How you can resist funding the government →
a survey of tactics of historical tax resistance campaigns →
issue bomb threats, send disturbing packages →
see also
Christina Cowger of “North Carolina Stop Torture Now” talks about the various ways her group is fighting at the grass-roots level to expose and fight the domestic enablers of the “extraordinary rendition” program — from Air America-like front companies like “Aero Contractors” to subsidiaries of Boeing.
Thanks to MetaFilter: Some links on “Possum Living”:
“How To Live Well Without a Job… building a $100 Log Cabin… a geodesic dome out of cardboard… handbook for cob building… cheap solar power system… stocking up on food…” and more.
A “white powdery substance” in an envelope shut down the IRS mail room in Fresno .
And a Connecticut tax collector was run over by a vehicle he was trying to impound.
The Coalition to Get the Stop Funding the War Coalition to Stop Funding the War put out a press release:
“We have had enough of waiting around for politicians to take action.
If those of us in the peace movement use our own power instead of begging officials to use theirs, we might actually stop this war and prevent the next one too.
It’s way past time for those of us who say we stand for peace to put our money where our mouths are.
Don’t pretend you can oppose the war with your rhetoric while you’re paying for it with every paycheck.
The power of the purse begins with us — let’s cut the war funding at the source.”
Alternative currency schemes have been slow in getting traction for a variety of reasons, but it may be that their time has arrived.
But it probably won’t be something along the lines of the local “Ithica Hours” but a weird cross-over whereby an on-line game world currency flings itself into meat space, as the QQ has in China.
If you’re interested in exploring alternatives to government-backed media of exchange, you may want to visit ReinventingMoney.com which covers all the bases.
The race is on: will it be the peaceniks and greens in the Republic of Vermont or the libertarians next door in the Free State of New Hampshire who skip the Union first?
There’s not much new here.
A tiny Notice 1212 and Publication 4127 that advertise their automated telephone service and electronic payment options, and a two page letter showing my current balance and explaining the interest and penalties.
The beef of this is as follows:
IMPORTANT Immediate action is required.
We previously wrote to you about your unpaid account, but you haven’t contacted us about it.
Penalties and interest on the unpaid balance are continuing to increase.
Please pay the amount you owe within ten days from the date of this notice.
If you can’t pay now, call us at the number shown below.
You may be qualified for an installment agreement or payroll deduction agreement.
We want to help you resolve this bill.
However, if we don’t hear from you, we will have no choice to proceed with steps required to collect the amount you owe.
If you already paid your balance in full or arranged for an installment agreement, please disregard this notice.
My current balance due is listed as $4,222.07, which includes $19.61 in penalty and $32.11 in interest.
For previous installments in the nasty-letters-from-the-IRS series, see:
Someone else has sent an envelope containing suspicious powder to the IRS, shutting down their mail room for a time.
The “Peace Tax Seven” are a group of tax resisters who are trying to win their legal cases as a way of forcing some European jurisdiction to recognize a legal right of conscientious objection to military taxation.
In the latest case, group member Robin Brookes took his case to the European Court of Human Rights in Strasbourg.
Alas, the court refused to hear the case.
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.”
And now for a couple of brief notes from here and there:
One tactic of the “Tea Party” tax protesters this year is to register their protest by mailing tea bags to their Congressional representatives.
Sounds innocent enough, but these days if anything arrives in the mail that isn’t an 8½″×11″ sheet of paper folded nicely, it’s assumed to be a dirty bomb of explosive weapons-grade anthrax wrapped in radioactive kiddy porn.
I’ve added the section on “The Sufferings of many, for Refuſing to pay the wicked Exactions of the Ceſs, Locality, Fynes &c. Vindicated” from Alexander Shields’s book A Hind let looſe, or An Hiſtorical Repreſentation of the Testimonies, of the Church of Scotland, for the Intereſt of Chriſt, vvith the true State thereof in all its Periods, &c as a stand-alone page.
I dropped the long “s”es for readability’s sake, and did some reformatting and breaking up of the multi-page paragraphs, but otherwise kept it pretty much as-was.
It’s tough reading, but represents an early and unusually methodical defense of tax resistance, and I hope to spend some time distilling its more interesting arguments into more modern English at some point.
Part of the new CIA Inspector General’s report that jumped out at me was this excerpt, found in an appendix, from the CIA Office of Medical Services [sic] guide on how to torture captives by waterboarding without inadvertently killing them:
“In our limited experience, extensive sustained use of the waterboard can introduce new risks.
Most seriously, for reasons of physical fatigue or psychological resignation, the subject may simply give up, allowing excess filling of the airways and loss of consciousness.
An unresponsive subject should be righted immediately, and the interrogator should deliver a sub-xyphoid thrust to expel the water.
If this fails to restore normal breathing, aggressive medical intervention is required.”
Lets say you send an envelope full of powdered sugar to the IRS with a cover letter saying its anthrax and they’re all gonna die.
Furthermore lets say you’re none too bright, and you sent the envelope from “an automated postal center where [you] paid postage with [your] credit card” and they trace the envelope back to you and successfully prosecute you.
What sentence will you face?
A year and a day, apparently.
An envelope full of foot powder, sent to an
IRS
processing facility from a zip code that belongs to a prison
prompted the
evacuation of the building so
a hazmat team could
suit up, come in, and detoxify the place.
Last month’s kamikaze attack on the IRS building in Austin was a good excuse for reporters to go back through the archives and write up something about the recent history of attacks and threats against the IRS and its employees.
Some Americans heckle or mail tea bags; others, such as Stack, act in more dangerous ways.
Michelle Lowry knows first-hand how much people hate the Internal Revenue Service.
The 37-year-old Leander woman, who processes forms for the IRS in Austin, confronts that venom regularly.
People slip razor blades and pushpins into the same envelopes as their W-2 forms. They send nasty notes with their crumpled documents.
Last year during the height of the Tea Party movement, hundreds of taxpayers included — what else?
— tea bags with their returns.
And then there’s the weird stuff.
“Sometimes you’ll see stuff that looks like blood on them,” said Lowry, who has worked as a seasonal employee for five years.
“We wear gloves.”
Lowry is used to the presence of security guards at the IRS office in which she works.
She’s been through evacuations caused by suspicious items in the mail, such as white powder.
(It turned out to be packing material.)
And while she has always known the risks of her job, she wasn’t concerned about her safety until now.
“I’m a little worried, honestly,” she said.
“Every time I walk into the building, I’m going to think about it.”
Austinite Jesse Pangelinan, 41, never felt threatened during his 13 years at the IRS.
He said it wasn’t until after he left the agency in to become a stand-up comedian that he came face to face with true IRS rage.
After he joked about his former job at a comedy club in Ardmore, Okla., one audience member heckled Pangelinan so badly that the heckler had to be removed from the building.
“I was escorted back to my car in case he followed me,” said Pangelinan, who also works at an insurance company in Austin.
“The security guard followed me back to my hotel.”
Mencius Moldbug, who has established himself as the voice of the contemporary anti-Whig movement, turned me on to Vaclav Havel’s essay on The Power of the Powerless.
It eloquently describes one of the forms that coerced consent took in communist Eastern Europe.
“Individuals need not believe all these mystifications, but they must behave as though they did, or they must at least tolerate them in silence, or get along well with those who work with them.
