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A convention of the League of Prizren, meeting in Diber, votes to demand autonomy within the Ottoman Empire. The League formed on June 10, 1878, along with defense committees responding to the Berlin Congress, which had divided the Albanian population among different countries. The demands include the creation of an administrative unit encompassing all Albanian areas, with a centrally located capital, local administrators and Albanian as the language of government, the use of local taxes for local needs, the creation of schools, and the creation of an elected legislature. These demands will later be approved by an assembly in the city of Gjirokastra on July 23, 1880. [Kola, 2003, pp. 9]

Entity Tags: Ottoman Empire, Berlin Congress of 1878, League of Prizren

Timeline Tags: Kosovar Albanian Struggle

1912: Ottomans Accept Albanian Autonomy

A series of Albanian revolts between 1908 and 1912 ends when the Ottoman government accepts the Albanians’ 14 demands for autonomy. Albanian Ottoman legislator Hasan Prishtina leads the autonomy movement. The Albanian leadership, especially in northern Albania and Kosova, earlier supported the Young Turk movement, but this resulted in less autonomy, more taxes, and continuing military conscription, so Albanians revolted. Neighboring Slavic governments see the Ottoman concession as a sign of weakness, and subsequently invade the Ottoman Empire. [Kola, 2003, pp. 10-11]

Entity Tags: Hasan Prishtina, Young Turks, Ottoman Empire

Timeline Tags: Kosovar Albanian Struggle

Testifying to Congress on his opposition to raising taxes on the wealthy, millionaire financier J. P. Morgan Jr. says: “If you destroy the leisure class, you destroy civilization. The leisure class can be defined by people who can afford to hire a maid.” [Hunt, 9/1/2009, pp. 4]

Entity Tags: J. P. Morgan, Jr.

Timeline Tags: Global Economic Crises

Arthur Porth, a Wichita, Kansas, building contractor, files a claim in a Kansas court to recover his income tax payment of $151. Porth argues that the 16th Amendment is unconstitutional because it places the taxpayer in a position of involuntary servitude contrary to the 13th Amendment. The court rules against Porth, but the defeat does not stop him. For 16 years Porth continues battling the income tax requirement, finding new and inventive challenges to the practice. He claims that the 16th Amendment “put[s] Americans into economic bondage to the international bankers,” a claim that the Southern Poverty Law Center will call “a thinly veiled anti-Semitic reference to the supposed ‘international Jewish banking conspiracy.’” He also argues that because paper money is not backed by gold or silver, taxpayers are not obligated to pay their taxes because “Federal Reserve notes are not dollars.” In 1961, Porth files an income tax return that is blank except for a statement declaring that he is pleading the Fifth Amendment, essentially claiming that filling out a tax return violates his right of protection from self-incrimination, a scheme that quickly becomes popular among anti-tax protesters. Porth becomes an activist and garners something of a following among right-wing audiences, traveling around the country distributing tax protest literature that includes a book, A Manual for Those Who Think That They Must Pay an Income Tax. He even issues his own “arrest warrants” against “bureaucrats” whom, in his view, violate the Constitution. In 1967, Porth is convicted of a number of tax evasion charges, but, as the Anti-Defamation League will later write, “he had already become a grass-roots hero to the nascent tax protest movement.” His cause is championed by, among others, William Potter Gale, who will go on to found the racist, anti-government Posse Comitatus movement (see 1969). Gale uses the newsletter of his Ministry of Christ Church, a church espousing the racist and anti-Semitic theology of Christian Identity (see 1960s and After), to promote Porth and the early tax rebellion movement. Porth exhausts his appeals and goes to jail; though sentenced to five years’ imprisonment, he only serves 77 days. One of Porth’s most active followers is his lawyer, Jerome Daly, whose activism eventually leads to his disbarment (see December 9, 1968 and After). Daly meets Porth in 1965 and files his own “protest” tax return just days before Porth is indicted by a grand jury. Daly is also convicted of tax evasion; in 1969, a federal appeals court will issue a ruling invalidating what has by then become known as the “Porth-Daly Fifth Amendment Return.” Porth receives the support of several far-right organizations, many of whom tie their racist views into his anti-tax protests. In a 1967 article for the far-right American Mercury magazine, tax protester and editor Martin A. Larson writes, “The negroes in the United States are increasing at a rate at least twice as great as the rest of the population,” and warns that the tax burden posed by blacks “unquestionably doomed… the American way of life.” Larson will later write regular columns for the white supremacist magazine The Spotlight, in which he will call black women prostitutes whose “offspring run wild in the streets, free to forage their food in garbage cans, and grow up to become permanent reliefers, criminals, rioters, looters, and, in turn, breeders of huge litters of additional human beings belonging to the same category.” He will also write several books promoting Porth’s anti-tax protest strategies. [Southern Poverty Law Center, 12/2001; Anti-Defamation League, 2011]

Entity Tags: William Potter Gale, Arthur Porth, Jerome Daly, Martin A. Larson, Southern Poverty Law Center, US Federal Reserve

Timeline Tags: Domestic Propaganda, US Domestic Terrorism

Tax protester Ardie McBrearty founds the United States Taxpayers Union (USTU), an organization dedicated to abolishing the 16th Amendment (see 1951-1967 and 1970-1972), and also the Occupational Safety and Health Act (OSHA), consumer protection statutes, gun control laws, and other “unconstitutional” legislation. McBrearty, an avowed Christian Identity follower (see 1960s and After), will abandon tax protest in favor of armed white supremacist militancy, joining The Order (see Late September 1983 and August 1984 and After). He will eventually earn 40 years in prison for his role in The Order’s violent actions. [Southern Poverty Law Center, 12/2001] In a 1982 lawsuit, McBrearty will argue that a 1977 agreement with UTSU mandated that the group should pay “all necessary personal and family obligations of said individual [and] all costs incurred in the defense of a client member.” McBrearty will be convicted for tax law violations in 1979 and will sue the UTSU shortly thereafter. The courts will dismiss the lawsuit because such an agreement “contravene[s] public policy and [i]s therefore unenforceable.” [OpenJurist, 1/18/1982] It is unclear whether McBrearty’s loss of the lawsuit triggers his desire to join a more actively violent organization, such as The Order.

