Becoming Fully Taxated

Contents
Fully Taxated, Part 1 ................................................................................................................................ 2
Fully Taxated, Part 2 ................................................................................................................................ 8
Fully Taxated, Part 3 .............................................................................................................................. 14
Fully Taxated, Part 4 .............................................................................................................................. 20
Becoming Fully Taxated Incorporation Tips ........................................................................................... 28

Fully Taxated, Part 1

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 bankster's tax resister, or worse, rotting in a bankster'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 sections we will discuss the techniques by which we lead this dual (in reality
triple) life, and give a few examples along the way.

Fully Taxated, Part 2

In the first part of this series, we discussed the reality of the tax code
in that it exists to benefit the Ruling Class. The primary means by
which the tax code provides this benefit is the obvious one of
extracting the wealth necessary to repay public debt to the slave
traders. However, as we discussed, the tax code also spares the
passive income of the Ruling Class' compliant servants, while
rewarding the lower income levels so that they assist in your
enslavement. The only people who actually pay taxes in large
amounts are you, the foolishly productive. If you haven't read that
article, please go back and read it now before proceeding: I don't have space to give the
summary justice.
I now repeat an essential point from the previous part: 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. As I have said before, 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. To thrive in this system and not
be perpetually frustrated, or worse, you must accept the premise that our system is not
fundamentally noble, but was specifically designed to feed a class of certain very wealthy
people.
With that in mind, let me get something out of the way. Everywhere I go I hear different
versions of the same theme: "UCC this and UCC that". I hear this from people who are clearly
flakes, and from people whose opinion I respect.
If you accept the previous essential point, you must recognize that rules don't exist for tyrants,
they only exist for you. If we could wave a magical UCC wand and avoid taxes, we wouldn't
have a problem. If we do live in a tyrannical system, and I believe that we do, then you can't
just go up to the tyrant and make a mystical incantation and expect him to comply. There is no
noble court or jury out there which will save you, no matter what you hear to the contrary.
Instead, you will face a jury of monkeys who depend on the tax code, and your compliance to it
no matter how illegal you can prove it to be, to feed them at your expense. These jurist
monkeys will be told what to decide by monkeys in suits and robes, with their decisions
enforced by monkeys in uniforms with guns and badges.
No, if you are going to taxate yourself in any way which has a practical chance of success, you
must do it in such a way that you seem to wear a monkey suit in your professional life, but
monkey coveralls in your private life. To understand this point fully, you must read and
understand the previous article.

Now, for our examples, we're going to use three fictional persons to represent different
scenarios: Andy, Bob and Chuck. All three of these guys are married to one woman each, and
each has two kids. Andy makes $30,000 per year as an employee, Bob makes $100,000 per year
as an employee, and Chuck bills his clients $100,000 per year as a contractor. To keep things
simple we are going to ignore investments, interest, dividends, capital gains, tax-free munis,
home mortgage interest, and the big daddy of them all, the Alternative Minimum Tax (AMT).
Consideration of AMT would certainly make the distinction much more dramatic, but the
examples will be fine without it. We are also going to use standard deductions and ignore state
taxes, but again, these would only make the lesson more dramatic.
As with many thought-experiments, I encourage you to get the forms and follow along for
yourself. Prove me wrong in some substantive way, in other words. Details of piddlery don't
count.
To the Ruling Class, Andy is far more valuable than Bob or Chuck. Andy is much more likely to
join large voting blocks, like unions or churches or become a cop or schoolteacher. Should he
choose to join a union, he will be rewarded with higher undeserved pay. Should his miserable
poverty-line life become too much, he will drift toward pulpiturally-inspired exhortations to
obey all the rules, including coming up with more cheek to turn. There he will also be told how
Jesus wants him to send his children to war to die for the banksters' interests by playing Wii
Holy War to kill Jesus' long-lost way-back cousins. After all, those commercials on TV do look
exciting. Be all your conscience can ignore, kiddies.
Or, Andy can become a cop of one kind or another (like a schoolteacher) to push people like
Bob and Chuck (or miniature versions of them) around while enjoying unofficial corruption as
he waits for his officially corrupt pension payoff. Andy is also far more likely to send his kids to
public school so that they can be indoctrinated there, too. He is also effectively trapped by
medical benefits, necessary so that his wife and kids can serve as unwitting lab animals for
pharmaceutical experiments. We can go on and on about how valuable Andy is.
So Andy, hardly ever one to do anything for himself, has someone fill out his 1040 for him, and
comes up with the following result. His adjusted gross income (AGI) is $30,000 in our simple
example, which dwindles to a scant $4000 in taxable income after the standard deduction and
exemptions. At 2010 rates, Andy is on the hook for a whopping $400 in federal reserve income
tax. But, he also qualifies for $400 child tax credit, which wipes that out.
We're not done yet. Add in another $800 for the "making work pay credit" (note: this credit has
since been phased out, but look forward to similar gravy for this tax bracket), $3232 for the
"earned income credit" and $1600 for the "additional child tax credit" as self-defined
"payments" on lines 63 through 65. Now Andy walks away from the tax table with $5632 in his
pocket, on top of whatever tax withholding he had throughout the year. Granted, he also paid
$2295 in social security and medicare tax, but his net gain from being a "taxpayer" is $3337. To
put it another way, Uncle Sugar just gave our hero an 11% raise. All he had to do is keep his
nose clean and do as he is told. And be a low-wage breeder. After all, the banksters have to get

cops and soldiers from somewhere; they sure as hell aren't going to get shot at themselves
while stealing what they want.
OK, so Andy "earned" $30,000, but ended the year with $33,337. And we didn't even add in
low-income assistance such as housing or school lunches, etc. No wonder Andy is ready to wave
a little flag when they hand him one. "Put your boys on this here bus, Andy, we'll do 'em up
right. One of 'em might even be a gen u wine hero, and you'll get yourself some purty ribbin
and an o fishal flag." This is the greatest freaking country in the world, alright. Larry the Cable
Guy says so every week on The History Channel.
No, they don't want Andy's money. He has so little of that anyway. What the banksters really
want from the Andys of the world is his soul and devotion, which they can purchase for a
pittance and the right kind of media influence.
Now, Andy might want to do a little better for himself. Among the Ruling Class this is fine, so
long as he doesn't start getting uppity. Some of the gravy we've talked about coasts upward for
a while, but really starts to dwindle away in the $40,000 range. I leave it as an exercise for the
reader to determine the tipping point. For you homeschoolers out there, this would make a
great software exercise for the kiddies who have taken my programming courses.
So now let's switch to Bob. Bob probably has a college degree, which nowadays is really nothing
more than a slave certificate, as we'll soon see. We'll use the same assumptions as with Andy,
so his taxable share of his original $100,000 is $74,000. This puts him on the hook for $10,869
at the same point Andy was liable for $400. Care to guess which way this is headed?
Remember, we're ignoring the AMT, so what we're about to discover isn't even worst-case for
most people like Bob.
Now, Andy's tax got wiped out first with a $400 child tax credit. Bob's slice of that same credit is
the full amount, or $2000. Lucky guy! That leaves him paying only $8869 when Andy was at $0.
Bob also qualifies for the $800 making work pay credit, reducing his bill to $8069. But, due to
his vast riches and higher earned income, Bob does not qualify for the earned income credit.
And, since he took the full child tax credit, there is no additional child tax credit to add. Now,
let's add in the 7.65% in social security and medicare taxes ($7650) and his total national tax bill
is $15,719, while Andy received $3337. For each Bob in slavery, the banksters who own this
country's "stock" can pay the bonus to four Andys to watch him, and still turn a profit.
If you still think that voting is going to make any difference, you are a complete freaking idiot.
Voting is a shell game to make you keep hoping something will change two years from now, so
you won't get your rifle out today. You wouldn't know who to shoot anyway. Give it time, it will
come to you.
Note that the difference between Bob's tax and Andy's negative tax is about $19,000.
Somewhere along that $70,000 difference in income $19,000 in taxes is raised. In that range, on
average, the marginal tax rate is about 27%, meaning that for every additional $1000 earned,

