Income Taxes are Cartoon Images of the Law - Americans have been flimflammed by a cartoon!

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It was a movie leader shown at nearly every movie in the midst of World War II. Donald Duck, a patriotic little fellow reluctant to pay income taxes gradually realized that paying the income tax would help win the war. With a whole new attitude, Donald quickly goes to work filling out his income tax return, and so enthusiastic about paying the tax that he races from California to Washington to submit his tax return in person.

Donald's declaration of "Taxes to beat the Axis" trumpeted the patriotic demand to pay taxes. Walt ordered a full-scale publicity campaign to coincide with saturation bookings at theaters. The New Spirit was an instant success and Walt had agreed to make it "without profit" as he had for all the war related work the Disney Studios did. The Treasury Department estimated that about half of the US population, 60 million Americans, had seen the film, and a Gallup Poll indicated that voluntary participation in the income tax increased 37 percent.

 

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1  INTRODUCTION
HISTORY OF COMMERCE
3 RESPONSIBILITY
4 REDEMPTION

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7 BEING A SOVEREIGN
8 PRIVATE BANKING

ONE GREAT DAY is a diversified, ever evolving four piece based in Minneapolis. We have humbly embraced the idea that music is bigger than us all. Our style varies from acoustic pop to electric funk blues. If it feels good then we'll play it. This is our identity. Just listen to our music and enjoy it as it is. God Bless all!!! ONE GREAT DAY !!!

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Medieval serfs paid 25% of earnings to their landlords, but they still got "free" food, land and protection. Conquering empires customarily taxed the losers.  When British colonists in North America refused to pay the taxes demanded by King George III of England, he sent an army to enforce the rules. The American Revolution wasn't just fought over a tea tax, but over the British monarch's "divine right" to impose a 3-5% income tax on the Colonists.  Eight years of killing, maiming, property destruction, sinking expensive ships, and decades of bitter relations...just over a 3-5% tax! That's less than the 7.25% State Sales Tax that Californians are now paying on almost everything but tea! With practically NO resistance!  Someone has found a bloodless way to accomplish what King George couldn't.  Watch out for crocodiles!  They move so slowly that no one notices until.......gotcha!

When you volunteer to pay your taxes each year (and each paycheck), you can thank Walt Disney and Donald Duck. The US Government used them to convince people that they were taxpayers, even though the law did not make them so.  Once upon a time, there was virtually no income tax. Only nonresident aliens and US citizens not living in one of the States had to pay taxes and then only after they had earned over $20,000, the equivalent of nearly $350,000 in 2002.  The tax rate was only 1% up to 7% on incomes above $500,000 ($6 million). Very few people were subject to the tax in the first place -- only about 1% of the wealthiest Americans were originally required to file.  However, in 1942, things changed even though the law and the Constitution didn't.

A year after the United States entered the Second World War the federal government needed additional revenues to pay for the war effort.  Congress had given away much of the government’s usual means of financing itself, printing its own money, when it created the Federal Reserve in 1913.  A voluntary income tax had been in place for 29 years, but for Constitutional reasons, fewer than 11 percent of Americans had to pay the income tax at that time. As a result, Congress enacted into law the Victory Tax Act of 1942, which included concurrent law for automatic wage withholding. The Victory Tax was a direct tax on income. However Article 1, Section 2, Clause 3 of the U.S. Constitution requires that direct taxes be apportioned to the several states, not citizens directly, and therefore it was unconstitutional. The government attempted to legitimize these new laws by citing Article 1, Section 5, Clause 2 of the Constitution: "To support Armies but no apportionment for money to that use shall be a longer term than 2 years."

The new legislation gave Henry Morgenthau, then Secretary of the Treasury, two voluntary income taxes to which he needed the voluntary compliance of US citizens. In December 1942, Morgenthau came up with a brilliant idea to encourage Americans to volunteer to pay by making the income tax a patriotic duty. To help implement this idea, Morgenthau ordered John J. Sullivan, a Treasury Department official, to contact Walt Disney.

Remember there was no television in the early 40s.  The only visual medium the government could use to reach the public were films at movie houses. Going to the movies was a popular pastime, and citizens usually attended nearly every week. Walt was asked to fly to D.C. to discuss an urgent special request. At first, Walt was reluctant, but Sullivan insisted. Sullivan did not disclose the purpose of this meeting, and Walt assumed it had to do with the promotion of War Bonds. The next day, when Mr. Disney arrived to meet with Morgenthau and Internal Revenue Commissioner Guy Helvering, it was announced that the U.S. wanted him to "help us sell people on paying the income tax." Confused, Walt questioned why the government just didn't jail people who did not pay the income tax. Mr. Helvering retorted, "Walt, we want people to be enthusiastic about paying their taxes." Walt did not know that an unconstitutional income tax could not be used to jail American citizens for non-payment.  That was then.

