JEAN KEATING INTERVIEW 1099 OID Live Dec 9

LAW MERCHANT

A statement

by John Knox and Jean Keating

Edited by Arthur Stigall with comments June 1999
@[INTRODUCTION]

We have been studying the concept, "Accepted For Value This Property Is Exempt From Levy". In an effort to determine the basis for this procedure the following information (apparently written by John Knox and
Gene Keating) is provided. There was no date on the information but it was probably written ten to fifteen years ago. This paper is an insightful analysis (hypothesis) concerning liability for "income tax".
This information is not a defense. If you go to court with this information, in its present form, you will be arguing your opponents position. Once you admit that your opponent is correct you have lost your case. Additionally, your opponent must state, "for the record", that the theory presented is the basis for the "tax". It has been my experience that such admissions are very difficult to obtain. The authors speak of defenses in the Uniform Commercial Code ("UCC"). A defense involves a legal theory of law or fact recognized by the courts.
When attempting (whether plaintiff or defendant) to establish the erroneous collection of the "income

tax" the burden of proof has been placed upon the "taxpayer". You will ordinarily be considered a "taxpayer". Perhaps this paper will help explain why.
The burden of proof involves establishing, on the court record by admissible evidence, the facts necessary to prove the legal theory relied upon. This is called a prima facie case. The "Acceptance For Value" appears to shift this burden back where it belongs; upon the claimant.
The party in the condition of "commercial dishonour" carries the burden of proof. By "accepting" the "offer" "for value" you become the "holder in due course" shifting the burden of proof. Taking the position
"this property is exempt from levy" removes the property from dispute. Requesting an accounting (discharge of the amount) to adjust the records of account the dispute shifts to liability.
The information below may help to establish the necessary foundation to understand what is being accomplished by "accepting for value" and where the burdens lie.
The meaning of the authors has been preserved. The text has been reorganized and edited to make it easier to read, analize, and understand. Comments have been added and extranious information has been removed. Statements concerning spurious issues have been placed in footnotes.
"When you sign the bank account card, you become a stockholder in the bank, taxes become due upon the come-in." @A COMMENT FROM THE AUTHORS
Taken from the text PROLOGUE
There is a WAR going on that has been raging since NIMROD s day. The war is between the Roman Civil Law (civil law) and the Biblical Common Law. God gave Nimrod power over Gold because Ish-ra-El misused gold by making golden calves every time they got the chance. Nimrod's descendants still have the

control today.

In this country this ancient war culminated in the Civil War. That terrible war betweem the states was NOT over slavery but over the institution of a National Bank TO ISSUE NEGOTIABLE INSTRUMENTS under the LAW OF NATIONS, to bring the people under INTERNATIONAL LAW.
The Northern states were trying to industrialize while the South was agrarian and was making an

excellent economic progress with their cotton, flax, tobacco, wheat, etc., while the northern states were trying to raise capital for their industrial expansion. As a consequence, the northern congressmen, being in the majority, passed an export tax against Southern products that practically decimated the South. However, the South stood firm against a (central) credit bank. At the time, there was a hue and cry going on over slavery, so the northern industrialists and international bankers used the problem to whip up civil unrest. (See John Brown's history, he was supported by the industrialists.)
Northerners wanted the people to liquefy their assets by forced loans upon the property (assets) using negotiable paper as the medium of contractual attachment as security for the loan in order to expand the industrial capacity. The south didn't fall for it (central bank) so they were raped (see rape BLD).
Fully 2 years after the war, the Radical Republican Congress passed the 24th amendment, refused to seat Southern members, declared martial law over all the Southern states, sent troops to occupy the south and forced them to adopt the 13th and 14th amendments, then sent federal courts into the states to administer their new power. It took the South over 100 years to recover.
The 13th and 24th amendments increased Congress's power, which is being exercised in its fullest form today over all states and their citizens through their new power to create corporations and issue forced loans by negotiable paper.
The states always had the power to create corporations and to grant citizenship, but the congress only had power to regulate naturalization and the state constitutions limited that to free white. Now, while
the whites and blacks were busy arguing about civil rights, Congress was busy creating domestic and foreign corporations similar to the British East India Company with charters to do all kind of things, including but not limited to creating a MONEY monopoly.
Today, these governmental creations have combined to buy up, by bank loans (FRNs) all the goods and services with their created loans. The product is then retailed to the people for great profit. In this manner not the created interest is payed but these bank supported corporations own the industrial capacity of the country. At the same time creating a market for the circulation of more NOTES. The ownership is concentrated in a very few well hidden hands. "I owe my soul to the country store."
This great feat was accomplished by the imposition of the Law Merchant on the people. The people

thought they were dealing at the Christian Common Law and even now don't understand the difference between PAYING under the common law and DISCHARGING in equity under the law merchant. Everyone is
only PRETENDING they have been PAID, INCLUDING THE LAWYERS AND JUDGES. When a Citizen goes into court, by putting themselves in jeopardy, for an answer to their question they are bewildered by the
results. The judges and lawyers, educated in the governmental schools, do not have the guts (or don't know) to

fess up and tell the American people the truth, and you can bet congress will not.

The constitutional Common Law is DEAD or so very feeble and sick it cannot function. There will be no common law until payment on the NOTES is required and public currency is re-established. Issuance of Treasury Paper would be far more equitable than placing everyone under law merchant (private law, private currency), except it would take a constitutional amendment and this writer is sure they don't want this exposed to public debate.
The "Churches" are so steeped in law merchant (Law of Nations) today, they wouldn't recognize biblical common law if God dropped some silver or gold in their faces then rubbed it all over them. These "Christians" would just exchange the substance for paper calves; then donate their tithe to God in paper and deduct the donation from their income tax. I don't believe the CHURCH has sense enough to build a golden calf today. If they did, at least they would NOT BE sitting on the fence, neither hot or cold.
The War between these two great bodies of law (eg Law of Nations v. Common Law) is presently raging in Ireland and over other parts of the world. The Irish and English think it is a religious war between the Catholics and the Protestants, however, it's the same war still raging between the Roman Civil Law and the Common Law.
This should explain why the Jesuit priests are stepping out of their robes and becoming part of the new government after the recent revolutions in South America and why all State constitutions before the civil war stated Catholics could not become Presidents. Not that I have anything against catholic people, just facts.
After Rome began this law (Babylonian law) the government only lasted a short time and died a violent death. They can only steal so much from the people by issuance of NON-REDEEMABLE notes, then all hope
of the inhabitants for justice dies out. The historical record is the same for any country that has that has followed this path (see British history; see American history of paper).
"HE WHO HAS THE GOLD MAKES THE RULES". Everything today is ruled from the District of Columbia (they hold the gold) through their long arm jurisdiction under the interstate commerce clause. Our compelled use and circulation of their credit instruments (FRNs) compelled entry into social security.
You may say well, what is the alternative? This would show your brain washing in the government