about $270 is paid in taxes. Now, it isn't linear, which means that the gravy hangs in there for a
while in the range paid to cops and schoolteachers, the collective trustees for the adults and
children alike. So, the marginal tax rate around Bob's income level is higher. I don't want to
spoil the fun of your figuring it out for yourself, so let's just throw out 40% as a number. But
Bob thinks he is only paying about 15.7 percent, when in reality each additional dollar he makes
is 40 cents lighter (add in state taxes and it's even worse).
Go above that level, and things get even worse faster. This continues for a time, until around
$300,000 to $400,000 (doctors and highly-compensated merger attorneys) things get better.
But, those people don't play the income game anymore, as we'll discuss in a future piece.
But what about quality of life? Well, Andy makes a lot less money, for sure, but he has more
free time to spend. After all, in his job, overtime probably means time and a half, and he's still
in the gravy zone. Bob, as a salaried professional, probably works as much as 50% more, at no
additional pay, leaving less free time. Bob probably is also living in a nice house in a suburban
subdivision that is currently underwater mortgage-wise. Accordingly, Bob can't just up and
move, while Andy can move from government-subsidized hutch to government-subsidized
hutch practically at-will. To make that $100,000 in the first place, Bob's profession will typically
require him to reside in a high cost-of-living area, whether he wants to or not. The tax code
makes no adjustment for his situation.
Further, in such snooty digs, Bob's neighbors are also probably more likely to notice if he
punches the old lady in the mouth when she complains after he didn't get her a big enough
diamond ring for Slaventine's Day to "show her he loves her all over again". Bob also probably
has to look forward to paying college tuition so his kids can be slaves, too. On the other hand,
Andy's kids will get some kind of benefits if they have a head left after shooting at Semites (the
kind it is OK to shoot at) for a couple of years.
Bob also pays property taxes and homeowner's association fees, has nicer cars that don't "go"
any better than Andy's beater, has student loans to pay, has to keep his snoot grass cut and
always wonders whether Andy's kids are selling his kids drugs. After all, from whom better to
buy your drugs than from a cop's (or teacher's) kids? Bob's kids could have their futures ruined.
No problem, the banksters' recruiters are more than happy to take in kids of economicallyravaged families, the more economically-ravaged the merrier, so long as they are willing to pull
the triggers to get those damned recalcitrant Afghanis off those mineral piles. We've got mines
to dig, damn it, and you can't do that with all those armed Muslims running around thinking
that they own the place. Those next-generation smartphones aren't going to sprout their own
rare-earth magnets, are they?
Plus, after deciding to be a cop or schoolteacher, Andy is looking forward to a nice fat pension
at 55 (or sooner). Or, if he joined that union, will probably get a nice bailout ala-GM, while
Bob's 401k gets the tail-end drippings. After all, there are more Andys to vote than Bobs.
But, not everyone in the Andy zone is looking forward to a nice, fat cop (or schoolteacher or

other government choad or union) pension. Many of these people actually work for a living,
foolishly providing original value to the world. If you are say, a welder or a mechanic, and wifey
works too, your combined income is headed right back up into the Bob zone yourself, shedding
Andy gravy all the way. So, for the rest of this series, anytime I mention Bob, this means Al-theWelder-Plus-Alicia-the-Wicked-Hot-Hairstylist, too.
So it's a wash, but want to guess which one, ThugAndy or Bob (or Al/Alicia), feels more free?
Delusions are a great thing, sometime.
Now, even though there are enough Bobs (or Al/Alicia combo packs) right now to pay for a
whole jackboot full of ThugAndys, this is clearly an unstable situation. Sooner or later,
something has got to give. Care to guess who is going to be tickled when Bob's 401k gets
nationalized to pay their fat pensions, or inflated away to nothing? It's a damned good thing
that Bob went to all that effort to get edumacated, and forewent that income into his
retirement savings. And bought that nice house. And married that damned whining yacking
biatch who thought she was getting the hell out of the trailer park.
Here's a few words of encouragement for all those Bobs out there. The reason she is difficult to
live with right now is because, like all the rest of us, she recognizes that the future is a scary,
uncertain place. It always has been, but now is especially bad because the mirage we've
enjoyed for our entire life is starting to evaporate. If she has any sense at all (and some do),
she's also starting to regret having gleefully participated in your emasculation for so long. But,
since wheedling you is the only coping strategy she has ever known (and it has worked wonders
for women in the recent past), she, like many people, is just flailing around in desperation.
But Bob, no matter how much she is on your case right now, don't punch her in the mouth; it
messes up her looks and nobody wants that. A rolled-up newspaper to the thighs makes the
point, makes a fun jiggle, and doesn't leave any permanent marks. You might find it kind of
turns her on, too, which is probably the point of all her biatching; she may have been trying to
draw the caveman from hiding within your hollowed-out soul.
Just kidding ladies. After all, you are grown women, not bad puppies. So, a belt is much more
appropriate. But, it has to be one of those heavy country-boy kinds, not that flimsy little thing
you make hubby wear when you haul him by the nose to church. Besides, who subscribes to
newspapers anymore? Whacking you girls on the butt with a Kindle doesn't really do it for
anyone. The, uh, bottom line is that if you want him to be strong for you in this horror we are
all about to experience, then you have to be strong by accepting correction from him when you
deserve it. And find another church; we have all turned far too many cheeks already.
Oh, and that 401k? Bob, it was gone the day you made that deal with the tax devil. Don't
believe me? Try to get it back and see what happens. But you won't even try, will you? And
that's the whole point of that. We'll talk more about 401ks some day, including the fact that
whatever you think you see as gains, is simply an inflationary effect in the paper value of
companies that don't make anything of value anymore. About all you can do now is simply stop

giving them more, and, instead, use that money improving your position, as fighting-hole
Marines put it.
One last thing before moving on. You must remember that passive income is the king of the tax
code. But there is a special kind of passive income, interest, which is the emperor. All
throughout the tax forms and instructions you will see reference to "interest paid to banks."
Interesting, isn't it, that not only this particular expense, but the recipient, is singled out?
Interest paid to non-bank recipients is even called out as "other interest". Poker players call this
a "tell". Most people see this facet of the tax code most clearly when they are itemizing their
home mortgage interest deduction, but it's all over the tax code. As you get deeper into this
yourself, you will see what I'm talking about.
Now, we've been told our entire life that this particular deduction is to reward home-ownership
and to get people to "buy-in to the American Dream". Ask people in Atlanta how that particular
nightmare is working out for them right now (I can tell you from personal experience that it
sucks). Many of them can't even leave to take a job somewhere else without filing for
bankruptcy, but what does that do to their employability? If you don't live in Atlanta or a
similarly bank-ravaged area, don't worry. This particular nightmare is coming soon to a
neighborhood near you, too, unless you live near a pocket of government spending.
Anyway, the point is that interest is treated as a special case. Why must people reaching for the
"American Dream" buy a home? So they can pay a mortgage, of course, and to a bank. Note
that if you rent a place to live, you get penalized. There is no itemized deduction for rent. There
are, however, tax advantages to the passive-income recipient of your rent. Your landlord gets
some gravy (in the form of qualifying for expense deductions and the avoidance of social
security and medicare taxes on that income), but the renter is in the cold. Why? Because
anyone can buy a house and rent it out, but only specially monkey-certified banks can write a
mortgage. Ergo, special incentives to generate demand for the latter.
Care to imagine the ripple-effect in the economy if the mortgage interest deduction were ever
repealed? This will never happen, of course, but working through the scenario in your head will
tell you what your suburban home is really worth. In most cases, you can't even keep a chicken
for fresh eggs there. But, you have a hard time getting a job anywhere that you can keep a
chicken. Think about it.
So, having handled the Andy and Bob scenarios, this leaves Chuck. We'll talk about him in the
final parts of this series as we tie all of this together. We'll also see that Bob, and the Al/Alicia
combo pack, have a tax opportunity that the institutionalized pension-seeking Andy does not.