Walt returned to California with a six-week deadline to make a short animated film and get it into the theaters by February 1943. Other projects were postponed, and a full time crew labored around the clock on the new film. When the preliminary storyboards were completed, Walt went to Washington DC to preview them before Morgenthau.

Let’s all go to the movies…

It was a movie leader, much like a newsreel or preview, added to nearly every movie in the midst of World War II. The story began with Donald Duck reluctant to pay income taxes. Listening to a radio broadcast about taxes, Donald gradually realized that paying the income tax would help win the war. With a whole perspective, Donald quickly fills out his income tax return, and so anxious to pay the tax that he races  to Washington to deliver his tax return in person.

There was a brief silence after Walt had finished presenting The New Spirit and then Morgenthau's secretary asserted that she hated the Donald Duck character. An aide stated that he had expected to see a cartoon of "Mr. Average Taxpayer." Morgenthau made no comment. Walt was insulted and very angry. He defended his cartoon and argued that using Donald Duck was like MGM loaning the talents of Clark Gable to the government project, because Donald was Disney's biggest star at the time. Disney Studios were even expecting to LOSE money because The New Spirit was being given to theaters free, and those theaters that had already booked Disney shorts would cancel and replace it with the free one. Disney eventually lost over $40,000 in bookings in a fiscal year Disney Studio had begun over a million dollars in the red.

Morgenthau reluctantly approved The New Spirit. Since the Treasury Department had not contacted the studio until after mid-December and income tax payments were due in mid-March back in those days, Disney had to rush to put it together the in record time--four weeks.

Donald's declaration of "Taxes to beat the Axis" trumpeted the patriotic demand to pay taxes. Walt ordered a full-scale publicity campaign to coincide with saturation bookings at theaters. The New Spirit was an instant success and Walt had agreed to make it "without profit" as he had for all the war related work the Disney Studios did. The Treasury Department estimated that about half of the US population, 60 million Americans, had seen the film, and a Gallup Poll indicated that voluntary participation in the income tax increased 37 percent.  A Treasury official summarized the tax explosion to Congress in 1943:

Up until 1941 we never received as many as 8,000,000 individual income-tax returns in a year. In 1941 that number increased to 15,000,000; in 1942 it increased to 16,000,000. This year we expect 35,000,000 taxable individual income-tax returns

Tax historian John Witte:

 “In 1939 about 15% of the people paid income tax. That’s all, period. At the end of the war, we had 80% of our families paying income tax.”

Another Donald Duck propaganda film, Der Fuehrer's Face, and The New Spirit were nominated for an Academy Award in documentary short subjects in 1943!

After the Treasury Department collected billions of dollars in new revenue, Walt Disney submitted his bill for $80,000 in expenses that didn't even cover the production costs. The Treasury Department didn't actually have these funds and Morgenthau had to submit a request for the money to Congress in a defense appropriations bill. Disney was accused in Congress of being a war profiteer and the House of Representatives disapproved the appropriation on a vote of 78 to 63.

The Spirit of '43Newspaper coverage of the Disney attempt to recover some of its costs stirred a public uproar and the studio was flooded with negative letters often with the slogan "Not a dime for Disney". Walt was forced to write off the venture as a loss.

In 1943, the Treasury Department again asked Walt to make a short cartoon to encourage Americans to pay their taxes. The purpose of this piece was to encourage Americans to save for their quarterly estimated tax payments to fund the war effort. A brilliant bit of propaganda, The Spirit Of '43 played upon the emotions and the attitudes of patriotic Americans not be selfish and contribute to ultimate victory - winning the war. Donald is torn between a thrifty patriotic duck who resembles an early Uncle Scrooge and a wild spending, zoot-suited duck who obviously had Nazi leanings. Arguing over what Donald should do with his paycheck. Donald eventually hits the free spender and runs off dutifully to pay his taxes. To avoid the hullabaloo this time the Treasury Department asked Congress first and they approved $20,000. That wasn't enough to make a new cartoon so some elements from the previous The New Spirit were reused.

The Spirit Of ‘43 makes no mention of the coming of "withholding" from workers' paychecks, but it quite obviously promoted the desirability of voluntarily withholding until quarterly payment came due. Beardsley Ruml, Chairman of the Federal Reserve Board of New York would later introduce pay-as-you-go tax withholding in the work place so citizens would never again be "caught short" on tax day.