Entity Tags: The Order, Ardie McBrearty, United States Taxpayers Union

Timeline Tags: US Domestic Terrorism

Financial and insurance consultant Irwin Schiff uses the anti-tax arguments of Arthur Porth (see 1951-1967) and Marvin Cooley (see 1970-1972) to bring the anti-tax protest message to a much more mainstream audience than Porth, whose appeal was largely confined to right-wing and racist audiences. Schiff, who bills himself as “America’s leading untax expert,” will appear on national television for more than 25 years before eventually going to jail for tax evasion. His biggest impact comes with his 1976 book, The Biggest Con: How the Government is Fleecing You. His second book, published six years later, is called How Anyone Can Stop Paying Income Taxes. The Biggest Con earns him $135,000 in royalties over the two years that follow its publication, and $85,000 in royalties for the decade following. In 1978, Schiff is charged for failing to file tax returns, and eventually convicted; he will be convicted of similar charges in 1985 and again in 2005. He tells one judge: “I only received federal reserve units, not dollars. I received no lawful money upon which a tax can be collected.” The US government says Schiff owes over $2.6 million in back taxes, interest, and penalties. [Southern Poverty Law Center, 12/2001; Tax Protester Dossiers, 10/23/2010] In 1996, Schiff will be a candidate for the Libertarian Party’s nomination for president. [C-SPAN, 7/5/1996]

Entity Tags: Libertarian Party, Arthur Porth, Irwin Schiff, Marvin Cooley

Timeline Tags: Domestic Propaganda, US Domestic Terrorism

William Pierce, the founder of the neo-Nazi National Alliance (see 1970-1974) and the author of the inflammatory and highly influential white supremacist novel The Turner Diaries (see 1978), begins holding weekly meetings of the Cosmotheist Community Church (CCC), a religion of his own creation that promotes white supremacy. Pierce, who was turned down by the IRS in his 1977 attempts to persuade it to classify the Alliance as a tax-exempt “educational” organization, will succeed in getting the IRS to classify the CCC as a religious tax-exempt organization in 1983, though that status will be largely revoked in 1986. [Center for New Community, 8/2002 pdf file]

Entity Tags: Cosmotheist Community Church, Internal Revenue Service, William Luther Pierce, National Alliance

Timeline Tags: US Domestic Terrorism

A portion of the cover of ‘Mirache on Main Street.’A portion of the cover of ‘Mirache on Main Street.’ [Source: Book Covers (.com)]Nashville musician Frederick “Tupper” Saussy III, who makes a living writing advertising jingles, writes a popular anti-tax protest book, Miracle on Main Street. Along with claiming that taxation is illegal (see 1951-1967, 1970-1972, and 1976-1978), Saussy concocts a fraudulent kind of “checkbook” money he calls “Public Office Money Certificates,” and says tax protesters can use them to pay their debts. The “certificates,” he claims, are “redeemable in dollars of the money of account of the United States upon an official determination of the substance of the money of account.” The idea will be copied by Posse Comitatus protesters (see 1969) and, later, by the Montana Freemen (see 1993-1994). In 1985, Saussy will be convicted of tax evasion and will become a federal fugitive. [Southern Poverty Law Center, 12/2001]

Entity Tags: Frederick (“Tupper”) Saussy III, Posse Comitatus, Montana Freemen

Timeline Tags: US Domestic Terrorism

The Clark ranch.The Clark ranch. [Source: Billings Gazette]The Clark family of Jordan, Montana, led by Ralph Clark and including his brother Emmett, Emmett’s wife Rosie, Ralph’s son Edwin, his nephew Richard, his grandson Casey, and Richard’s wife Kay, begin exhibiting radical anti-government views. The Clarks, who work a 960-acre wheat farm, are not averse to accepting over $700,000 in government assistance, but due to poor planning and overextensions due to land and machinery purchases, they find themselves deeply in debt. In 1981, they stop paying their federal farm loans. By 1995, they owe $1.8 million in missed payments. By that time, the Clarks have begun listening to the tax-resister, anti-government rhetoric of the “Montana Freemen” in Roundup, Montana, some 150 miles away (see 1983-1995 and 1993-1994). Alven Clark, Ralph and Emmett’s brother who refuses to join them in their increasingly extremist views, will later say: “This thing just kept building every time I talked to them. They just listened to these prophets.” After their farm is foreclosed and sold at a sheriff’s auction for $493,000, the Clarks take a central part in one of the Freemen’s first major assaults on the local judiciary (see January 1994). [Mark Pitcavage, 5/6/1996] In 1996, Ralph Clark’s grand-nephew Dean Clark will say: “My grandfather worked hard all his life, but his brother is another story. Ralph Clark has always been into one get-rich-quick scheme after the next. But he hasn’t done any real work. He hasn’t done a damn thing for the past 15 years but drink coffee, smoke cigarettes, and look out the window and daydream.” [New York Times, 6/10/1996]

Entity Tags: Ralph Clark, Dean Clark, Casey Clark, Alven Clark, Edwin Clark, Montana Freemen, Emmett Clark, Rosie Clark, Kay Clark, Richard Clark