Fully Taxated, Part 3

In the first part of this series, we discussed the reality of the tax code
in that it exists to benefit the Ruling Class. The primary means by
which the tax code provides this benefit is the obvious one of
extracting the wealth necessary to repay public debt to the slave
traders. However, as we discussed, the tax code also spares the
passive income of the Ruling Class' compliant servants, while
rewarding the lower income levels so that they assist in your
enslavement. The only people who actually pay taxes in large amounts
are you, the foolishly productive. If you haven't read that article,
please go back and read it now before proceeding: I don't have space to give the summary
justice.
In the second part, we started with a brief dismissal of the UCC gambit. We then discussed the
example of Andy and Bob. Andy earns $30,000 per year, but walks away from the tax table with
a total of $33,337. On the other hand, Bob earns $100,000 a year, but walks away from the tax
table with a total of $84,281. Bob makes more, but Andy keeps all of what he makes, and then
some. We also discussed quality of life issues for both, and the likely tradeoffs for each.
This leaves Chuck. As a contractor, Chuck bills about the same (with some exceptions we'll
discuss) that Bob receives as a salaried employee. But, we'll see how this distinction makes a
dramatic difference in Chuck's quality of life.
I have to again give a disclaimer. What I am about to describe to you is legal to the best of my
knowledge and understanding. However, I am not a tax or law professional and you shouldn't
take anything out of this article other than pure entertainment. This disclaimer is necessary so
that you will rush to the waiting arms of a Monkey professional to pay them Monkey Bucks for
a service which will soon be obsolete as it all goes over the edge.
I now again repeat an essential point from the first article in this series: 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. As I have said before, 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. To
thrive in this system and not be perpetually frustrated, or worse, you must accept the premise
that our system is not fundamentally noble, but was specifically designed to feed a class of
certain very wealthy people.
As we saw previously, between Bob's earnings and Andy's, about $19,000 disappears in federal
reserve taxes. Andy is in the gravy zone, and stays there until about $40,000. Even unto
$50,000, there is still a certain amount of gravy. This is the earnings zone of cops and teachers,
both loyal trustees of the federal reserve / international bankster work camp. Above that level,

taxes really start to chew into the pocket-books of the productive, and stay disturbingly intense
until the $300,000 to $400,000 range. Above that level, that of doctors, lawyers, media
personalities and other Knights of the Realm, the concept of income tax no longer applies as
other strategies emerge. Those strategies are beyond the scope of this article series.
Consistent with that disclaimer, my concern is not with the traditionally wealthy, but with the
bulk of the actively productive. These people have the best chance of surviving the collapse,
and thriving post-collapse. These also have the best chance for reconstructing a world in which
neither socialism nor corporatism reigns supreme over individualism. A merger attorney, no
matter how successful, will probably turn into chicken feed for a Monkey Starver somewhere,
shortly after his former vocation is discovered. A typical doctor, deprived of chemicals and
machines, neither of which he fully understands but is licensed to administer, will be hardly
more valuable post-collapse than a good veterinarian or practical nurse. Enter then Chuck.
Chuck and Bob are practically indistinguishable at first glance. They both do pretty much the
same work, whatever that work may be, and gross pretty much the same amount. However,
upon closer examination, the differences between the two become apparent. The critical
difference is that Bob is an employee, whereas Chuck is a contractor, and bills his time through
his own C-corporation. And this difference makes all the difference in the world.
Recall from the first part of this series that the tax code exists to extract value from those
capable of causing problems to the Ruling Class, yet reward those who serve the purposes of
the Ruling Class. Also recall that brokering the efforts of those who provide value is the path to
success in this world (pre-collapse), while the providing of value itself is almost worthless to the
provisioners. In our decaying civilization, if you provide value you are a slave. If you broker that
value you are a knight. If you are a slave trustee, such as a cop or a schoolteacher, you are given
special favor in exchange for your loyal service.
The essence of the tax code is that simple to understand. Whatever you do to present yourself
as a provider of original value, you will be punished. Whatever you do to present yourself as the
broker of a slave or slaves, or as one of the lower-income trustee classes, you will be rewarded.
The details are almost immaterial, and merely exist to fill in the forms.
To this end, Chuck is simultaneously a broker of his own slave (himself), and a slave at a low
enough level that he seems as if he is a low-income trustee. In this, he is richly rewarded at
both ends. The magic that makes this possible is not a UCC incantation, but an appreciation of
the banksters' work farm in which we live and call the Land of the Free. This magic requires
incorporation, there is no substitute.
When you incorporate, you create a legal fiction of a person with the State. Slaves aren't smart
enough to incorporate, or aren't willing to invest the time. Knights of the Realm are, and do.
This fictional person can act as your slaveholder, while you cannot. Chuck can treat any number
of business expenses as deductions to be paid pre-tax, whereas Bob cannot. Chuck can engage
in any number of enterprises, many of which may fail on paper so long as the sum thrives, while

these same activities are nondeductible hobbies for Bob.

You cannot shortcut this path with an LLC or an S-corporation or a sole proprietorship. Only a Ccorp will do. Many fear forming a C-corp because of the extra paperwork involved. True, there
is more paperwork involved, but the nineteen thousand dollar difference between Bob's and
Andy's taxes says that it is worth it. This extra paperwork isn't really that hard to handle. This
fear of administrative work has been injected into your brain your entire life to make sure you
stay a slave so that someone else can benefit from your efforts. To cushion the blow, we'll talk
about some of these details after discussing the benefits of this approach.
But first, let's talk for a minute about how your financial landscape changes once you
incorporate. First, you hire yourself as an employee. Congratulations, you just gained your first
slave! You might want to then similarly enslave your wife and kids of earning age, too.
Corporate slavery is fun for the whole family as we'll see in a minute. This is exactly what our
hero, Chuck, has done. Bob, or the Al-the-Welder-Plus-Alicia-the-Wicked-Hot-Hairstylist combopack, would do well to heed the ways of the Chuck.
Now, when Chuck puts in an hour of time at BigCo next to Bob, ChuckInc, not Chuck himself,
gets paid for his time. Assume that Bob and Chuck work the same two thousand hours in a year.
Bob's 1040 says he got paid $100,000, while ChuckInc's 1120 (with some exceptions) says the
same thing. The difference is what SlaveChuck gets paid, and that is, again, all the difference.
Hypothetically, if ChuckInc can find $70,000 in business expenses to deduct before paying
SlaveChuck the remainder, SlaveChuck looks to the tax code just like Andy. And then walks
away with the additional $3337 in his pocket, having also not paid the $15,719 that Sucker Bob
is hit with.
The key is that, to the tax code, Chuck looks like Andy, but ChuckInc looks like BigCo.
SlaveChuck wins just as Andy does, and ChuckInc wins just as BigCo does. The only loser is Bob.
Eventually, though, we run out of Bobs, it all goes over the cliff, and we toss all of this crap on
the dung heap of history.
The devil is in the details, of course. How does ChuckInc find $70,000 in business expenses?
Well, there are lots of ways, but even if he only finds $10,000 in business expenses, he still
walks away $4000 better than Bob, because of that marginal tax rate thing we talked about
earlier. The details change from year to year, but the secret is to understand the purpose of the
tax code with respect to the interests of the Ruling Class. Always appear to taxate yourself in
such a way as to seem a harmless noble servant.
How? This all depends on what you do. And that can be practically anything. The key is that
when you incorporate, suddenly the pwesidem of ChuckInc can decide to do, not just his
primary vocation, but practically anything Chuck wants to do, as a prospective business
venture. And then pay for that ambition out of the corporate larder. Within reason, of course,
and within the limits of that tax code. The next time you hear about the tax code being so large,
you should be rubbing your slave-owning hands with glee wondering what kind of goodies

