70-year IRS Tax Scam started with FDR & Donald Duck

The IRS tax swindle commenced with Disney’s Donald in ’42!

The following article was first published on January 11, 2012. Recently we have completed the publication of a very important video that demonstrates the systematic misapplication of the federal employment tax by the general government against over 70 millions Americans since the Second World War. We believe that it is important to repeat this story once again in light of this video being released to the public.

At the end of this article, you will be directed to the video we just mentioned. Two subsequent articles will continue the discussion, followed by a series that will be presented to the public to assist in gaining clarity as to the seriousness of the misapplication and practical understanding that these articles are attempting to raise.

Consider these observations from as long ago as 1939. In that year, according to facts uncovered in a 2004 study by University of Berkeley Economist Emmanuel Saez and the Paris School for Advanced Studies in Social Sciences Professor Thomas Piketty, only 13.6 percent of the American people filed federal income tax returns, and subsequently paid any federal income taxes. That’s essentially one-in-ten individuals in the entire country.

Yet by the end of the Second World War in 1946, 89.1 percent of Americans were filing and paying federal income taxes (Saez & Piketty, 2004). That is a 75 percent increase seven years later. It also represents a complete reciprocal flip in the ratio of filers versus non-filers in just seven years! (From one-in-ten filing to one-in-ten not filing.) Why the complete reversal?

Was there a serious increase in legal threats by the general government (i.e., IRS) during World War Two because of changes in the income tax laws? Hardly. No major changes occurred in Title 26, the Internal Revenue Code as it was first published in 1939. (Hendrickson, 2008) It is still the same to this day, as a matter of fact.

So why this drastic jump in “voluntary compliance?” The answer is found in the incipient patriotic spirit of the American people as the result of the real and worldwide threat of Hitler, Mussolini and Hirohito—the Axis Powers, and the persuasive talents of at least two very influential characters in American history, who apparently (among many others, we’re sure) had powerful influence on the majority of American citizens during World War Two: President Franklin Delano Roosevelt, and

Donald Duck A New Spirit 1942

Donald Duck A New Spirit 1942

Donald Duck. While Roosevelt seems obvious, what’s with Donald Duck? Really? Donald Duck? Yep. Donald Duck. As we might facetiously surmise, this chicanery is rather “Mickey Mouse” when you think about it.

But let’s return to FDR for a moment, shall we? For it is our thesis that this propaganda machine was put in place systematically to create a control frauda financial weapon against society–imposed upon the American people from the highest levels of government.

On December 7, 1941, the Japanese drew the United States into the War with the surprise, early Sunday morning attack on Pearl Harbor. War was declared by Congress the next day. Two days after the bombing, President Roosevelt held a special radio “fireside chat,” and encouraged his fellow Americans to do their special part to support the newly incubating War effort. Here’s what FDR had to say so shortly after Congress declared War on the Axis powers:

It is not a sacrifice for the industrialist or the wage earner, the farmer or the shopkeeper, the train man or for the doctor to pay more taxes, to buy more bonds, to forego extra profits, to work longer or harder at the task for which he is best fitted; rather, it is a privilege.” – FDR on December 9, 1941, two days after Pearl Harbor and about 24 hours after Congress declared war on the Axis Powers of Germany, Italy, and Japan.

In that fireside chat radio broadcast, Roosevelt fed on the nationalistic emotions of the good-natured, patriotic, American citizenry to persuade them to acknowledge their moral duty to concede that “it is not a sacrifice . . . to pay more (income) taxes [or] to buy more [war] bonds . . .” He exploited the highly emotional American devotion of the moment to remind every good citizen of the land that such funding “is not a sacrifice . . . , but a privilege!” Notice that he didn’t tell the American people that paying these income taxes involved a forced legal duty. Why didn’t he go there? Could it simply be because he knew he had no legal standing to do so? The answer is yes. But this will need to be demonstrated to a skeptical public, propagandized for more then half a century to validate such an assertion.

Paying your income taxes to fund the war against Hitler was qualified by President FDR as the “privilege” of every true-blooded American! Who was going to argue with this statement at this hour of crisis? The answer is: Very few, if any one. They would have been ostracized as un-American, even anti-American by most neighbors; most would have considered such individuals to be traitors, no doubt.

No one wanted that kind of label. In fact, in that environment hardly anyone would have even argued the point. Hitler and the Axis powers were the devil incarnate. Every freedom-loving American rallied to believe that in 1942, with extremely few exceptions. Even the isolationists had very weak arguments to oppose war after Pearl Harbor.

But this is just the start of the propaganda machine of the federal government over the next few years to raise tax revenues based on a ubiquitous income tax. The federal government, working under the auspices of the War Activities Committee of the Motion Picture Industry persuaded Walt Disney to assist in providing war propaganda in the movie theaters to get Americans to voluntarily send in quarterly income tax payments to fund the war as an act of patriotism.

Remember, there were just a few limited forms of media entertainment in America at this time: the phonograph, the radio, and the movie theater. More than half of U.S. households didn’t even have a telephone. (AT&T had only installed about 15 million phones in the entire country by 1940, while there were over 32 million families according to the U.S. Census.)

Americans went to the movies not only to be entertained, but to stay up on current events watching newsreels shown on a regular basis. During the war, this was a regular part of American life. Many Donald Duck features were produced by Disney Productions to propagandize the war effort for recruiting purposes alone. A quick search on youtube.com demonstrates this simple fact.

