From the February 2006 Idaho Observer:

Idaho rep. wants legislature to define the word "income"

Idaho rep. wants legislature to define the word "income"

by Devvy Kidd


The state of Idaho has never defined the word "income." HO498 would define "income" to reflect the original intent of the 16th Amendment, to wit:

63-3010A. INCOME DEFINED. "Income" is the annual gain derived from capital, from the employment of another’s labor, or from both combined. Income is annual profit severed from the underlying investment. Income is generated from a privileged economic activity, which is managed with skill and organized for profit. Indirect taxes on income diminish only net income while the underlying capital investment remains whole. Net income is that which is calculated using generally accepted accounting principles. There’s always been disagreement regarding the Sixteenth Amendment and whether or not it even matters that it was never ratified by the states. One individual, Phil Hart, undertook a journey of intense research on this issue which took him all the way to the U.S. Supreme Court.

For Phil, the issue wasn’t who is right or wrong, but rather what do the historical documents show regarding taxation and court rulings on the issue of the Sixteenth Amendment: "Hart believes an objective review of the record proves that wages are not income and that the 16th Amendment does not empower Congress to levy a new kind of tax not authorized by the Constitution. According to Hart, "The purpose of the 16th Amendment was to bring tax relief to wage earners."

Phil Hart is a friend, a fearless American and a dear man with an IQ that must be off the charts. His "day job" is an engineer. When he’s not running his own company, he serves in the Idaho State Legislature. I cannot tell you how overjoyed I was when he won a seat back in November ‘04. One more constitutionalist slips through the tight net of controlled elections. Phil has introduced a powerful new piece of legislation that is long overdue:

House Bill No. 498 HART

INCOME TAX - Adds to and amends existing law relating to income tax to provide a definition of "income"; to revise the definition of "Idaho taxable income"; to revise the definition of "employee"; and to provide a definition of "trade or business" for purposes of the State Income Tax Law.

The full text of the bill can be found online at

Congress and the Courts refuse to address the issue of the fraudulent ratification of the Sixteenth Amendment because they’re corrupt cowards. The Federal Reserve Act was passed in 1913 after the fraudulent ratification of the Sixteenth Amendment. The Sixteenth was crucial because it set up the feeding artery to the privately owned banking cartel; the rape and plunder of the American people began in earnest. Millions of Americans are aware of Bill Benson’s decades long battle with the courts over this issue.

Phil’s bill is brilliant and something the IRS fears: A real definition of taxation as it relates to the Sixteenth Amendment. Those in the fight against the lawlessness that has been choking our country for 93 years know the IRS uses the Sixteenth Amendment as justification for the income tax. This bill is ground breaking. If it gets passed in the State of Idaho it will be a major victory and, I believe, start an avalanche in other states because the people will demand it.

Just my opinion, but I believe the major opposition to Phil’s bill will be the fiscal impact [it is estimated that enactment of HO498 will reduce the state’s personal wage and salary tax revenue by $650 million]. Anyone awake knows the states blow your hard earned money right out the window because too many of them are unqualified to hold office. They are elected by easily rigged electronic ballot machines; the powers behind the curtain know which incumbents can be bought. Thousands of these state legislators have no concept or understanding of money management, budgets or how to say NO to political cronies and PACs. The more you make, the more they take. The key is to hold them to constitutional spending and a return to "charity begins at home."

Copyright 2006 by Devvy Kidd

But is he representing the people?

Idaho District 3 Rep. Phil Hart drafted and submitted a bill that would accomplish the original intent of the 16th Amendment: Bring tax relief to wage earners. Nearly all working class people in Idaho (indeed all of the several states) are straining under the weight of "income" taxes, so by "floating" this bill, he is representing their interests. But all that most people know about "income" taxes is that you have to pay them or the state will begin foreclosing on their lives.

The truth is that people don’t have to know all that much to understand that wages and salaries are personal property—not "income." The tax collectors in government and the private tax preparers have intentionally complicated the simple concept of taxation so that we must remain in fear of government and beholden to experts. To those who are fearful and ignorant with regard to taxation, Rep. Hart is not representing them—they would still believe that it’s his job to vote in favor of taxing a group other than themselves so that they can receive more government benefits.

Rep. Hart did, however, represent all of us, whether we live in Idaho or not, who understand taxation in America. In order to represent us and what we all know to be true and correct, he has submitted a bill that will be opposed by everyone in Idaho whose fingers are in that $650 million pie. Rep. Hart has bet his life, his fortune (such as it is) and his sacred honor that we will rise to the challenge of educating our people about taxes.

Rep. Hart has spent years and his own resources researching the question, "Are wages (and salaries) income?" As an engineer by trade, he found every authority there was to find on the subject and found that the answer is, "No." His reasoning is memorialized in his peerless book on the subject, "Constitutional Income: Do You Have Any?" His work was also submitted in brief form to the U.S. Supreme Court and rendered into a 16-page booklet entitled, "The People’s Income Tax Guide." HO498 is not just some bill. This is a legislative remedy drafted by a man who has lived, breathed, ate, drank, slept and dreamed this issue for nine years.

The likelihood is that this bill will not even be brought up in committee this year. That will give us time to get people educated so that they will educate their own reps. As the record shows, Americans (including politicians and the media) understood the difference between wages and income, direct v indirect taxes until the 1920s. Our job is merely bring people back up to speed on taxes.

A plan is forming. It will be simple and inexpensive. It doesn’t matter where you live Call The IO when you are ready to help us create representable citizens. (DWH)

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