(meaning deductions or tax credits) you might find for yourself in there, at the expense of, well,
you-the-slave and the taxpayer. Kind of changes the mental landscape, doesn't it?
Here are some popular myths which will NOT happen when you incorporate:
Myth #1: Investors will flock to you to throw cash at whatever you imagine. Absurd on the face
of it, this notion is the inevitable spoor of the good-kid-made-good lies, but you will be
surprised how many idiots will imagine that this is happening to you.
Myth #2: Banks will loan you money so that you can blow it and fold up the company. This only
happens to large companies or shells created specifically for creating paper losses which the
lending banks then recover, via bailouts, from the rest of us. No, in your case, you will have to
personally guarantee loans that your company gets, meaning that you would have to repay
anyway.
Myth #3: You stop paying sales tax. This only applies to goods purchased for resale. The rest
you still pay sales taxes on. Because of that resale thing, there is a grain of truth in this one,
though, as we'll see later.
Myth #4: You become the big-shot employer who gets to have lots of people catering to your
every whim. I've tried to weed out people with this and other character flaws before getting to
this point, but some may have made it through. Tip: if you, dear reader, are one of prospective
big-shot types, you probably aren't going to make it after the collapse, for reasons I've written
about elsewhere. No, Chuck has no desire to hire anyone else. He's in business to take control
of his own life and reap the benefit of the tax code, not to become Daddy to monkeys. Mutually
contracting with other Chucks out there, though, is beneficial for everyone.
Myth #5: Related to the above, if you did hire someone, you now get to hire people off-thebooks in cash. Why in the hell would you do that, and miss out on the deduction for their pay?
Hiring someone off-the-books saves them from paying taxes on it, but actually costs you an
equivalent amount of money. Ask yourself from what miraculous font this cash would come in
the first place. Hiring another contractor's company effectively provides the same mythical payin-cash benefits, though, since you get the deduction and the other guy gets pre-tax income to
do exactly what we're describing here.
As mentioned, the exact details of how Chuck (or the Al/Alicia combo-pack) surfs the tax code
depends on his particular vocations and interests. But, we can lay out a few general principles:
Taxated Tip #1: Assuming a 40% marginal tax rate, every dollar your company spends pre-tax
would otherwise require you to earn $1.67 to have the same buying power after taxes as an
employee. Yes, a 40% marginal tax rate means that your company's money becomes 67% more
valuable. Math is a wonderful thing.
Taxated Tip #2: Don't go out and buy stuff just because you have 67% more of your money

now. Monkey starvers try to do more with less. You're not creating money, you're keeping
more of it by keeping more of it out of the hands of monkeys. There's a big difference. Just try
to buy whatever you would buy normally as a company purchase where possible.
Taxated Tip #3: Be absolutely meticulous in your record-keeping. We'll talk about ways to do
this later. Once you get into the paperwork, you will see that there are very few ways to cheat.
The checks and double-checks have been thought out way in advance, so don't even think
about it.
Taxated Tip #4: Never forget that this system exists to benefit the Ruling Class, which includes
banks. If it hits a bank statement, including credit cards, money orders or someone else's
checking account, it happened. I'm endlessly amused about discussions involving privacy of
banking information. Get real. Instead, structure your transactions and expenses so that you
get to innocently point at the tax code later.
Taxated Tip #5: Don't lose your soul in this. This approach is merely a weapon a monkey starver
can use to destroy his enemies. Remember that all this nonsense goes poof on C-Day+1 (or
maybe a little sooner than that).
Within that framework, and as a preview to make some of the details in the next part make
sense, let's follow Chuck around for a while. Because of the nature of the audience, I'm going to
use gun shows as an example. Chuck can do practically anything for a primary vocation, but, like
many of us, has interests outside of that. Let's consider a few possibilities of how Chuck might
leverage his gun show interests into business opportunities (read as "more deductions"):
Chuck likes to hit a gun show once a month or so. Fortunately, ChuckInc thinks setting a table
up at a gun show is a dandy way to market its services. It doesn't really matter what Chuck does
for a living, there is someone there walking around who might be just the right prospect for the
next gig. So, ChuckInc pays the $75 table fee and prints up some flyers, then has a base of
operations from which to wander the show and talk to people. Now, without an FFL (consider
getting one) ChuckInc can't buy or sell guns, but it can buy or sell just about everything else.
Remember that passive income stuff from the first part? Buying and selling things outside your
primary business activity gets special tax consideration.
If that gun show is more than 50 miles away from his house, ChuckInc also pays SlaveChuck a
per-diem rate for meals, entertainment and expenses. If it is an overnight trip, SlaveChuck also
gets a nice per-diem lodging rate, tax-free. Bring the wife and (working-age) kids? Well, as these
hapless souls are employee slaves too, they also get per-diems.
Oh, did I tell you that Chuck was also an author? Whatever his interest area, he can put up a
blog somewhere, write some articles, and post them at various websites. Computer, internet
service, and just about everything that eventually gets mentioned in an article becomes a
business expense. Business is funny like that, you never know what is going to be a hit. Just
make sure that, overall, you show a net profit, or else the IRS will want to classify it as a hobby.

Chuck has his eye on a new smart phone, so he writes a blog article about how it is important
for his survivalist buddies to get smart on smart phones. Maybe he decides to write some
simple little app that does secure data transfer and needs to visit his pal in Florida who knows
how to do this stuff. Smart phone and trip just became a business expense. Chuck and the
family of Chucklet slaves might even want to put in some fishing or beach time while he's there.
After all, once you start running your own business you tend to get too busy for real vacations.
Just remember that in this Internet age business prospects are literally everywhere.
Since ChuckInc already has a gun show table set up, maybe it starts selling some related
products. One great way to prove to the IRS that you are a business is to be a distributor for
related products. Shirts, books, holsters, just about anything you care to name looks great on
your table, and establishes you as a going concern. If you want to get started, I know a couple
of authors who can set you up with inventory right now. Some of them will even do limited
amounts on consignment (meaning you pay post-sale). Yep, I'm shameless, but you're reading
this for a reason. I might be writing it for that same reason.
Chuck has really been thinking hard about preparedness, and needs to write about food
storage. To prepare the article (which might, after all, sell some books or shirts), he gets a few
month's supply of food and subjects it to different storage conditions for a year. You guessed it,
business expense. That new chainsaw also makes great article fodder. How did it hold up after a
year? Inquiring minds want to know. So he brings it to the show and talks about it. Some old
lady might want him to cut some wood for her. You never know.
That beater truck that ChuckInc just bought is really essential for carrying customer material
around. All of those parts that went into it are deductible expenses, and each year, sadly,
depreciation cuts into what would otherwise be company profit. Also, all of that gun show gas,
and the gas used for driving it back and forth to client or prospect sites, is deductible. Just be
careful to follow the rules about employer-provided vehicles. They are strict, but simple and
easy to follow, and are way easier to handle than trying to track mileage for personal vehicle
reimbursements.
Clearly, I could go on and on (and often do) but I think you might be seeing the picture by now.
Making the effort to create and maintain that corporation suddenly opens the door to
practically limitless opportunities to create tax deductions for what Chuck (or Bob or Al/Alicia)
might have done anyway, and shoves SlaveChuck closer to the Andy tax-gravy zone. In the next
part of this series, we'll talk about some practical ways to keep that effort to a minimum, and
discuss some business and tax terms you really need to understand. For entertainment only, of
course.

