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[COMMENT: See also other
IRS
articles, and articles on "Conspiracy
Theory".
E. Fox]
Tax Questions Raised
Regarding
Gold and Silver Coins Used to Pay Wages
Around noon on Monday,
September 17th, a Las Vegas federal jury returned its verdict refusing to
convict nine defendants of any of the 161 federal tax crimes they
had been charged with. The charges included income tax evasion, willful failure
to file and conspiracy to evade taxes.
The four-month trial centered around the family businesses of Robert Kahre who
paid numerous workers for their labor with circulating gold and silver U.S.
coins, and did not report the wages. The payments took place over several years,
allegedly totaling at least $114 million dollars.
On September 20, 2007, three days after the federal trial's dramatic conclusion,
the Las Vegas Review Journal, reportedly under a degree of public
pressure, ran its first (and last) story about the outcome of the trial. To this
day, with exception of the single article by the Review Journal, no
major media entity has published a news story regarding the outcome of this
important federal criminal tax case.
The censorship of this important news story is, unfortunately, not unexpected
given the continuing, worldwide onslaught against the U.S. "dollar" --
specifically the Federal Reserve variety, and the ever growing numbers of
Federal Reserve Notes required to trade for an actual ounce of silver, gold,
oil, or for that matter, anything.
In short, this failed prosecution has coalesced and exposed truths our
Government desperately needs to hide from the People: the truth about our money,
the truth about our (privately-owned) central bank, and the truth about the
fraudulent nature of the operation and enforcement of the federal income tax
system.
Click here to read the April, 2005 DOJ
press release announcing the prosecution.
Click here to read the 9/20
story by the Review Journal about
the trial.
According to defense attorney
Joel Hansen, who represented co-defendant Alex Loglia, the primary "willfulness"
defense was that the defendants believed they had no legal obligation to
withhold, pay income taxes or report anything to the government because, in
part, the nominal (i.e., face value) of the gold and silver coins is so small as
to fall beneath the reporting thresholds set by the Internal Revenue Code.
The Defendants also argued that regardless of the valuation of the coins for
internal revenue purposes, there is no law that requires average American
workers to file or pay direct, un-apportioned taxes on the fruits of their
labor.
The Government argued that the payments in solid gold and silver U.S. coins must
be considered at their bullion (i.e., intrinsic full-market) value when
considering the worth of the wages for purposes of the internal revenue code.
Attorney Hansen cited two Supreme Court cases bolstering Defendant's monetary
argument at the heart of the defendants "willfulness" defense.
The essence of the argument is that under the Constitution Congress is obligated
by law to mint and circulate such coins as demand requires, and must establish
the value of coins as they are used as legal tender, but the coins' market
value, arising as valuable personal "property," is a distinct, separate
attribute of such coins, and is of no legal consequence if the coins are used as
legal tender.
In other words, if a worker is paid with such coins, his taxable "income" (if
any) can only be the face value indicated upon the coin money paid --
i.e., $1.00 for a circulating silver dollar or $50 for a circulating gold U.S.
coin. Not surprisingly, the IRS has never issued any public guidance regarding
this significant issue.
The first case, Ling Su Fan v. U.S., 218 US 302 (1910) establishes the legal distinction of a coin bearing the "impress" of the sovereign:
"These limitations are due to the fact that public law gives to such coinage a value which does not attach as a mere consequence of intrinsic value. Their quality as a legal tender is an attribute of law aside from their bullion value. They bear, therefore, the impress of sovereign power which fixes value and authorizes their use in exchange."
The second case, Thompson v. Butler, 95 US 694 (1877), establishes that the law makes no legal distinction between the values of coin and paper money used as legal tender:
"A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them."
Defense attorney Hansen
confirmed that members of the jury were able to actually hold and inspect the
gold and silver U.S. coins paid to the workers.
After almost four months of testimony and three and a half days of deliberation,
the jury did not convict any of the defendants of any of the 161 crimes
alleged. Although some defendants were acquitted of multiple counts, and
several were acquitted completely, others may have to stand for a retrial if the
Government brings charges a second time.
The Review Journal reported the jury foreman claimed DOJ prosecutors admitted
they were "shocked" by the outcome.
In March 2007, the primary defendant, Bob Kahre, filed a federal civil rights lawsuit against the prosecutor and IRS agents who had conducted what he alleges to be an unlawful search and seizure raid. In 2005, the Ninth Circuit Court of Appeals refused to overturn a previous District Court ruling holding that the federal prosecutor is not entitled to absolute immunity for the unlawful raid. Read more.
Click here to execute a Google
News
search to attempt to locate recent news stories about the Kahre tax trial.
The media suppression of this story is similar to the widespread mainstream
media suppression of the July 11, 2007 acquittal of Louisiana attorney Tommy
Cryer who was also charged with multiple federal income tax crimes and relied
upon numerous Supreme Court precedents and U.S. tax laws to establish his
"willfulness" defense. Click here for a
previous WTP update containing a link to Cryer's 100-page Motion to Dismiss
which details his legal arguments.
Click here to execute a Google News
archive search to attempt to locate news stories about Tommy Cryer's tax
trial.
PLEASE NOTE: Following recent statements by the DOJ,
most of the content of the WTP websites (including our on-line store) has been
fully restored for public access. The "6700" case is currently being appealed to
the Second Circuit Court of Appeals.
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