people have a legal right of conscientious objection to military taxation in U.S. courts.
The discussion will be held online, on Zoom .
In South Kivu, the government is striking back at the three-month-old tax strike, announcing that it will call in police to enforce the tax law.
Strikers are protesting the lack of road maintenance in the region, and the spokesperson for the strike says it will continue until the main road is repaired.
Chrissy Kirchhoefer, over at NWTRCC’s blog, recaps some of the Tax Day actions war tax resisters have engaged in this extended tax season.
, honoring those who refuse to participate in their governments’ war-making institutions.
It comes a couple of days before in the United States, and so conscientious objectors to military taxation are appropriately in the news:
“I want to live my values, which includes nonviolence,” said Lindsey Britt of Brattleboro. “Paying for destruction at home and abroad doesn’t fit into that, so I live more simply and refuse to pay a portion of my taxes.”
War tax resister Sue Barnhart has a letter-to-the-editor in the Eugene Weekly. Excerpt:
I have been a war tax resister since the 1970s since I do not want my money supporting murder.
The money I resist to the military I give to local groups that actually help people and the environment.
Now I am also a war tax resister because I don’t want my money supporting the biggest contributor to the burning of our planet: the U.S. military.
War tax resisters Lincoln Rice and Robin Brookes are hosting a discussion group at the upcoming World Beyond War #NoWar2021 conference on :
“War Tax Resistance:
Tax resistance to paying for the military began hundreds of years ago and continues to this day.
Let’s talk about the practicality and efficacy of refusing to pay for war.”
“I’ve decided I won’t pay any tax to the dictators, and that includes electricity.
If police and soldiers ask me, I’ll just tell them I don’t have any money.
I don’t care if they cut off the power to my house,” the resident of Yangon’s North Dagon Township told Frontier. “Most people in my ward who I’ve spoken to say they’re not going to pay either.”
The Civil Disobedience Movement in Myanmar apparently has a lot of support from within the Ministry of Electricity and Energy, which may make things easier on resisters.
Ko Aung Thu, who lives in the Shwe Lin Ban area of the highly industrialised township, said he had received a bill for but had no intention of paying.
“They killed people right here, in this township,” he said, referring to the security forces’ massacre of more than 50 people on .
“Why should I pay money to a bunch of murderers? I won’t pay any taxes.
If we pay taxes, we’re just supporting murderers.”
A hotel owner in nearby Bagan said he wouldn’t pay either and he expected many others would also refuse.
“I just heard today about how the state lottery isn’t able to run because so few people bought tickets.
I think most people won’t pay their electricity bills, either,” he said.
“We won’t support the dictator… the income from electricity charges is huge and they won’t be able to survive without that money.”
U.S. Senator Elizabeth Warren is spearheading a Democratic Party effort to expand and further empower the IRS.
“I have proposed nearly doubling the funding for the IRS but also making a chunk of their funding mandatory and targeted toward high-income individuals and corporations.”
During site visits to two processing centers, management estimated that 42 percent of 164 devices used by the submission processing functions are unusable and others are broken but still functioning. “IRS employees stated that the only reason they could not use many of these devices is because they are out of ink or because the waste cartridge container is full,” it said.
The report added: “The lack of working printers and copiers affects many different areas of the IRS but has an especially significant effect on the return and income verification services functions” where employees must make copies of tax returns to fulfill requests for tax documents from taxpayers and other institutions.
At one center, though, only three of the 10 devices were working.
The human war on traffic ticket robot cameras continues, with the robots taking casualties in Guadeloupe and France and in Italy in recent weeks.
There’s a roadblock to the Democrats’ plans to use increased IRS enforcement to bring in more money to pay for their ambitious federal budget:
The fact that under Congressional budgeting rules, increasing the IRS budget counts as an expense, but increases in tax revenue that might be expected as a result don’t offset that expense.
Which means Congress has to jump through extra hoops to justify that extra spending.
Republicans smell blood in the water, and suspect that beefing up such IRS tax enforcement might not be politically popular.
They hope they can exploit anti-tax-snoop sentiment to stymie Democratic spending priorities.
The IRS expects to lose 52,000 of its 83,000 employees to retirement over .
Hiring freezes and budget cuts have aged its workforce.
But now they’re going on a hiring spree to try to make up for it.
You may donate to that SBE [State Board of Equalization] member who will vote against you.
This may sound counterintuitive, but the idea is that both you and the SBE member must then disclose that contribution.
Any contribution of $250 or more must be disclosed.
Your contribution will disqualify that SBE member from considering your case.
The only exception is if the SBE member returns the contribution within 30 days from the time he or she knows, or has reason to know, of the contribution.
Often, though, a contribution will not be returned.
With a five-member board, if you identify two members who will vote against your client and make contributions to them, they will likely be disqualified.
Your board is now three members.
If you can garner two positive votes out of the three remaining, you have won.
Non-Californians may find this kind of playing field strange or even untoward.
It is certainly different, and not for the untutored, but until they change the rules, that is our system.
The Niskanen Center is a U.S. “state capacity libertarian” think-tank.
They are of the opinion that a strong, capable, competent, central government can be the bedrock foundation of a libertarianish political order.
Strikes me as far-fetched, but let a thousand flowers bloom and all that.
Anyway, as part of their investigation of where the current central government falls short, they’ve published
a useful overview of how the IRS got into its current sorry state.
The Biden Administration has released what it calls The American Families Plan Tax Compliance Agenda.
They hope to boost IRS enforcement funding, increase the amount of financial information that gets reported to the government, finally update the IRS’s comically-archaic computer systems, and crack down on professional tax preparers who help people evade taxes.