Fully Taxated, Part 4

In the first part of this series, we discussed the reality of the tax code
in that it exists to benefit the Ruling Class. The primary means by
which the tax code provides this benefit is the obvious one of
extracting the wealth necessary to repay public debt to the slave
traders. However, as we discussed, the tax code also spares the
passive income of the Ruling Class' compliant servants, while
rewarding the lower income levels so that they assist in your
enslavement. The only people who actually pay taxes in large amounts
are you, the foolishly productive. If you haven't read that article,
please go back and read it now before proceeding: I don't have space to give the summary
justice.
In the second part, we started with a brief dismissal of the UCC gambit. We then discussed the
example of Andy and Bob. Andy earns $30,000 per year, but walks away from the tax table with
a total of $33,337. On the other hand, Bob earns $100,000 a year, but walks away from the tax
table with a total of $84,281. Bob makes more, but Andy keeps all of what he makes, and then
some. We also discussed quality of life issues for both, and the likely tradeoffs for each.
In the third part, we introduced Chuck the contractor, whose C-corporation ChuckInc bills about
the same that Bob receives as a salaried employee. We saw how this distinction makes a
dramatic improvement in Chuck's quality of life. The primary cause of this improvement is that,
in the extreme, Chuck gets to keep the taxes which he would otherwise pay as Bob the
employee, as well as gaining the potential for scooping up some of the same Uncle Sugar gravy
to which Andy is entitled. We also noted that the Al-The-Welder-Plus-Alicia-The-Wicked-HotHairstylist combo pack, whose combined income resembles Bob's, can also participate in the
fun.
I have to again give a disclaimer. What I am about to describe to you is legal to the best of my
knowledge and understanding. However, I am not a tax or law professional and you shouldn't
take anything out of this article other than pure entertainment. I must also repeat an essential
point from the first article in this series: 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. To thrive in this system and not be perpetually frustrated, or worse, you must accept
the premise that our system is not fundamentally noble, but was specifically designed to feed a
class of certain very wealthy people.
In this part, we'll discuss some of the details which confound or escape the unwary tax slave.

There is much more to learn, but my goal here is to tease some of the more subtle aspects of
the tax code from hiding.
For those of you delighted by my normal vitriol, this part, like the previous, will seem a little
dry. It is difficult to stir men's souls, for good or ill, with deductions and depreciation, income
and expenses. But, in our pre-collapse state it is necessary to understand these things in order
to thrive, or even stay afloat, even though these concepts will have no context soon enough,
nor should they. Our purpose here then is twofold: to hasten the collapse as well as husband
our current resources more effectively so that we are better prepared when that inevitable day
arrives. Tend this information with as much loving care as you tend your physical provisions,
and you'll find yourself sitting on more beans and bullets when you need them.
So, let's jump right in. Again, counter me with substantive assertions. Quibbles about the
nuances are easily swatted aside in that I must, of necessity, keep things simplified and concise.
First, let's discuss the need for full incorporation a little more. When I say full incorporation,
what I mean is forming a C-corporation, versus the seemingly more simple administration
required of an S-corporation. The distinction between these two is only in the eye of the federal
reserve collection service known as the IRS; the amount of effort required to create a
corporation of any kind is dependent on your state, and these usually make no distinction.
To the IRS, the distinction is that an S-corporation reports its dealings as additional schedules
filed with the individual 1040s of all shareholders, while a C-corporation files completely
separate tax returns. This is an essential point: you will collect the same information in either
case, but the IRS, and potential jurists, will see totally separate sets of data between you and
your company. Filing as a C-corporation will establish you as a noble and worthy trustee of The
Realm, while filing as an S-corporation gives you the image, rightly, of a wannabe trying to "get
away with it." Filing your 1040 as WannabeChuck having $100,000 in gross income, but with
$70,000 in immediately suspect deductions, paints one picture. Filing as poor old broken-down
SlaveChuck, who only got $30,000 after that mean old ChuckInc took $70,000 of his labor,
paints another. Get the picture? Now imagine which picture you want to paint to a dozen slackjawed drool-caked public-school-educated jurists.
LLCs, partnerships, sole proprietorships (and other variants of these depending on your
administrative jurisdiction we laughingly call states), suffer the same defect. Others imagine
that individuals are entitled to the same deductions as small corporations. Yet, attempting to
do so is not only a flag for an audit, it is also a flag that you are clinging to the fantasy that our
system is fundamentally noble and just, if a bit temporarily misguided. As an individual subject

of The Realm, you are considered as nothing more than someone's employee, not a business.
As a subject (slave or serf, take your pick) of The Realm, deductions for your maintenance are
the rightful property of your titleholder (employer), not you.
Creating a corporation is easier and cheaper than ever before. In the past, one went to an
attorney, plunked down $500 or so, and they then gave you a book of all your essential papers,
including the S-corporation election they often automatically filed with the IRS without even
asking you. Now, in the Internet age, all one needs to do is visit the corporations section of your
state's department of state website. I offer some tips on this here. I'll add to those tips as
questions roll in or as the landscape changes. The entire process can usually be done online, the
bulk in a single evening. Most states have made it easy, particularly because they want you to
cough up the cash they desperately need right now (but thanks to these articles, more of which
they won't be getting from you).
Now, every two weeks, each month, each quarter and each year you will have to file certain tax
forms to prove that you are a slave-owner rather than a slave trying to squeak by. To
successfully navigate these administrative waters, the first thing you need to understand is the
most important tool of a taxater: the spreadsheet. In fact, the first ever personal computer
spreadsheet, something called VisiCalc, was invented specifically for organizing financial
information, including taxes.
If you've read Starving the Monkeys, you know how important it is to understand math, science
and technology, in addition to the physical skills such as marksmanship. If you are not a
technology buff, but want to taxate yourself, you will at least need to understand how to use
spreadsheets. This does not mean, however, that you need to plunk down big bucks for a
shrink-wrapped Microsoft Office. These days, spreadsheets are free as part of the Google
Documents feature, but I wouldn't use that. Instead, check out OpenOffice, which is a free
open-source business documents package that works on both PCs and Macs.
You have to be absolutely meticulous in your record-keeping. There are too many checks and
balances built into the tax system to even think about cheating. I've also said that if it hits a
bank, including a check from someone else's account, it happened, so don't even think about
pretending that it didn't. The truth of that statement is revealed by understanding what "bonds
backed by the full faith and credit of the United States" means. If you don't understand, read
"Bonds? What Bonds?", and then convince yourself that the largest bond holders, and
consequently sinks for your tax dollars, are (drum roll) institutional investors such as banks.
Why some people continue to think that those who own this country would help you hide, or
not actively reveal, potentially taxable income is beyond me.