schools. The common law is a law of individual self-responsibility and when you see someone doing a wrongful immoral act, YOU bring the complaint, don't leave it up to the STATE. YOU TAKE THE RESPONSIBILITY.
If you weren't kept in perpetual DEBT, you could take time to see that the common law was enforced. Our fore fathers only had to labor about 180 days a year in the 1800s (wife didn't have to work out either) to support a big family and look at the huge homes they built all over the country.
Your author has talked with lawyers, educators, preachers, patriots and others in positions of authority and they don't know the truth of what is being revealed herein and many do not want to know. What's more
some refuse to hear or see it. They have eyes to see and ears to hear but can't or won't. I suspect they won't because I have relatives who are preachers and they must not be using the same Bible (or say it says something I don't see) that I am reading. They admit the Constitution is no longer in force but they don't seem concerned
that they are LAW MERCHANTS. I don't think they can understand.

By 1938 these debt notes had become so engrafted into common usage throughout the states (common

law of usage by force) that the Supreme Court in the Erie Rail Road v. Thompkins case declared there to be no more General Common Law (state law) [sic]. Only Federal Common Law [sic] (law merchant) (international
law of negotiable instruments) could henceforth be used in the Federal courts. This has had the effect of compelling all courts in the United States (through Federal Court decisions, i.e. Erie Railroad ) to switch from the English common law (rule of stair decisis -once decided always decided, same today, yesterday and tomorrow) to the English common law of negotiable instruments where each case has to be decided on its own MERITS. This explains why the present courts are always settling a case on the merits. No one in the world today is PAYING debts, including governments, they are only discharging payment in equity with negotiable instruments. This narrative should confirm to the reader that a one world system has been in existence since 1913; administered by the United Nations under international law or law merchant. The United States
government does not now pay its debts and neither does any other country or any Person in the USA. Today, all debts are discharged in negotiable instruments, placing the entire world under the international law, law merchant (United Nations) except for perhaps the Arab countries which for the most part still pay their debts in gold. This conflict of law is what the fight there is all about.
TODAY, there are no common law actions. There are no common law courts judges acting in common law courts. There are no ARTICLE III JUDGES acting under christian common law. There are no common
law citizens. There are no common law corporations. There are no common law governments. There is not in existence TWENTY DOLLARS in which to invoke a common law court in accordance with ARTICLE VII of
the bill of rights. There are no people paying their debts in common law money so how could any of the above be in existence?
There are no common law churches. There are no biblical christians. There are no truthful [honest] commercial transactions.
WHY, WHY, WHY because there is no one dealing at the common law. Everyone, governments

included are statutory law merchants dealing in negotiable paper under limited liability for the payment of debts: THERE IS NOTHING ELSE - THERE IS NOTHING ELSE - THERE IS NOTHING ELSE.
The term "common law dollar" is a unit of measure adequately described in the Coinage Act of 1789 which is still in force
today. BUT THERE ARE NO DOLLARS - "ONLY NOTES"-- (law merchant, negotiable instruments) DENOMINATED IN DOLLARS.
Out goes the Article VII of the Bill of Rights so don't go into court claiming common law constitutional rights under the 7th Amendment, the judge will go in chambers and laugh his head off at our stupidity and will warn you over and over to get a lawyer, 90% of whom don't know either.
1. What Law governs COMMERCIAL PAPER?

The Law Merchant does.

2. Is the government, state or federal, involved in commercial paper? IF SO, THEY COME UNDER THE LAW MERCHANT.

See US v. Burr, Clearfield and other cases infra.

3. Would it be Fraud by inducement, among other things, to entice (SEE SEDUCE) you to use my notes, then have congress pass a law that I didn't have to redeem them and that even though you could use then they belong to me?
4. Is their Public policy law generally known?

5. Does the Law Merchant say you can circulate un-payable paper?

6. Does the Secretary of Treasury and the Treasurer circulate un-payable paper?

See, "Joint Note" BLD.

7. Does un-payable paper pay a TAX under the Law Merchant (UCC) or the Common Law Constitution?
Congress only has authority to TAX to pay the debts.

8. Has the government reneged on its obligations under the law merchant? Is that grounds for an action?
9. Have you ever been PAID? No consideration, See UCC 3-408.

10. Do you still have payment coming for the many years back, plus interest, plus depreciation of the notes?
11. If you have never been PAID does that constitute INCOME?

Hint, look at UCC. Articles 3-304, 3-3D5. 3-306 for countersuit remedies. There are many others.
12. Do judges have a financial stockholders interest in a tax cause or any cause if they are holders in due course of Federal Reserve Notes?
Remember when government deals in commercial paper it has only the same "rights" (powers) of a private corporation.
It is this writer's hope that from the following short discussion, the reader will realize that there is

absolutely no cause coming before the courts today that does not involve negotiable instruments, international law, limited liability for the payments of debts and admiralty jurisdiction as a result of the international implications of the law merchant. This includes murder, rape, theft, abortion, victimless crimes, and all the other crimes that are being perpetrated in which the corporate government has an insurable interest in
the criminal in the hope he will be able, at some point in time, to pay his share of the supposed DEBT.

The Government can issue notes at no cost to keep a person in prison but if he gets out and goes to work, his substantive production will pay much more on the debt than the cost of printing notes.
The entire concept herein given is to get each reader to understand that the entire country is operating outside the constitution under international law private law because of the use of credit instruments. There is no substance (COMMON LAW IS GROUNDED IN SUBSTANCE, Law Merchant in PAPER CONTRACTS) and
the Congress has pledged all the property of every citizen (WITHOUT YOUR CONSENT, except by your silent acquiescence) to their own banks for acceptance of their credits.
In fact and law there is NO United States. It is now merely a private corporate UNITED STATES

(including all states, counties and cities) administrating the pledged credit for its creditors which is YOU. (See Clearfield Trust Co. v. U.S. (1943) 318 US 363.) This has the effect of making each United States Citizen a Resident Alien in a foreign (corporation of Federal jurisdiction) country. (Clearfield, supra, is the leading case on the subject.) The following should explain:
"Governments descend to the level of a mere private corporation and take on the character of a mere private citizen [where private corporate commercial paper (securities) are concerned]" Bank of US v.
Planters Bank, 9 Wheaton (22 US) 904, 6LEd 24 and
"When governments enter the world of commerce, it is subject to the same burdens as any private firm." U.S. v. Burr, 309 US 242, 60 Sct. 488, 84 LEd 244.
and