Senator Elizabeth Warren has decided to carry the ball for some of this, in a bill she has proposed to boost IRS funding and force banks to report how much money comes into and goes out of their customers’ bank accounts.
Republicans hope to capitalize on public suspicion about a bigger and more-empowered tax agency with ads targeting vulnerable Democratic representatives that tie them to these plans.
In other news…
Hotels in Mar del Plata, Argentina announced a tax strike, saying that they cannot both pay their employees and their taxes while the tourist trade is lost to Covid.
A research paper into tax resistance in Ivory Coast finds that it does not behave according to theory. For example, Ivorians who believe elected officials are corrupt and the government is opaque are no more or less likely to resist taxes than those who believe elected officials are honest and the government is open. A stronger sense of national identity corresponds to a greater enthusiasm for tax resistance there (which is the opposite of what is usually found). It goes to show that reality is complicated.
The human war on traffic ticket robots continues to rage, with the robot hordes taking casualties in France, Luxembourg, and Italy(more of the same). Tiny Luxembourg installed 24 such cameras five years ago, and more than half of them have been knocked out of service, while none of the human rebels have yet been caught.
A new war tax resistance season is culminating in Spain. The movement there is particularly active, with “tax resistance offices” counseling resisters in several cities during tax-filing season, and lots of coordination between war tax resisters, climate activists, border demilitarizers, and other such activists.
Some recent links of interest:
In recent years, something in the neighborhood of 40–45% of American households have not owed any federal income tax.
This is due to a combination of factors including progressive tax rates and tax deductions & credits that shield a certain amount of income from tax.
Although fabulously wealthy people who do not pay income tax are certainly a thing, most of this group of “lucky duckies” come from the bottom half of the income scale.
In , with its pandemic-related economic disruption and the stimulus payments that took the form of refundable tax credits, the numbers jumped: the Tax Policy Center estimates that 61% of U.S. households paid no federal income tax .
Under a newish law the U.S. government will be issuing advance “Child Tax Credits” to qualifying families with children as checks periodically throughout the year.
These checks take the place of the refundable tax credit that such families would have used to offset their federal taxes at annual tax filing time in past years.
Interestingly, the IRS has directed its enforcement personnel to avoid seizing money from bank accounts in which these Child Tax Credits have been direct-deposited and to refund any inadvertently seized Child Tax Credits.
“Council Tax Strike” is a subproject of the Extinction Rebellion movement in the U.K. They claim: “There are people all over the U.K. withholding their council tax and demanding action on the things that matter to them.”
The National Catholic Reporter looks back on the nuclear disarmament activism of Archbishop Raymond Hunthausen:
“ ‘I think the teaching of Jesus tells us to render to a nuclear-armed Caesar what that Caesar deserves — tax resistance.
And to begin to render to God alone that complete trust which we now give, through our tax dollars, to a demonic form of power,’ he said in his ‘Faith and Disarmament’ speech.
‘Some would call what I am urging “civil disobedience.”
I prefer to see it as obedience to God.’ ”
Some tabs that have passed across my browser in recent days:
As part of the Biden administration’s plan to reduce the “tax gap,” they proposed that the government be given more visibility into people’s assets by requiring banks and other financial institutions to report to the IRS the amount of gross inflows and outflows from all accounts holding at least $600.
There was pushback, both from opposition lawmakers and the banking industry.
Now, it appears that this proposal has been dropped from the budget reconciliation package making its way through Congress.
That’s not the final word, but it’s an encouraging sign.
IRS Circumvents “Statute of Limitations” by Ruth Benn.
Normally, the IRS has ten years to collect unpaid taxes from you before they have to give up.
Also, normally, if you decide to voluntarily pay your taxes, you can also decide for which tax year you are paying them, and by IRS policy, they’ll respect that.
Ruth Benn’s tax resistance takes the form of refusing to pay her income tax, but voluntarily paying her self-employment tax.
As the ten year statute of limitations approached on one of her unpaid years of income tax, the IRS tried to pull a fast one and used some sleight-of-hand to apply the money Benn was paying for the current year’s self-employment tax to the expiring year’s income tax amount.
She is hoping to get the agency to change its mind and to respect its own policy, and promises to keep us up to date on how the red tape tangles.
Counseling Notes.
Including a reminder that Social Security levies can continue past the ten-year statute of limitations date because the levy is considered “continuous” when it is first applied (not reapplied with each new Social Security check).
Democrats are keen to force banks to report how much their customers have put into and taken out of their accounts each year.
They hope this will bring to the surface some of the money in the underground economy that the government has been frustrated when trying to tax.
This proposal has gotten a lot of pushback, and has been an on-again / off-again part of the budget package currently oozing through Congress.
The latest guesswork suggests that the Democrats may reactivate the proposal but restrict it to accounts with $10,000 or more in them.
There’s a nice website that’s been established by the caretakers of The Nelson Homestead — the modest home of war tax resisters Juanita & Wally Nelson in Deerfield, Massachusetts.
It has good recaps of the lives and activism of the Nelsons, including photos.
The Biafra Nations League, which is trying to establish a break-away nation more representative of the Igbo people, has issued an ultimatum to oil firms in the area, ordering them to stop paying taxes to Cameroon and Nigeria, which currently claim sovereignty over the region.
Argentina legalized abortion .
Now a group of Argentine legislators have proposed a law that would permit a sort of conscientious objection to taxpayer-involvement in abortion, of a similar sort to what is proposed in the “Religious Freedom Peace Tax Fund Act” in the U.S.
The human war on traffic ticket robots continues, with robots taken out of service by human rebels in the U.S., Italy, France, and Germany & France in recent weeks.
Some recent tax resistance news of note:
The Biden administration and Democrats in Congress have been looking for coins under the couch cushions that might help them pay for some of their expensive ambitions.