More fun is to leave a few Easter Eggs in place in the form of "overlooked" deductions you
might have taken had you noticed at the time. If I ever get audited as a means of shutting me
up, I'm walking away with a check, or else those monkey attorneys and judges will have to
explain why the monkey tax rules don't matter to those monkey juries. I've been audited
before, and each time I got paid. Not much, but enough to make it too risky for their numbers
to try again. They say they don't work on a collections quota, but my experience says otherwise.
Trust me, helping to destroy monkeydom like this is way too damned much fun.
Anywho, to catch the cheats or the simply unwary, all of those forms filed with various entities
are cross-linked in such a way as to require consistency everywhere, and to flag for audit when
they are not consistent. The flip side of all this is that honest math errors are indistinguishable
from attempting to cheat on your taxes (read as "attempting to withhold bankster gravy").
The flip flip side of all this is that it doesn't matter so much what the numbers are, but that
these are everywhere consistent. Read that last sentence out loud three times and consider
deeply the implications therein.
You must learn to use a spreadsheet well. A good choice is OpenOffice, which is a free, opensource package that includes spreadsheet, word-processor, presentation, database, and
drawing tools.
In my case, on top of the basic office tools, I have world-class business software written by the
only person I trust to do this. I can tell you at a moment's notice who owes me what and for
how long, what I've sold and when, what I've bought and when, where every papered penny is,
and can retrace every step in my financial history since I learned to walk this walk. I have the
financial and taxational equivalent of an airliner's autopilot, and can fly this machine at night in
a blinding economic snowstorm and not miss a single runway. It slices, it dices, it tells me what
to put where on every form. Good luck finding anything amiss, because there isn't anything
amiss. The data says so.
Fortunately, you don't need this level of sophistication, nor do you need off-the-shelf business
software packages which charge you to not do what you really need it to do. Just as a simple
scoped bolt-action hunting rifle, in the right hands and at the right time and place, can drill
through the most sophisticated defenses, in the right hands a simple spreadsheet will do the
trick.

The first step is to mirror each and every bank transaction on your spreadsheet. Maintain a
separate spreadsheet for each bank account your company has, and for each credit card
account your company has. Each line of your spreadsheet contains the date, an optional
reference number (such as a check number), a payor/payee column, an expense column, an
income column, a net balance column and a remarks column. When you reimburse for personal
expenses, such as the personal check you wrote to pay your business license fee before your
company had checks, you will have a separate spreadsheet for these items. And, you will
maintain another set of spreadsheets, consistent with all the others, which contain all the
elements of your payroll and employer taxes.
At the end of each day, or certainly no longer than once a week, make sure that all your
expenses and receipts have been caught up in your spreadsheets. Do not let this get behind.
You do not want to be sitting in a pile of receipts at year's (or month's or quarter's) end.
Instead, you want to spend an afternoon sorting data and laughing while filling out forms.
Eventually you'll understand the flow and know what you are doing, but it will take some brain
pain to start (as all worthwhile things do). I'll post some examples on Starving the Monkeys at
some point to get you started, but in the meantime you can get the incorporation ball rolling.
Your biggest challenge is likely to be payroll. Now, you can hire payroll service monkeys to do
this for you, but that kind of misses the point of being in control of the data. And if they make a
mistake, you are still liable, not them. Each payroll event will be a hassle to start, but you can
limit the pain by paying yourself only once per month, or better, once per quarter.
Each payroll event will involve the following elements. First is your gross pay, or the pre-tax
amount. Try to keep this amount consistent from month to month or quarter to quarter, as you
can then just reuse all the amounts from the last time. Next, you have to subtract the federal
reserve withholding, social security tax, medicare tax and state income tax withholding. The net
of all this is the check you write to yourself. Also, your company has to set aside four additional
amounts: a matching social security tax amount, a matching medicare tax amount and a pair of
state and federal reserve unemployment taxes. The percentages for all these are welldocumented and available online from the respective agencies.
Once a month (or a quarter or every two weeks in periods in which you pay yourself, as
directed), you will then have to divvy up all these withholdings and write checks in the
appropriate amounts to the indicated tax collectors, as well as fill out forms accordingly. And
then update your checking account spreadsheet with this information. It is at this step that
most small businesses get into big trouble; they simply lose track of all the numbers. Yet some
simple note-taking and spreadsheet preparation can save all the headache, so that your forms

simply contain numbers from your spreadsheet, or sums at the bottoms of the rows. Also get a
calendar and mark important tax events on it; these are also well-documented.
The federal reserve collectors have taken to requiring online filing for their cuts, which is
actually a step forward. This system is called EFTPS, for Electronic Federal Tax Payment System.
You'll create a login using your corporate EIN and then use that forever. You'll also create a
login for similar payments to the federal reserve branch known as social security. This latter
login is also what you'll use to easily generate W-2s at year's end. It's getting easier and easier
to own slaves in some ways.
Now let's discuss some basic terms you need to understand. The first of these is depreciation.
When you buy some piece of equipment (or a building or a truck or so on) to use in your
business, it rots on the hoof from year to year. This ongoing rot is called depreciation, and can
be deducted as a business expense. The rate of rot is determined based on the class of the item
in question, and the depreciation tables are well-documented in the tax instructions. There is
also a special kind of all-at-once rot known as a Section 179 expense. When companies talk
about "expensing" a piece of equipment, this is what they mean, rotting its value away all at
once.
The paper rotting starts on the day you buy the thing, and continues until you sell it. If you buy
a truck for $10,000, and it has depreciated by $4,000, you have been able to deduct that $4,000
as an expense from your income. Now, if you sell the truck for $9,000, you have to pay back
some of the deducted rot as a capital gain. The "cost-basis" for the truck is $10,000 - $4,000 =
$6,000. Since you sold it for $9,000, you have a capital gain of $3,000, even though you actually
lost $1,000. This technique, by the way, helps you steer expenses into high income years, and
steer gains into low-income years.
We'll get back to this in a moment. Now recall that passive income is king. The Ruling Classes
don't work for a living, they broker the efforts of those who do work. As a result, the tax code
rewards passive income; for one thing it isn't subject to social security and medicare taxes,
which adds up to over fifteen percent overall once the employer's side is paid. One form of
passive income is interest, another form is rent or leases. Sitting on a big capital loss from your
rental house that will take a lifetime (or more) to chew away at $3,000 a year? Then you'll love
this next part.
When you created your corporation, you also created a customer for your personal leasing
business. One possibility is to buy some thing that your business needs, then lease it to the
company at whatever reasonable rate you decide. You get to deduct the annual depreciation

from your rotting thing right off of your lease income, which, as passive income, is free of social
security and medicare taxes in the first place. Die, pension monkey, die. Then, when you sell
that thing, you have to report the capital gain (as in the truck example above), but that capital
gain is more than offset by that big paper loss you're already sitting on. Die, tax monkey, die.
Same useful thing. Same net money moving from the company into your pocket. But no taxes
whatsoever. All because you structured it right as passive income, and had your corporation to
help. Yet, you still qualify for the Andy gravy to boot. Thank you, Uncle Sugar, see you next year.
Of course, you still took the loss on that house, but it stings a lot less now, doesn't it? Die, bank
monkey, die. So get out of that subdivision before it all goes to hell. And die, HOA micro-tyrant,
die.
I'll post more tips as we go at Starving the Monkeys. There's just too much good stuff to cram
into even a long article series. But there's time for one last important detail. Since BigCo enjoys
its slaves, why would it want to pay ChuckInc instead? In other words, how can you get your
boss to pay your company instead of you? That is really the essential nugget, of course.
The first step is to be world-class hot at what you do. See Starving the Monkeys for the mindset
this requires. It may not be possible to be the best welder in the world, but you can be the best
welder anyone in your world knows. Or you can create the most wicked-hot hair in town, or
whatever. If you aren't the best at what you do, fix that first, or find something else to do at
which you can be the best.
Armed with that status, and knowledge of the suit monkey mind, you are ready to make the
sale. If there is anything that the suit monkey loves more than adoring slaves who cater to his
whim, it is getting someone really good to work cheap. So consider Bob's employer-side costs.
Bob makes $100,000, but it costs BigCo an additional nearly $8000 in employer social security
and medicare contributions (which ChuckInc also has to pay if it paid SlaveChuck $100,000,
which it won't). Add to that a raft of practically useless benefits, including vacation time, etc.,
and the employer contribution can be in the 30% to 40% range. Bob actually costs the company
about $130,000 to $140,000, and firing him can take a lot of work if he goes sour just before
losing all of his gruntle. ChuckInc can split the difference and provide a smiling SlaveChuck for
$120,000. ChuckInc then pays for low-cost high-deductible health insurance with the
remainder, along with the employer's portion of social security and medicare taxes on the
smaller amount which does trickle through. And if SlaveChuck does get sick, fortunately he
works for a company that provides full reimbursement coverage (pre-tax of course) for out-ofpocket expenses.