Timeline Tags: US Domestic Terrorism

An undated photo of LeRoy Schweitzer.An undated photo of LeRoy Schweitzer. [Source: WorldNews]LeRoy Schweitzer, a crop duster in Montana and Idaho, becomes increasingly frustrated and resentful at what he considers interference by the government. Beginning in the mid-1980s, Schweitzer moves toward becoming an anti-government tax resister. He becomes fascinated by the legal ideology of the Posse Comitatus (see 1969), attends numerous Posse meetings, and has some contacts with members of The Order (see Late September 1983). Schweitzer, well-liked by his neighbors and friends, begins to worry them with his increasing extremism. He helps a friend, Bernard Kuennan, mount a legal defense against charges of letting his dog roam unvaccinated, and the two hammer the judge with questions about the differences between “admiralty” and “common law” (see Fall 2010). He defies police officers who stop him for traffic violations. He moves to Montana, where he refuses to get a license to fly his Cessna crop duster, resulting in federal arrest warrants. His refusal to pay federal taxes causes the IRS to seize his plane in November 1992, his Bozeman, Montana home, and other equipment, and sell it all to pay his $389,000 delinquent tax bill, dating back to the 1970s. Thoroughly radicalized, Schweitzer meets Rodney Owen Skurdal, another legal manipulator. Skurdal is an ex-Marine and Posse Comitatus advocate who, during litigation of a worker’s compensation suit in the 1980s, tells the judge that the federal government lacks the authority to print paper money and demands, fruitlessly, to be paid his compensation in gold bullion. One Wyoming newspaper claims that Skurdal’s extremism begins after he suffers a fractured skull in 1983, the source of the compensation claim; Skurdal’s former wife says after the injury that Skurdal refuses to use a Social Security number or driver’s license. Skurdal, like many in the Posse, is an adherent to the virulently racist Christian Identity belief system (see 1960s and After), and in court filings claims non-whites are “beasts,” and Jews “the children of Satan.” Skurdal routinely intertwines Identity, Posse Comitatus, Biblical, and Uniform Commercial Code (UCC) tenets in his court filings (see 1994). In 1993, the IRS seizes his farm near Roundup, Montana, for back taxes; Skurdal continues to occupy the farm and no local official dares to evict him. In late 1994, Skurdal invites Schweitzer to move in with him; they are joined by Daniel Petersen in early 1995. The three become the nucleus of what will become the Montana Freemen. Skurdal’s farm becomes a headquarters for the nascent organization, with computers, fax machines, laser printers, and satellite dishes going round the clock. The inhabitants post a sign on the edge of the property, reading: “Do Not Enter Private Land of the Sovereign.… The right of Personal Liberty is one of the fundamental rights guaranteed to every citizen, and any unlawful interference with it may be resisted.” Local authorities want to curb the group, but do not want to risk violence and bloodshed. Musselshell County Sheriff G. Paul Smith says: “These people want to be martyrs. I don’t know how far they are willing to carry that.” Moreover, Smith and his small sheriff’s department are outnammed and outgunned. [Mark Pitcavage, 5/6/1996]

Entity Tags: The Order, Bernard Kuennan, Daniel Petersen, Posse Comitatus, G. Paul Smith, Montana Freemen, LeRoy Schweitzer, Rodney Owen Skurdal

Timeline Tags: US Domestic Terrorism

The Church of the Creator (COTC—see 1973) loses its tax-exempt privilege (see 1982-1983). A review by Macon County tax officials concludes that the church’s North Carolina property does not qualify for religious tax exemptions. [Southern Poverty Law Center, 9/1999]

Entity Tags: World Church of the Creator

Timeline Tags: US Domestic Terrorism

Dean Harvey Hicks, an engineer from Costa Mesa, California, launches a mortar attack on an IRS service center in nearby Fresno. He had earlier attempted twice to bomb a West Los Angeles IRS office, once with a truck-borne fertilizer bomb (see 8:35 a.m. - 9:02 a.m. April 19, 1995), and had attempted two other bomb and mortar attacks on IRS offices in Southern California between 1987 and 1990. None of the attacks caused serious damage. The FBI learns that he is planning to bomb an FBI office in Los Angeles. Investigators believe that Hicks has nursed a grudge against the IRS since 1981, when the agency disallowed an $8,500 charitable deduction for the Universal Life Church and assessed a hefty penalty against him. Hicks will confess to launching the attacks, and says he attacks the IRS offices because an IRS employee laughed at him when he called with a question. After arresting Hicks, FBI investigators find what they will describe as “a virtual bomb factory” in his garage, along with letters in Hicks’s handwriting claiming responsibility for the attacks on behalf of a group called “Up The IRS Inc.” It is unclear if this group actually exists or is merely a creation of Hicks’s. Hicks’s job gave him access to some of the materials used in the bombing, investigators will conclude, and they will trace the purchase of other explosive components to him. In September 1988, Hicks stole and then exploded a 1971 Toyota Corolla in a parking garage in the basement of a building containing an IRS office in Los Angeles. The owner later received $500 in the mail from an anonymous source. The car was stolen from the parking lot of Hicks’s place of employment, and investigators will tie the Corolla’s theft and bombing to Hicks. The 1990 truck bombing was prevented by firefighters after Hicks fired mortar shells at the truck; had the mortar shells detonated the 2,000 pounds of ammonium nitrate it contained, it could have done tremendous damage and killed hundreds of people. At his trial, Hicks will claim, “The way I set the timing [of the bombings] was intended to cause the greatest amount of display with minimal injury to anyone around it.” Hicks will receive 20 years in prison. [Los Angeles Times, 7/30/1991; Associated Press, 8/17/1991; Anti-Defamation League, 2011]