The Same Voluntary Tax Remains Today.

The Victory Tax Act was renewed in 1944 and was to expire when the war was over, yet remains in effect today, codified under the Internal Revenue Code at code section 3402 in subtitle C - Wage and Employment Tax, not the "Income" Tax. When the war was over, the Feds simply could not let go of its newfound treasures. The constitutionality of this direct tax on income was never challenged by Americans. The psychological power of the propaganda] developed in The Spirit of '43 through its imagery, jingoism and appeal to civic duty to - as the film's narrator puts it... " pay your taxes gladly and proudly" to fight an evil and powerful enemy.  The propaganda flick accomplished its goal to get Americans to pay this unconstitutional, voluntary tax. Anyone questioning the tax might well be associated with the enemy by the end of this film clip.

So how did we become complacent about the Constitution and our freedom from government oppression? We were flim-flammed by cartoons! Or our parents were flim-flammed. They were simply told that it was for our own good.  Most people only become a taxpayer by volunteering to file a tax report or withholding form.  The IRS won't tell you the truth. It's not their job. They work for a private corporation.

So as you volunteer to struggle with your tax forms each year, remember that Donald Duck talked you or your parents into volunteering your taxes.  And the idea of volunteering to pay taxes for which you are not required by law to pay is lost in the mists of history.

Credits:http://www.awn.com/tooninstitute/toonnews/korkus.htm

Craig Goodrich in Rant Magazine, June 1998

©Disney.

The first 1040 was attractive in its simplicity. No accountants or computers were needed for its easy calculations and substantial exemptions. One's personal loss was minimal (and minimized), especially since this modest tax applied only to the very wealthy and only if you earned your income from certain sources. A ONE PERCENT TAX was no huge loss - a mere tenth of what tycoons tithed churches for a cooler space in the afterlife.

 Tax Rate 1913 Income Level  Adjusted for Y2K Dollars
zero    Up to $20,000 Up to $341,819
1%  $20,000-50,000  $341,819 to $854,546
 2%  $50,000-75,000 $854,546 to $1,281,819 
 3%   $75,000-100,000 $1,281,819 to $1,709,091
4%   $100,000-250,000 $1,709,091 to $4,272,728 
5%  $250,000-500,000  $4,272,728 to $8,545,455
6% Over $500,000 Over $8,545,455
Exempt:
Single $3,000 $51,273
Married  $4,000  $68,364

Source: American Institute for Economic Research Cost of Living Calculator c/o Steven M. Adelson

Last year there were over 480 different tax forms, each with a trail of instructions - 33 pages just for the "we'll make it simple for you" EZ-1040 short form. Tax Law mutated from 11,400 words in 1913, to 7,000,000 words in 1999. (For comparison, the King James Bible is about 773,000 words.) Almost 300,000 trees were chopped to render the 8,000,000,000 pages of forms and instructions that the IRS sent out. We paid for all the government postage, of course. We also paid for the accountants and computer calculation programs - since U.S. tax forms are written to be ridiculously complicated, and taxpayers are penalized for not figuring them out. Of those who called the IRS info hotline, less than half the callers got through, and of the advice they received, half of it was wrong. America's taxpayers spent 5,400,000,000 man-hours just to complete last year's Federal Tax forms. 

 What can you do about it?  Contact your congressman and senators to protest and demand hearings to investigate the unconstitutional structure and function of the Internal Revenue Service.  You can find their name, address, email address, phone number or fax number at http://thomas.loc.gov/ .   Tell your friends, send them the URL of this page, talk about it, tell your friends to tell their friends.  But the IRS is not moved by constitutional argumentation and nor is the Tax Court.  You must be prepared with facts and a complete understanding of due process.  There are experts and organizations who can help with strategies and procedures that stop the IRS cold in it's tracks.

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History of Banking Fraud: The Coming Battle By  M. W. WALBERT

The Coming Battle documents from Congressional records, newspaper reports and writings by the founding fathers and others a chronology of events long forgotten that shaped our fledgling nation from 1776 to 1899. Read about the manipulation of our money and its supply, the intentional creation of recessions, depressions and panics, manipulation of the stock markets, and the demonetization of silver.

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Taking Back Your Power by Allen Aslan Heart

WHAT CAN YOU DO? Stop playing THEIR game. Take back your power. Stop paying taxes that are not legal or lawful. Stop paying bills you don't really owe. Stop using THEIR money. There ARE ways if you open your mind and look for the gaps in their fences that keep the sheeple in their pasture. Are you chattel or a real person? You are the one who makes that choice.

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