Booming for the Tax Patriot Movement

February 2006        Nelson Waller, Editor           Dr. Robert Clarkson, Publisher


Table of Contents

  1. Major victories continue to pile up the Patriot Network way
  2. Breakthroughs on Stiffing the “Al Gore tax”
  3. Tax Me If You Can
  4. What happened?
  5. Reagan Quotes
  6. VOIP: Ditch the Telephone Tax

Major victories continue to pile up the Patriot Network way

Illinois Judges: State income tax un-Constitutional

Public Act 88-669 illegal, tax patriots innocent

There’s much bad news in the world today, but much wonderful news all the time as well. We only wish that the media, the American sheeple, and even our fellow patriots were awake enough to see and celebrate the good stuff!

From the Prairie State comes a bright new headline that should send senses reeling from coast to coast. What Constitutionalists have always maintained and courts have always stonewalled (well, since last we had real courts about 200 years ago) has now been officially, legally re-established: Direct Taxes on wages are unlawful. This is not how the supreme court of Illinois put it in its ruling, but it amounts to the same thing. The ruling only affects Illinoisians, but the same principle applies everywhere – as Dr. Robert Clarkson has been telling us for years!

Courts refuse to listen to the bedrock legal principles we would most like to use in our own defense, but the courts are virtually built to accommodate cases properly built on seemingly humdrum matters of bureaucratic procedure. (Yes – technicalities and such.) One exciting aspect of this case is that it not only follows this course, but invokes the state Constitution as well.

Valdy and Malgorzeta Olender were the defendants who crashed through to victory in this criminal case. Mr. Olender has sent us the details, and comments “Perhaps the biggest part of this story isn't that the Illinois Supreme Court ruled that the state income tax is unconstitutional -- perhaps the biggest part of the story is the MEDIA COVER-UP.  Have you seen this anywhere? It isn't on any wire services, not Reuters, not UPI, not AP.

“In a nutshell, finance bills have to be free-standing according to the Illinois state Constitution. The income tax was mixed up with a bunch of other bills. So why isn't the media reporting one of the biggest stories of the year? Can you imagine the chaos when millions of ‘taxpayers’ demand refunds for years of payments to a tax that was unconstitutional from the day it was passed?  Where's the media firestorm over this?”

Dr. Clarkson adds: “Congratulation to Valdy. His Illegal Tax Collection lawsuit against the irs is on my website. He also won an injunction against an illegal levy by irs. Many patriots are winning smashing victories in the courts when they fight on the basis of procedure.”

THE DECISION is found at



VALDY OLENDER et al., Appellees.

Opinion filed December 15, 2005.

Here's the URL to the Illinois Supreme Court case.

Docket No. 98932-Agenda 7-September 2005.

CHIEF JUSTICE THOMAS delivered the opinion of the court:

At issue in this case is whether the General Assembly violated the single subject clause of the Illinois Constitution of 1970 (Ill. Const. 1970, art. IV, §8(d)) when it enacted Public Act 88-669 (Pub. Act 88-669, eff. November 29, 1994). The legislation in Public Act 88-669, entitled "An Act in relation to government regulation," amended, among other statutes, section 1301 of the Illinois Income Tax Act (35 ILCS 5/1301 (West 1994)), to state that a first violation of that section is a Class 4 felony and each subsequent violation is a Class 3 felony. The defendants, Valdy and Malgorzata Olender, had been charged under the amended version of section 1301. Defendants moved to dismiss the indictments against them on the ground that section 1301 had been unconstitutionally amended by Public Act 88-669 in violation of the single subject clause. The circuit court of Cook County granted defendants' motions to dismiss. The State appealed directly to this court pursuant to Supreme Court Rule 302(a) (134 Ill. 2d R. 302(a)). For the following reasons, we affirm the judgment of the circuit court and hold that Public Act 88-669 violates the single subject clause.