"For purposes of suit, such corporations and individuals are regarded as an entity ENTIRELY separate from government." Planters, infra.
and

"The plaintiffs are NOT suing the USA, but the corporation, and if its act was UNLAWFUL, even if they might have sued the USA, they are NOT cut off from a remedy against the AGENT that did the wrongful act. In general the USA cannot be sued for a tort but its immunity does NOT extend to those who acted in its name." Sloan Shipyards v. US EFC 67 Cal. LR No. 6 (1979).
Do you know of any government AGENT in the U.S. who is not dealing in commercial paper? With this understanding you should be able to sue the pants off them bur-a-rats in their private (non governmental) individual capacity (state and federal). I could list 50 more cases that say the same thing as above but you can search them out if needed.
It is a shame the people do not know about the law merchant and it makes this writer want to cry out to those who are protesting such things as abortion, taxes, seat belts, and other government coercion, etc.; then when they go into court have their constitutional arguments ignored BECAUSE THEY ARE UNDER CONTRACT in law merchant due to use of negotiable instruments and the court just overrules their constitutional arguments or approves a Motion in Limine, e.g. keep the constitution OUT, without telling them why. You should have a good grasp of the situation after reading this report.
There is nothing but international law merchant courts in existence today and they once in a while give lip service to the constitution for confusion IF THE CASE IS PROPERLY PLEADED. Babylonian = confusion = Law Merchant.
"Actually, this entire procedure should be adjudicated at the

Administrative level and never reach the referee of need. See Title 5, sections 554 (a) (c) (1) ; 555 (B) , 556 & 557."

@CHAPTER ONE WHAT HAPPENED?

BONA FIDES EXIGIT UT QUOD CONVENT FIAT

"GOOD FAITH DEMANDS THAT WHAT IS AGREED UPON SHALL BE DONE."
The Constitution of the United States was overwhelmed by a body of law called the Negotiable Instruments Act [Law] (herein-after "NIL"). The NIL was established by Treaty (International Law) by most of the free Nations of the world in 1930 at the Geneva conference.
The NIL has many names and several forms. Some of the names are Roman Civil Law, Civil Law, Hague Law, Geneva Law, Merchants Law, Negotiable Instruments Law, Superior Law, Babylonian Law, International Law of Credit, Public Law, Law of Nations, Uniform Commercial Code, and others. These multiple names cause confusion.
The Law Merchant (ie. NIL) came early to America from English Law. The NIL has been "codified" in most states as a commercial code. All "codes" arise out of and are subject to the NIL, [see UCC Article 10]. In some states the NIL (or Law Merchant) is called the Business and Commerce Code. The NIL was repealed (Article 10, Sec. 40) and Codified in most states about 1967 as the Uniform Commercial Code (hereinafter "UCC").
Until 1933 entry into this law was voluntary (explained infra). Without a knowledge of this private law, "Code", you cannot know what is happening in America and the world today.
This (so called superior law) works upon notes, bills of exchange, checks, drafts, and all commercial paper [presentments].
The use of paper denoting debt by contract compels the user into the Law of Merchants or Mercantile Law, (UCC).
The use of credit was forced upon the people in America in 1933 by HJR 192 forcing the acceptance of FRNs (hereinafter "FRNs") as legal tender in lieu of payment of debt. The use of FRNs compels the user into interstate commerce under an admiralty/maritime jurisdiction involving international law.
"A bill, draft, check, or note is a contract, and the fundamental rules governing contract law are applicable to the determination of the legal questions which arise over such instruments. 1st American Jurisprudence, vol.7, pg.788 (emphases added)
Contracts are private law not controlled by the Constitution. []

"The admiralty court later widened its jurisdiction to embrace mercantile causes, and thereafter the common-law judges encroached upon the field of admiralty jurisdiction over commercial transactions." 1st Am Jur, 7, pg. 797 supra.
Neither Congress, the schools, "churches", nor the mass "news" media have informed the people about the involvement of the UCC in every aspect of their lives.
Liability [in theory] arises through the use and circulation of non-redeemable FRNs (credit) placing the user in debt bondage under the UCC. This happened without notice and opportunity to be heard [without due process?] while fraudulently pretending the constitution

is controlling.

The coup de grace was accomplished by President Roosevelt in 1933 when HJR 192 demonetized gold, forcing the States and people therein to accept Notes in discharge of debt instead of payment in gold/silver.
HJR 192 (1933) made all State and Federal governments law merchants, thereby destroying their sovereignty as a state, and placing them under the private side of international law, see UCC 1-201 (28) and the Clearfield Trust Co. v. U.S. (1943) 318 US 363 and related cases (infra).
HOW does one get involved? By becoming a law merchant! When dealing in negotiable instruments such as checks, notes, bills of exchange etc. [offers, presentments, refusals, acceptances, contracts] issues are judicated in a court exercising a quasi-admiralty jurisdiction in accord with the UCC, Am.Jur.7, Vol 1. pg. 796, '797, para 14, see UCC 2-104 (law merchant code).
There is no other choice, by edict of congressional statutes, since HJR 192 in 1933.

Dealing in FRNs, checks, bills, etc. makes one a full fledged law merchant. Bills, notes, checks, bills of lading, warehouse receipts etc. are contracts, see Am.Jur.1, vol.7 & 8 for a full discussion on these contracts. Using FRNs is also dealing under contract in interstate commerce.
Interstate commerce comes under the exclusive jurisdiction of the statutory laws of congress.