For this reason, however, they must live within a lie.
They need not accept the lie.
It is enough for them to have accepted their life with it and in it.
For by this very fact, individuals confirm the system, fulfill the system, make the system, are the system.”
The IRS is so fearful of taxpayer retaliation that it has started to develop a sort of paranoid autoimmune disorder, in which it shuts down and heads for the bunkers at the sign of anything in the least bit unusual — this time, “a suspicious package found near the IRS building — the contents of which were soon found to be harmless.”
Jerusalem Jewish Council says Jews will not Pay Taxes Unless Money will
be Used For Jewish Projects
Jerusalem, (JTA). —
The Jewish community council here declared this week that Jews would not pay
taxes to the municipal government until they were satisfied that the money
would be used for Jewish projects while Daniel Auster, former Jewish mayor of
the city, said that the Jews would take care of their section of separate
municipal councils were formed and each body was permitted to spend its funds
on improvements for its own people.…
That was shortly before Israeli independence, but tax resistance in
British-occupied Palestine went on for decades before then. Here’s an example
from the Montreal Gazette:
Jerusalem, .—
Lieut.
Gen. Robert H. Haining,
commander of the British forces in Palestine, invited the heads of the Jewish
Agency for Palestine, the National Council of Palestine Jewry and the Jewish
Communal Council to his headquarters here this morning and warned them that
he intended to enforce order and would make no exceptions. General Haining
added that, while he appreciated the three years of restraint on the part of
Jews, he would suppress violence unflinchingly.
The first move in the Jewish non-co-operation movement against the Government
in protest at the new British policy was a decision of the Landlords
Association, composed of rural and urban property owners, to refuse to pay
taxes, beginning , until the White
Paper had been repealed.
Despite all stringent measures taken to prevent illegal immigration into
Palestine, 300 Jews succeeded in landing clandestinely near Ashkalon, Southern
Palestine, but were apprehended by British troops and taken to Tel Aviv for
detention.
In contrast with ’s turbulence in
this Holy City, there was quiet ,
although considerable tension still exists. As a result of the violence
, when a mob of Jews attempted to
raid the district commissioner’s office, smashed windows of an English shop
and a German restaurant and engaged in fighting in which a British constable
was killed and more than 100 Jews were wounded, the military
took far greater precautions to
prevent further bloodshed.
All Government offices were heavily guarded, various parts of the city were
barricaded, and soldiers manned machine guns for action. Only incident
was when several Jewish youths
penetrated a branch post office in the Jewish quarter of Mahne Yehuda here
and broke window panes and furniture.
Three British police sergeants and two constables, who
annoyed the Tel Aviv public, it
is charged, by wearing helmets marked with swastikas and by shouting “Heil
Hitler,” were relieved of duty today pending disciplinary proceedings.
The “White Paper” policy, which, among other things, prevented Jewish
evacuation into Palestine during the Holocaust, was not repealed until Israel
won its independence in .
Tax resistance was practiced both by Jews and by others in Palestine against
the British occupation. In at least one case, in
, there was a sympathy tax strike in England
itself:
In the all-Jewish coastal city of Tel Aviv a high Jewish source who declined
to be quoted by name said meetings were called throughout Palestine Sunday
to consider a “passive resistance movement” similar to those undertaken by
nationalists in India.
A decision would be taken “as to the best method by which Palestine’s Jewish
community can demonstrate to the British they will have to arrest tens of
thousands of us if the government thinks we are accepting quietly everything
it wants to put on us,” he said.
Passive resistance would include nonpayment of taxes, a strike by Jews in
government service and “in all ways complete non-cooperation with the
British,” this source said.
From the
Pittsburgh Post-Gazette:
Holy Land Bomb Damage — A patrol moves around ruins of the
income tax office, Jerusalem, Palestine, after a bomb detonated by police
wrecked the building.
Palestine Tax Office Bombed
Building Leveled By Terrific Blast
Jerusalem, — (AP) —
The Palestine Income Tax Building was leveled this afternoon by a terrific
explosion from a bomb-laden cart which Palestine police said was placed by
Jews.
One person, a Jewish constable, was killed. Five persons — a British Army
captain and lance corporal, a British police sergeant and an Arab policeman — were injured. Windows were shattered within a radius of three blocks.
All employes had been evacuated from the building following a telephone
warning 10 minutes before the blast.
Police said three Jews, one dressed as an Arab, pushed a bomb-laden,
Arab-type delivery cart into the building and fled, after clubbing a Jewish
policeman and snatching a rifle from an Arab guard.
Police tried to drag the cart from the building, but the rope parted. They
said they then detonated the bomb with rifle fire, but “miscalculated the
charge.”
Tel Aviv police reported… that a young Jew and Jewish girl claiming to
represent the Stern Gang, a small Jewish underground unit, had delivered an
ultimatum personally to 18 Jewish officials of the Palestine Income Tax
Department to resign within 96 hours or face drastic consequences. Special
guards were assigned immediately to the 18 officials.
The attempt to bring about the large-scale resignations was viewed by
authorities as another step in the Stern Gang’s announced policy of
sponsoring non-payment of taxes by Palestine’s Jews.
Another report on the same incident
clarifies that the two Jews, “described as Yemenites, visited the homes of the
tax officials Thursday night to deliver the warnings.”
Jerusalem, — (AP) —
Irgun Zvai Leumi, militant Jewish underground group, exhorted Jews throughout
the world today to “hit Britain economically without mercy” in protest
against the trans-shipment of 4,400 Jewish refugees to Germany.
In a broadcast denouncing British treatment of the refugees, who were
intercepted in mid-July while trying to enter Palestine illegally aboard the
Exodus of , a former Chesapeake Bay steamer,
Irgun declared:
“You can stop the cruel British machine forever. Do not pay your tax money,
do not obey their orders. Do not obey their laws. Boycott, boycott, boycott
until the end.
“Jews of the whole world can bring great harm to our enemy. Britain is in
economic trouble. They can be hit economically without mercy.”
The Irgun broadcaster also urged Jews to ignore appeals for a hunger strike
today to protest treatment accorded the refugees.
“This is no time for fasting,” the broadcast said. “It is now time for war.”
Reading about another IRS office evacuation caused by a “suspicious package” received in the mail,
I mused a bit on how formidable authoritarian bureaucracies can be successfully
damaged by small acts that induce large, costly, and crippling reactions. Like
in an autoimmune disorder, the body’s own protective mechanisms are hijacked to
attack the body itself.
Kevin Carson at the Center for a Stateless Society
found a quote to this effect from
Julian Assange, the current spokesman and editor-in-chief for Wikileaks,
which has been doing a bang-up job of freelance declassification of
U.S. classified war
documents:
The more secretive or unjust an organization is, the more leaks induce fear
and paranoia in its leadership and planning coterie. This must result in
minimization of efficient internal communications mechanisms (an increase in
cognitive “secrecy tax”) and consequent system-wide cognitive decline
resulting in decreased ability to hold onto power as the environment demands
adaption.
Hence in a world where leaking is easy, secretive or unjust systems
are nonlinearly hit relative to open, just systems. Since unjust systems, by
their nature induce opponents, and in many places barely have the upper hand,
mass leaking leaves them exquisitely vulnerable to those who seek to replace
them with more open forms of governance.