Timeline Tags: US Domestic Terrorism

An image of a fraudulent ‘Freeman check’ signed by LeRoy Schweitzer.An image of a fraudulent ‘Freeman check’ signed by LeRoy Schweitzer. [Source: Anti-Defamation League]During this time period, over a dozen Montana anti-government tax resisters—the kernel of what will become the “Montana Freemen” movement (see 1983-1995)—establish themselves, creating what they term “common law courts” in Garfield and Musselshell Counties, and mounting a massive bank fraud scheme. [Billings Gazette, 3/25/2006]
Beliefs - According to a Washington Post article, the Freemen espouse a number of beliefs that directly contradict federal, state, and local laws. These are:
bullet All forms of organized government are illegitimate and have no right to perform duties routinely assigned to governments, from collecting taxes to requiring automobile licenses.
bullet Thusly, the Freemen can perform a multitude of actions, such as defying foreclosures, issuing arrest warrants, and even putting government officials on “trial.”
bullet They can also act as their own central banks and defraud the government, financial institutions, and area merchants.
Racist 'Christian Identity' Ideology - According to the Montana Human Rights Network and local citizens, most of the Freemen espouse some form of “Christian Identity” religious ideology, which claims that whites are inherently superior to other “inferior” races (see 1960s and After); they also hold radical anti-government views. [Washington Post, 4/1996; Washington Post, 4/9/1996; Billings Gazette, 3/25/2006] The Anti-Defamation League traces the roots of the Freemen ideology to the the Posse Comitatus movement (see 1969). [Mark Pitcavage, 5/6/1996] They call themselves “Freemen” because, in their view, white Christian males have special “Freemen” citizenship status, while non-whites, non-Christians, and women have second class status or worse. Freemen are above government prosecution and taxation. As US currency has no intrinsic value, any loans taken by Freemen need not be repaid. The US government is run by Jews and therefore has no legitimacy. “Common law” is the rule of the land. [New York Times, 6/15/1996] The Reverend Jerry Walters of Roundup, Montana, will later characterize the Freemen’s beliefs as a “bizarre distortion of the Christianity taught in most churches on Sundays.” (Rodney Skurdal will file a $100 billion lien against Walters after Walters refuses to alter his sermons to reflect Skurdal’s Christian Identity beliefs.) The Post will observe: “American history is littered with examples of how hard economic times produce hard-edged political splinter groups, but the Freemen of Montana are a particularly virulent strain. Their philosophy, a hodgepodge drawn from the Old Testament, the Magna Carta, the anti-tax Posse Comitatus of the 1980s, and a highly selective reading of the Constitution, is laced with racism and talk of a Jewish conspiracy, and puts them at the extreme of the Christian patriot movement.” Steven Gardner of the Coalition for Human Dignity will say: “The Freemen have, in effect, appointed themselves judge, jury and executioner. They are trying to form their own shadow government for a white Christian republic.” [Washington Post, 4/1996; Washington Post, 4/9/1996; Mark Pitcavage, 5/6/1996; Billings Gazette, 3/25/2006] “What’s driving them is their biblical and theological agenda,” Walters will say. “Their anti-government conspiracy theories, their anti-tax stance—they’re looking at these things through the lens of Christian Identity.” [Washington Post, 4/9/1996]
Fraudulent Liens - LeRoy Schweitzer and the others concoct a scheme to generate money by filing phony liens against various Montana property owners, or the Montana or US government. The liens have no value; however, once they are created, it takes time for bank computers to recognize them as invalid. During that “window” of time, the liens can be used to generate money transfers from unsuspecting banks. The Freemen file the liens and deposit fake money orders at other banks to be drawn upon the bank listing the lien. The money orders are usually signed by Schweitzer, though Skurdal, Daniel Petersen, and William Stanton (see October 17, 1994) also sign them on occasion. The money orders look quite official, though sometimes they deliberately spell the words “United States” with a lowercase “u.” The Freemen also issue bogus checks labeled “Certified Bankers Check—Controller Warrant,” instead of a bank name, along with account and lien numbers. Many checks are drawn against a non-existent account in a Butte, Montana, branch of the Norwest Bank. The checks state that they are also redeemable at the Office of the US Postmaster. The scheme is, on the whole, quite profitable. The Freemen also sell the money orders, advertising them to their fellow citizens as a quick means of getting out of debt. One distributor explains on a Web site: “LeRoy Schweitzer does have their [sic] own monetary system. When you attend their course on location, they will issue you CHECKS times two (biblical) to pay off all IRS debts and all loans to banks for no charge. They are having success in this area, but it is hard fight [sic].” One Omaha, Nebraska, county treasurer will later explain, “People see these and, if you’re a very unsuspecting person, they really do look authentic.” [Mark Pitcavage, 5/6/1996] Schweitzer, Skurdal, and Petersen are influenced by Roy Schwasinger, described by federal authorities as a right-wing con artist and head of the Colorado extremist group “We the People.” Schwasinger originated the financial schemes that the Freemen run. [New York Times, 6/15/1996]
Appointing Themselves as Legal Officials - The Freemen appoint themselves “justices,” issue “arrest warrants,” and flood local courts and counties with what the Billings Gazette will term “bogus documents.” One of the documents, written by the three Freemen leaders, Skurdal, Schweitzer, and Petersen, is interpreted by local law enforcement officials as a threat. It states: “We the Honorable justices, will not hesitate to use our Lawful force by whatever means necessary to fully support, protect, guarantee, and defend our (common) Law… and… Right of self governing as a free sovereign and independent state.” District Court Judge Peter Rapkoch calls the documents “a bucket of snakes.” In July 1994, one of the Freemen, Skurdal, is prohibited by court order from filing or recording any “frivolous” document with any Montana county clerk of court, clerk and recorder, or the secretary of state (see 1994); Montana Supreme Court Chief Justice Jean A. Turnage calls Skurdal’s filings “not only nonsensical but meritless, frivolous, vexatious, and wasteful of the limited time and resources of this court, of the clerk of this court, and of the various public officials and counsel that are forced to deal with and respond to Mr. Skurdal’s abuse.” Garfield County prosecutor Nick Murnion files misdemeanor charges of impersonating public officials against 13 residents and a felony charge of solicitation of kidnapping against Ralph Clark for a $1 million bounty posted around the county for court officers, the sheriff, and Murnion. Garfield County Sheriff Charles Phipps organizes a posse of about 90 local residents to come to the aid of his outmanned, outgunned three-person department (see January 1994). Murnion eventually files felony criminal syndicalism charges against Freemen members. US Attorney Sherry Matteucci works with local and state officials to share information on anti-government activities. “I think their purpose is to intimidate people and to cause chaos in governmental operations,” she says. [Washington Post, 4/9/1996; Chicago Tribune, 4/19/1996; Mark Pitcavage, 5/6/1996; Billings Gazette, 3/25/2006]

Entity Tags: Charles Phipps, Daniel Petersen, Montana Human Rights Network, LeRoy Schweitzer, Jerry Walters, Jean A. Turnage, William Stanton, Anti-Defamation League, Sherry Matteucci, Nick Murnion, Steven Gardner, Posse Comitatus, Peter Rapkoch, Rodney Owen Skurdal, Ralph Clark, Montana Freemen, Roy Schwasinger