A license is required for involvement in transactions using FRNs because these paper

notes are traded in inter state commerce, and international transactions. This involvement makes one a(n) (international) law merchant.
Until you plead and prove otherwise, the presumption (in the courts) is that you are under the UCC, your silence waives the defense. [As a general rule failure to plead a defense waives the defense.]
It is presumed, everyone voluntarily entered the law Merchant by their silence, (ie. no strong objection to a violation of the law, see ratification below). Silence [failure to reject or performance on a contract] confirms a contract. When you know someone is violating the law (Art 1, § 10) and you participate without objection, you become as guilty as the other party by
your silence. You have ratified the contract (by your silence) hence the courts take the position that you volunteered into it, see Ezekiel 33, v. 4:l3. [A Notice of On-going War and a Notice the Federal Reserve is Void was published in the Sacramento Daily Recorder as a legal notice.]
Today (since 1933, HJR 192) no one is "paying", but is only "discharging" his debts (labor) by "indorsing" (signing the contract) the negotiable instrument (check) in exchange for another form of non-negotiable credit instrument (paper) called a Federal Reserve note (obligations, evidence of debt) of the United States (12 USC 411).
FRNs are indorsed on the back by the United States of America. The United States becomes the holder of the check (guaranteed by the endorsement) in exchange for its credit

instruments (FRNs). The corporate U.S.A. has an insurable interest in the indorser because the U.S.A. has an outstanding credit obligation, hence social security insurance may be compelled.
Didn't they lend you their credit? Are you using it?

When a pay (sic) check is indorsed over to the bank, the bank discharges your claim with

non-negotiable [sic - negotiable] notes, see Am Jur 1, Vol 8, pg. 556, Non-negotiable instruments, non-redeemable.
The United States and the bank, in the name of the U.S., becomes the holder in due course upon the instrument (check) indorsed through a simple contract and the indorser becomes the holder in due course of the Federal Reserve Note. By accepting responsibility for the payment of the check, the bank (all members of the Federal Reserve system) exchanges with the indorser some credit (paper notes of the United States).
The drawer (the U.S.) by the actions of the Secretary of the Treasury and the Treasurer of the United States (the fiduciary), borrowed on the U.S. credit, bonding (guaranteeing) the indorser's (participants) obligation with the future taxing potential of the U.S.
The Treasurer (the fiduciary) has signed as maker in the name of the United States of America.
Now, for the privilege (Title of Nobility) of discharging debts by these credit instruments

(a debt which can never be extinguished) a "return" or interest payment to the maker of the Notes for guaranteeing your credit is due.
The applicable law, adopted by all states is the uniform law on negotiable instruments (UCC).
NEGOTIABLE INSTRUMENTS involve three parties:

1. the maker, drawer etc.,

2. the accommodation party (the bank - payer),

3. the pay to party -- payee,

When no "pay to Party" is provided the paper is a demand note payable to the holder. For example when the "pay to the order of" space is left blank, on a check the holder must place his name on the instrument as payee to make it a negotiable instrument, and the holder must indorse the back for presentment for payment (sic).
Demand notes ordinarily don't have a "pay to the order of" place on them so the holder

must sign over the maker's signature. A FRN has only two parties on it, the U.S. and the Federal Reserve. The indorser must sign over the Secretary of Treasurer's signature and place UCC 1- 201 (no waiver of rights) or the right to payment is waive.
The maker (the U.S.) charges a premium duty and redeems his notes through a return (1040 Form) on the investment for the privilege of the use and circulation of his credit, see
privilege, and Title of Nobility. As long as a person circulates a note without presentment he has

volunteered and the maker can demand payment (sic) and take his property.

Am.Jur.7, p.790, states; bills of exchange, notes, checks, bills of laden, and other negotiable and non-negotiable
instruments are all essentially the same thing, just made in different forms.
The UCC is a code involving private [contract] transactions and is based upon four simple concepts:
1. The Constitutional provision that "no state can impair the obligation of contract".

2. There is an absolute right to contract.

3. Anything that constitutes a simple contract, (eg. signing back of check) involks the UCC,
4. Private Law operates outside the Constitution, and is adjudicated by a referee.

Congress has an explicitely stated power to regulate commerce and therefore has exclusive [predominate] jurisdiction superseding the authority of a Tenth Amendment State.
Congress shall have power... to regulate commerce with foreign Nations, and among the several States;"
U.S. Const.Art. 1, § 8, ¶ 3. (emphases added)

When FRNs circulate as "money", they cross state lines in commerce, Congress has the power to "regulate" the involvement by the people in commerce (using forms of "money" notes, Checks etc.) but no more power that it has to "regulate commerce with foreign nations and among the several States".
Fraud enters [among other ways] because the States and the Congress have abrogated their mandate to mint gold and silver coins (only those clad copper coins remain) forcing the people to use bank notes exclusively, and never being able to extinguish the debts but only to "discharge" them in equity (only gold or silver or some other tangible "thing" Pays a debt).
The Federal reserve is a compelled privatized monopoly.

Private money comes under private law. "Money" is created when something of value (tangible property) is pledged and bank notes, checks, or book-keeping entries (liquefied property) is received. The bank holds the "thing" (mortgage "paper" etc.) of value until the bank notes, (Credit of the United States) are returned. When the FRNs are returned the transaction is canceled out to zero. However, the state and federal governments have a continuing lien on the property purchased with the privilege (Title of Nobility) of purchasing "things" with their credit instruments, see Repealer UCC Article 10, Section 40 which repealed the old negotiable Instruments Law.
Today, everyone is a law merchant by definition, no one pays a debt but only discharges it in equity. Even if FRNs are used for purchase of gold and silver one is still compelled into the

merchant system under the UCC for two reasons:

1. Use, of the debt instruments constitutes a claim by their maker upon the thing purchased, the gold or silver.
2. Silver was de-monetized in 1873, gold in 1933.

In other words gold and silver are not money; they are commodities.

Let us take a look at the (prior) organic constitutional law regarding public currency before privatization.
The Constitution of the United States of America in Art.1,§8,¶5 states:
"Congress shall have the power ... To coin money, regulate the value thereof, and of foreign coin.
The founders knew the evils of private paper. Public coin was struck, (after the

revolution) and put in circulation for use among the states and the inflation of the time subsided.

Art. 1,§10,¶1: "No State shall coin Money; emit Bills of Credit; ... make any thing but gold and silver coin a tender in payment of debts;"
A Bill of Credit (Note) is redeemable in gold/silver or other tangible property in contradistinction to intangible property "paper" declared irredeemable by congress by HJR 192.
Credit notes are intangible property. Under the law merchant (adopted by England about 1250 and became a part of English common law about 1400). Under this law one can be placed in jail for debt by compelled performance through contempt of court. This was happening in England after 1400 under the law merchant. The founders were very knowledgeable about this body of law and forbid its inland entrance by Art.1,§8,Cl.9, and Art.1,§10,¶1 of the
Constitution.