One plan they came up with was to require banks, credit unions, and other such financial institutions to make annual reports to the IRS of all accounts that had more than $600 of combined deposits or withdrawals over the course of the year.
The theory was that the IRS could match this information with the declared income of the account owners, and, if there was a significant discrepancy, could launch an audit to investigate — thereby making it a bit more difficult for people to earn and spend undeclared income, and so increasing the tax base.
Republicans seized on this proposal as a good wedge with which to spoil the Democrats’ plans, and painted it as an Orwellian nightmare of the government peering into everybody’s private business.
At first, the Democrats doubled down, but as anticipated, they have now pared back the proposal such that it will only apply to accounts with at least $10,000 of combined deposits and withdrawals, and exempting certain deposits (such as direct deposit paychecks or social security checks) and withdrawals (such as for the purchase of a home).
Exemptions like those may make the proposal easier to sell on the talk shows, but they would make it considerably more complex for banks to comply, and so this is unlikely to dampen their increasingly loud and organized opposition.
And the Republican kvetching, which had predictably floated free from the actual facts about the legislation almost immediately anyway, isn’t likely to get any quieter.
It remains to be seen whether the proposal will survive its further journey through the legislative meat grinder.
Why this matters for American tax resisters is this:
One of the easiest and most common ways for the IRS to take money, from a resister who refuses to pay voluntarily, is to seize it from their bank account.
For the agency to make such a seizure, though, they must first become aware of the bank account.
The usual way they discover such an account is when the bank sends an annual 1099 report to the IRS indicating how much interest income was earned by the account.
But in recent years, with interest rates so low, banks and credit unions have often offered accounts that do not generate any interest (they use other sorts of perks to entice customers instead).
Such accounts therefore do not generate 1099s and so do not create a paper trail for the IRS to follow.
So resisters have been able to use accounts like this to protect their money from IRS seizures.
Under the new proposals, such accounts would be reported to the IRS if they had a sufficient amount of deposits and/or withdrawals, and so this protection would be diminished or eliminated.
Federal tax revenues are sharply up , largely thanks to booming fortunes of corporations and the wealthy.
This appears to be more than just a rebound from the economic challenges of the pandemic, as the numbers are also way up from the pre-pandemic .
Jane Rogers & Alex Pension from Extinction Rebellion’s “Money Rebellion” tax resistance campaign in the U.K. and José “Cuti” Cutillas from Spain’s Antimilitarista Tortuga war tax resistance movement spoke at the recent NWTRCC national gathering about how tax resistance plays out in their work:
The “Build Back Better Act” as currently proposed includes among its many provisions $498 million for the Department of Justice specifically to prosecute tax evasion, and $80 billion for the IRS (both figures are spread out over ten years).
Both Democrats and Republicans have reason to exaggerate the practical effect of this.
Democrats will insist that this new funding will mean the government can finally pursue fat cat tax evaders, close the tax gap, and result in lots of new tax revenue that will pay for the rest of the spending in the bill.
Republicans will paint a picture of vast swarms of jack-booted thugs running rampant over innocent families and small businesses across the land.
The purportedly nonpartisan Congressional Budget Office analyzed the bill and said that according to their calculations, the new IRS funding would lead to less than a third of the increased revenue that the Democrats were trumpeting.
As a result, the bill as a whole will put the government yet further in the red.
I have seen no signs that the IRS bank-account-monitoring proposal will sneak its way back into the bill, despite some Democrats’ hopes.
We are divesting from war by refusing some or all of our federal tax dollars that fund it, or by living below the taxable income level.
We invite you to join us publicly in this act of civil disobedience to war and war funding.
If that sounds like something you’d like to be part of, sign up on their page and thereby band together with your fellow-resisters.
Our… resolution, “Faithful Witness Amid Endless War,” calls us to seek and implement public ecumenical witness to our confession: “Some trust in their war chariots and others in their horses, but we trust in the power of the Lord our God” (Psalm 20:7).
How do we place our trust in the power of God while a massive expenditure of our tax dollars trusts in high-tech weaponry to keep us safe?
In this routine legislative act, we are challenged to reflect deeply on where we place our security and allegiance.
The creation of MC USA’s Church Peace Tax Fund provides individuals with a tangible way to support the church’s ongoing peace mission, while symbolically protesting government spending on war and militarism.
José Luis Espert, a member of parliament in Argentina, called for tax resistance in a recent editorial (and then doubled down in a series of tweets).
Espert notes that the tax burden and government spending have both doubled as a proportion of gross domestic product over the past fifty years, as deficit spending has repeatedly put the Argentine economy into crisis.
This tax burden falls heavily on the above-ground economy, whose workers, he claims, work half of their working year just to pay their annual taxes.
He despairs of politicians ever overcoming the perverse incentives that drive this problem, and so:
To adjust public spending, the powers that be are clear that they will never do it the right way, but prefer that it be done the hard way with the people starved into a crisis, and this is why a tax rebellion by Argentine taxpayers is necessary.
In order to put an end to the immorality of a clique of disgraceful politicians who prefer that we be a Maduro-less Venezuela than for them to be responsible when it comes to collecting and spending.
At age 77, the soft-spoken Kehler is still inspiring nonviolent anti-war activism.
Locally, he and his wife of 45 years, Betsy Corner, are possibly most remembered for their stand against the Internal Revenue Service, as “war tax-resisters” whose rural Colrain home was seized for non-payment of taxes in and sold by the IRS for $5,400.
Its customer service workforce has shrunk more than 40% since 2010, according to the most recent data, and the agency is struggling to fill vacancies amid a labor shortage — handcuffed by a federal pay scale that starts college graduates at little more than fast-food wages.