Even if your boss isn't a suit monkey, but rather an actual human being, that math is still
appealing. And, he can boot you at a whim, but won't want to because you are world-class hot,
remember? Plus, for a small business, there is another bonus. Remember all that payroll math?
Small businesses love the idea of just writing a check for something. Posed the right way, an
invoice for hours worked is a lot simpler and easier to manage than all the tiddly bits required
by having an employee.
And this is the key reason why you need a C-corporation. As an individual, you can't readily
perform work without being an employee because of something known as a 1099 (pronounced
"ten ninety-nine" if you want to sound in-the-know). If you try to work as an individual
contractor, you are classified as a 1099 contractor, which means that your boss is on the hook
for all of your payroll taxes if you fail to file your share as self-employment income (even if you
later pay them). The risk is just too great; most businesses won't even consider contracting an
individual as a result.
Having your own corporation completely shields your customers from this 1099 risk. Make sure
you use the magic phrase, "This isn't a 1099 situation. I'm an employee of ChuckInc, which is a
corporation. You are not at risk." This may not close the sale, but approaching this situation as
an individual takes it completely off the table because of this one issue alone. So with your own
corporation, you have a negotiating advantage in a totally separate class from all of those
whiners too lazy to incorporate, on top of your world-class skill.
I wish I had more room, but we're way over as it is. Just make sure you understand all the rules,
and follow each of them. Then figure out how, like a judo master, to redirect all that energy in
directions you want it to go.
Don't be afraid to take the plunge. Once you start working this way, you'll begin to see
opportunities for destruction everywhere. Everything you want is a potential business expense,
everyone you want to see is a prospect, every event with like minds is a prospecting
opportunity, and every source of oppressing energy can be harnessed to destroy our enemies.
Along the way you'll encounter many monkeys, fearful of your role in their looming destruction
but unable to articulate it, who start each sentence with "He's just trying to sell ..." Of course
you are. Because you can, and because it benefits you as both a slave and a slave trader. These
monkeys created this system to enslave us; let's grind it, and them, into oblivion together.

Becoming Fully Taxated

Incorporation Tips
If you are interested in true personal liberty, you have to put serious
effort into casting off your employment chains if at all possible. Our
economy has been deliberately engineered to keep most people one
job (meaning one bad review, or thoughtcrime) away from financial
destruction. So, in our system, casting off the employment chain is
difficult by design. I understand that. If you can't cast those chains off
because you are just scraping by, then try to educate yourself and
look for opportunities to improve your situation as best you can when
you can create those opportunities. But if you are sitting in a cubicle
just because you don't want to give up some nice little crumb of enslaving luxury, then you
need to re-evaluate your priorities (and stop bitching about liberty).
The material in this article series is intended to help move you closer to economic
independence. This originally started as some strategies, called becoming "Fully Taxated",
which describe how to use the same legal means that fat cats use to force most of the tax
burden onto the proles.
Part of that strategy is to become incorporated. While writing the Fully Taxated article series, it
became obvious that many people wanting to incorporate don't even know where to start. I
must, as usual, give a disclaimer. What I am about to describe to you is legal to the best of my
knowledge and understanding. However, I am not a tax or law professional and you shouldn't
take anything out of this article other than pure entertainment. I must also repeat an essential
point from the first article in that series: 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. To thrive in this system and not be perpetually frustrated, or worse, you must accept
the premise that our system is not fundamentally noble, but was specifically designed to feed a
class of certain very wealthy people. Refuse to accept this fact, and I can't help you.
In my "normal" consulting work, I make more money using all of these resources I talk about
(including two-thirds of "Starving the Monkeys") than I would if I just did the equivalent work as
an employee. But I would be willing to make less, if I had to, to enjoy the freedom of not being
chained to the whims and dictates of an HR department. Hit me up in person sometime and I'll
explain the deeper implications of this, including freedom of action that I enjoy. This freedom of
action includes the freedom to get arrested in support of a cause I value. Can you honestly say
that you could spend a month (or more) in jail, or fighting prosecution a couple of days a week,
and not have your employment slave career crippled by that? I can.

Or, can you just simply be somewhere other than where you are "supposed" to be, for an
extended period, at any time (hint, hint)? I can. Then are you as free as I am? Are you as free,
by your own choice, as you could otherwise be? More importantly, are you, as a wage slave or
even as a cash-only earner (and thus limited in opportunity) as potentially effective in this fight
as someone who can be anywhere at anytime but still projects a legitimate footprint?
If not, then read and learn. Self-sufficiency includes effective use of the system around you as it
exists today.
Now, let's discuss the need for full incorporation a little more. When I say full incorporation,
what I mean is forming a C-corporation, versus the seemingly more simple administration
required of an S-corporation. The distinction between these two is only in the eye of the federal
reserve collection service known as the IRS; the amount of effort required to create a
corporation of any kind is dependent on your state, and these usually make no distinction.
To the IRS, the distinction is that an S-corporation reports its dealings as additional schedules
filed with the individual 1040s of all shareholders, while a C-corporation files completely
separate tax returns. This is an essential point: you will collect the same information in either
case, but the IRS, and potential jurists, will see totally separate sets of data between you and
your company. Filing as a C-corporation will establish you as a noble and worthy trustee of The
Realm, while filing as an S-corporation gives you the image, rightly, of a wannabe trying to "get
away with it." Filing your 1040 as WannabeChuck having $100,000 in gross income, but with
$70,000 in immediately suspect deductions, paints one picture. Filing as poor old broken-down
SlaveChuck, who only got $30,000 after that mean old ChuckInc took $70,000 of his labor,
paints another. Get the picture? Now imagine which picture you want to paint to a dozen
jurists.
LLCs, partnerships, sole proprietorships (and other variants of these depending on your
administrative jurisdiction we laughingly call states), suffer the same defect. Others imagine
that individuals are entitled to the same deductions as small corporations. Yet, attempting to
do so is not only a flag for an audit, it is also a flag that you are clinging to the fantasy that our
system is fundamentally noble and just, if a bit temporarily misguided. As an individual subject
of The Realm, you are considered as nothing more than someone's employee, not a business.
As a subject (slave or serf, take your pick) of The Realm, deductions for your maintenance are
the rightful property of your titleholder (employer), not you.
Creating a corporation is easier and cheaper than ever before. In the past, one went to an
attorney, plunked down $500 or so, and they then gave you a book of all your essential papers,