IN summary: Congress "privatized" the money system in 1913, giving the exclusive privilege to create money to one of it's creations (the Federal Reserve). Since 1933 Gold, and later silver, was demonetizing forcing the people to use FRNs (HJR 192). In a society such as
ours both private and public money is needed, not one to the exclusion of others. In the present monopoly the maker (U.S. gov.) never redeems its notes. This is the fraudulent device used to place you and I under a foreign jurisdiction called the International law of negotiable instruments. The UCC is administered in an Admiralty/maritime jurisdiction called the common law or a common law court using admiralty rules. @CHAPTER TWO
THE TAX ISSUE

Chapter One has made several points. Among them are the following.

1. The Constitution of the United States was overwhelmed by the Negotiable Instruments Act [Law] ("NIL").

2. The NIL was repealed (Article 10, Sec. 40) and Codified in the states as the Uniform Commercial Code ("UCC").
3. The applicable law, adopted by all states as the uniform law on negotiable instruments, is the UCC.
4. All "codes" (statutory law) are superceded by the UCC Article 10.

5. Dealing in Federal Reserve notes, checks, bills, etc. makes one are a law merchant.

6. Bills, notes, checks, bills of lading, warehouse receipts etc. are contracts.

7. The United States and the bank, in the name of the U.S., becomes the holder in due course upon the instrument indorsed through simple contract and the indorser become the holder in due course of the FRNs.
8. The state and federal governments have a continuing lien on property purchased with the privilege (Title of Nobility) of purchasing "things" with their credit instruments, see Repealer UCC Article 10, Section 40.
9. The drawer (the U.S.) by the actions of the Secretary of the Treasury and the Treasurer of the United States, borrowed on the U.S. credit bonding the indorsers (participants) obligation for future taxes of the U.S.
10. The Treasurer (your fiduciary) has signed as maker in the name of the United States of America.
11. For the privilege (Title of Nobility) of discharging your debts by these credit

instruments (a debt which can never be extinguished) you owe a "return" or interest payment to the maker of the Notes for guaranteeing your credit.
Based upon these points and pursuant to the Organic Constitution, it will can be shown that the "Income Tax is not a direct tax" and is quasi constitutional, [is colorable].
Until the civil war, in the 1860s, the States used nationally minted coin and regulated foreign coin, as the lawful tender in payment of debts pursuant to the above Art. 1, §10, ¶1. As an example the Mexican peso was legal tender in Colorado at one time.
In the past, before "privatization", currency was public coin (such as gold and silver) of intrinsic value and when a debt (note etc.) was paid it was extinguished forever. On the other
hand a debt is merely discharged in equity with bills, notes, bills of exchange, and checks and each person who was a holder of the instrument has a continuing obligation and possible equitable interest in the device.
Except for todays small denomination copper clad coins, "money" is private money made of paper, an exclusive monopoly by the Federal Reserve and its member banks.
This private "money" circulates in commerce over all the world, between the states and is traded as a commodity on the stock exchanges between Nations. All of it is created in a foreign country called the District of Columbia (mint).
The only exception to involvement in the NIL (UCC) today is the exclusive use of the

(public currency) small denominational clad coins struck by United States mints.

People using checks, notes, credit cards, etc. (called "chose(s) in action") are said to be code law merchants (UCC 2-104) but this has not always been the case.
FRNs are sent to the Federal Reserve Banks located in the states to make sure this private money circulates between the states . This gives Congress a long arm, jurisdiction through the commerce clause (supra) in it's Article I courts to enforce the return.
An exmination of the meanings of four common words: Income, Direct, Indirect, and tax follows.
@Chapter 2, Part 1 -- Income

Perhaps the most destructive innovation of civilizations throughout history is the use of

paper, fiat, money as a substitute for commodity money, gold and silver. Gold and silver are still acknowledged as commodities of real value in all societies.
The idea of paper money was introduced to western civilization in a chapter of the classic, Travels of Marco Polo (c. 1300). Marco Polo, after being in the service of Kubla Khan, recounts how the Emperor became one of the most powerful and richest monarchs in history:
Now that I have told you in detail of the splendor of this city of the emperors I shall proceed to tell you of the mint which he has in the same city, in which he has his money coined and struck, as I shall relate to you. And in doing so, I shall make manifest to you how it is that the great Lord may well be able to accomplish even much more than I have told you, or am going to tell you in this book. For, tell it how I might, you never would be satisfied
that I was keeping within truth and reason!

The emperor's mint then is in this same city of Cambaluc, and the way it is wrought

is such that you might say he has the secret of alchemy in perfection and you would be right. For he makes his money after this fashion. He makes them take of the bark of a certain tree, in fact, of the mulberry tree, the leaves of which are the food of the silkworms, these trees being so numerous that the whole districts are full of them. What they take is a certain fine white bast or skin which lies between the wood of the tree and the thick outer bark, and this they make into something resembling sheets of paper, but black. When these sheets have been prepared they are cut up into pieces of different sizes.
All these pieces of paper are issued with as much solemnity and authority as if they were of pure gold or silver; and on every piece a variety of officials, whose duty it is, have to write their names, and to put their seals. And when all is prepared duly, the chief officer
deputed by the Khan smears the seal entrusted to him with vermilion, and impresses it on the paper, so that the form of the seal remains imprinted upon it in red: the money is then authentic. Anyone forging it would be punished with death. And the Khan causes every year to be made such a vast quantity of this money, which costs him nothing, that it must equal in amount all the treasure of the world.

With these pieces of paper, made as I have described, he causes all payments on his

own account to be made: and he makes them to pass current universally over all his kingdoms and provinces and territories, and wheresoever his power and sovereignty extends. And nobody, however important he may think himself, dares to refuse them on pain of death. And indeed everybody takes them readily, for wheresoever a person may go throughout the great Khan s dominions, he shall find these pieces of paper current, and shall be able to transact all sales and purchases of goods by means of them just as well as if they were coins of pure gold.
Furthermore, all merchants arriving from India or other countries, and bringing with

them gold or silver or gems and pearls, are prohibited from selling to any one but the emperor He has twelve experts (12 Federal Reserve Banks) chosen for this business, men of shrewdness and experience in such affairs: these appraise the articles, and the emperor then pays a liberal price for them in those pieces of paper. The merchants accept his price readily, for in the first place they would not get so good an one from anybody else, and secondly they are paid without any delay. And with this paper money they can buy what they like anywhere over the empire, while it is also vastly lighter to carry about on their journeys ... So he buys such a quantity of those precious things every year that his treasure is endless, while all the time the money he pays away costs him nothing at all. Moreover, several times in the year proclamation is made through the city that any one who may have gold or silver or gems or pearls by taking them to the mint shall get a handsome price for them, and the owners are glad to do this because they would find no other purchaser give so large a price. Thus the quantity they bring in is marvelous though those who do not choose to do so may let it alone. Still,
in this way, nearly all the valuables in the country come into the Khan s possession.