On March 25, 2002, defendants were charged by indictment with two counts of filing a fraudulent income tax return in violation of section 1301 (35 ILCS 5/1301 (West 2002)). Count I charged that defendants had willfully filed a fraudulent Illinois income tax return for the year 1998. The indictment alleged that defendants listed $0 on the line for adjusted gross income when they knew that their adjusted gross income for 1998 was in excess of that amount. Count II charged that defendants had willfully filed a fraudulent Illinois income tax return for the year 1999. Count II charged that defendants listed $0 on the line for adjusted gross income when they knew that their adjusted gross income for 1999 was in excess of that amount.

As noted, defendants filed motions to dismiss the indictments on the ground that Public Act 88-669, which amended the version of section 1301 at issue, was enacted in violation of the single subject clause of the Illinois Constitution of 1970 (Ill. Const. 1970, art. IV, §8(d)). Defendants argued that the provisions of Public Act 88-669 had no natural and logical connection to a single subject. Following argument, the circuit court, without stating the basis for its decision, entered an order granting defendants' motions to dismiss, discharging defendants, and releasing defendants from all conditions of their previous bonds…………RBC: Remainder of case on the website listed above.

Indep Contract Ad

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Breakthroughs on Stiffing the “Al Gore tax”

Dr. Clarkson has long advocated exposure of and principled opposition to wrongful (or just plain stupid) taxes which appear in your phone bill. Now others are found to be working the same ground as well – with smashing success. We want you to have every legitimate tax freedom tool at your disposal, and this is a great example, thus we now present you with three major web links on this development. Each excerpt is followed by a web address. Go to that address and hunt up the article for the full story. Alternately, you can take any unique phrase or sentence from the text and search it via, with quotation marks around it. The citing of a website or external resource in this newsletter cannot be taken to mean that The Patriot Network endorses everything in it or in the site it comes from.

Clarkson comments: “This is an article and instructions on how to quit paying the tax on free speech. The Supremes have ruled many times that no burden or tax can be placed on free speech or other First Amendment activities. I refused to pay the illegal communication tax for years. Other than a few nasty letters and phony threats from the telephone company, nothing happened eventho I refused the tax.”

I. Thousands Protest War by Withholding Phone Tax

Peace activist Bill Sulzman in Colorado Springs, Colo., protests the war in Iraq by refusing to pay the federal excise tax of about 50 cents on his monthly phone bill.

Sulzman also recruits others who are against U.S. military involvement in Iraq to stop paying the tax, which was first adopted in 1898 to pay for the Spanish-American war.

The tax raises about $5 billion each year, which activists say goes to fund war efforts. The IRS won't confirm that the money goes exclusively to the military, but instead says it goes for general fund expenditures, including military spending.

"It's kind of entry-level active resistance," Sulzman said. "Phone companies don't cut off the phones. They don't have the leverage."

"This tax is really another example, and a particularly silly one, of a tax on telecommunication service that once created, never goes away," said Bill Myers, a Qwest spokesman…………….. (

II. How To Get a Phone "Tax" Refund


This page describes how to get a refund of the 3% federal Communications Excise Tax amounts on your local and long distance telephone service.  Since the author resides in Pennsylvania, the first procedure described is for that state, with the desire to expand this page state by state, providing a procedure for each of them.  That will occur with your help (see the bottom of this page).
    The procedures presented on this page are derived from the research by and experience of the author since 1999……

If you follow the procedures [at the page in question], you'll be contacting your telephone company to let them know that you've learned that the 3% federal Communications Excise Tax is no longer in existence, asking them for the form to use to obtain a refund and where to send it, then using that form to obtain credits.  The phone company will, upon receipt and processing of the form, credit your account for all C.E.T. amounts charged. (

III. IRS Loses Appeal Over 3% Excise Tax on Communications

May 10, 2005. The U.S. Court of Appeals (11thCir) issued its opinion [22 pages in PDF] in AIBG v. US, holding that certain telephone services purchased by the American Bankers Insurance Group (AIBG) from AT&T are not subject to the excise tax on communications.

26 U.S.C. § 4251 imposes a 3 percent excise tax on certain communications services. This tax is sometimes referred to by its detractors as the "Spanish American War tax", since it was originally imposed to help fund that war. 26 U.S.C. § 4252 contains the applicable definitions. This case involves interpretation of these definitions.