Timeline Tags: US Domestic Terrorism

Rodney Skurdal, a leader of the “Montana Freemen” movement (see 1993-1994), files a 20-page treatise with a Montana court that claims the Freemen are the descendents of the true Anglo-Saxon “chosen people,” and that the land occupied by the United States was promised to them by God. Skurdal, who signs the document “the honorable Justice Rodney O. Skurdal,” writes: “In reading the Bible, one must understand that there are ‘two seed lines’ within Genesis. It is the colored people, and the Jews, who are the descendants of Cain… when We move into a new land, We are to kill the inhabitants of all the other races… nor are We to allow the other races to rule over us.” Skurdal writes extensively of the Freemen’s opposition to governmental rule of any sort, justifying it by referencing his interpretation of Biblical teachings: “We, Israel, must obey God only; not man-made laws by our purported Congress and state legislators and/or the United Nations, under the purported ‘new world order’ i.e., ‘Satan’s laws.’” Skurdal adds that taxes, marriage licenses, driver’s licenses, insurance, electrical inspections, and building permits are all instruments of Satan’s law. He writes that the “land of milk and honey” bequeathed by God to whites is actually the territory now considered the United States, and notes, “If we the white race are God’s chosen people… why are we paying taxes on ‘His land.’” Michael Barkun, a Syracuse University professor and expert on radical Christian ideologies, will call Skurdal’s treatise “pure Christian Identity” (see 1960s and After). This theological claim to land, Barkun will say, goes further than a lot of other Identity adherents do. “What’s unusual here is that this isn’t simply a kind of collective granting of a piece of soil by God to his people, but it’s a kind of literal granting of ownership and control: Because we are his people and this is his land, no one can tell us what to do with it,” Barkun will observe. [Washington Post, 4/9/1996; Chicago Tribune, 4/19/1996] Skurdal has come to the notice of Montana legal authorities before. At one point he had legal actions going simultaneously in every one of Montana’s 56 counties. He has succeeded in getting to the Montana Supreme Court three times over traffic tickets. When the state judiciary ruled that Skurdal’s legal filings were frivolous and could not be accepted without being signed by a lawyer, Skurdal merely mailed his writs and documents to out-of-state agencies, which, assuming the documents were misdelivered, returned them to Montana authorities, where they were filed. After four years of dealing with Skurdal’s legal court cases, Musselshell County Attorney Vicki Knudsen quit her job. One of Skurdal’s filings was a “Citizens Declaration of War” which claimed foreign agents were surreptitiously infesting “the country of Montana.” Another accused county officials of attempting to help institute a New World Order (see September 11, 1990). “Once a court accepts one of these asinine Freemen things,” Knudsen later says, “it’s in the system. Everybody named in it becomes involved [and] has to respond. It’s not funny. It’s not romantic. It’s scary.” Knudsen is referring to the threats issued by Skurdal and his fellow Freemen towards herself and other county officials over their filings. [Mark Pitcavage, 5/6/1996]

Entity Tags: Montana Supreme Court, Michael Barkun, Montana Freemen, Vicki Knudsen, Rodney Owen Skurdal

Timeline Tags: US Domestic Terrorism

A poster issued by the Freemen placing a $1 million bounty on the head of Garfield County Attorney Nick Murnion.A poster issued by the Freemen placing a $1 million bounty on the head of Garfield County Attorney Nick Murnion. [Source: Anti-Defamation League]Frustrated at the foreclosure of their farm, the Clark family of Jordan, Montana (see 1980s-1994), takes part in an armed takeover of the local county courthouse. The assault is carried out by a group of Montana Freemen (see 1993-1994), an anti-government, tax-resister group recently joined by members of the Clark family. The Clarks set up their own “common law” court, and join some three dozen Freemen in taking over Garfield County’s courthouse. They hold a meeting declaring themselves the county government. Presiding at the meeting are two of the Freemen founders, Rodney Skurdal and Daniel Petersen (see 1983-1995). Richard Clark is the presiding judge. The “court” charges the real judge, and others whom the Clarks feel have persecuted them, with contempt. Richard Clark tells the 30 people, “We’ve opened our own common law court and we have the law back in the county now.” They even videotape the meeting. Within days, posters appear around Jordan, offering a $1 million bounty for the arrest of the Garfield sheriff, county attorney, and judge. A rather bemused Sheriff Charles Phipps asks one of the Freemen if he would get the bounty if he turned himself in. The Freeman replies he would get the money, he wouldn’t live long enough to enjoy it: he’d be “tried, convicted, and hung.” Phipps’s amusement drains quickly, but he realizes there is little he can do: he has one deputy and a two-cell jail and little more. He realizes that if he intends to force the Clarks off of their farm, he will require outside help. [Mark Pitcavage, 5/6/1996]

Entity Tags: Daniel Petersen, Charles Phipps, Richard Clark, Montana Freemen, Rodney Owen Skurdal

Timeline Tags: US Domestic Terrorism

A typical ‘LeRoy check,’ issued on a fraudulent lien.A typical ‘LeRoy check,’ issued on a fraudulent lien. [Source: Anti-Defamation League]Montana Freemen leaders LeRoy Schweitzer, Rodney Skurdal (see 1993-1994 and May 1995), and others leave Skurdal’s Roundup, Montana, log cabin at night (see 1983-1995) in an armed convoy, and “occupy” the foreclosed ranch of Freeman Ralph Clark (see 1980s-1994) north of Jordan, Montana. The group renames the ranch “Justus Township.” Skurdal and the Freemen had named Skurdal’s two-story cabin and his 20 acres of land “Redemption Township.” In the ensuing months, people from around the area come to the ranch to take “classes” on their common law theories and check-kiting schemes, learning of the classes through ads in militia newsletters and displayed at gun shows. Federal authorities, fearing violence (see April 19, 1993), decide not to hinder the occupation. The “township” has its own laws, court, and officials; Clark is the “marshal” of Justus, and others serve on its court. [Chicago Tribune, 4/19/1996; Mark Pitcavage, 5/6/1996; New York Times, 5/29/1996; Billings Gazette, 3/25/2006] The “classes” teach what the Southern Poverty Law Center will call a “peculiar combination of common law ideology and break-the-bank schemes.” The Freemen accept pupils in groups of 25, charging varying fees per participant. “We are the new Federal Reserve,” Schweitzer tells one group. “We are competing with the Federal Reserve—and we have every authority to do it.” Many people who try to put the Freemen’s teachings into practice, such as common law ideologue Ron Griesacker, will claim to have attended “a school of learning” with Schweitzer before setting up “common law courts” in Kansas. Griesacker will be charged with fraud and conspiracy, as will others who attempt to set up “common law courts.” The Freemen teachings will continue to propagate for years, and banks across the region will be plagued with “Freemen checks” [Mark Pitcavage, 5/6/1996; Southern Poverty Law Center, 4/1998] , which locals call “LeRoy checks.” (Most area businesses have learned to demand cash-only payments from known Freemen.) One favorite trick is to issue a fake check to pay for merchandise, write the check for much more than the cost of the merchandise, then demand immediate cash refunds of the difference. A template letter included in a seminar packet reads in part, “You will be billed monthly for the principal, plus 18 percent per year for the balance due if you refuse to send refund.” Paul Dinsmore, a local radio station host who will say he attends “about a dozen” seminars, will comment: “They have set up a complete mirror image of the banking system. It’s a scheme for them to live high on the hog.” One Montana government official calls the Freemen scheme “paper terrorism.” [New York Times, 5/29/1996] Skurdal will be incensed when federal authorities auction his cabin and property for his failure to pay back taxes. [Chicago Tribune, 4/19/1996]