When any of those pieces of paper are spoilt -- not that they are so very flimsy neither

-- the owner carries them to the mint, and by paying three per cent on the value he gets new pieces in exchange. (what a deal I have for you -- ed.) And if any baron, or any one else soever, hath need gold or silver or gems or pearls in order to make plate or girdles or the like, he goes to the mint and buys as much as the list, paying in this paper money.
Now that you have heard the ways and means whereby the great Khan may have, and in fact has, more treasure than all the kings in the world, and you know all about it and the reason why.
Marco Polo's account of this method of minting money through the use of paper is both amusing and tragic. It is amusing, in our sophisticated age, to recall the ease with which the absolute monarch of China controlled the currency of his empire. We marvel at the tragedy of artisans, merchants and ordinary people being taken" by the dynastic issuer of the currency under a thoroughly autocratic regime, long ago and far away. Now let us take a realistic look at the nature of our own money" in this enlightened twentieth century. Instead of ridiculing the naive subjects of the Great Khan," let us contemplate the victims of the "Great Con", you and me.

"All the perplexities, confusions and distresses in America arise not from defects in the constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation!" -- John Adams
The Great Khan was a jewel compared to our Great Con Artist, Congress, because he, Khan, only had single demands on his paper and we have multiple demands on each and every issue. The people then only had to behead the monarch and appoint a new one. We have 435 (congress) monarchs who each come to give us their great privileges (titles) for our vote to
continue the Great Con and make it impossible to behead them because they offer up new ones at our pleasure every four years. The only choice is, do you want to be con-ed" by Republicans or Democrats for more and more paper? If you vote or participate in the con, you WAIVE ALL RIGHT TO object to the Great Con, see Ratification.
Income. "The return in Money from one's business, labor, or capital income invested; gains, profits, or private income." [BLD 4?] (underlining added)
Chapter 2, Part 1(a) -- Money

"Money" is defined in the UCC (code "Law Merchant").

Money. Means a medium of exchange authorized or adopted by a domestic or foreign government as a part of its CURRENCY", (UCC 1-201 (24) 3-107). (footnote added) Currency. "Coined money and such banknotes or other paper money as are authorized by law and do in fact circulate from hand to hand as the medium of exchange."
Cash. "Money or its equivalent; usually ready money in hand, either in current coin or other legal tender, or bank bills or checks and received as money and whatever can be used as
MONEY without being converted into another form. BLD, (emphases added) What makes money valuable?
"In the United States neither paper currency nor deposits have value as commodities.

Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face amount." (ed/they are copper)
"What, then, makes these instruments-checks, paper money, and coins-acceptable at face value in payment (ed/discharge) of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial
assets and real goods and services whenever they choose to do so. This is partly (ed/ wholly) a matter of law; currency has been designated "legal tender" by the government - that is it must be accepted by (ed/force of law) creditors " Modern Money Mechanics by Federal
reserve Bank of Chicago, page 3.

There you have it right out of the horse's mouth. Its just a confidence game (Inducement) compelled by "legal tender acts" of congress.

FRNs have a green stamp on the right hand side and a black stamp (maritime) on the left hand side. The green stamp indicates the STAMP TAX has been paid, the black STAMP (maritime seal) denotes which Federal bank has discharged (paid) the stamp tax (see Chapter 63 Internal Revenue Code Sec. 6201(a)(20(B)). This is the authority is to collect a Stamp Tax.
Each person is paying a tax on each note that comes into your possession hence "Income" (come-in) acting much like the dreaded STAMP TAX on all paper by GOOD OLD KING GEORGE.
The reason KING GEORGE was so good is he only taxed the paper once, not every time it exchanged (circulated) from hand to hand.
@Chapter 2, Part 1(b) -- Private Income

Privatization (private monopoly) of the currency was effectively barred by Art.1,§10,¶1 (supra) which requires a public currency redeemable in gold or silver for use by the States.
What constitutes "private income", negotiable instruments?

Yes, although there are other considerations.

What are negotiable instruments?

Written or printed paper [presentments] or both?

"A negotiable instrument is a written promise or result for the payment of a certain sum of money to order or bearer". [Source not provided, see UCC 3-104(a) (1995 text for official definition].
Keep the word "circulate" (in transitu-movable) in mind, it will be significant in this discussion, because negotiable instruments are circulated and especially when they "come in" (income) (chose in action) they then become choses in possession.
The "thing(s) (chose) in action" which come(s)-in, may be "income" (chose in possession) and it (the chose) comes-in from hand to hand.
All persons circulating private negotiable instruments (chose in transitu) are under the

code law merchant (UCC) which governs the transaction (movement) as the private notes "choses in action" circulates from hand to hand.
A more elaborate definition of Negotiable Instruments [private income] follows:

"Under the Negotiable Instruments Act, an instrument, to be negotiable, must be in writing and signed; must contain an unconditional promise or order to pay a certain sum of money on demand, or at a fixed and determinable future time; it must be payable to order or bearer, and where it is addressed to the drawee, he must be named or otherwise indicated with reasonable certainty; its negotiability is not affected by the fact that it is not dated or that it bears a seal, or that it does not specify the value given or that value was given. It is the general name for bills, notes, checks trade acceptances, certain bonds, letters of credit and other written securities. These words impart the character of negotiability." BLD (underlining added)

Take a close look at a Federal Reserve Note. It fits all the above definitions (see 3-104 UCC). It is a demand note without a payee stated on its face. The holder UCC 3-305 & 3-501 can make demand for payment.
@Chapter 2, Part 1(c) -- Bills of Exchange

The Form 1040 is nearly identical in form and function to a Bill of exchange. We will use the definitions that follow:
Bill of Exchange. (in the law of negotiable instruments)

"A Promissory obligation for the payment of money. A written order from A. to B., directing

B. to pay C. a certain sum of money therein named." (open or unsealed- (eg. unsworn)).

Foreign Bill of Exchange. "a bill of exchange drawn in one state or country, upon a foreign state or country." "... a bill of exchange drawn in one of the United States upon a person residing in another state is a foreign bill." (see District of Columbia where FRNs are printed U.S. mint)
Indorsement. The act of a payee, drawee, accommodation indorser or holder of a bill, note, check, or other negotiable instrument, in writing his name on the back of the same, with or without further or qualifying words, whereby the property in the same is assigned and transferred to another." (UCC 3-202) BLD
See also other types of indorsement in BLD. Also see the back of a FRN. The word Endorse was changed to Indorse, but both spellings are in use.
@Chapter 2, Part 2 -- Taxes