So when you hear people discussing the value of the leaks, remember that the
value may not only be in what specifically was leaked, but in the leakage
itself, and in subsequent efforts to plug the leaks.
In other news…
Several businesses in Lansing, Michigan have responded to the loss of business in the wake of a smoking ban by refusing to pay their taxes.
The Mennonite profiles war tax resister Martha Graber.
“Stop sending suspicious packages to the IRS” pleads Justin Kendall of The Pitch, since people apparently can’t stop sending suspicious packages to the IRS — two days in a row recently in the Kansas City office, according to Kendall.
Some bits and pieces from here and there:
Every year, on tax day, Steve Magin comes into town and visits the IRS offices, offering to pay his taxes in full if they’ll assure him that none of the money will go to pay for war and armaments.
The agency representatives, of course, offer no such assurances, and so Magin keeps his checkbook in his pocket and sends the tax money to charity instead.
Here’s some more about Steve and his protest.
Another “suspicious powder” incident shuts down the IRS office in Ogden, Utah.
The powder turned out to be nontoxic, but kept the building shut down for a long time during the Hazmat team and FBI crime scene investigation.
I’m sure nobody saw this coming: as states have been piling cigarette taxes higher and higher, tobacco smuggling has skyrocketed — to the point where about half of the smokers in Arizona and New York are smoking cigarettes smuggled in from elsewhere.
The smuggling trade has naturally proven a boon to the underground economy and to the organized crime groups who try to monopolize it.
, General Edward Otho Cresap Ord, who at the time was commander of U.S. forces in Texas, appeared before the Committee on Military Affairs of the U.S. House of Representatives.
He had this interesting exchange with the chairman of the committee in the course of his testimony:
General Ord. In El Paso County in Texas, there has been some local trouble.
The Mexican population have taken possession of the county, and the governor of the State sent up a small detachment of his troops, and at the same time requested me to aid him with regular troops.
The Mexicans there have ousted the American officers and refused to pay taxes.
The Chairman. Do you say that Mexicans have come over and taken possession of an American town?
General Ord. It is partly the population of the county, the people who live on both sides, but they have been commanded, so the governor tells me, by prominent men from the other side.
I had a long letter from the governor in which he gave the names of the Mexican leaders who have taken possession of the county, and two or three of them are Mexicans.
They refuse to pay taxes, and claim that they are Mexicans.
This shows that in case of serious difficulty between the two countries their sympathies will be with Mexico.
I think this has something to do with the “Salt Wars” in Texas at the time.
“An inspector at the Fresno IRS noticed a package in the mail room with a suspicious odor. … The Fresno PD Bomb squad was called in and the contents inside the package were an unknown type of feces.”
Some bits and pieces from here and there:
Vickie Aldrich gives us an update on her “frivolous filing” struggle with the IRS.
Aldrich accompanied her income tax returns with a letter indicating that for reasons of conscience she would not be paying the complete amount due.
The IRS interpreted this as her taking a frivolous legal position and fined her ($5,000 I think) for doing so.
She got the help of some law school volunteers, but seemed unable to convince anyone that she wasn’t making a legal argument at all, but merely a statement of her moral priorities.
The two sides seem to have come to an agreement, in which the main sticking point for the IRS seems to have been that they wanted Aldrich to stop sending them any such letters, whether she pays her tax or not.
The IRS issues Individual Taxpayer Identification Numbers (ITINs) to people who are required to file tax returns but who do not qualify for social security numbers.
Apparently they give these out promiscuously and without much review, further encouraging the fraudulent tax refund farming industry.
There’s “something fishy” in the latest economic statistics.
Paychecks are down (thanks to a boost in the payroll tax), incomes haven’t been rising in other ways to make up for it, bank account savings aren’t rising, and people aren’t charging more on their credit cards or taking out more loans… and yet, consumer spending is doing just fine, as if somehow the money was materializing anyway.
What’s the trick?
Bernard Baumohl of the Economic Outlook Group thinks it’s the underground economy:
While the IRS tries in vain to convince Congress not to cut its budget (after all, they whine, we’re the part of the government that brings in money for y’all to spend!), members of Congress are enjoying one of their favorite sports: pretending they’re on the side of the little guy against the wasteful government bureaucrats in the tax office.
Lately this has taken the form of House Ways and Means Oversight Subcommittee chairman Charles Boustany, Jr., demanding that the IRS turn over for the subcommittee’s investigation copies of training videos the agency produced in its own presumably extravagant production studio — “a Star Trek parody and a skit based on the television sitcom Gilligan’s Island.”
Hostility towards the IRS can provoke auto-immune complications that are as disruptive as overt threats.
Case in point: In Bloomington, Illinois, an IRS distribution center was cordoned off while a bomb squad of state and Department of Homeland Security specialists navigated a robot through the parking lot to retrieve and inspect two suspicious packages.
The process took five hours, and eventually revealed that the suspicious packages contained… tax forms.
You may have heard that the island nation of Cyprus is the latest nation whose government has resorted to drastic measures to try to raise money from a reluctant population to pay off international creditors.
That government took the odd step of proposing the simple and arbitrary step of shaving a percentage off of every bank account in the nation and using that money to pay for the bailout.
Cypriots reacted by storming the ATMs to try to withdraw their money.
While I was busy going through Friends Journal back issues, I didn’t attend much to American tax resistance news in the here-and-now, so I’ll try to give a recap today of some of the interesting items that caught my notice:
Some Christian war tax resisters in Michigan held a small “Independence from
War Tax Day” demo that included symbolic burnings of tax forms.
“The common citizen is not being listened to,” wrote participant Michael J. McCarthy.
“We must learn to vote with our money, as the powerful do. April
15th becomes the new
second
Tuesday in November. This tax redirection is one of a number of lifestyle
changes that people can make to better participate in a real
community-responsible democracy.”
McCarthy also wrote up his thoughts for USCatholic.org.
Excerpts:
In , facing the probability that the Iraq
War was unjust, a group of Catholics in my community in Port Huron, Michigan,
openly informed
IRS
that we would redirect hundreds of dollars from our federal taxes, donating
this “Iraq Peace Bond” instead to our local library. Our donation was merely
a drop in the bucket of the trillions wasted in this war, but a small step in
a new direction. Most of the money was eventually recovered by
IRS,
but the donation still helps the community and serve as an inspiration to
find further methods to invest in the works of peace, not war.
The problem for us in the United States is non-cooperation with evil — a
difficult feat when so much of our tax money (more than 50 percent of all
federal income tax, or 25 percent of total income tax) is spent on war. There
are, however, alternative ways to turn away from it towards peacemaking. It
is possible to take some of the money you would have offered to the troubled
war economy and homeland security and spend it instead on the works of mercy,
from feed the hungry to investing in creative work opportunities for our
young people to donating to your local Christian pregnancy care centers.
You must inform the
IRS of
your intentions, and your wish to be a responsible citizen while also
divesting from this war economy. The dialogue that follows with them can be
kept cordial. For the practical measures, contact the National War Tax
Resistance Coordinating Committee. My wife and I have tried war tax
resistance/redirection for 17 of the 35 years of our marriage, with varied
results — some trial and tribulation, a lot of good done within our faith and
larger communities.