It’s so bad, that tax professionals can’t even reach the agency on the special back-channel line designed just for them.
One person’s hopeless bureaucratic dysfunction is another person’s opportunity:
A company has launched a $100/month service “that makes robocalls to the agency’s special practitioner line… waits on hold, and then, when it makes a connection, puts the client through to an IRS agent.”
The human war on traffic ticket camera robots continues. In France and Italy, fire and spray paint took out several cameras, while Santa Claus converted another one into a pose-with-Santa photo booth. Spray paint was also the weapon of choice in several attacks in France and Germany in recent weeks.
French provacateur Rémi Gaillard converts a traffic ticket camera radar gun into a pose-with-Santa photo booth
Democrats in Congress are having more trouble than expected getting everyone in and out of the clown car.
The upshot is that the painstakingly-negotiated “Build Back Better Act” is in jeopardy — along with the $80 billion in new IRS funding that was part of the bill.
was surely the most challenging year taxpayers and tax professionals have ever experienced — long processing and refund delays, difficulty reaching the IRS by phone, correspondence that went unprocessed for many months, collection notices issued while taxpayer correspondence was awaiting processing, limited or no information on the Where’s My Refund? tool for delayed returns, and — for full disclosure — difficulty obtaining timely assistance from TAS.
, examination coverage has decreased, enforcement efforts have been negatively impacted, and the Level of Service has continued to drop as the IRS’s workforce and budget have declined.
On the resources side, the IRS’s baseline budget has been reduced by about 20 percent on an inflation-adjusted basis , and its workforce has shrunk by about 17 percent.
There is no way to sugarcoat in tax administration: From the perspective of tens of millions of taxpayers, it was horrendous.
[T]he number of individual income tax returns the IRS receives — a reasonable approximation of its workload — has increased by 19 percent , while its baseline appropriation on an inflation-adjusted basis has decreased by nearly 20 percent.
This imbalance has left the IRS without enough resources to meet taxpayer needs, let alone to invest in additional personnel and technology.
The IRS has not finished processing millions of original and amended returns from , even though returns will soon arrive for processing.
According to the Department of the Treasury, the gross tax gap — the difference between taxes paid and taxes owed — is estimated to have totaled about $580 billion in , up from an estimated amount of nearly $440 billion in , and is expected to rise to about $7 trillion by if left unaddressed.
Processing a paper-filed return is significantly more expensive for the IRS than processing an e-filed return due to the costs associated with training, recruiting, and staffing for manual data transcription.
In fact, the cost to process a paper-filed Form 1040 in was $15.21, which is substantially higher than the $0.36 cost to process an e-filed return.
The report also included some totals for levies, liens, and seizures, so I can update these graphs:
More excitement from the human war on traffic ticket robot cameras, as fire, spray paint, and other sorts of sabotage knocked cameras out of commission in France, Germany, and Italy in recent weeks.
Myanmar’s shadow Opposition government, the National Unity Government, has urged the public to stop paying for electricity.
In , it said that 97 percent of people in Mandalay and 98 percent in Yangon had done so, costing the regime $1 billion by that point.
For a while now, U.S. taxpayers have been able to access some of their tax records held by the IRS via the agency’s on-line portal.
This required a somewhat onerous process of signing up for an account — a process that’s a bit more invasive and difficult than signing up for a similar account at your bank.
I’ve tried to talk a few war tax resisters through the process because it can be useful to have better visibility into what information the IRS is assembling about you.
But often, they throw up their hands at some point and say it’s not worth it, because it really does seem like more trouble than it ought to be.
The agency says that by , the only way to log in to irs.gov will be through ID.me, an online identity verification service that requires applicants to submit copies of bills and identity documents, as well as a live video feed of their faces via a mobile device.
[C]ompleting the process requires submitting at least two secondary identification documents, such as as a Social Security card, a birth certificate, health insurance card, W-2 form, electric bill, or financial institution statement.
After re-uploading all of this information, ID.me’s system prompted me to “Please stay on this screen to join video call.”
However, the estimated wait time when that message first popped up said “3 hours and 27 minutes.”
The income of “closely-held businesses” (Schedule C / pass-through / non-corporately structured) in the United States is taxed at special rates and with special rules, but on the owners’ individual tax returns.
A new report from the Urban-Brookings Tax Policy Center says that these special rules, combined with some clever gaming of the rules and some outright noncompliance, mean that about half of that income goes completely untaxed.
One theory is that youngsters can fall into denial-of-service attacks by firstly playing online games, and then falling into installing mods, hacks, and even remote access trojans to get the upperhand on their gaming rivals.
That sort of identity theft and refund fraud has made the IRS eager to tighten up security.
They’re under pressure to allow taxpayers to conveniently view their tax statements and other such information on-line in the same way they have come to expect to view their bank accounts, utility bills, and everything else in our digital age.
On the other hand, cunning and not-so-cunning fraudsters like Florida Man see such convenient access as a recklessly-guarded vault full of government money ripe for the picking.
What is the IRS to do?
Their response was to invite the usual suspects in government contracting to bid on a contract to square the circle and make the problem go away.
The winning bidder apparently was military contractor ID.me, and the IRS has begun rolling out their solution and telling users of on-line IRS account services that they’ll need to reenroll with ID.me if they want to continue to access their accounts.
However, the rollout has gone poorly.
As I noted last month the sign-up process is clumsy, time-consuming, and buggy.
It’s also uncomfortably invasive — requiring a face scan and copies of a variety of documents.
ID.me sent out a press release claiming that those face scans were only used in a very limited way to verify identity but then had to walk back that claim when it was shown to be untrue.