Entity Tags: Rodney Owen Skurdal, Ronald Griesacker, Montana Freemen, LeRoy Schweitzer, Southern Poverty Law Center, Ralph Clark, Paul Dinsmore

Timeline Tags: US Domestic Terrorism

M. Elizabeth Broderick, under investigation for a massive Freemen-inspired check fraud scheme (see March 27, 1996), fails to appear in court to answer charges filed against her. Neither do her accomplices, Adolf Hoch and Laura Marie Hoey, appear. A woman who refuses to give any other name than “Myra” appears on their behalf and says she is filing a response to the injunction prepared by Broderick’s attorney. Judge William Keller issues injunctions against Broderick filing fraudulent liens against a postal service employee and against her distributing fraudulent checks. Broderick continues giving her seminars teaching people how to defraud banks (see October 1995 - March 1997), but stops handing out checks. “I am just appalled to think that a federal judge, someone who we’re supposed to admire and respect, is committing a fraud,” she says. [Mark Pitcavage, 5/6/1996]

Entity Tags: Laura Marie Hoey, Adolf Hoch, Montana Freemen, M. Elizabeth Broderick, William Keller

Timeline Tags: US Domestic Terrorism

M. Elizabeth Broderick, who used Freemen teachings to defraud dozens of banks and businesses of millions of dollars (see October 1995 - March 1997 and April 25, 1996), and has been convicted of a number of fraud-related charges, is sentenced to 16 years in prison. After Broderick’s conviction, prosecutor Nora Manella says of her: “Behind Ms. Broderick’s anti-government rhetoric was a classic con artist. She appealed principally to financially strapped people who wanted something for nothing. They wound up further in debt and she wound up a convicted felon.” Federal judge Dickran M. Tevrizian says Broderick did more damage to the banking system “than most bank robbers,” and says, “You dropped an atomic bomb on the banking system with this bogus scheme.” Broderick attempted to claim that she was a patriot battling the tyranny of the US government, and claims that the government went bankrupt in 1932 and had been issuing worthless paper money ever since. Tevrizian retorts: “You’re not a patriot.… You defrauded thousands of people… people who were desperate.” Broderick, who represented herself during the trial, claimed the government had no jurisdiction over her, and called herself a political prisoner, is defiant during sentencing, saying: “I was here to give damages to the American people. You can lock me up, but you can’t lock up my knowledge.” Three other Californians, Barry Switzer, Julian Cheney, and Adolf Karl Hoch, are convicted as her accomplices. Broderick garnered some $1.2 million during her scheme. [Mark Pitcavage, 5/6/1996; Los Angeles Times, 10/5/1996; Los Angeles Times, 3/11/1997]

Entity Tags: Julian Cheney, Adolf Hoch, Barry Switzer, Dickran M. Tevrizian, Montana Freemen, Nora Manella, M. Elizabeth Broderick

Timeline Tags: US Domestic Terrorism

Almost 100 New York City employees, including some police and corrections officials (see March 17, 1998), are arrested for using common law “untaxing” kits to evade taxes (see September 28, 1995 and After). According to the Southern Poverty Law Center, “[t]he case underscores how far such ideology has spread.” [Southern Poverty Law Center, 6/2001]

Entity Tags: Southern Poverty Law Center

Timeline Tags: US Domestic Terrorism

Two former New York City police officers are convicted of selling illegal “Patriot” “untaxing kits” to fellow officers for up to $2,000 each (see December 1997). The kits purport to tell citizens how they can “legally” avoid paying taxes. The two officers are the last of 14 officers to be convicted for tax evasion. [Southern Poverty Law Center, 6/2001]

Entity Tags: New York City Police Department

Timeline Tags: US Domestic Terrorism

Tennessee and North Carolina white separatist and “common law” ideologue Peter Stern is charged with conspiring to defraud tax authorities with fake checks from the Montana Freemen (see 1993-1994). Stern, who owes more than $96,000 in back taxes, is one of hundreds of “common law” proponents facing similar charges around the nation. Stern’s first attorney, Gerald Aurillo, forces a mistrial in the first court proceeding when he breaks down into a hysterical sobbing fit in the courtroom; Stern fires Aurillo and represents himself. A jury in Asheville, North Carolina, convicts Stern after only three hours of deliberations of fraud and attempting to pay off debts and back taxes with “Freemen” checks. Stern is also convicted of conspiracy, obstructing the Internal Revenue Service, and threatening to kidnap two federal judges, after he threatened the judges with letters informing them they would be “arrested” by “marshals” of his Franklin, Tennessee-based common-law “court” if they didn’t free another activist who was in prison. Stern faces 40 years or more in sentencing. Stern’s defense is that he thought the Freemen checks were legitimate financial instruments and that he had no intent to defraud anyone. Well-known attorney John Zwerling will handle Stern’s appeal, saying that he believes Stern was found “guilty by association” because of his connection with the Freemen. [Deseret News, 7/21/2000; Southern Poverty Law Center, 6/2001; Franklin Press, 7/11/2001]

