Fully Taxated, Part I

Posted: February 27th, 2011 by StarvingtheMonkeys

by Tom Baugh

As February draws to a close, First Wife and I, as we do about this time each year, treated ourselves to the completion of our corporate and personal taxes. While each Diamond Slave struggled over a four-day death march to prove his woo to his Demanding Beloved in the worst economy in our lifetimes, she and I gathered our informational weapons to fight this latest round against the Ruling Class. About the only interest I have this time of year in the Diamond Slave trade is to wonder why, if a liberated lady is to be treated to a heart-shaped box of candy, a gentleman isn’t similarly entitled to a box of sweets fashioned after portions of his lady’s anatomy, analogous to each party’s amorous interest in the exchange. Perhaps they could just turn the boxes upside down. But, I digress.

As you know, I am firmly convinced that what passes today for civilization is headed for the cliffs. As Monkey Starvers, it is in our best interest to make sure we are headed for the nearest precipice as rapidly as possible, so that we might more quickly rebuild things for our children afterward. In our shared vision, it is the rebuilding that is the important thing. The inevitable collapse is merely a tool we may use to shape that end game: a world, or at least our local slices of it, freed from the complementary evils of socialism and corporatism.

A Monkey Starver prepares for this collapse by the following:

– Preparing his mind by learning those skills, too numerous to list here, which he will need afterward.
– Preparing his body by keeping practically fit and healthy and learning physical skills such as marksmanship, tactics and animal husbandry.
– Preparing his soul by discovering that there is such a thing as just retribution, and learning to discern his True Enemies. Even the Prince of Peace didn’t turn his cheek to these. And they tortured and killed him for it. So WWJD in our time?
– Preparing his environment by collecting those things which he might most need during the transition, while knowing that if displaced he can survive without them.
– Facilitating the above goals by thriving in the world as it exists today.

It is this last category within which tax skills lie. Many in the community disdain these skills as irrelevant post-collapse, and ignore them to their peril. They are absolutely right about the irrelevance of such concepts as deductions and amortization post-collapse, as accountants and tax professionals will be of hardly more use than as biofuel feedstock. But, our brothers are dead wrong about the importance of these skills right now as we prepare. Understand these issues and thrive, and you will have more with which to survive later. Otherwise, you will be less-prepared, shot as a banker’s tax resister, or worse, rotting in a banker’s prison cell somewhere having flouted their demonstrated power to demand your yearly tribute. At the very least, you will have your possessions seized and your ability to get more destroyed.

To thrive in any system, you must first recognize the reality of that system, and then act accordingly in order to manipulate its energy to your own purpose. We too often project our own individual decency and honesty onto the current system, and then delude ourselves into thinking that the actors within it are merely misguided, so thwarting its noble purpose. This is yet another dangerous fantasy, right up there with believing the military exists to ensure your liberty, which could get you killed as the wheels start to fall off and the Ruling Class begins to, more and more, express its true nature in its desperation to avoid that fatal (for them) cliff.

To this end, let’s briefly examine the true nature of the tax code, and why and how it performs that necessary function of getting the slaves to enslave both themselves and unwilling others.

First, accept the premise that our system was specifically designed to feed a class of certain very wealthy people. Without this acceptance, you will be continually herded this way and that, expending your righteous anger in fruitless ways. Accept this premise and the clouds will be lifted from your understanding, allowing you to perceive your True Enemies and be thus enabled to one day destroy them corporally and individually. Fail to accept this fact and you deserve your fate at the bottom of the cliff alongside them. Refuse to accept this fact, and I can’t help you, so crawl back into your cage and ready yourself to lick your master’s hand once again with humble servility.

Now that we are only talking to men ready to see reality and stand on their own feet to one day exact just retribution, let’s expand on this understanding. The tax code is designed to benefit the Ruling Class, and to reward and punish each of the various classes in our society, according to the value or risk which each poses to the slave traders. Your goal, as a Monkey Starver, is to be perceived by the tax code and its enforcers as a harmless noble servant of the Ruling Class, even as you sharpen your knives.