including the S-corporation election they often automatically filed with the IRS without even
asking you. Now, in the Internet age, all one needs to do is visit the corporations section of your
state's department of state website. The entire process can usually be done online, in a single
evening, and with a slightly bruised credit card to the tune of $100 or so. Most states have
made it easy, particularly because they want you to cough up the cash they desperately need
right now (but thanks to these articles, more of which they won't be getting from you).
The first step will be to file a name reservation, which simply makes sure that you aren't using a
name already taken in that state. Selection of a name is important, and I've made all the
mistakes already, so pay attention. Picking a name that is too general runs the risk that a
similarly-sounding previous company has the reputation for ripping a lot of people off. You
don't really need all those misdirected collection calls. Picking a name that is too specific boxes
in assumptions about your business activities. Picking a company name particularly involving
your own name too closely associates your company with you personally.
Also avoid using the word "Services" or similar words which would imply the classification of a
"personal services company". Recall that earlier in this series we discussed the idea that
providers of original value get taxed more heavily than those who broker that value. You may
be starting off as providing services, but you will eventually diversify into any number of areas.
Also don't use the word "Engineering", or similar terms, which would imply the necessity of
licenses which you may not hold. Pick something unusual, but deliberately vague and
anonymous. Depending on your state, it may also have to have one of the words "Inc.",
"Incorporated", "Corp." or "Corporation" in it. The website where you file will let you know
whether this is the case.
You will also need to establish the Incorporator, who is a person who files for incorporation.
This person traditionally was your attorney, but can be you or whomever you wish. You will also
be asked for a physical address for the company (important later when applying for a business
license, as we'll see). Usually, P.O. boxes aren't acceptable for this purpose.
You will be asked to provide names and titles for the corporation's officers. Each state has a
mandatory set of officers which you must have, but usually all of them can be the same person.
A corporate Secretary, for example, is responsible for all the minutes and such (in a role like
that of a club secretary rather than that of the boss' hot personal secretary). The head of the
corporation will usually be the Chief Executive Officer, while the President may or may not be a
different required title. At this point these are just your name on a form.
Also required will be the number of shares your corporation is authorized to issue. Don't go

wild and pick something like 10,000,000. You aren't going to be selling shares to anyone
anyway. Pick something more reasonable, such as 1,000 or 10,000. Many states tax your
company on the number of authorized shares, so do some research and pick a small but useful
number. A few thousand will probably be plenty, ten is probably not enough.
With all this information, the secretary of state's website will automatically generate a
document known as your "Articles of Incorporation". This usually single-page document is your
company's birth certificate, hang on to it. Additional documents will probably also be
generated, but in any case a list of required documents to consummate the incorporation will
usually be listed on the website.
The next step after incorporating is to hop over to the IRS website and file for an Employer
Identification Number (EIN). This is effectively the same as an SSN for your company, but in the
format XX-YYYYYYY rather than the SSN format EAT-MY-SHHH. More importantly, an EIN is your
license to own slaves (such as yourself) and to take deductions for their care and feeding. You
will, of course, feed them (especially yourself) preciously little.
Then, go back to the state website, but this time to the Department of Revenue or the like and
file for a state tax ID. This is the state's equivalent of an EIN. Also visit the Department of Labor
and file for an unemployment number, which you will use to file unemployment reports which
qualify you for an unemployment tax (ridiculously minor compared to what you are going to
save in the big taxes). Some states will simply use the state tax ID for this purpose. Then, go
back to the Department of Revenue's site and apply for a sales tax number. You will use this to
file your sales tax returns, but this number also entitles your company to buy some items free
of sales tax.
Keep track of these expenses and print the receipts for amounts incurred so far. You will later
get a tax-free reimbursement from the company for these amounts, which become your
company's first pre-tax expenses. These so-called startup costs are handled differently from
normal expenses tax-wise, though. The rest of the expenses which follow will be treated as
more normal expenses.
If you're feeling fancy, go online and order a reasonable corporate kit specific to your state. Get
one with a few pre-printed share certificates, one of those squishy seal thingies and a starter kit
of corporate minutes and a log for your issued certificates. Each year you will have to have a
meeting of your officers and shareholders, keep your minutes accordingly. These kits are handy
for holding all of that stuff, and usually have a nice box it all fits in. The convenience is worth
the $50 or $100 you'll pay for this.

Once all these steps have been taken, use a few shares and fund your company with a personal
check made out to the company. Sell yourself ten or a hundred shares for a thousand dollars,
for example, and annotate this on the For line. If you need more startup cash later, you can
always sell yourself more shares. When your corporate kit arrives, catch this transaction up to
date.
The next morning after incorporating, visit your county clerk's office and ask them to direct you
to wherever you need to file for a business license. Surfing this system is an entire article all by
itself. The most essential detail is that if you live in a subdivision, move. If you live in a county
that imagines itself a branch of the feds by virtue of contorted and needlessly restrictive
licensing requirements, move. If you can't move because the bankers stole all your equity and
then some when declaring economic war on all of us a couple of years back, then figure out
how to. This is a problem you must solve lest ye starve with the minions when it all goes to hell.
I took a half-million dollar bite to do it, you can, too. And you must. And then apply for the most
general business license you can. Do a little web research for your county first, to find out
things like rules for home-based businesses, and then act accordingly.
On the way back from your trip to the county clerk, visit your local bank and open an account
with your articles of incorporation using the check with which you bought your initial shares.
They will ask you to fill out a pre-printed form called a "corporate resolution", in which you, as
an officer of the corporation, resolve to open an account. It will also ask for your seal, which is
usually just your signature followed by the word "President", or whatever. Find out what
balances are required to avoid fees, and if necessary and practical, sell yourself more shares to
hit this limit and then some. A little shopping around ahead of time will help a lot. Don't be
surprised if banks hit your company with more fees than you would as an individual. I think they
can smell what you're up to, and are trying to punish you for it.
You will want to open the simplest, cheapest checking account you can, and order checks from
the cheap end, including just the little reserve-note sized checks. In this economy, no one
should be worried about fancy logos on your giant multi-part lottery-winner business checks. I
don't, all I care about is whether checks I get from others are any good.
After following the steps above, your corporation is established, you have your federal reserve
Employer Identification Number (EIN) and are ready to do business. Once a year, more or less
on the anniversary of incorporation, you will have to hold a quick officer's and shareholder's
meeting. Be sure to keep track of the expenses required for this mandatory meeting and deduct
accordingly. Pick an appropriate venue.

Next, visit the Fully Taxated article series, and find out how to use this new company to start
starving the monkeys.
(note: figures in the following sections are for the 2010 tax year, updates coming soon)

Important Obamacare Update!

An important provision of Obamacare is the requirement that even smallish companies (more
than 30 employees) have to jump through regulatory hoops regarding provision and reporting
of healthcare benefits. This is yet another deliberate effort to cripple small companies in favor
of larger companies that can more easily amortize these costs over a larger employee base. The
same system and processes that would be prohibitively expensive for small companies, costs
only a few dollars per head for a GE to implement.
So, what does this mean to you? Plenty. If you work for a company that has, say, 40 to 50
employees, expect a permanent down-sizing post-haste to get under that threshold. Or, expect
larger companies to fragment into smaller subsidiaries which themselves then down-size. Or, if
you work for a company that is under the limit, expect growth to be severely curtailed. News
flash, that is a lot of companies, and a lot of jobs, quite possibly even yours. As always, expect
this threshold to move incrementally downward over time to "capture" as many people in this
net as possible.
An important side effect of this will be that many companies will be much more open to the
idea of hiring contractors who have their own corporations. Make sure that this pool of
qualified contractors includes you by using this material to your advantage.
Additional sections chock-full of practical tips coming soon!