For years now, because I knew the
IRS was
out to get me at some point, I’ve kept the balance in my PayPal account very,
very low. Whenever I made pitches for donations, I withdrew the funds almost
immediately. But because my health has now gotten so much worse, I wasn’t
able to make as many trips as I wanted to the closest
ATM. It’s only a block and a half away,
but given my enormous difficulties in getting around, it might as well be a
couple of miles. The heat in
L.A. didn’t help,
either. That’s the reason there were still funds left for the
IRS to
get. My apologies and regrets again, both for all the kind donors and for my
sorry ass.
However, I’m not content to let the matter stand there. That is, I’m not
ready to lie down and die, which is what I’m certain they’d prefer. I
obviously have no money to pay an attorney or tax specialist, but if there is
anyone out there who would consider volunteering their expertise, I would
like to find out if there are any options with the
IRS at
this point. I should tell you that I don’t want to pay them a single damned
cent — I don’t choose to give funds to murderers and torturers, thank you
(which is why the IRS was after me in the first place) — and I’d also like to
get back at least some of the funds they’ve taken.
As I say, I suspected this might happen at some point, especially after
PayPal began filing tax forms starting with . I had thought about providing a warning to donors that the
IRS
might suddenly swoop down, so that you kind people would be forewarned. I’m
terribly sorry I didn’t do that. But since the IRS and I hadn’t communicated
at all for years now, I thought (hoped) they might have forgotten about me. I
mean, Jesus Christ, I have almost no money at all. And I didn’t
receive any warning at all before this levy was imposed.
And that’s another aspect of this that absolutely enrages me. I know, we all
know, that there are multibillion dollar companies (and individuals) who,
with the aid of their fleet of top line attorneys and financial experts, pay
next to no taxes at all — and in many cases, none, period. And yet these
bastards come after me.
Well, to hell with them. This has made me so angry that I feel I have a new
lease on life. With your help, I hope we can figure out a way around these
difficulties. And just to show them, I’ll live for another ten goddamned
years, and write another ten books’ worth of essays.
During the day, I tried to remember the last time I had any communication
from the
IRS.
I’m almost certain it was close to ten years ago. Ten years, during which I
had heard nothing at all. So I had thought that perhaps, mercifully, I’d
fallen off their radar. I guess that’s a lesson for all of us: they never
forget. If there is any way at all, they’ll get you in the end.
Before “sequestration” took effect, the Obama administration issued
specific — and alarming — predictions about what it would bring. There would
be one-hour waits at airport security. Four-hour waits at border crossings.
Prison guards would be furloughed for 12 days. FBI agents, up to 14.
At the Pentagon, the military health program would be unable to pay its bills
for service members. The mayhem would extend even into the pantries of the
neediest Americans: Around the country, 600,000 low-income women and children
would be denied federal food aid.
But none of those things happened.
Partially this is because Congress quietly made exceptions to the sequester in
some cases, but a lot of it is because all of the alarm was bluff, and when
agencies finally did have to cut their budgets, they found that there
was plenty of stuff they could cut fairly painlessly.
The act of screaming bloody murder while engaging in mostly-symbolic
belt-tightening seems to be a global phenomenon. In an article for
Negocios.com, Jorge Valín says, of the Spanish
version of budget cuts, “ ‘austerity’ doesn’t work (because it doesn’t exist).” Excerpts (my translation):
There is much debate on the issue of Government austerity. Those with a
leftist mindset accuse it of generating poverty, reducing welfare, and even
killing people when it comes to health. The rightists insist that government
spending has to be checked, and in this sense austerity is good.
, the
government has created three new bodies per month, whether commissions,
committees, councils, centers, or agencies of some type. The government
propaganda agencies receive more than a billion euros in additional subsidies
to what they had at the beginning of the economic crisis. In fact, government
spending grows year after year even without mentioning the exponential growth
of the debt. Austerity doesn’t work because it does not exist.
…It simply does not happen; it’s propaganda and a stalling measure. And the
big problem with austerity is that it is just another government program.…
The government, any government, is simply incapable of reducing its drag on
the economy or to eliminate its debt.
Unfortunately, the politicians are incapable of doing anything. They would
lose their power. So the other option is to force austerity on the state. The
politicians live on our work and there’s no moral or technical reason why
they have to plunder us with taxes this way. Tax resistance is not only a
moral position, it’s a necessity before a corrupt status quo in which
criminals prosper.
Tax reform
Some of our feckless legislators are trying to come up with some sort of
radical tax reform plan. Of course it’s unlikely that this Congress will ever
agree on much of anything, but some future Congress is likely to try to pass
something that they’ll call radical tax reform, so it’s worth at least keeping
an eye on things like this.
Of course, whatever they come up with will be awful. And the motivations of
the politicians will have a lot less to do with trying to make the tax system
better or more efficient (even by government standards), and more to do with
the fact that radical tax reform is an incredible shakedown opportunity, where
every deep-pocketed son of a bitch with a stake in tax subsidies will have to
pony up if they want to keep their cash cow alive.
But keep in mind that tax simplification, even when it’s accomplished
in such an ugly way, and even if it doesn’t shrink the budget by a
nickel, can still shrink government somewhat.
So there may yet be reasons to smile.
Taxpatriates
I didn’t make much noise about it last quarter, when the Treasury Department
announced its highest quarterly total number of people who had renounced their
U.S. citizenship
(679), as there was some indication that this had been an accounting fluke
caused by names being shifted from one quarter to another.
The educated guesses about why this recent surge of citizenship renunciations
has taken place say that it has less to do with people becoming increasingly
ashamed at having to call themselves Americans, or with eagerness to avoid
U.S. taxes, and more
to do with the onerous paperwork requirements that the
U.S. government
requires from its citizens — even of those who live overseas and who conduct
little activity back in the “land of the free.”
A more do-it-yourself approach to taxpatriatism was tried by the Gastonguay family, who fled the United States in part because they were upset at being “forced to pay these taxes that pay for abortions we don’t agree with.”
They boarded a small boat and sailed for Kiribati, a remote set of islands with a total population of a little over a hundred thousand people, where they hoped their religious practices and beliefs would be better-tolerated.
But they never made it there, instead getting storm-tossed and lost at sea for three months before getting rescued and taken instead to Chile, from which, they said, they planned to return to the United States, at least for now.
Jerry Kirk of Searcy County, Arkansas, one of that odd crop of American tax
protesters who adhere to incredibly baroque legal systems of their own
devising, refused to pay his county taxes whereupon the government seized and
sold some of his property.
He responded by doing something I haven’t seen a tax protester of that ilk do
before: he redirected his unpaid taxes by handing out envelopes of money to
people in front of the county courthouse. Here’s a video of the event:
Let’s face it: As a marketing strategy, a 6.25 percent sale is embarrassing.
What car dealer has ever run ads saying “Today Only — Save Just Over A Nickel
On The Dollar!” When does Macy’s ever post “6.25 Percent Off!” over their
junior miss selection?
And yet, the sales tax holiday weekend is huge. The stores are packed. It’s
like a mini-Christmas in the dog days of August.
, when you see
Massachusetts shoppers waiting in long lines to buy stuff they could have
bought two days earlier without any hassles, they’re showing you just how
hard they will work to stick it to the state.