Entity Tags: Peter Stern, Gerald Aurillo, John Zwerling

Timeline Tags: US Domestic Terrorism

Nashville, Tennessee, tax protester Rodney Lynn Randolph receives a four-year prison sentence on weapons charges after a search of his home revealed an arsenal of weapons that included a hand grenade, bomb-making materials, automatic weapons parts, a .50-caliber antitank weapon, 50 pounds of gunpowder, and 200,000 rounds of ammunition. Randolph was arrested during what should have been a routine traffic stop. He had previously ignored eviction papers, claiming that he would answer only to “the regent of the earth, that being YAHSHUA, son and servant of The Father,” and that he was a “sovereign nation” unaccountable to US law. [Nashville Scene, 12/31/1999; Anti-Defamation League, 2011]

Entity Tags: Rodney Lynn Randolph

Timeline Tags: US Domestic Terrorism

The Republican-connected firm New Bridge Strategies partners up with Diligence-Iraq to provide security for companies wanting to do business in Iraq. Diligence vets local employees and partners, reviews potential investments, provides daily intelligence briefs, and supplies security for company personnel and assets. Its fees are based on the level of risk involved. Diligence was formed in 2000 by two former intelligence officers, Nick Day and Mike Baker. Day, an expert in Islamic militant groups, is a former MI5 agent, and Baker was a CIA covert field operations officer specializing in “counterterrorism, counternarcotics, and counterinsurgency operations.” The company employs about 200 people—mainly former members of the US Special Forces, New Zealand’s equivalent of the Green Berets, and the Iraqi military—and has offices in London, the US, Geneva, and the Middle East. Its annual gross revenue is around $10 million. The company works hand-in-hand with New Bridge Strategies, whose chairman, Joe M. Allbaugh, formerly served as director of FEMA under President Bush. In addition to being Diligence-Iraq’s chief executive officer, Baker also serves on New Bridge’s advisory board member. Diligence received its initial financial backing from the Republican-connected lobbying firm Barbour, Griffith & Rogers (BGR). Like New Bridge, Diligence shares office space at BGR’s office in Washington DC. BGR also provided Diligence with its well-connected chairman Richard Burt, former US ambassador to Berlin, as well as its impressive advisory board. One of the advisers is Ed Mathias of the Carlyle Group. [New York Times, 9/30/2003; Washington Post, 10/2/2003; New York Times, 10/6/2003; Financial Times, 12/12/2003; Independent, 2/8/2004]

Entity Tags: Richard Burt, Diligence-Iraq, Ed Mathias, Barbour Griffith & Rogers, Mike Baker, Nick Day

Timeline Tags: Iraq under US Occupation

Paul Bremer signs Order 37, titled “Tax Strategy for 2003,” reducing the tax rate on corporations from a high of 40 percent to a flat rate of 15 percent. The income tax rate is also capped at 15 percent. “The highest individual and corporate income tax rates for 2004 and subsequent years shall not exceed 15 percent,” the order says. [Coalition Provisional Authority, 9/19/2003 pdf file] The flat tax has long been a goal of economic conservatives and was planned for Iraq in pre-war planning sessions with Iraqi exiles. According to one Middle East expert interviewed by the Washington Post, the new tax system “has almost no support from other members of the US-appointed Iraqi Governing Council.” The new tax law will take effect in January. In the meantime, reports the Post, “Bremer has abolished all taxes except for real estate, car sales, gasoline and the pleasantly named ‘excellent and first class hotel and restaurant tax.’ Even while leaving these Hussein-era levies in place, Bremer exempted his coalition authority, the armed forces, their contractors, and humanitarian organizations. Exempting occupation personnel leaves only the Iraqis to pay taxes, as well as journalists, business people, and other foreigners.” [Washington Post, 11/2/2003]

Entity Tags: L. Paul Bremer

Timeline Tags: Iraq under US Occupation

House of Representatives bill 1424, known as the Troubled Asset Relief Program (TARP), passes by a slim margin in both Congressional houses, and is immediately signed into law by President Bush. [White House, 10/3/2008]

Entity Tags: George W. Bush, Troubled Asset Relief Program

Timeline Tags: Global Economic Crises

After President Bush and US Treasury Secretary Henry Paulson push through a long-sought change in how bank mergers are taxed, Bloomberg News sues the Federal Reserve for failing to reveal loan recipients. The change will deprive US taxpayers of as much as $140 billion in tax revenue. As the economy continues its downward spiral into what is called the worse economic crisis since the Great Depression, sources say that a late September $700 billion bailout is “a quiet windfall for US banks.” [Washington Post, 11/10/2008] The legality of Treasury-negotiated equity deals for many US banks is questioned by tax attorneys, as well as nearly $2 trillion that Ben Bernanke of the Federal Reserve handed out in emergency loans before the $700 billion Troubled Asset Relief Program, or TARP, was enacted (see October 3, 2008). The Fed refuses to reveal which corporations received loans, or what collateral has been presented. Sources say that this secrecy is a legal violation. The Federal Reserve’s lending is significant because the central bank has stepped into a rescue role that was also the purpose of the TARP bailout plan, although without safeguards put into the TARP legislation by Congress. Total Fed lending topped $2 trillion for the first time and has risen by 140 percent, or $1.172 trillion, in the weeks since Fed governors relaxed the collateral standards on September 14. The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank’s purchase of Fannie Mae and Freddie Mac bonds. [Bloomberg News, 11/10/2008; AlterNet, 11/14/2008]

Entity Tags: Henry Paulson, Troubled Asset Relief Program, Bloomberg News, Ben Bernanke, US Department of the Treasury, US Federal Reserve, George W. Bush

Timeline Tags: Global Economic Crises

According to Jim Rogers, the co-founder of the Quantum Fund along with billionaire financier George Soros, the federal government’s efforts to fix the sector are “wrongheaded.” During a teleconference at the Reuters Investment Outlook 2009 Summit, Rogers says that the government’s $700 billion rescue package for the sector doesn’t address how banks manage their balance sheets, and rewards weaker lenders with new capital. More than two dozen banks have received infusions from the Troubled Asset Relief Program (TARP), and some TARP funds are being used for acquisitions. [White House, 10/3/2008] “Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt,” says Rogers, now a private investor. “What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent,” he continues. “What’s happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics.” [Reuters, 12/11/2008]

