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How to Hide Trillions
and Get Away With It
from The Tax Freedom 101 Report
I wonder where the nearest tax office is?
'If the government can print all the money it could possibly need why does it need to tax you?'
One of the possible answers a quiz taker
can select is:
'Because we have a debt to pay off.'
This is not the absolute correct answer,
but a seemingly plausible one. People are told repeatedly, and conditioned
to believe we have a national debt. Is this really true however? What if
it weren't true, and in fact various government agencies had a substantial
surplus and are actually keeping two sets of books to keep this fact
hidden from public view. Would that surprise you? Having yearly 'Balanced
Budgets' may sound nice, but if you excluded actual revenue increases from
profit centers in government that surpass yearly budget expenditures would
you even need a budget, yet alone a balanced one?
As always don't take our word for it, nor
that of Walter Burien, the discoverer of Comprehensive Annual Financial
Reports. That is until you have done your due diligence to discover the
truth for yourself in what could be considered 'The Biggest Game in Town'.
They Don't Need Our Money - They Have Plenty:
Comprehensive Annual Financial Reports Exposed
What you will hear on The Agitator Hour radio show tonight will shock you. Is the national debt just an illusion? Does the now 6 trillion dollar federal debt really exist? What if the answer was no? What if the stock market was really controlled by composite government's institutional funds and the movement of the market - up, down, and sideways was predetermined as a result of a greater than 50% controlling interest in the market by government? Would the stock market ever really collapse by movement in the private sector? Probably not. What if you learned that there was now no need for any taxes to be collected by government because nearly everything was owned and controlled by government anyway? -- [the government is
still We The People in case you may have forgotten, or so it is suppose to be]. Would the fact that we have had no need for internal taxation for many years shock and bother you? If the assertions and evaluations by Walter J. Burien are correct regarding the fairly recent discovery (within the past 10 years) of Comprehensive Annual Financial Reports kept, produced and required by law to be kept by the nearly 54,000 government entities established and controlled by composite government than the surprising answers
presented to those questions would have some serious merit.
The Agitator Hour: Mr. Burien has documented the concealment by state and local officials of billions of dollars of income from investment of tax payer dollars while they whine that they're running out of money. What you're going to hear is amazing.
Listen to the archived interview of Walter Burien on the Agitator Hour using
the following links:
The Biggest Game in Town
Media Player Version
An Amalgam of Information Assembled for
What follows is an amalgam of statements or implications raised by Mr. Burien on
a telephone conversation, Tom Valentine's radio interview, Mr. Burien's Email, and an article on Mr. Burien written by "Betsy Ross".
Mr. Burien reports first discovering the CAFR report in New Jersey in 1989, when he helped start a New Jersey tax protest group called "Hands Across New Jersey". While involved with that group, Mr. Burien read in the state's Annual Budget that the total cost of all public services was $17 billion and the "net available" (the money on hand to pay all bills) was $24.6 billion. But then he asked the first question the IRS asks in any audit: "What are the gross receipts? He added the figures from various sources and came up with about $44 billion and began to wonder how the state could have $17 billion in costs, $24.6 billion in cash on hand, and $44 billion annual income? The numbers didn't add up, so he began to dig deeper.
Because his father had been Personnel Manager for the State Treasury for eight years, Mr. Burien understood how to get around in the various government departments. The state Director of the Budget was on vacation, so Mr. Burien called one of his lowest level assistants and said, "I'm working on a report for Richard [the vacationing Budget Director] and I need all the figures on the autonomous agency accounts, interest accounts, investment accounts." The assistant said,
"Oh, you want the CAFR." This was the first time Burien had heard of CAFR but he said, "Yes" and the assistant mailed it to him.