Robert Fernandes of Forks Township, Pennsylvania, paid his $7,143 in property taxes with 7,143 dollar bills, as a way of making a protest against paying for public schools that his children don’t attend. “We don’t even use the public system, yet I am being forced to pay all this money into a public scool system. I don’t think that’s really either fair or just or even ethical. It would be the equivalent if McDonald’s were to force vegetarians to pay for their cheeseburgers.” Friends of Fernandes videotaped the action and put it on-line. “I wanted to create a visual,” said Fernandez, as a way to help taxpayers “see exactly how much taxes is being stolen from them.”
The percentage of households in the U.S. who are among the “lucky duckies” who pay no federal income tax is beginning to recede slightly.
But Howard Gleckman, at the Forbes blog, wonders if we’ve been overcounting ducks this whole time.
There are a surprising number (millions) of people in the U.S. who fail to file income tax returns even though they have had taxes deducted from their meager wages all year and are probably due refunds.
Because they don’t file returns, they are usually categorized as non-paying “lucky duckies” — but because they have had taxes withheld from their paychecks, they really don’t belong in that category.
Voters in Colorado decided to finally legalize recreational marijuana use.
But the prohibitionists are fighting back by trying to enact a prohibitive tax on marijuana that would effectively recriminalize it — forcing it back into the black market and erasing many of the benefits of legalization.
Legalization promoters there responded with a free marijuana give-away program in Denver (some coverage here, here, here, and here).
In , you can attend an on-line “google hangout” on the subject of “War Resistance: Beyond the Rally,” sponsored by the National War Tax Resistance Coordinating Committee, the Center on Conscience and War, and the National Campaign for a Peace Tax Fund.
In the U.S., a person who pays alimony can take it as a tax deduction; a person who receives alimony must declare it as income; and to take the deduction, the payer must include the taxpayer identification number of the recipient on their tax return.
You’d think this would make it easy for the IRS to make sure that the numbers match up, and that people aren’t taking phony deductions for fictitious alimony, or failing to report alimony received as income.
But according to a new TIGTA report, fully 47% of the alimony deductions do not have corresponding alimony income shown on the recipients return — amounting to “more than $2.3 billion in deductions claimed without corresponding income reported”.
Peter J. Reilly dug a little deeper and found that the IRS only bothered to audit 4% of the pairs of returns showing discrepancies — that is to say, “you and your ex collectively have a 96% chance of getting away with something that is in your face blatantly wrong even though you are, in effect, ratting yourselves out.”
He calls this “a scandal of epic proportions” and suggests that it’s going to encourage divorcing couples and tax advisors to game the system.
Because these bitcoins can, in some circumstances, be used to purchase goods or services with a monetary value or where they can be converted to legal tender, the proper income tax treatment of bitcoin transactions presents both compliance and substantive questions for the IRS.
…This article explores the current state of the law as it relates to bitcoins as well as proposed methods for applying existing federal income tax laws to the virtual economy.
According to Économie Matin, four French tax offices have been put to the torch .
“Hardly a week goes by without farmers dumping manure in front of some public building… or locks are vandalized.
Every day, tax officials are attacked by outraged taxpayers who are tired of getting stonewalled when they ask why their taxes have increased so much.”
Le Figaro also reports that French tax officials are getting nervous.
“Now our agents, who are only the executors of a policy implemented by the government, have become indirect victims of the wrath of taxpayers,” said a tax employee union representative.
“Our colleagues are all the more concerned in that they feel the attacks against the tax centers remain unpunished.”
One tax official whose job puts him in direct contact with angry taxpayers said, “I never leave a stapler lying on my desk, or any other object that might serve as a projectile when I meet with a taxpayer.
My colleagues do the same.”
Two Irish legislators who were convicted of participating in a direct action against U.S. armaments passing through the Shannon airport have refused to pay their fines. One of them, Clare Daly, told reporters: “We have no intention of paying a financial contribution to a State which allows this behaviour [the arms shipments] to continue.”
Dave Ridley, on The Ridley Report podcast, ponders whether or not it is ethical to try to drain resources from the government in order to weaken it (for example, by filing lawsuits against it, or forcing its bureaucracy to waste time) or whether this is just adding insult to the original injury the government performed by taking the wasted funds from the taxpayer.
Protesters in Detroit, Michigan, blocked the street in front of the county treasury building to protest the fact that despite plunging property values in Detroit, many homes have not been reassessed in years (in spite of a law mandating annual reassessments), and so the owners are on the hook for artificially inflated property taxes, which is pushing some of them into tax foreclosures.
A brothel in Salzburg, Austria, has launched a free drinks and free sex promotion to protest high taxes on its receipts.
You will probably not be surprised to learn that the protest has been wildly popular with the brothel’s clientele as well as with clickbait “news” sites.
Residents of Beni, in the Democratic Republic of Congo, have launched a tax strike to protest against the government’s failure to provide them with adequate security against atrocities committed by the Allied Democratic Forces rebels.
The tax resistance comes on the heels of a week-long general strike, and is being organized by “civil society” groups.
The taxes being resisted are largely business taxes, both those on larger businesses and stall-fees paid by market vendors.
Some of the organizers have reported being subjected to death threats.
As Greece prepares to bid a national “δεν πληρώνω” (“won’t pay”) to their international creditors, the domestic δεν πληρώνω movement continues to innovate — lately with a new smartphone app that tells public transit users where they can expect ticket auditors and which stations are free-and-clear.
Fines are down by ¼ to ⅓ from their numbers last year.
In addition, overall tax revenue is in a tailspin in Greece.
The government hoped to bring in €3.728 billion in May, for example, and only managed to scrape up €2.722 billion.
War Tax Resistance News
Pioneering American war tax resister Juanita Nelson, who helped found the first modern American group devoted to war tax resistance (Peacemakers) in , and who died , was honored with a festive parade in her hometown of Greenfield, Massachusetts.
The group Conscience, which had been an important voice for war tax resisters in the U.K., has been undertaking an image makeover lately, in which it has deemphasized tax resistance in favor of lobbying and, alas, lately is lobbying for a particularly pathetic “taxes for peace” bill that is a somewhat new formulation of the “peace tax”-style legislation but that has at least as many flaws as such bills usually have.
IRS Woes
I see another IRS building has been evacuated because of a “suspicious package” — this time in Andover, Massachusetts.
The Treasury Inspector General for Tax Administration identified an estimated two and a half billion dollars in previously-unnoticed fraudulently-requested tax refunds issued by the IRS for tax year .
That’s roughly the size of the budget of the National Parks Service.
Many of the payments went to addresses outside of the country, like to Lithuania, Bulgaria, and Ireland, so maybe I should have compared it to a foreign aid program: in the same ballpark as the amount the State Department gave to Israel.
The Birmingham campaign pledge was a commitment card that, according to Martin Luther King, all volunteers were “required” to sign in order to participate in the movement.
I came across the pledge in King’s work, “Why We Can’t Wait,” a book in which he talks about the Birmingham campaign.
The card consisted of ten commandments, including: “1) meditate daily on the teachings and life of Jesus.
2) remember always that the nonviolent movement in Birmingham seeks justice and reconciliation — not victory.
3) walk and talk in the manner of love, for God is love.
4) pray daily to be used by God in order that all men might be free.
5) sacrifice personal wishes in order that all men might be free.
6) observe with both friend and foe the ordinary rules of courtesy.
7) seek to perform regular service for others and for the world.
8) refrain from the violence of fist, tongue or heart.
