Check out this very interesting article reproduced in full thanks to the “We The People Foundation”. Please donate to this wonderful organization if you can. Enjoy the article.
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.
History is made by those who show up and make it happen. Please help the WTP Foundation continue their epic fight by making a donation. If they have no funds, the battle cannot be fought.
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October 14th, 2007 at 10:54 pm
[...] $114,000,000. IRS doesn’t blink an eye in taking him to court… they lose. Find out why Robert Kahre won against the IRS. These icons link to social bookmarking sites where readers can share and [...]
October 22nd, 2007 at 7:13 am
Ingenious.
Not many have the guts to go against the IRS mafia, so cudos!
Those who aren’t familiar with the current unconstitutional fiat currency/fed reserve/IRS fraud need to watch Aaron Russo’s America Freedom to Fascism.
Next you need to take action, get on the streets, demand a constitutional system.
October 22nd, 2007 at 7:26 am
Yes, and don’t forget that Americans need to vote for a constitutionalist candidate such as Ron Paul!
November 25th, 2007 at 1:30 pm
I’ve worked in the field of finance for 16 years, and my study has led me to know how the “secret world of money” flows.
I have found a way to become a part of their fraud against the American people and actually get some of that money back into their hands.
It’s a long story!
Clayton
November 25th, 2007 at 2:11 pm
Interesting Clayton, perhaps you can share some tidbits of wisdom with us.
November 28th, 2007 at 4:06 am
Hmmm… wonder why this didn’t make headline news? It is crazy that the feds get away with these sorts of scare tactics, trumping up charges like this. If there is a conspiracy in this case, it is the wanton effort to uphold a fraudulant currency and protect the worst rackateering rings in the U.S.A.–that is the IRS and the Federal Reserve. Thank goodness the majority of the jurors had their heads on straight.
November 28th, 2007 at 7:21 am
Sadly they get away with a lot. I think most Americans are more scared of the IRS than the devil. I fully agree with you that the IRS and the Fed are completely fraudulent institutions, but one has to ask oneself if the American people have the political will to undo the IRS and the Fed. The Democratic Party and the Republican Party are unlikely to “rock the boat” ,so I see no hope of change in them. The only hope lies with Ron Paul. However, does Ron Paul stand a chance of winning? I don’t know, but for the sake of the American People I would very much hope that he wins. I for one would seriously consider moving to the United States if the IRS and the Fed were abolished. It would be a glorious revival of the ideals for which the United States originally stood for (not any more!) and overall it would be a blessing for not only Americans but for the rest of the world as well. Imagine the wealth that would be freed from the government’s wasteful programs and which would then become available to serve the needs of the people.
I wish my dear American friends the best and I would like to remind them that though freedom suffers setbacks and great evil,it always triumphs in the end.
Cheers!
Sincerely,
Your friend up to the north :)