The statute relied upon by AT&T and the IRS in taxing AIBG references "a toll charge which varies in amount with the distance and elapsed transmission time". But, the charges for the services purchased by AIBG were uniform; they did not vary by distance. They did vary by elapsed time.

The IRS took the position that the word "and" really means "or", and hence, a charge that does not vary with distance, but that does vary with elapsed time, is covered and taxable………. (

******* see article near end of newsletter about how you can chuck the Bell system entirely, save money, and have unlimited long distance service through your computer. *******

Tax Me If You Can

In this article, PBS describes a documentary of theirs about corporate tax shelters. It  illustrates a key aspect of the Patriot Network’s work: while the government and irs love to accuse us of selling illegitimate tax shelters and other “schemes”, what we do is entirely legitimate and based on the letter of the law and the tax code. Corporations, on the other hand, are constantly pulling very shifty maneuvers that amaze by their improbability even as they amuse by their labyrinthine cleverness. – Ed.

It was one of corporate America's biggest hidden profit centers in the past decade -- the tax shelter -- and it became so lucrative that last year it helped major U.S. companies cut their tax rate to just half of what they had historically paid, leaving individual taxpayers to make up the difference.

The General Accounting Office estimates that illegitimate tax shelters cost the government more than $85 billion in recent years.

"Anything that's not being paid that should be paid, that's basically what the honest taxpayer is making up," asserts Charles Rossotti, a Republican businessman who became commissioner of Internal Revenue in 1997 and spent five years battling bogus shelters. Rossotti estimates that because the government is not collecting all that is owed -- the biggest piece of which is illegitimate tax shelters -- everyone else is paying 15 percent more than they should.

In "Tax Me If You Can," FRONTLINE correspondent Hedrick Smith investigates the rampant abuse of tax shelters since the late 1990s. Through interviews with government officials, tax experts, and industry insiders, Smith uncovers an avalanche of bogus transactions -- created by some of America's biggest and most-respected accounting firms, law firms, and investment banks -- that were then aggressively marketed to big corporations and wealthy individuals.

"These were close to sham transactions -- some were clearly sham transactions, [that] had nothing to do with investment," says John "Buck" Chapoton, former treasury department policymaker in the Reagan administration. "They simply were financial mechanisms for creating losses -- tax losses, not economic losses."

FRONTLINE's Smith notes, "Chasing bogus tax shelters for the IRS was like a game of cat and mouse. The IRS had a terrible time finding them because they were hidden deep in tax returns. Once the IRS spotted one type of shelter and issued a regulation to block it, the shelter promoters had designed a new one. The IRS was forever playing catch-up."

To overcome this problem, Rossotti argues that Congress must now enact sweeping legislation to ban any tax shelters that do not have legitimate business purpose. And he warns of the danger of inaction.

"I think this thing is going to rebound in a serious way as the economy improves," Rossotti tells FRONTLINE. "The fundamental drivers of this are still there. It's still a very profitable business for the promoters. The law is still way too weak and too murky."

In "Tax Me If You Can," Smith follows the tax shelter trail to some surprising places. Smith discovers that sewer pipes in the city of Bochum, Germany, for example, have offered a huge tax write-off to the major American bank Wachovia, of Charlotte, NC.

It was a deal that Bochum city officials couldn't refuse: Through a complex, long-term lease-and-service transaction, the city would lease out its underground sewer pipes to Wachovia for $500 million. The city would then immediately lease the pipes back, thus retaining use of its sewer system, and repay the lease over a period of many years. In return, Bochum was immediately paid a $20 million fee. Wachovia would eventually get its money back -- plus a fast, multi-million-dollar tax write-off.

Wachovia declined to be interviewed by FRONTLINE. But working with Wachovia's annual reports, Robert McIntyre, director of the Institute for Taxation and Finance, details the payoff to Wachovia's bottom line from many leasing deals similar to the Bochum transaction.