9) strive to be in good spiritual and bodily health.
10) follow the directions of the movement and of the captain of a demonstration.”
With its emphasis on the importance of taking up a daily practice of (for example) courtesy, love, service, meditation and prayer, the pledge really offered to volunteers an opportunity to embrace nonviolence as a way of life.
The commandments in effect constitute a daily practice of nonviolence, and as such, it conveys that nonviolent direct action is not merely or solely public protest and organizing.
It is also (and perhaps more importantly) speaking, thinking, acting and engaging the world — even at the most mundane level — from an ethic of nonviolence, so that we actually become nonviolence.
It is strategic, I think, for those who are activated to choose not to emulate the very people whom we hope to disarm, to refuse to exchange tit for tat, to withdraw our cooperation with and complicity in creating our culture of violence.
It is strategic to demonstrate by word and deed that there is another way to walk in this world and to engage others.
It is strategic, in other words, to disarm ourselves and one another just as surely as it is to disarm the state.
It saddens me when folk who are doing righteous work to confront, say, police brutality or economic inequality or environmental exploitation, express the kind of venom they themselves receive because of the work that they do.
It saddens me when I say belittling and dehumanizing things about folks with whom I disagree.
In those moments, we become allies in nurturing an atmosphere of conflict, hate and violence.
We also reveal the extent to which our emotional and spiritual lives have been colonized.
Increasingly in the U.S., traffic enforcement is not about safety but about generating revenue for the government.
This makes our roads less safe, our fiscal processes less transparent, our law enforcement more corrupt, and contributes to the criminalization of poverty.
The IRS has been defeated in another case in which they stole money from someone on the pretext that they had been depositing the money in the bank in periodic small amounts in order to avoid the bank’s requirement to report large deposits to the agency.
A judge further ordered the agency to pay interest to the victim based on how long they held on to his money.
Another triumph of the Institute for Justice, which has been doing some great work helping the little guy stand up to government.
“White Powder Scare Causes Evacuation of Philadelphia IRS Building” — this one doesn’t even look like it was a mailed-in hoax, just a case where “someone discovered a powder in some cubicles on the third floor.” Seems like a great way for IRS employees to extend their lunch breaks.
what’s being billed as a “general strike” to protest against Trumpism is scheduled for today
There’s a new IRS DataBook out, so I’ve updated my charts with numbers for :
The IRS has launched a “view your tax account” service.
If you’re a resister and want to keep an eye on how much money they’re after you for, this is a convenient way to do it.
This service supplements the agency’s “Get Transcript” service, with which you can get more detailed information about your account, your past filings, IRS actions taken with regards to your account, and what it knows about your income sources.
In , a “Sale of Suffragette’s
Goods at Southend” made the headlines when the first public auction of goods
seized by bailiffs in default of payment of the ‘king’s taxes’ by a local
suffragette took place.
The suffragette in question was a Mrs Rosina Sky. A member of the Southend
and Westcliff branch of the WSPU
and of the Women’s Tax Resistance League, Mrs Sky had refused to pay £5 tax,
as required by law. As a result a “quantity of silver goods” were taken from
her home in Cliff Town Road and sold at a public auction.
The Southend Standard intimated how this form of
passive resistance was beginning to work. The article described how the
auction chairman was happy to allow a pro suffragette representative, a ‘Mrs
Kineton-Parkes’, to take to the stage to speak in Mrs Sky’s favour, saying
“taxation and representation must go together.”
“Mrs Sky has paid her taxes for over 20 years and fulfilled loyally every
duty of a citizen,” the auction was told. Half a dozen silver dessert spoons
and some other silverware were sold off to a member of the public
sympathetic to Mrs Sky’s cause, meaning the entire lot did not need to go
under the hammer and could be returned to her.
Following the auction, according to the newspaper, a crowd — made up of
members of the public who had attended the auction as well as
representatives of the WSPU
and the WTRL — marched
along Southchurch Road to Southend Technical Colleges where more speeches
were held. The article reported how “a lot of chaff being indulged the
while” as the protesters made their way through the streets.
Rosina Sky
Here’s another example of a suspicious package shutting down an IRS building, this time in Austin.
Sounds like it was a false positive triggered by an overcautious dog on bomb-sniffing duty.
In a separate incident in Philadelphia, several employees “suffer[ed] eye irritation” when they “came in contact with a wet envelope that had a sweet smell” — so that sounds more serious.
The IRS told tax preparers they would have to get identification numbers — PTINs — so the agency could keep track of them.
Then it told them they would have to buy these numbers from the agency at $64 a pop.
Some preparers sued, saying this amounted to the IRS inventing its own tax to fund itself, without going through Congress for legally-authorized funding.
The judge hearing the suit agreed and said that not only were the fees illegal, but that the agency would have to fully refund the estimated $175–300 million it has collected from selling the numbers so far.
That’s about 1½–2½% of the agency’s annual budget.
Some recent links of interest:
More Thoreau bicentennial notes, including a surprising number in the German press:
Die Presse brings us “Der Aufstand des rechtschaffenen Bürgers” (The uprising of the righteous citizen), which talks mostly about how Thoreau’s theories of civil disobedience and conscientious objection continue to influence dissenters to the present day.
Wiener-Zeitung compares the thought of Thoreau and Ernst Jünger, in “Mythos Wald”.
Forty businesses in Italy organized to refuse taxes to protest the government’s plans to lodge refugees near their businesses without sufficient planning.
Here’s another report of the Conscience and Peace Tax International gathering in London , this one in German, from Wolfgang Steuer of Netzwerk Friedenssteuer.
Another tax day has come and gone, and Ruth Benn of
NWTRCC
reflects on what motivates her to get up and out on the streets to protest
year after year: Why
Bother?
“Civil society organizations” in Beni, North Kivu, in the Democratic
Republic of the Congo, have responded to the government’s unwillingness or
inability to provide security in the area by calling on people to refuse to pay their taxes.
Links have been piling up in my bookmarks as I spent
poring through
back issues of The Mennonite.
International Tax Resistance News
A new law in Samoa requires previously untaxed church
ministers to pay income tax. Many, including those from the country’s
largest church,
are refusing to pay.
The United States government has begun
denying passports to people with large tax debts.
If you’re one of the 362,000 or so Americans who owe more than $51,000 and
you haven’t entered into an installment payment plan (I’m one of those),
you will likely soon find that you cannot successfully apply for or renew
your passport. While the government also has the legal authority to revoke
existing passports from such people, it is not yet exercising that
power.
Guerrilla electricians in Greece continue to
reestablish electric power
to households who have had their power cut off for inability or
unwillingness to pay the state utility monopoly’s bills which have been
inflated to support the state’s austerity budget policies.
Veterans of the successful campaign to abolish the
“écotaxe” in Brittany held
a celebratory picnic
on the anniversary of the destruction of one of the highway portals that
would have enforced the hated tax. In part the picnic was meant to show
solidarity with those who had been convicted of criminal charges for the
parts they played in destroying such portals, and in part it was meant as a
show of strength to let the government know they would not tolerate any
attempts to reestablish the tax.
The increasing use of traffic-ticket-issuing cameras worldwide as a
government revenue booster has led to a rash of direct action by the victim
population. This usually takes the form of destroying, disabling, or
blocking the cameras. Here are several recent examples:
Launched on as another variety of civic struggle against the dictatorship, the proposal to carry the thesis of civil disobedience to the extreme of applying a “tax strike” is still in force, but has not yet switched on, except in the Mercado Oriental.