The CAFR showed that New Jersey had liquid investment funds (cash) of $188 billion; common stocks worth $70 billion, $10 billion in loans due from public and private corporations, and $14 billion in insurance company equity participation. The little state of New Jersey, which admitted to less than $25 billion in annual income on its budget, reported $300 billion in cash, stocks, loans and equity participation on its CAFR. According to Mr. Burien, "On that day, I learned the definition of syndicated organized crime."
The scam worked something like this: Anything that was a cost or expense for public services (the traditional side of the Annual Service Budget, such as the Department of Transportation, health and welfare, etc.) was reported on the Budget where public taxes paid 100% of the bill for those services. That was $17 billion.
However, any governmental agency that was a profit center (the Port Authority for New Jersey, the New Jersey Turnpike, and investment account, etc.) that generated no-tax revenue was "restricted by statute from being reported in the Annual Budget. Why? Because the state legislature passed laws to prevent reporting the income from profit center on the Budget. Instead, income from these profit centers was disclosed only on the CAFR.
But that disclosure was not immediately apparent. For example, when Mr. Burien looked for New Jersey's 1989 "gross cash receipts" in the CAFR, he found the figure buried on page 174, under the "Waste Water Treatment Trust Fund". It showed the amount of the total cash receipts for 1989 from all 69 autonomous state agencies and departments was almost $87 billion. In other words, New Jersey was charging $87 billion to provide $17 billion in public services. New Jersey citizens were paying $5 for every $1 in services they received, and the state was pocketing the other $4 as "profit".
The CAFR also reported the state owned $32 billion in common stocks - but this figure was footnoted. The footnote revealed that the stocks were valued according to their original purchase price, not the current market value. In other words, if the state bought a stock in 1968 at $1.25 a share and it's worth $3,000 a share now, they still report it on the CAFR as worth $1.25 a share. Burien determined that the true market value for the "$32 billion" in stocks reported on the New Jersey CAFR was actually about $70 billion.
But Mr. Burien goes further - he claims that the dual system of books is not unique to New Jersey, but also common among all fifty states. Moreover, he claims the dual accounting system was not only used ten years ago, but is still being used today.
For example, "In 1987 Arizona's annual service budget reported $2.8 billion in revenues but the state's 1987 CAFR reported total cash receipts of $3.1 billion, a mere $300 million difference."
"However, in 1997, Arizona reported an Annual Service Budget of $5.5 billion while the State's CAFR (printed by the Auditor General's Office) showed total gross cash receipts of $17 billion. that's a difference of over $11 billion. In just ten years, Arizona had caught up to New Jersey in that both states' annual budgets reported less than one-third of the actual gross income seen in the states' CAFRs.
"CAFR reports indicate that the composite totals for all government (Federal, state, county and city) ownership of publicly traded stocks exceeds $32 TRILLION (53% of the total ownership of all listed stocks), $8 TRILLION in insurance company equity (should we be surprised by high priced mandatory auto insurance or unaffordable health care?) and $5 TRILLION in Bond Surety Escrow Accounts for future liability of existing or potential debt.
Governments use Bond Surety Escrow Accounts to evade that pesky little rule that government should not operate at a "profit". That is, government should not impose more taxes than it actually uses to run the government. By designating tax revenue that exceeds operating costs as "Bond Surety Escrow" for future liability, government avoids calling excess revenue a "profit" and is thereby enabled to continue to enrich itself at public expense.
To illustrate the potential for abusing "future liability payments", consider the New Jersey plan in the 1950s to build the New Jersey State Turnpike and Garden State Parkway Authorities. The state asked voters to approve a $7.5 billion bond to construct the turnpikes. The state explained that these turnpikes would be operated as toll roads by the bondholders until the $7.5 billion bond was paid off - but the bondholders could not operate the toll roads at a profit. Once the bonds were repaid, the turnpikes would revert back into the state's Annual Budget as a normal cost/revenue item. The public voted Yes.