Privacyadvocates and people & groups with a host of otherconcerns have been urging the IRS to reconsider.
Danny Burns’s excellent history of the Poll Tax Rebellion has been released in free text and PDF forms on-line, apparently with the blessing of the author.
Clarification: the number of Americans who renounced their citizenship hit new highs in , according to numbers released , but it looks like ’s numbers dropped considerably from there, with the unwillingness of embassies to process renunciations being one reason for the drop. ―♇
Just when I think I’ve heard it all about the troubles at the IRS, everything turns out to be worse than I heard:
Remember when I told you about how the IRS was rolling out a new way for people to sign on to their on-line systems, and that it was a bit invasive, difficult, and buggy?
And then remember when I told you how the rollout was going poorly and generating a lot of push-back?
Well, the awful just continues to pile up and now the IRS is scrapping the new sign-on process and going back to the drawing board.
Meanwhile, some seven million people may have tried to use the new process to log in, a process that included sending in “selfies” for biometric testing, which attracted the ire of privacy advocates.
The contractor who designed and operated the identification verification service says these people can request to have these selfies deleted.
Reading between the lines, I think this contractor is going to try to force everybody to use the back-up plan that was already in place for if the automatic selfie-check didn’t work: to have a video chat with an employee who would “eyeball” the chatter to see if their identity matches up with what’s on their paperwork.
This isn’t really any less invasive than the selfie method, but maybe it triggers people’s “big brother” alarms less.
It’ll certainly be less automated and therefore more expensive and time-consuming.
But the IRS is no stranger to doing things the more expensive and time-consuming way.
For example, their mail-sorting and -opening machines have been broken for a long time, and IRS employees now have to do the work by hand.
This means that if you send them a check, it takes them longer than it should for them to get that check out of the envelope and into the U.S. Treasury.
This delay also means the government loses out on interest they could be earning on that money.
How much interest? About $165 million a year.
It would only cost $650,000 to buy completely new machines, or $365,000 to repair the broken ones.
And remember how I told you how the IRS had stopped sending out some enforcement notices to taxpayers?
Taxpayers were getting frightening notices suggesting that the IRS didn’t think they’d filed their taxes, when in fact their tax returns were sitting in an enormous pile of tax returns the agency hadn’t gotten around to processing yet.
So the IRS said it would stop sending out a few types of notice until it got all that sorted out — but said that it couldn’t stop sending out a bunch of others because it might mean they’d lose their chance to go after genuine tax scofflaws.
Well, now they’ve thrown in the towel and said they’ll stop sending out a dozen more types of notices including the balance due, balance due second notice, notice of intent to levy, and withholding compliance letters that are standard issue to tax resisters like myself.
And remember how I told you that the IRS had a backlog of some 14 million unprocessed tax returns and other taxpayer correspondence?
Turns out it’s more like 24 million.
Meanwhile: “The agency sought to fill 5,000 positions for several campuses across the country in time for this tax season but was able to hire fewer than 200.”
In other news, the IRS is eager to reduce the size of the underground economy by demanding more reports on gig workers and others who get irregular payments through platforms like Paypal, Venmo, Etsy, and Zelle.
But this isn’t going smoothly either.
It seems to be raising more resentment than tax money, at least so far. And it’s easy to bypass.
If you pay someone using one of these platforms and explicitly say you’re paying for goods or services, maybe it’ll eventually get reported as income.
But if you don’t say this, as far as the platform is concerned maybe you’re just sending a gift or reimbursing someone for part of a meal you shared where they picked up the tab.
Is today’s IRS going to send auditors out to make sure nothing falls through the cracks this way?
Yeah sure.
In other news:
The tax strike against the Edmonton Incinerator continues to attract more strikers as the early adopters prepare for their first day in court.
Turkish opposition politician Kemal Kılıçdaroğlu announced that he plans to refuse to pay his utility bills until president Erdoğan withdraws 50% price hikes instituted at the beginning of the year. Some Alevist cemevis have also stopped paying.
The ragtag human guerrilla war against the traffic ticket robots continues, with robots succumbing to human attacks or being frustrated by human ingenuity in the U.K., Australia, Brazil, Italy, and France in recent weeks.
Anabaptist World features a letter from Harold A. Penner urging Mennonites to redirect their war taxes to the Mennonite Church USA Peace Tax Fund.
And here is some more news about the ongoing troubles at the IRS.
This CNN Business story goes in some depth into how a loose coalition of activists forced the IRS into an embarrassing and costly retreat from its plan to use facial recognition technology to verify the identity of taxpayers using its online account portal.
This note from the National Taxpayer Advocate gives more details about the IRS plan to stop issuing certain enforcement action notices while it tries to deal with the enormous backlog of unprocessed returns and other correspondence.
For example: “If a taxpayer’s account has been assigned to one of the IRS’s automated levy programs (ALPs), the IRS is also suspending the levies made by those programs…”
The agency will also not be able to pursue many new levies because in order to do so, it must first send the taxpayer a letter informing them of their right to request a Collection Due Process hearing, and they’ve temporarily stopped the automatic sending of those letters.
Some 53,000 IRS employees are still on remote work — about two-thirds of the agency’s workforce, which an IRS spokesperson characterized as “a maximized telework posture.”
But privacy rules prevent remote processing of the millions of paper tax returns mailed to the IRS, as well as the examination of returns with discrepancies from IRS records, the issuance of refunds and dealing with other taxpayer mail.
The Transactional Records Access Clearinghouse at Syracuse University issued a report showing that the IRS audits the poorest American households at five times the rate as the rest.
This seems to be an effect of the agency’s plummeting rate of audits of the well-to-do combined with its increasing use of cheap-and-easy “correspondence audits” against low-income taxpayers who apply for the Earned Income Tax Credit.