On that date, the Academy of Sciences, and the Academy of Legal and Political Sciences, called for “civil disobedience as a national imperative to be put into operation immediately,” inviting employers, workers, students, and taxpayers to immediately suspend the payment of taxes to DGI, DGA, and city hall, in particular “withholding of Income Tax from salaries.”
Although the call for tax resistance enters the popular imagination as a civil form — and for that reason a legitimate one — of resisting the regime of Daniel Ortega, neither businesses nor individuals have responded with determination to the proposal, from fear or from caution.
Caution as demonstrated by the sources consulted for this article, who requested anonymity as they explained that people, business-owners and managers in particular, are afraid that the tax administration will fine them or, worse yet, temporarily take over operation of their companies or shutter their business.
Not all of the sanctions are catastrophic.
There are cases in which the fine applied is equivalent to 2.5% of the amount not paid in the case of the monthly advance payment of the business income tax, or 5% in the case of the value-added tax or of income tax withheld from the salaries of employees.
“Technically, it’s an invalid appropriation of withholdings, and can be criminally sanctioned,” in addition to being shut down, fined, or temporarily put under government management, explained a source with extensive experience in tax matters.
That said, this source sees a variety of reasons to doubt that they would decide to take such extreme measures, beginning with “as far as I know, they have never applied them to anyone.”
Another is that to close a business means sending its workers into unemployment, which implies that they will not receive taxes from the business or from those consumers.
But beyond believing in the mercy that any of these reasons implicitly assumes, the source points out fact that is easier to accept:
“If the resolution is massive, the tax administration simply does not have the capacity to audit and penalize everyone at once.”
Larger Companies Have More Fear
If it is decided to penalize only some in order to set a precedent that strikes fear into the others, surely one of the larger ones will be chosen, which not only has more ability to defend itself in the courts, but also to negotiate, precisely because of its size.
Another source asserts that “although it may seem obvious, the businesses that take the least risk are the most powerful ones, for the simple reason that they are not big taxpayers but big tax collectors.
“The DGI, does not want to be bothered with them, because if they weaken them, this affects tax revenues, principally value-added tax withholding.”
When the big companies that could take such measures don’t apply them, despite their intrinsic power, they are demonstrating “the cowardly face of big capital.
If they would decide, the blow to DGI would be immense,” s/he says.
Róger Arteaga, former director general of Revenue, agrees, saying that “big capital has not wanted to go all-in.
It is true that it gave its approval to the strike, but did so with fear and only temporarily.”
There is at least one group that risks more in a tax strike: import and export companies, which require clearances that can only be obtained once they have paid the corresponding taxes.
“If one of these business doesn’t make its monthly statement, or makes it but doesn’t pay, it falls into insolvency, and can neither import nor export.
The only importers who could afford that ‘luxury’ would be those that have sufficient product already on hand, especially at times like these, when there is little movement of inventory,” explained one of our sources.
Small- and medium-sized businesses — both fixed-quota and general regime — can stop paying taxes as long as the situation does not normalize, and while this makes them vulnerable to penalties, it is not likely that this will occur, especially, again, if a critical mass applies this measure of fiscal chastisement.
How long can the government last without taxes?
Our sources note that before making tax payments, the employer must guarantee the salary of its employees, and that the decision not to pay taxes is “protected by the higher legal concept, legally enshrined in the national legislation, as the Act of God and the Force Majeure.
Nobody is obligated to do the impossible, and the reason for this impossibility lies outside the control of the employer or employee.”
Citizens, on their part, could put pressure on big and medium-sized business, offering to act together if the Treasury moves against them.
“In this context, big capital must play a consistent role, acting firmly in the face of a Treasury that has granted them such special privileges.
It would be their most authentic repentance for the eleven years of tax advantages they have taken in the shadow of power.
That stain should be washed out right away,” they say.
As an expert, Arteaga proposes “that the businesses do not charge value-added tax, and the citizens not pay it.
Income tax also.
There are penalties, but the penalties and decisions of this government must be ignored, as they have no legitimacy.
How long can the government last without taxes?” he asked.
“Tax resistance aims to respond to Ortega’s claim that he will stay on through : we must find a solution, and one of these is for the private sector finally to decide on civil disobedience of a monetary and tax nature,” he explained.
Pedro Muñoz Fonseca, president of the executive committee of Costa Rica’s Social Christian Unity Party, urged Nicaraguans to use tax resistance against their government:
Social Media Tax Protest in Uganda
The government of Uganda has imposed a 5¢-per-day tax on using social media and
other services. This was designed as both a revenue measure and a way of
reducing what Ugandan president Yoweri Museveni calls lugambo
(“fake news”). Amnesty International has been among those to see through the
government’s rhetoric and cast the tax as
“a
clear attempt to undermine the right to freedom of expression.”
Robert Kyagulanyi, a Member of Parliament better known by his musician
stage name Bobi Wine, whose election is in part credited to his success on
social media, has been at the forefront of protests against the tax.
He was arrested, along with
three reporters when a march protesting the tax was attacked by police
with tear gas and rubber projectiles, but they managed to escape.
Ugandan protest marchers wearing shirts featuring a smart phone screen that
reads “This Tax Must Go”
War Tax Resistance Around the World
ABC reports on war tax resisters in Valencia — “the new refuseniks”.
War tax resisters there typically refuse to pay some percentage of their taxes, often basing this on the percentage of the federal budget that is spent on the military and similar items, and redirect this money to more worthy charities.
They declare this deduction on their tax forms in such a way that the tax agency typically does not treat it as illegal tax evasion but as an error or mistake.
The Global Day of Action on Military Spending Final Report has been released.
It gives a summary of the various events that took place around the world, including several by war tax resisters and groups promoting war tax resistance.
There’s a new NWTRCC newsletter out, with content including:
Ideas & Actions concerning weapons-free investing, responding to arguments against war tax resistance, a fast for nuclear disarmament, and more
You can now listen to audio excerpts from the upcoming documentary The Pacifist, about war tax resister Larry Bassett, on Spotify.
Erica Leigh pores through back issues of Conscience, the newsletter of the Conscience and Military Tax Campaign, an American war tax redirection group that slightly predates the founding of the National War Tax Resistance Coordinating Committee.
Raymond Hunthausen has died.
As Catholic archbishop of Seattle, he took a remarkably strong stand on nuclear weapons — famously calling the Trident nuclear submarine program being developed nearby “the Auschwitz of Puget Sound” — and began practicing war tax resistance in response.
This earned him enemies in Washington and in the Catholic hierarchy. Here are some of the obits and remembrances:
A biography of Hunthausen, A Disarming Spirit, will be released soon.
David McReynolds has died.
He was a long-time War Resisters League and Socialist Party activist and was also on the staff of the Committee for Nonviolent Action which helped to spearhead war tax resistance as a tactic during the campaigns opposing the American war in Vietnam.
He was among the signers of the “Writers and Editors War Tax Protest” in and of a similar public pledge .
David Paul Irish has died.
He was active with the Fellowship of Reconciliation, Women’s International League for Peace and Freedom, Peace Brigades International, and Witness for Peace.