Income tax is the Mode of indirectly taking a portion of the funds received as a duty

premium from a "person" made liable voluntarily by "code" under threat upon signing a quasi bill, in exchange for use of FRNs of "vapor value" for security of an antecedent claim (specie of debt upon simple contract.) No consideration is necessarily given, and free from all defenses of any party whom, the holder has not negotiated with, except illegal fraudulent transfer as renders the obligation a nullity. Withstanding such misrepresentation as has sold (induced) the party into signing an instrument with miscellaneous provisional forms, receipts and non-negotiable set, renouncing -- waiving -- certain inalienable rights to justice.
(Note, circulating FRNs = same as signing in our case.) Definitions from Black's Law Dicitionary:
Tax [v.]. "To impose a tax; to enact or declare that a pecuniary contribution shall be made by the person liable, for the
support of government. spoken of an individual, to be taxed is to be included in an
assessment made for purposes of taxation." BLD
Income tax. "A tax relating to the product or income from property or from business pursuits; a tax on the yearly

profits arising from property, professions, trades, offices; a tax on a person's income, emoluments, profits, and the like, or excess thereof over a certain amount. It is also called an excise and even a direct tax; while an income tax is a direct tax imposed upon income, and is directly imposed as a tax on land.
U.S. v. Philadelphia, B & WR. Co., D.C. Pa. 262 F. 188, 190. BLD
An extensive definition of the phrase "income tax" will encompass the meanings of many words and will be quite complex. It has to do with private property (in action or in possession and/or transitory) rights reserved in the so called "money", "currency", "checks", "bills", FRNs, etc.
It has been established that the organic law mandates that a national tax cannot be imposed directly by the national government. There is no prohibition against an indirect roundabout tax taking a return premium for the use of things (chose) in action. Except that the things mandated to be public currency in the States are gold and silver coin.
Individual natural persons, as well as "unnatural" corporate persons circulate private negotiable currency. There is paid a premium for the circulation or use of this "chose in action."
Public treasury currency is no longer issued, except clad copper coin. Since 1913, money evolved as private paper issued (indirectly) by a private enfranchised bank. This "premium duty" avoids the prohibition against non-apportioned direct taxes.
By deduction, the assessment is for the use of private currency negotiated by the Exchange Broker/IRS, it may be direct or indirect, in the nature of an excessive use fee or premium from "whatever source derived" (discussion infra see Veazie Bank v. Fenno, 75 US
).

There is a distinction between a tax and an assessment.

"Assessments": In a broad sense, taxes undoutedly include assessments, and the right to impose assessments has its foundation in the taxing power of the government; and yet, in practice and as generally understood, there is a broad distinction between the two terms.
Taxes as the term is generally used, are public burdens imposed generally upon the inhabitants of the whole state, or upon some civil division thereof, for governmental purpose,

without reference to peculiar benefits to particular individuals or property. (underlining added)
"Assessments" have reference to impositions for improvements which are specially beneficial to particular individuals or property, and which are imposed in proportion to the particular benefits supposed to be conferred ... BLD 5, P. 1307 Synonyms.
This author knows of no one who is being taxed in the constitutional sense, state or federal. All are being assessed for a privilege under the UCC. (International law -- Check out priviledges as Titles.)
@ Chapter 2, Part 2(a) -- Indirect verses Direct

A direct tax must be apportioned. The United States Treasury cannot assess [Congress cannot levy] a direct tax, except according to the census, Art.1,§2,¶3 and Art.1,§9,¶4 (even though congress was given extensive powers to tax. (now Financial Administration Service).
Direct. "Immediate, proximate; by the shortest course, without

circuitry; operating by immediate connection or relation instead of through a medium; the opposite of indirect."

During the financial emergency caused by the civil war, president Abraham Lincoln

issued public paper, "Tresasury Notes". These Notes, called "green backs" were redeemable in coin.
In the late 1800's Congress (probably influenced by the foreign international bankers) attempted to pass an income tax statute which taxed property directly. In the case of Pollock v. Farmers L. & T. Co. this mode of taxation was ruled unconstitutional and void by the Supreme Ct.
Art.1,§8,¶1: "The Congress shall have power ... to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defence and general welfare of the United States; but all duties, imposts, and excises shall be uniform throughout the Untied States... (footnote added)
Art.1,§2,¶3: "Direct taxes shall be apportioned among the several States ... according to their respective numbers."
Art.1,§9,¶4: "No capitation or other direct tax shall be laid, unless in proportion to the census or enumeration hereinbefore directed to be made."
This "indirect" loophole (unless in proportion) might have been closed with the words "No capitation or other direct or indirect tax shall be laid, ... etc."
Indirect tax: A tax upon some right or privilege or corporate franchise. A tax laid upon a happening of an event as
distinguished from the tangible fruits.

It would appear that at the time the Constitution was ratified, usury or excessive interest for the use of private "things [chose] in action" was considered unconscionable.
Usury. "An illegal contract for a loan or forbearance of money goods, or things in action, by which illegal interest is
reserved or agreed to be reserved or taken...an unconscionable and exorbitant increase...The reserving and taking, or contracting to reserve to take, either directly or indirectly, a greater sum for the use of money that the lawful interest... Interest of money; increase for the loan of money; a reward for the use of money."
Speaking of Lincoln's Green Backs the court stated:

"This currency, issued directly by the government for disbursement of the war and other expenditures, could not, obviously, be a proper object of taxation." Veazie v. Fenno, (1869) (underlining added)
Since currency issued directly by the government could not be taxed, the Federal Reserve was created, a corporation for the purpose of creation of credit.
Vessel-public. "One owned and used by a nation or government for public service, whether in its navy, its
revenue service, or otherwise." (UCC 9-
105(b) & 106)

Congress found it necessary to try an in-direct mode of taxation to circumvent the prohibition of the Constitution of the United States of America states.
Circuitry. "A complex, indirect, or roundabout course of legal

proceeding, making two or more actions necessary in order to effect that adjustment of rights between all parties concerned in the transaction which, by a more direct course, might have been accomplished in a single suit."
Circulation. "As used in statutes providing for taxes on the

circulation of banks, this term includes all currency or circulating notes or bills, certificates or bills intended to circulate as money."

Circulate[d]. "A thing is 'circulated' when it passes, as from one person or place to another, or spreads, as a
report or tale."