Let us now consider some of these valuable servant classes:

– The old-money rich. These benefit by the fact that most of their passive income activities, such as capital gains, interest and dividends, are treated differently than sweat-of-the-brow income. The Ruling Class occupy the upper levels of this class. Interestingly, the income tax was sold to the populace a hundred years ago to specifically tax these people while sparing the small fry. Promises, promises. More on this later, but chances are that if you are one of these guys, you aren’t reading this. A Monkey Starver can still use elements of this category for his own benefit, though.

– The new-money rich. These benefit, and are rewarded, by similar means as the old-money rich, but perform the additional service to the Ruling Class of operating businesses which keep individual minds enslaved to corporate grayness. Right-wing media personalities, such as Rush Limbaugh, exist to delude you into thinking that your economic fate is inextricably linked to the fate of this class, and that somehow protecting Bill Gates’ interests also protects yours. We are told that without this class we would not have jobs, when the rules that benefit this class actually prevent us from providing jobs for ourselves. Again, more later, but Monkey Starvers already know well this class.

– The pensioners. These perform the valuable service of voting in easily manipulated blocks, and provide a dilution effect on the electorate which keep the productive minority thinking they have a chance in our electoral hell. Otherwise, the productive might take to arms if they realized that voting will never make a difference. Monkey Starvers know better.

– The enforcers. These willingly enslaved, effectively prison trustees, have wed their minds to the interest of the Ruling Class, and look forward to one day enjoying fat pensions forged into chains for your children. Let’s provide them a different option, shall we?

– The barely sufficient. These show up at their menial jobs, then keep their minds empty and their mouths shut. In their own minds, they derive value from the corporate prisons out of proportion to the value they put in, and so think they are “getting over on the Man.” In reality, these act as corporate enforcers who transmit certain mental diseases, compliance and apathy, to their co-workers, diseases which then infect every aspect of their daily lives. Socialist or conservative makes very little difference among them; they all behave the same. And they’re all on the lookout for you and your slightest misstep or statement which might identify you as an enemy of their masters. As another easily manipulated enormous voting block, they perform another valuable service: they will never vote for anything which will actually help.

– The entitlement classes. These slaves, of all races, on the electoral plantation are paid to remain compliant, and like their corporate peasant brethren, imagine themselves getting over at your expense.

Notably missing from this list is the productive class which feeds all the others. If you are still reading this, then you are probably one of these. The tax code, and legal system, exists to keep you enslaved to all the rest. But you can learn to use this system to your own advantage. Keep reading.

From a collapse perspective, the lower rungs of these will starve in large numbers. Pity them not, each of them could have paid the price to prepare which you have. Some will band together in gangs which will have to be dealt with, while the evil resident among the upper levels, currently protected by the lower, will have to be hunted down individually and brought to justice after the illusion of law and order evaporates. Clearly, we will have a lot of work to do dealing with vermin.

The tax code rewards the upper levels by allowing them to keep more of what they haven’t earned by the sweat of your brow, while the lower levels are rewarded for their compliance and their willingness to keep you in your place. The former is attained by rewarding passive income, while the latter is attained by rebating that which had never been bated. As you become more adept at navigating through the tax code, you will see this pattern repeated again and again. Space does not permit me to explain in detail in these pages, but you will soon see what I mean.

Accepting this fact allows us to see through two illusions, the one favored by the right and the other favored by the left:

– Your interests and the interests of the rich are not the same, no matter how much you are fed stories of good-kid-made-good-maybe-one-day-you-too. Behind every success story you hear is a story of influence and connection. Every single one. Or just an out-and-out lie. If you think you’ve made it without influence and connection, you are either self-delusional or haven’t yet hit one of their snares. The tax code and injustice system do not allow you to succeed on your own merit; it will bleed you dry each step of the way. And at each transition on the way up, you will encounter wildly different rules which will punish you for your impertinence for trying to break through. These transition rules don’t affect the uppers since they started off already there. Those upper levels simply don’t want competition from you.