As the National Taxpayer Advocate puts it:
The IRS correspondence audit process is structured to expend the least amount of resources to conduct the largest number of examinations — resulting in the lowest level of customer service to taxpayers having the greatest need for assistance.
Last Summer, the U.S. House of Representatives passed a spending bill that would have boosted the IRS budget.
That bill got bogged down in Congress before anything could come of it.
A recent appropriations bill resurrected the IRS budget boost, but pared it way back, so now the agency budget will only rise by 6%.
These days that’s hardly enough to keep up with inflation.
And the appropriations bill restricts how various parts of the increase can be spent, so some parts of the agency budget — tax enforcement for example — will see even smaller increases.
Some tabs that have slid through my browser in recent days:
At the NWTRCC blog, tax resister William E. Ruhaak shared his experience trying to get the government to acknowledge his carefully-drafted, personal “statement of conscience.”
He fought a determined pro se legal battle to get the U.S. Tax Court to admit his statement of conscience as evidence in his tax appeal.
He believes such a struggle is important in order to defend “The fundamental human right to publicly express an opinion or belief.
And also the right to have a written expression of that belief included in government documentation for future reference.”
The Court eventually gave in and added his statement as a piece of evidence, but seemingly only to humor him.
The ruling in his case reads in part:
We nevertheless admonish petitioner that instituting future proceedings before the Tax Court for the purpose of advancing frivolous arguments relating to his conscientious objection to the payment of Federal taxes is likely to result in the imposition of a significant section 6673 penalty against him.
We recognized four decades ago that “there has been a long and undeviating parade of cases in this and other courts” rejecting the arguments of conscientious objectors who sought to avoid paying “the part of their taxes which they estimated to be attributable to military expenditures and to which they objected because of their religious, moral, and ethical objections to war and because of their claimed ‘rights’ under various constitutional provisions, the Nuremberg Principles, international law, and numerous international agreements and treaties.”
Greenberg v. Commissioner, 73 T.C. 806, 810 ().
At this late date, the Court will not condone the continued assertion of similar frivolous positions in meritless litigation that wastes both its own limited resources and those of the IRS.
The War Resisters League has released its annual “Where Your Income Tax Money Really Goes” pie chart fliers, based on the Biden Administration’s proposed budget for .
As Pentagon spending continues to rise, and yet more millions are being spent to arm Ukraine, pie chart aficionados may be surprised to see that the military-spending slice of the pie chart seems to have noticibly shrunk this year.
Ed Hedemann and Ruth Benn, who do the research and composition for the pie chart, explain why.
In part, the reason is that they are operating on the proposed budget, not whatever budget (and supplementary appropriations) Congress will eventually, tardily enact.
The Biden Administration’s proposed budget is chockablock with a wish list of non-military spending that Congress will probably not enact.
The absolute amount of military spending has risen substantially, but relatively it looks smaller because of all that extra wish list spending.
The latest NWTRCC newsletter is out, with a preview of the upcoming tax filing season and other news from the American war tax resistance scene.
The only thing that comes close to the problems we’re seeing now at the Internal Revenue Service was in 1985, when the agency was rolling out some new technology—technology it’s still using today.
Back then, the processing centers got so behind on their work that employees started hiding tax returns in closets and putting them in bags in the trash.
Now it’s way worse, with the IRS, for the second year in a row, entering the filing season with a backlog of millions of not yet processed returns and pieces of correspondence.
The current National Taxpayer Advocate released an amusing blog post about how pathetic and outdated the IRS processes for handling tax returns are. Excerpts:
When I released my annual report in , I said that paper is the IRS’s Kryptonite and the IRS is buried in it.
The reason paper returns are so challenging is that the IRS still has not implemented technology to machine read them, so each digit on every paper return must be manually keystroked into IRS systems by an employee.
The IRS has announced that it plans to hire thousands of new workers to try to deal with its paperwork backlog.
But, in a tight labor market, and unable to offer competitive pay rates to compensate for the soul-crushing tedium ($15.61/hour anyone?), they’re finding it a challenge to turn those plans into personnel.
The Washington Post took a look at a recent job fair the agency held.
IRS employees don’t follow the rules on paid time-off, with a suspicious pattern of sick leave days allowing employees to make their own three-day weekends and extended holidays.
Catalan separatist group / government-in-exile Council for the Republic is promoting a tax redirection campaign in which Catalan citizens withhold the portion of their taxes that would go to the Spanish monarchy or to its repression apparatus, and give that money instead to Front Republicà d’Acció Solidària or some such group working for Catalan independence.
Doomed, quixotic, gonzo tax resister John McAfee is trying to get in the last word by means of a set of interviews he gave when he was on the run from the law.
In them, he explains why he stopped paying. Excerpts:
I’d just had enough.
I’d paid $50 million in income tax over the years.
I thought that was plenty.
I hadn’t paid tax since I went to Belize, but technically, as an American citizen, even if you’re not living in the country, using the services and driving on the roads, you still have to file and pay 30% of your income to the United States.
The only two countries in the world that enforce that rule are the United States and Eritrea!
How [frigging] bizarre is that?
Anyway, I just said, “I’m sorry.
This is insane.
I’m not doing this anymore.”
[I]n America, income tax is in fact unconstitutional anyway.
It was only ever created to fund the war effort in , but that edict, like many others, was never extinguished after the need for it ceased to exist.
I was telling people that I thought taxes were illegal, and if they also felt that they were illegal and/or unjust they should just stop paying, too.
Not just that, I was showing them how to do it without getting caught.
I stumbled somehow on the No Obligation Challenge website.