Even the U.S. Treasury Department got involved. Take a look at the following Donald Duck short feature cartoon movie. Notice that there is no appeal to any statutory requirements of Americans to fund the war by paying the income tax. Rather it was an appeal to patriotic passion and civic duty. “It’s not your duty; it’s your privilege,” the announcer tells Donald. Privilege! Where does that come from? If that is so, doesn’t that mean we aren’t under a statutory liability to pay the tax? That is a very good question! This film was first shown in theaters in January, 1942, just one month after Pearl Harbor and our full engagement into the Second World War.

Here is the script of the credible and persuasive words of the main voice in the film in conversation with Donald Duck to convince him (and all the watchers in the movie theater) of their patriotic American duty:

Yes, there is a new spirit in America. A spirit of a free people united again in a common cause to stamp tyranny from the earth. Our very shores have been attacked. Your whole country is mobilizing for total war! Your country needs you!

Are you a patriotic American? Eager to do your part? Then there’s something important you can do. You won’t get a medal for doing it. It may mean a sacrifice on your part. But it will be a vital help to your country in this hour of need. Shall I tell you what it is? Shall I?

Your income tax! Yes, your income tax. It may not seem important to you but it is important. Yes, and it’s your privilege! Not just your duty, but your privilege, to help your government by paying your tax, and paying it promptly.

What’s the big hurry? Your country is at war! Your country needs taxes for guns, taxes for ships, taxes for democracy, taxes to beat the Axis! That’s the spirit; now how about your income tax?

(Donald hurriedly brings out calculators, aspirin, law books, dictionaries, math and algebra books, a globe, rulers, files, a compass, a piggy bank, and other items in a huge bundle in both arms.)

You don’t need all that stuff. No. You made less than 3,000 dollars last year? Well then, you can use the new simplified form. It’s streamlined; it’s simple. All you need is a tax blank, your pen, some ink, and a blotter.

First your name, address, and occupation; next, list your dependents. Now, what was your income? Now don’t guess. It will save a lot of trouble if you get it right. Alright, subtract your credit for dependents. Now, you’re single with dependents?

Then just look in column B, and you’ll find it all worked out for you. Now if you really want to help, mail it in early. Be one of the first. Just address it to your local collector of internal revenue and drop it in the nearest mail . . . It shows the new spirit!

The sooner you get your taxes in the sooner they’ll get to work. For it’s your taxes, my taxes, our taxes that run the factories. American factories working day and night. Taxes making guns, machine guns, anti-tank guns, long-range guns; guns, guns, all kinds of guns! To blast the aggressors from the seas!

Taxes for American factories, working full blast, making planes, bombers, dive bombers, flying fortresses, interceptors stalk the birds of prey that fly by night. Taxes to bury the Axis!

Taxes. Taxes for ships, battleships, battle cruisers, destroyers, all kinds of battle wagons! Taxes to sink the Axis!

Taxes to keep them flying. Taxes to keep them rolling; taxes to keep them coming. Taxes to beat to earth the evil destroyer of freedom and peace! This is our fight. The fight for freedom; freedom of speech, of worship, freedom from want and fear. Taxes will keep democracy on the march!

Income taxes to beat the Axis!

That was the mantra that began to be shared by word-of-mouth as more and more Americans went to the theaters and then about their daily lives. How do we know this? Quite simply because over the course of the next five years the number of filed income tax returns doubled (Saez, 2004). But not to stop with one, they created even another Donald Duck movie to continue the propaganda war! We’ll show that video in our next article in this series.

The reason for raising this observation is to ask this question: For the four million Americans with a federal tax lien in the past five years, and the significantly more others with a federal tax levy or garnishment action, is the IRS and the Department of Justice misapplying the federal employment tax in violation of federal law? We believe so. It is called a control fraud–a financial weapon against society, as we said. That misapplication actually started all the way back in the early 1940s. You are its victim too.

Tools for Justice has a comprehensive memorandum of law that conclusively articulates this legal fact. You can now evaluate this entire memorandum yourself to reach your own conclusion by watching our newly released introductory video providing a summary overview of the legal argument we are releasing to the public on Youtube.

To defeat this control fraud, we as Americans are building an army of legal activists who are well-equipped with proper understanding and legal remedy to overcome the obstacles that justice requires to address and fix this very serious problem. You can learn how the code is now cracked and become educated as a Tools for Justice legal activist.

If you are interested in more information, or want to join the Revolution and get your own property back, then become a free member of Tools for Justice. Join us as we restore the American Dream!

So what is your patriotic duty regarding your income tax? We’ll see what Donald Duck has to say to continue propagating this “new spirit of freedom.” Yeah, right. “New spirit of freedom!” It’s ironic that he was just a cartoon character, isn’t it?! But this story isn’t funny; it’s no joke.

In fact, if you really want a sober clarity, please watch the following video:



Block, M. & Weisman, S. (December 8, 2010). FDR radio fireside chat December 8, 1941. A history of the income tax. Washington, D.C., National Public Radio®

Hendrickson, P. (2003, 2007). The code is born. Cracking the code. (10th printing. 2008.) (pp. 68-70) United States of America, Peter E. Hendrickson.

Piketty, T. & Saez, E. (2004). Table A0: Reference totals for tax units and income. Income inequality in the United States, 1913-2002. San Francisco, CA: University of Berkeley.

Disney, W. “This film distributed and exhibited under the auspices of the war activities committee, motion picture industry.” (1942). A new spirit. [Motion picture]. United States: Walt Disney Productions. Retrieved from: http://youtu.be/Rc1wA9jKzvw
Disney, W. “This film distributed and exhibited under the auspices of the war activities committee, motion picture industry.” (1943). The spirit of ‘43. [Motion picture]. United States: Walt Disney Productions. Retrieved from: http://youtu.be/HwpyVwYwQuk


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