Circulating medium. "This term is more comprehensive than the term 'money', as it is the medium of exchanges, for
purchases and sales, whether it be gold or silver coin or any other article." (chose transitory)
International bankers (governmental financiers) had established a foothold 20 years prior to "Stonewall" Jackson's presidency (1829-37) only some 30 years after ratification of the
Constitution. When the attempt was made to renew the congressional franchise (National Bank Act) for another 20 years President Jackson vetoed the bill.
In 1913, a similar central bank was established by Congress, the Federal Reserve Banking Act was passed, and in May, 1914. The private Federal Reserve was incorporated in California.
This central bank is called the "bankers bank" having gained congressional appropriation for a species of debt on simple contract.
Chose in action are circulated in the normal course of private business and involves private law. There is nothing in the Constitution to prohibit the circulation of private FRNs (chose in action) as currency.
The legal tender act compelled the use of the notes which are a debt obligation of the government. [Note: This "debt" is not a direct obligation of the people.]
USE. "A right given to any one to make a gratuitous use of a thing (eg. Fed Res. accounting unit Devices
(FRAUDS)/private negotiable instruments etc.) belonging to another, or to exact such a portion of the fruit it
produces as is necessary for his personal wants and those of his family.
A tax for the priviledge of using private notes is an indirect tax. @Chapter 2, Part 2(b) -- Banking Acts of The 1860s
On July 13th, 1866 Congress passed an Ac. The second clause of the 9th section as follows:
"That every national banking association, State bank, or State banking association, shall pay

a tax of ten per centum on the amount of notes of any person, State bank, or State banking association, used for circulation and paid in such manner as shall be prescribed by the Commissioner of Internal Revenue." (footnote added)
The Veazie Bank, which was a chartered corporation by the State of Maine. The Veazie

Bank had authority to issue bank notes for circulation. The tax was assessed and being collected by authority of the Banking Act of 1866 (supra). The bank initially refused to pay. Collector Fenno,
was proceeding by distraint in order to collect with penalties and costs. In order to prevent collection by distrain the bank paid under protest and took unsuccessful action against the collector, Fenno.
In the opinion of the court:

"It may be said to come within the same category of taxation as the tax on incomes of insurance companies, which this court, at the last term, in the case of Pacific Ins. Co. v. Soule, 7 Wallace 434, held not to be a direct tax." Veazie Bank v. Fenno, 75 US 533 (underlining added)
This case, on appeal is requisite reading to understand that the present income tax is of the nature of the tax collected from the bank above named "income tax" before the name was ever applied to the present day duty premium. The word "income" is mentioned only once in the text at page 547.
The word "circulation" is used at least 28 times in the text of the Court's opinion as in the following short excerpt:
"At a later date, by the act of June 3rd, 1864 which was subsituted for the act of February 25th, 1863, authorizing National banking associations, the rate of tax on circulation was continued and applied to the whole amount of it, and the shares of their stockholders were also subjected to taxation by the States; and a few days afterwards, by the act of June 30, 1864 to provide ways and means for the support of the government, the tax on the circulation of State banks was also continued at the same annaual rate of one per cent, as before, but payment was required in monthly installments of one- twelfth of one per cent, with monthly reports from each state bank of the amount in circulation." Veazie Bank v. Fenno, 75 US , (underlining and footnote added)
Remember that this was during the civil war, and the above Acts, emanate from the Act of March 3rd, 1863, 12 Statutes at Large, 670.
The word circulation (eg. Chose: "in transitu") has a very significant bearing on how our conclusion will read because these taxes were assessed and taken as a "tax on circulation" for the amount of currency (private notes) created and issued by State created persons, enfranchised as private banks.
@Chapter 2, Part 2(c) The Sixteenth Amendment
A quick look at the Statues at Large of the United States of America from March 1911, to March 1913, Volume XXXVII will prove to you that the 16th Amendment is PRIVATE LAW

not public law.

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." Sixteenth Amendment
By circulating private money in exchange for property; the SOURCE derived is from private money. The owner of the private notes now has a vested interest in the property purchased with his CREDIT.
Is the collection of a tax from [by] privately chartered banks, which have charged and concealed excessive interest (induced) from customers... "whatever source..." unconstitutional, illegal or unlawful, other than clearly an immoral (unconstitutional) grant of privilege (Title of Nobility)?
It has been "Deduced", from the above information, that roundabout or indirectly Congress can collect a tax (on "income" from the use of the "chose in action" (FRNs)) from
chartered banks, banking associations etc., indirectly or even directly (Veazie Bank v. Fenno).

The 16th Amendment to the constitution was supposedly adopted in 1913. It is

supposedly substantive constitutional law, but was it even necessary? The "circuit" "roundabout" avoids the requirements of apportionment and enumeration for a direct tax. Unless the phrase "...from whatever source derived..." is the switch which closed the circuit to spark the incorporation of the private non- governmental Federal Reserve.
This "source" (chose in action) the object (chose transitory) of the premium (taken in return) for the use of private (chose) currency is the key to understanding.
The facts, assumptions, definitions, and supposition shows (so far discussed) that the subject "income tax" is a roundabout, indirect, and circuity (transitory) of action." Two or more
actions are necessary in order to affect the rights between the parties concerned in the (transition) transaction.
In matters involving commercial papers the prior common law merchant governs and defenses should be mentioned in the UCC, now adopted by all the states of the Union. The private international law administed by the state and federal courts today is a sort of admiralty/maritime jurisdiction called (common law of contracts) or civil law. Every "person" is presumed to be using commercial paper, there is hardly anything else to use (see private law).
There are so many defenses to this scheme in the UCC that I can't list them all here due to lack of space.
IN summary, "Income" includes income in the form of commercial paper. The subject "income tax" maybe in compliance with the prohibitions of the Constitution. Said "tax" being indirectly (voluntarily - by failure to object -or exercise administrative remedies) assessed and taken on the chose (source) in action. The "tax" could be an Excise on the use privilege, conversion of paper of no value into some "thing" of intrinsic value, and that difference is the

measure of "income". The Fraud vitiates unless you bring it up as a defense. Defenses are waived unless specifically plead.
@CHAPTER THREE -- Introduction to The Law Merchant

Where commercial paper is concerned, GOVERNMENTS ARE BOUND BY THE SAME LAW YOU ARE AND MUST PAY THEIR NOTES.
Remember President NIXON closed the gold window on the world. Telling the whole

world that America would no longer redeem its notes. T