"Amazingly, in 2002 -- even though it reported $4 billion in profits -- [Wachovia] reported that it didn't pay any taxes," McIntyre tells FRONTLINE. "They worked it by sheltering all of their income. They said they saved $3 billion in taxes over the last three years from leasing -- huge write-offs."

"Tax Me If You Can" also reveals how some of America's most respected accounting firms drove the tax shelter wave, generating dozens of shelters that were mass marketed and then found to be illegitimate by the IRS and the courts. In the documentary, Smith speaks with a former tax attorney for KPMG, who describes how the firm's accountants and attorneys were ordered by KPMG tax executives to design -- and market aggressively -- as many tax shelters as possible, since the firm made a profit based on how much it saved its clients in taxes.......... (source:

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What happened?

"Not one of these taxes existed 100 years ago and our nation was the most prosperous in the world, had absolutely no national debt, had the largest middle class in the world and Mom stayed home to raise the kids.

Isn't this amazing?

Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines
(indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax
(42 cents per gallon)
Hunting License Tax
Inheritance Tax Interest expense
(tax on the money)
Inventory tax IRS Interest Charges
(tax on top of tax)
IRS Penalties
(tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
Road Usage Taxes
Sales Taxes
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Income Tax
State Unemployment Tax
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and
local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines
(indirect taxation)
Trailer Registration Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax


Not one of these taxes existed 100 years ago and our nation was the most prosperous in the world, had absolutely no national debt, had the largest middle class in the world and Mom stayed home to raise the kids.

Are we better off now???

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Reagan Quotes

Ronald Reagan was the last president who opposed communism and dared to speak politically incorrect truth out loud where the public could hear it. Sadly, many of his quips apply to his own administrations (he was governor of California before being president) but reading them takes us momentarily back to the less complicated America of his era – Ed.

"Here's my strategy on the Cold War: We win, they lose."

"The most terrifying words in the English language are: I'm from the government and I'm here to help."

"The trouble with our liberal friends is not that they're ignorant: It's just that they know so much that isn't so."

" I have wondered at times about what the Ten Commandment's would have looked like if Moses had run them through the U.S. Congress."

"The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination."

"The nearest thing to eternal life we will ever see on this earth is a government program."

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."

"Politics is not a bad profession. If you succeed there are many rewards, if you disgrace yourself you can always write a book."

"No arsenal, or no weapon in the arsenals of the world, is so formidable as the will and moral courage of free men and women.


VOIP: PN Leadership Offers You Great New Opportunity to Ditch BellSouth and Save Money

by Dr. Robert B. Clarkson
When you pay your telephone bill you are paying unfair and expensive taxes, including the infamous "Al Gore Tax" where you subsidize the phone bill of the lazy, the drunks and the druggies.
The Bell companies make generous donations of your money to gay, communist and extreme left wing groups.
Now, you can escape the excessive taxes (which violate your freedom of speech rights) and greatly lower your phone bill. You can sign up thru me for VOIP, the newest and most cost-effective telecom service ever. It is called NexBoom, formerly known and promoted as Champion Communications.

Contact me pronto if you are interested. This is a new way to fight unlawful taxes and the NWO. Plus much cheaper phone service and a few bucks for patriots who tell other folks about this new product.

VOIP is very easy and simple to attach to existing phone lines. You do not need a computer and you keep your phone number.
The people who founded this telecom company 20 years ago have been friends of me and my family for 4 decades.
Do examine my telephone website:

Note: Dr. Clarkson's last BellSouth phone bill included the following information. Thus, anyone who keeps doing business with this sinister mega-corporation will be gouged for the support of some who prefer drinking, doping and loafing to earning a living:
Low-income support may be available for your home telephone service. Lifeline and Link-Up provide assistance with monthly recurring and connection charges to qualified residential telephone subscribers.  These programs make telephone service more accessible to those who otherwise might not be able to afford it.
You may be eligible if you currently receive income-based benefits from a plan such as Temporary Assistance to Needy Families (TANF), Food Stamps or Medicaid.
Call 1-888-757-6500 or visit the Lifeline/Link-up website for more information. IF you know others who might qualify, please tell them Bell South may be able to help them get service at the reduced rate.