It looks like a U.K. version of the familiar U.S. tax protester song-and-dance (“Did you know there is no law obligating you to pay council tax?”) but I was impressed by the quality of the graphic design and layout of the website, which is head and shoulders above what I usually see from that segment of the fringe.
Robert McGee has conducted or supervised many surveys about the ethics of tax evasion in countries around the world.
He has now summarized several of those studies along with a bibliography of additional cross-cultural tax evasion attitude research.
What was sometimes billed as the “Confessions of a Failed Tax Resister” (Rebecca Gordon) did the rounds around Tax Day in the United States this year.
Gordon was a war tax resister in the 1980s but eventually threw in the towel, paying her taxes, penalties, and interest, and returning to being a compliant taxpayer.
“It wasn’t the life decision I’m proudest of, but here’s what happened.”
Meanwhile, Owen Silverman at the University of Connecticut’s student paper put in a plug for conscientious tax resistance, though it sounds like he thinks we should wait for the government to legalize it first or something.
ProPublica has been continuing to do exposés about how the tax system is rigged in favor of the rich at the expense of the little guy.
One of the latest is “If You’re Getting a W-2, You’re a Sucker” which is specifically about how wage-earners get the shaft.
Peter J. Reilly looks at the comparative woes of the 1099 granfaloon and finds them not too bad all things considered.
The tax filing deadline came and went in the United States.
Now that fewer people are filing last-minute paper returns, this is less of a spectacle than it once was, but war tax resisters still like to mark the occasion as a sort of ceremonial holiday.
For example, in Harrisonburg, Virginia, the Shenandoah Valley Taxes for Peace group redirected taxes from the government to useful groups.
The People’s Life Fund in California also redirected $61,000 of would-be tax dollars to better causes.
The Treasury Inspector General for Tax Administration issued yet another report.
According to them, the IRS still had about four and a half million unprocessed paper tax returns to get through as of , only a couple hundred thousand less than they started the year with, while meanwhile half a million new returns had come in and hadn’t been processed.
The agency had a goal of hiring 5,473 new submission processing employees to cope with this, but as of , they’d managed to onboard only 521.
It’s been a while since I’ve checked in on how the war is going between the ragtag human rebels and the robot traffic ticket hordes.
Looks like things have been busy.
A campaign urging people to stop paying their energy bills is taking off in the U.K., with promoters comparing it to the Poll Tax rebellion.
The Don’t Pay U.K. website is collecting signers to a pledge to begin refusing to pay on if the pledge gets a million signers.
As of they have collected over 108,000 signers.
The campaigners are reacting to recent increases in home energy bills and are demanding that the government reduce them to more affordable levels.
Merchants in San Francisco’s famed Castro district have gotten fed up with the city’s ineffective response to mentally-ill and/or addicted people wreaking havoc while living outdoors on city streets.
So fed up that the Castro Merchants Association sent a letter to city officials demanding that the city take more effective action and threatening to “stop paying taxes and stop paying the fees for licenses because the city is not providing the services that are supposed to be guaranteed based on what we’re paying to the city.”
Long-time Catholic Worker activist Tom Cornell died .
Joel Schlosberg summarized some of his work, including his war tax resistance, for Antiwar.com: “A Pacifist Even in the Tax War”
Bridget J. Crawford and W. Edward Afield have a forthcoming paper in Tax Law Review in which they analyze the tax resistance of Dorothy Day.
The paper has some good background and overview of her tax resistance and her reasoning behind it, but the authors seem to mostly have the perspective that Day was mistaken and if she only realized what a marvelous social service and wealth-redistribution agency the government is, she would have changed her mind.
The IRS now has its hands on the big budget boost that was recently passed, and one of its first orders of business is to try to boost its depleted and aging workforce.
But that may be easier pledged than done, reports The Wall Street Journal.
The current job market is tight (especially in the finance sector, where the IRS is competing), and agency wages are stagnant against a background of inflation and wage growth in the private-sector.
Expedited hire authority and pay flexibility that were part of early versions of the funding bill were stripped from the final version, so the IRS must plod along as before, though with more budget to work with.
In addition, some of the positions the IRS is hoping to fill are in its hollowed-out human resources department: the same people responsible for recruiting, interviewing, and training new hires.
The founder and former owner of the outdoor recreation gear company Patagonia, Yvon Chouinard, has transferred the ownership of the company to a non-profit focused on environmental causes.
If he had sold the company — which is worth something like $3 billion — or if his heirs had inherited it, this would have resulted in a huge tax bill.
But by giving the company entirely to a 501(c)(4) non-profit instead, he avoids those taxes.
So not only was Chouinard generous to environmental causes, he also was able to avoid funding the environmental wrecking ball of the U.S. government.
The U.S. federal government is seeing a surge in tax revenue.
Federal tax collections as a percentage of gross domestic product are higher than they’ve been since World War Ⅱ.
The largest component of this recent increase is from personal income taxes.
In part this is because wages are rising due to inflation and employer competition for labor.
There was an evacuation and large-scale police response at an IRS building in Memphis, Tennessee in response to reports of an “active shooter” in the building.
Those reports were later labeled “misinformation.”
This begins to look like it may have been a case of “swatting” — the use of false, anonymous reports of violent crime in progress to provoke a militarized police response against some target.
I’ve reported on a number of garden-variety bomb threats and “suspicious powder”-style incidents at IRS buildings in the past, but this is the first swatting I’m aware of.
I continue to be impressed at how tax resistance seems to be just part of how politics works in the Democratic Republic of the Congo.
The latest example comes from a rally by small businesspeople in Butembo, North Kivu who are protesting heavy-handed tax enforcement there.
Some recent news from here and there:
There’s a new NWTRCC newsletter out.