He was an advocate for war tax resistance in the Society of Friends, drafting a minute in favor of of war tax resistance that the Twin Cities and Minneapolis Meetings approved in .
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.
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.
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.
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:
The IRS has announced that not only will it issue stimulus payments and Paycheck Protection Program loans to people and businesses even if those people or businesses are behind on their taxes, but also that the agency will not levy bank accounts into which those payments are deposited — for 24 weeks in the case of PPP loans, or 8 weeks in the case of stimulus payments.
Current IRS policy says that agents should contact taxpayers before issuing a levy to ask whether the account in question recently received such a payment.
If so, they are supposed to refrain from levying until the proper number of weeks have passed.
If the IRS tries to levy a bank account in which you have recently deposited such a check, you can protest this and the IRS is supposed to release the levy.
In either case, this should give you plenty of time to empty out the account so that a future levy attempt will fail.
I fear that waiting out the ten year statute of limitations on collections is becoming a reasonable strategy and that many “taxpayers” have caught on and that the IRS, when it comes to collection, is to a significant degree bluffing.
My overall takeaway from the [recent Treasury Inspector General for Tax Administration] report is that the IRS has a lot of outstanding receivables that it does nothing about.
That made me want to look more closely at the numbers.
Working with the spreadsheets is a little frustrating.
They don’t answer all the questions I would like answered, but it does give a pretty clear idea that the IRS is something of a shadow of its former self.
At , the balance of assessed tax, penalties and interest (ATPI) was $114.2 billion spread among 10.4 million accounts.
In that year IRS filed 1,096,376 notices of federal tax lien and requested 3,606,818 levies on third party.
IRS wrote off $14.6 billion that had expired due to the ten year statute.
At ATPI was $125.8 billion spread among 11.2 million accounts.
There were 543,604 liens and 782,735 levies.
$34.2 billion expired due to the ten year statute.
It is important to remember that when we are talking about collections, we are talking about tax that has already been assessed.
This has nothing to do with people who have not filed or who underreported income and have not gotten caught.
That is an entirely different kettle of fish.
Through my decades of tax practice, the notion of flat out not paying assessed tax was not something that was in my bag of tricks.
It has slowly dawned on me that this is a thing.
A tax strike by restaurants and bars in Italy has begun.
The strike is being organized by Movimento Imprese Ospitalità, which is a project of the tourist industry branch of the General Confederation of Italian Industry.
It is protesting continued tax collection at a time of collapsing business during the Covid pandemic.
I’ve seen a few more articles that give some additional details about the latest tax strike in South Kivu:
The campaigns have been organized and led by what are vaguely referred to as “la société civile” (civil society).
This refers to some sort of preexisting groups, but I don’t really understand what they are.
They seem to be non-governmental organizations that sometimes behave as parallel governments or service providers, other times as sorts of citizens’ unions or chambers of commerce.
Guillermo Incer Medina, in Confidencial, evaluates the tactics used by the protesters in Nicaragua who have been struggling with the Ortega regime.
He concludes that the best high-impact, low-risk action would be tax resistance from a small number of large-scale taxpayers.
Excerpt:
In Nicaragua, 94% of the total tax collection comes from large taxpayers (a large taxpayer is a company that has large volumes of transactions and, therefore, that collects taxes such as VAT, IR — and others– in large amounts.
Examples of these could be supermarket chains, large importers, large commercial establishments, or large agro-industrial consortia).
In our country, the sectors with the largest taxpayers are industry, commerce, finance, transportation, and services.
In these sectors, large taxpayers collect more than 90% of the total taxes of their respective sector (which is to say that of every 100 córdobas that is collected from taxes in each sector, 90 córdobas are contributed by large taxpayers and only 10 córdobas by mid-sized and small ones).
Furthermore, in areas such as liquors, beers, soft drinks, and fuel, the large taxpayers collect 100% of the total taxes.
Why is this important?
Because the dictatorship needs taxes to maintain its repressive apparatus and its patronage politics.
If you take the oxygen out of their horror machine and purchase of consciences, you take away their room for maneuver.
“Let’s do a consumer strike!” said COSEP and AMCHAM representatives every time we demanded a national strike.
This is a mistake for two reasons: 1) for a consumer strike to have a real and not symbolic effect, requires that millions of unorganized Nicaraguans, including pro-government people, decide to deprive themselves of consuming goods that are difficult for them to obtain due to the precarious living conditions in which we live, 2) it is useless for us to stop consuming (not paying VAT) if companies still pay the State taxes such as IR and others (one must keep in mind that those who directly “deliver” taxes to the State are not we the consumers, but they are the collectors — the companies).
What can one do then?
The action that could have the greatest impact at the lowest cost and in the shortest term is tax resistance from the large taxpayers, which is nothing more than the large companies stopping payment of taxes to the dictatorship for a period long enough to oblige them to make concessions for his departure.
“They are going to close us down!”, the big businesses say immediately.
But it is not likely that the government will close large companies due to how this would look to foreign investment, and due to the political cost of sending thousands of people into the streets.
Furthermore, if they close large companies, this would in practice have the same effect as tax resistance, since they would stop receiving their taxes.
“We are exposing thousands to unemployment!”, they also say… more jobs are being jeopardized by letting this political and humanitarian crisis drag on and by the coming interruption of CAFTA and ADA, if the dictatorship continues to do what it wants and stays five more years.
“It’s too risky!”
It is more risky to put your body on the line in a march or a roadblock, or to go on a hunger strike in a church and get shot, cut off your services, and imprison those who want to help you.
There is no large, medium, or small company that is worth more than a human life.
Tax resistance is more feasible than other actions of high-risk and low-impact (such as a chain of express pickets or coordinated sit-ins) because it does not require the coordination of thousands of unorganized people.
To promote tax resistance, it is enough that a few of the largest companies, which are already organized in chambers, agree, stand firm, and coordinate among themselves.
Gig workers in Serbia used to be more or less income-tax free, apparently.
Not any more. A new law not only makes them liable for income tax, but requires them to cough up taxes for the last five years.
Marchers in Belgrade protested the new tax law.
The council tax resistance campaign that is part of the opposition to the Edmonton Incinerator has so far attracted eleven tax resisters.
As previously reported, the version of the “Build Back Better Act” passed by the House did not include a feared provision that would require banks to report to the IRS about more of their customers’s accounts and transactions.
There was a long-shot chance that those provisions would reappear in the bill as passed by the Senate, but thusfar no such provisions have appeared in the Senate’s version of the bill.
There is still some chance that the bill will be amended in the Senate to include such provisions, and I believe it’s not unheard of for provisions to get tacked on during the reconciliation process even if they weren’t in the versions of the bill that passed in either of the houses.
So we won’t know for sure until the bill hits Biden’s desk.
But I wouldn’t lose sleep.
One of the bill’s provisions would remove the requirement that IRS agents get written approval from their supervisors before assessing penalties against a taxpayer.
My gut feeling is that this isn’t a big deal (contra the Titanic alarm in the linked-to article about it).
It might make it marginally easier for the agency to apply penalties, or somewhat more likely that those penalties will be applied in inconsistent and haphazard ways.
But I suspect it mostly amounts to the trashing of a red-tape, rubber-stamp provision that didn’t have much practical effect.
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.
Tax resistance news from hither and yon:
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.