Over the following years, the state sometimes alleged that the toll revenue from operating those turnpikes failed to cover their operating expenses, and so additional bonds were passed to fund the turnpikes. As a result, in 1990, the total bond liability still owed for the turnpike had grown to $14.5 billion. But guess how much was in the 'Bond Surety Escrow Accounts'? $38 Billion! Enough to repay the original $7.5 billion bonds almost four times!
How could that happen? Say the toll road made a $400 million profit for the year and the scheduled payment on the $7.5 billion bond was $100 million. The state made the $100 million payment but kept the extra $300 million in a Bond Surety Escrow Account for 'future liability payments'. Although they kept the $300 million, they did not declare it as an asset but wrote it off as a line item payment. In other years, even though they made a profit, they'd allege that they lost money and therefore floated more billions in bonds. (Guess who pays?)
The bottom line is that New Jersey is collecting hundreds of billions of virtually unreported dollars from all the autonomous agencies. The motivating factor is not public welfare, but control of those billions.
Mr. Burien not only alleges that the dual accounting system exemplified by CAFR is not only used by all fifty states, but also by all counties, cities and the Federal Government itself. If Mr. Burien's allegations are correct, they comprise the most damning indictment of big government yet seen. In sum, Mr. Burien implies that our government is in fact a criminal enterprise bent on oppressing Americans by extorting several times as much tax revenue as it spends on public services and using the majority of those extorted revenues to enrich, empower and enlarge government at public expense.
According to Mr. Burien, although the public is absolutely ignorant concerning CAFR, the primary cause for that ignorance is not the politicians but the mainstream media. When Mr. Burien first discovered the CAFR reports in New Jersey in 1989, he went on radio 101.5 FM in a live 45 minute interview. Two days later, that radio station was threatened with losing its license and was almost shut down. CAFR had become another example of - "third rail journalism" - any reporter or media outlet that touched the issue would be silenced or driven from journalism. As a result, there's been a total mainstream media blackout on disclosing CAFR reports.
Later, Burien learned that the New Jersey official in charge of discrediting his CAFR discoveries was a former reporter who'd been appointed Assistant State Treasurer - even though he had no former financial background. Burien investigated his background and learned that as a reporter he made $35,000 a year. But as Assistant State Treasurer he made $65,000 a year - plus a Carte Blanche expense account of $125,000. !????????
Burien claims this was not an aberration: "I knew there was a state data search department which tied all agencies and departments together. I called that
department and asked for a data search on all key level directorships and supervisory positions for all budgetary or autonomous agencies, and they came up with some 3,500 names from several administrations. Almost 1800 of these Directors were former editors or reporters! It is a virtual certainty that many of these appointments were payoffs for the journalists' previous "cooperation" in spinning or silencing stories to suit government.
If you conduct a comparable search in other states, you may find a similar symbiotic relationship between government, editors, and reporters. If so, the media's "liberal, pro-government bias" may run much deeper than anyone has imagined, and the 'military-industrial complex" described by President Eisenhower in the 1950's may have been replaced by a "media-bureaucracy-banker complex" in the 1990s.
Therefore, Mr. Burien recommends that once you analyze your state's Budget and CAFR reports, you insist that your local news mainstream media (TV, papers, radio) raise the "Public Awareness" by reporting the difference between the composite "total of cash receipts from all agencies, departments, investments, etc." and the "actual total composite revenues held or controlled".
If your local media refuse to publicize your state's CAFR, they may be cooperating with a criminal agreement which has effectively silenced public disclosure of the CAFR reports for over forty years. However, once Americans know how much money is out there, where it's coming from and where it's going - the government's game will be over.
Any media that refuses to make immediate mention of the CAFR report should be publicly and aggressively boycotted. Media exposure is the jugular vein of the evil and corruption.
Related news story: The Governments
WorldNetDaily - Geoff Metcalf interviews Walter Burien on hidden public money
If you would like to learn more send an email to CAFR1@aol.com
and request his home page and ordering information for his video and book:
'The Biggest Game in Town'.
Past articles here
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