This is a special issue focusing on the 40th anniversary of the founding of the organization, and includes some reminiscences from war tax resisters from throughout the history of the group.
The Republican party seems to believe that opposition to the recent IRS funding boost is a winning issue for them, so they are campaigning on pledges to rescind the spending.
I wouldn’t take that too seriously.
I mean, they also promised to rescind Obamacare back in the day, but just kind of flailed around once they had the opportunity.
I’m categorizing this as campaign bluster rather than a serious proposal.
But, in case I’m wrong, The Wall Street Journal breaks down how Republicans might try to claw back this extra funding should they retake Congress.
The percentage of U.S. tax-filers who pay no federal income tax at all jumped during the pandemic to nearly 60%, but, according to the Tax Policy Center, the numbers are expected to drop this year back to the pre-pandemic level of about 40%.
Some tabs that have slid through my browser in recent days:
The IRS published a new estimate of the federal “tax gap” — the difference between the amount of taxes people legally owe and what they actually fork over.
The new estimate, which is based on data from the period, puts the tax gap at almost $500 billion dollars.
The government recovers some of that through nagging and enforcement actions, leaving about $428 billion that never gets captured.
I haven’t looked into the methodology by which these numbers were conjured up.
Several years ago I took a deeper look and found that these estimates typically did a lot of extrapolating from even older guesstimates.
It’s also the sort of calculation that must necessarily concentrate on “known unknowns” while the “unknown unknowns” remain in the shadows.
As a result, it’s the kind of number that ought to have broad error-bars around it, but for some reason it’s always reported as a single, precise amount.
Last time I checked in with the “Don’t Pay” U.K. campaign, it was collecting signers to a pledge to begin refusing to pay home energy bills on if the pledge were to get a million signers (they had collected 108,000 ).
When I look at their site to day, I see that they have pivoted a bit.
Now they claim that 256,924 people “have pledged to strike” on , and they don’t mention anything about a one-million-person threshold.
NWTRCC has a new newsletter out. It includes some news on new U.S. tax policies and official actions and their implications for war tax resisters, and some recaps of the recent 40th anniversary gathering of the organization.
One reason is because my protest was not wrong or a mistake in any sense, whereas paying the fine implies I’m guilty of some sort of offense or misconduct. Further, agreeing to pay has the appearance of an apology or remorse on my part when none is warranted. I believe any nonviolent action against preparations to commit mass destruction with nuclear weapons is in the public interest. Further, my so-called “trespass” was an attempt at crime prevention, or interference with ongoing government criminality, and as such was a civic duty.
When the IRS won a big one-time budget bonus recently, there was some speculation that Congress would claw some of it back by cutting the agency’s annual budget. Sure enough, the recently passed omnibus package cut the IRS allocation by about 2.2%. Expect more of this when the Republicans take over the House of Representatives .
Some tax resistance news from hither and yon:
A group of people in the Netherlands called “Belastingstaking voor Klimaat” (“Tax Strike for Climate”) have decided to no longer “silently pay for global warming” via government subsidies of fossil fuels.
They are refusing to pay 5% of their income tax, as that is their rough estimate of how much of central government spending (and tax breaks) subsidizes CO2-generating companies: about €17.5 billion per year.
They are also using the official tax adjustment and appeals process to press their claims
The “Don’t Pay U.K.” has been ramping up its public protests. One of their tactics is to stage protests in warmed public buildings (to highlight how prohibitively expensive it is to heat their own homes). In one action, the protesters sang a song to the tune of Your Cheatin’ Heart including the lyrics “your heating chart will tell on you”.
American war tax resisters Robert Randall and Marjorie Nelson have died.
Randall was a regular participant at NWTRCC events like their periodic national meetings and the School of the Americas protests, and is one of a small, select group of war tax resisters who have had their homes seized by the IRS for their refusal.
Marjorie Nelson worked as a physician with a Quaker war relief program in Vietnam during the American war there, and survived 50 days as a prisoner of war after she was captured during the Tet Offensive.
In she tangled with the IRS in court after the agency hit her with a “frivolous filing” penalty for taking a “war tax deduction” on her tax return.
In response to a surge in Americans renouncing their U.S. citizenship, the U.S. Department of State abruptly raised its fees for processing such renunciations from $450 up to $2,350 some years back.
Now, in response to a lawsuit by some expats who claim this amounts to unjust coercion and a violation of their 5th and 8th Amendment rights, Rina Bitter, the U.S. Assistant Secretary for Consular Affairs, told the court “the Department intends to pursue rule-making to reduce the fee for processing CLN requests from the current amount of $2,350 to the previous fee of $450.”
American war tax resisters are fond of pointing out the outrageous sums the U.S. government spends on the military, and the various ways that government tries to hide the price tag by disguising military spending as being something else (for example the recent $53 billion domestic computer chip industry subsidies).
Sometimes the deception is extra-clumsy.
Here’s a great example from the Federal Reserve Bank of St. Louis:
Notice how all the military budgets are plotted in the same space on the same graph, but the U.S. budget gets its own separate Y-axis?
Here’s how it looks if everything is plotted using the same Y-axis:
Expect this graph to show up in many future “how to lie with statistics” slide decks.
The newly-Republican House Ways and Means Committee hopes to make the IRS squirm.
And so they will have a steady stream of excuses for outrage and maybe some televised hearings, they have created their own on-line IRS Whistleblower Complaint Submission form, meant “[f]or IRS agency personnel interested in providing… information regarding any wrongdoing within the IRS or misuse of taxpayer information.”
Here’s another example of “a suspicious package” containing white powder (which turned out to be harmless sodium carbonate) causing a hazmat evacuation at an IRS building.