– The barely-sufficient and entitlement classes aren’t paid in an attempt to correct social injustice, as they themselves self-righteously imagine, but are instead paid to comply while keeping you in line along with them. Over the ages, the Ruling Class has learned to keep the arguably vertebrate comfortable enough to sell their children and grandchildren into bond slavery, or to patriotically fight their wars of resource conquest for them (hint: Afghanistan is rich in minerals). Otherwise, it might be possible for a certain swarthy gentleman of unlikely proportion and generally disagreeable disposition to rouse the rabble into the ultimate misfortune of the guilty parties. We have seen this pattern repeated in the past, and the Ruling Class would prefer this not happen on their particular watch. But I digress once again.

The most important weapon of the Ruling Class is government spending. Right or left, bombs purchased from the wealthy or brisket purchased for the poor, these make no difference whatsoever. Each fallacious side in a struggle which does not actually exist can whip up electoral frenzy to do either on a whim. They are all paid by bonds, backed by the government’s ability to force your children to live as a tax slave. Read “Bonds, What Bonds?” for more information about that, but for now accept the fact that government spending = bond sales = fat returns for the Ruling Class at your expense. For now.

The upper levels rely on bonds, and other passive income activities, and so these passive activities, bonds included among them, are treated more favorably by the tax code. The lower levels just get checks, and some in the middle get a few scraps of bonds in their retirement portfolios to keep their interests aligned toward our system of bond servitude. If you own even one bond right now, you’ve bought-in to slavery, too, no matter what you might say about liberty. Get rid of them now before your possession is used as evidence against you afterward. And when that market defaults, as it inevitably must, just after the upper levels exit, all of these people will clamor to be made whole by taking whatever the rest of us have left. When they do clamor, you will know who to count among your enemies.

Nowhere in any of this is the notion of productivity. Get it out of your head that productivity is the path to success, or even survival. After the collapse, this will certainly be true, but in the world in which we must all live right now, productivity, at least as an employee, is a sentence to lifetime servitude. Be productive, but for your own benefit and your own motivation, and in the right ways.

If you are an employee, no matter how productive you are, you will be barely rewarded for your efforts. Look around you. You might be ten times more productive and useful than the guy who gabs all day with the cute chick, but are you paid ten times as much? Of course not.

Those who make the big bucks don’t work for a living. Instead, they broker the efforts of those who do work for a living. And they enjoy huge tax benefits for doing so. Why? Because these are the prison wardens. They are politically reliable, and are more than happy to weed independent minds out and onto the streets. Drained of resources and employment, independent minds like yours pose little threat to the Ruling Class. Or learn to be compliant (even if feigned as a Monkey Starver) to survive. Which is why it is increasingly harder for you to run your own businesses: without the mark of employment compliance none may buy or sell.

This, then, is the clue you need for taxational success. From the perspective of the tax code, you must taxate your business life as an evil slave trader, while taxating your personal life as a hapless slave. In so doing you, quite legally, enjoy the benefits of both. Neither of these trigger the alarms which are set to find you out. Thinking that you can good-kid-make-good will just get you bled dry.

In the following portions of this article we will discuss the techniques by which we lead this dual (in reality triple) life, and give a few examples along the way.

In the meantime, while waiting to wade through the bodies at the bottom of those cliffs, keep your knives sharp.

Tom Baugh is the author of Starving the Monkeys: Fight Back Smarter. He is also a former Marine, patented inventor, entrepreneur, professional irritant and a homeschooling parent.

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  1. […] the first part of this series, we discussed the reality of the tax code in that it exists to benefit the Ruling […]

  2. […] the first part of this series, we discussed the reality of the tax code in that it exists to benefit the Ruling […]

  3. […] the first part of this series, we discussed the reality of the tax code in that it exists to benefit the Ruling […]

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