America: Freedom to Fascism
A new film by Aaron Russo is schedule to be released later this month. The film is called America: Freedom to Fascism. The promotional website can be found at http://www.freedomtofascism.com There is a 15 minute preview of the movie on the website.
Though I have not yet seen the entire movie, the website and the preview do make some good points. I am concerned, however, that the presentation of these points in the manner that Russo has chosen is somewhat deceptive. For example, he maintains that there is no law requiring U.S. citizens to pay a federal income tax. He fails to mention the 16th amendment (which was passed in 1913 and authorizes an income tax), and title 26 U.S. law (a large portion of income tax code) however.
He then launches into a familiar diatribe about the Federal Reserve being a "private corporation" Again, he fails to fully explain how the fed works. The fed, as well as our monetary system, is probably one of the least understood aspects of modern life. When Russo asks the average person on the street if he was aware that "the fed is a private corporation", he most often is met with the proverbial deer in the headlights look. The film is really more of a statement on people's lack of understanding of our legal and financial systems than it is an exposure of a conspiracy (Russo's main goal in my opinion).
Because there is so much misunderstanding about the fed, and because I work in the financial industry and have a basic understanding of the subject, I decided to write a wikipedia article on Russo's film (on the subjects of the tax code and the fed). I am working with another wikipedia author who is a tax attorney, as well as an individual who is promoting a website debunking the myths of the film. Here is what have composed thus far:
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America: Freedom to Fascism is a movie produced by activist Aaron Ruso. Russo maintains that there is no law requiring U.S. citizens to pay federal income tax. In the movie, he interviews citizens from all walks of life and challenges them to find any law requiring that the tax be paid. Russo also maintains that the Federal Reserve bank is a private organization and is largely responsible for our nation's debt. Again, he interviews people and asks them if they were aware that our national debt was owed to a private corporation. He then explains his position on this.
The examples above are just two of Russos stated objectives. The film is already creating controversy, however. Many people believe that the movie does not fully disclose the facts regarding such topics as income tax and the federal reserve.
For instance, in the case of the federal income tax, the 16th amendment clearly states that, " 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". Furthermore, the current federal income tax code is a matter of record. Title 26 of the U.S. code enumerates current tax law, as authorized by the 16th amendment.
A more detailed examination of Russo's claims about the federal reserve raises more questions as well. The federal reserve bank, created in 1913 by an act of congress, is a unique entity that operates independently of the US government, but still subject to its authority. The federal reserve banking system is comprised of 12 regional banks. A board of 12 governors, appointed by the U.S. President and confirmed by congress, preside over the banks. They collectively have the authority to alter economic conditions in order to influence the economy. This is accomplished though such activies as changing the prime interest rate (the rate member banks pay for short term loans from the federal reserve), increasing or decreasing the reserving requirement (the amount of deposits that member banks must retain in relationship to loans), and stock margins (the amount of stock that may be purchased on credit). There are other powers that the Federal Reserve has, such as buying and selling government securities, which influence the supply of money.
A bank that is a member of the federal reserve is required to purchase stock in the federal reserve. This stock is unlike traditional stock, however, because the rights of the stock owner are very limited. For example, the stock cannot be used in personal transactions such as assignment and collateral. It cannot be sold or transferred. Dividends are limited to 6% by law, however the federal reserve itself does not operate for profit. Instead, the interest revenue it collects is used to pay operating expenses only. All remaining funds above operating expense are despoited back into the U.S. Treasury. Thus, critics of the film maintain that the Federal Reserve is not strictly a private corporation, although it can be said that it is not strictly a branch of government either.
The reason for the autonomy of the Federal Reserve is to shield it from the demands and pressures of politics. Since neither the governors nor the member banks stand to gain from the fed's decisions, they are free to set market conditions as they see fit. This prevents the corruption that could arise should the government be allowed to speed up or slow down the economy, such as in an election year.
********
What we as concerned citizens should advocate is a repeal of the 16th amendment and an abolition of the IRS. Seeking to advance conspiracy theories about how a banking cartel is profiting from our income tax (as Russo says) is not only deceptive, but largely a waste of time.
Though I have not yet seen the entire movie, the website and the preview do make some good points. I am concerned, however, that the presentation of these points in the manner that Russo has chosen is somewhat deceptive. For example, he maintains that there is no law requiring U.S. citizens to pay a federal income tax. He fails to mention the 16th amendment (which was passed in 1913 and authorizes an income tax), and title 26 U.S. law (a large portion of income tax code) however.
He then launches into a familiar diatribe about the Federal Reserve being a "private corporation" Again, he fails to fully explain how the fed works. The fed, as well as our monetary system, is probably one of the least understood aspects of modern life. When Russo asks the average person on the street if he was aware that "the fed is a private corporation", he most often is met with the proverbial deer in the headlights look. The film is really more of a statement on people's lack of understanding of our legal and financial systems than it is an exposure of a conspiracy (Russo's main goal in my opinion).
Because there is so much misunderstanding about the fed, and because I work in the financial industry and have a basic understanding of the subject, I decided to write a wikipedia article on Russo's film (on the subjects of the tax code and the fed). I am working with another wikipedia author who is a tax attorney, as well as an individual who is promoting a website debunking the myths of the film. Here is what have composed thus far:
******
America: Freedom to Fascism is a movie produced by activist Aaron Ruso. Russo maintains that there is no law requiring U.S. citizens to pay federal income tax. In the movie, he interviews citizens from all walks of life and challenges them to find any law requiring that the tax be paid. Russo also maintains that the Federal Reserve bank is a private organization and is largely responsible for our nation's debt. Again, he interviews people and asks them if they were aware that our national debt was owed to a private corporation. He then explains his position on this.
The examples above are just two of Russos stated objectives. The film is already creating controversy, however. Many people believe that the movie does not fully disclose the facts regarding such topics as income tax and the federal reserve.
For instance, in the case of the federal income tax, the 16th amendment clearly states that, " 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". Furthermore, the current federal income tax code is a matter of record. Title 26 of the U.S. code enumerates current tax law, as authorized by the 16th amendment.
A more detailed examination of Russo's claims about the federal reserve raises more questions as well. The federal reserve bank, created in 1913 by an act of congress, is a unique entity that operates independently of the US government, but still subject to its authority. The federal reserve banking system is comprised of 12 regional banks. A board of 12 governors, appointed by the U.S. President and confirmed by congress, preside over the banks. They collectively have the authority to alter economic conditions in order to influence the economy. This is accomplished though such activies as changing the prime interest rate (the rate member banks pay for short term loans from the federal reserve), increasing or decreasing the reserving requirement (the amount of deposits that member banks must retain in relationship to loans), and stock margins (the amount of stock that may be purchased on credit). There are other powers that the Federal Reserve has, such as buying and selling government securities, which influence the supply of money.
A bank that is a member of the federal reserve is required to purchase stock in the federal reserve. This stock is unlike traditional stock, however, because the rights of the stock owner are very limited. For example, the stock cannot be used in personal transactions such as assignment and collateral. It cannot be sold or transferred. Dividends are limited to 6% by law, however the federal reserve itself does not operate for profit. Instead, the interest revenue it collects is used to pay operating expenses only. All remaining funds above operating expense are despoited back into the U.S. Treasury. Thus, critics of the film maintain that the Federal Reserve is not strictly a private corporation, although it can be said that it is not strictly a branch of government either.
The reason for the autonomy of the Federal Reserve is to shield it from the demands and pressures of politics. Since neither the governors nor the member banks stand to gain from the fed's decisions, they are free to set market conditions as they see fit. This prevents the corruption that could arise should the government be allowed to speed up or slow down the economy, such as in an election year.
********
What we as concerned citizens should advocate is a repeal of the 16th amendment and an abolition of the IRS. Seeking to advance conspiracy theories about how a banking cartel is profiting from our income tax (as Russo says) is not only deceptive, but largely a waste of time.
posted by Jason E. Peck at 12:52 PM
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