Entity Tags: Jim Rogers, Quantum Fund, George Soros

Timeline Tags: Global Economic Crises

The California Nurses Association (CNA) releases the results of a study which found “a national single-payer style health care reform system would provide a major stimulus for the US economy by creating 2.6 million new jobs, and infusing $317 billion in new business and public revenues, with another $100 billion in wages into the US economy.” The study was conducted by the Institute for Health & Socio-Economic Policy (IHSP), a “non-profit policy and research group” that is “the exclusive research arm of the California Nurses Association/National Nurses Organizing Committee.” In addition to the growth in jobs and revenues generated by covering the 47 million Americans who were uninsured as of 2006, the study also found that universal coverage “could be achieved for $63 billion beyond the current $2.1 trillion in direct health care spending,” according to the press release for the study, which also notes that this figure is “six times less than the federal bailout for CitiGroup, and less than half the federal bailout for AIG.” [CalNurses.org, 1/14/2009]

Entity Tags: Institute for Health & Socio-Economic Policy, California Nurses Association

Timeline Tags: US Health Care

NYU Economics Professor Nouriel Roubini tells Bloomberg News that, following the $350 billion injection by the Bush Administration, President Barack Obama will have to use as much as $1 trillion of taxpayer funds to shore up capitalization of the banking sector. “The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.” Roubini also predicts that oil prices will continue to trade between $30 to $40 a barrel all year. Regarding commodities, Roubini said, “I see commodities falling overall another 15-20%. This outlook for commodity prices is beneficial for oil importers, it’s going to imply that economic recovery might occur faster, but from the point of view of oil exporters, this will be very negative.” [Street Insider.com, 1/20/2009; Bloomberg, 1/20/2009]

Entity Tags: Barack Obama, Citibank, Nouriel Roubini, Bank of America

Timeline Tags: Global Economic Crises

Less than one month after his inauguration, President Barack Obama signs into law a $787 billion recovery package, stating that this will “set our economy on a firmer foundation.” However, Obama reiterates during the bill’s signing ceremony at the Denver Museum of Nature and Science that he will not pretend “that today marks the end of our economic problems, nor does it constitute all of what we have to do to turn our economy around. Today marks the beginning of the end, the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs.” The legislative battle on the bill ended with only three Republican votes in the Senate and none in the House. As president-elect, Obama initially expected to spend between $675 billion and $775 billion on the recovery package, and the final number is almost exactly that. However, Congress included $70 billion worth of tax cuts in the bill they approved, although more than a few economists say $70 billion in tax cuts won’t create as many new jobs as $70 billion in spending would. According to the government’s Recovery (.gov) Web site, the 2009 American Recovery and Reinvestment Act:
bullet Saves and creates more than 3.5 million jobs over the next two years;
bullet Takes a big step toward computerizing Americans’ health records, reducing medical errors, and saving billions in health care costs;
bullet Revives the renewable energy industry and provides the capital over the next three years to eventually double domestic renewable energy capacity;
bullet Undertakes the largest weatherization program in history by modernizing 75 percent of federal building space and more than one million homes;
bullet Increases college affordability for seven million students by funding the shortfall in Pell Grants, increasing the maximum award level by $500, and providing a new higher education tax cut to nearly four million students;
bullet Enacts the largest increase in funding of the nation’s roads, bridges, and mass transit systems since the creation of the national highway system in the 1950s;
bullet Provides an $800 “Making Work Pay” tax credit for 129 million working households, and cuts taxes for the families of millions of children through an expansion of the Child Tax Credit;
bullet Requires unprecedented levels of transparency, oversight, and accountability.
White House press secretary Robert Gibbs says Obama will seek additional stimulus/recovery funding if needed. [New York Times, 2/17/2009; recovery.gov, 2/17/2009]

Entity Tags: Obama administration, Barack Obama, Robert Gibbs

Timeline Tags: Global Economic Crises

Representative Mary Bono Mack (R-CA) expresses her outrage over the so-called “Disneyland to Las Vegas” train (see February 13, 2009 and After), saying she cannot believe President Obama’s economic stimulus plan has ”$1 billion wasted on a magnetic-levitation train from LA to Sin City.” When challenged by reporter Dick Spotswood over the disproven claim, Mack sends a staff member to “get him the bill, it’s right there, show him.” As Spotswood later reports, “A few minutes later, a staffer emerges with a copy and quietly says ‘it’s not in the bill.’” [Marin Independent Journal, 3/1/2009]

Entity Tags: Mary Bono Mack, Dick Spotswood

Timeline Tags: Global Economic Crises

Citigroup logo.Citigroup logo. [Source: Citigroup]The latest government bailout gives Citigroup bond holders excellent terms and doesn’t provide the bank with new money. Instead, Citigroup cut expenses with the elimination of preferred stock dividends, and also converted shares into common equity at an above-market-value of $3.25, positioning itself to take the first hit if it encounters additional losses. Analysts are predicting that the company’s losses will continue to increase. Since the beginning of 2009, Citigroup’s stock has fallen 78 percent. “Debt holders could eventually be required to participate in further government-led restructuring actions,” Standard and Poor’s says. [Bloomberg, 3/2/2009] Citigroup CEO Vikram Pandit tells investors that increasing the bank’s “tangible” common equity from $29.7 billion to as much as $81 billion should “take confidence issues off the table,” about the bank’s loss absorption ability. The bank lost $27.7 billion in 2008, and is predicted to lose $1.24 billion during the first six months of 2009. “There’s no difference here,” says Christopher Whalen, co-founder of Institutional Risk Analytics, a Torrance, California risk-advisory firm. “It won’t fix revenue, and you’re still going to see loss rates.” Whalen says that the government’s efforts are mainly protecting other financial institutions and foreign goverments that are Citigroup bonds holders. “The taxpayer is funding the operating loss and protecting the bondholders,” Whalen notes. “The subsidy for the banks will become one of the biggest lines in Washington’s budget.”
Government Should Organize Citigroup, AIG Bondholders - Whalen also says it would be better if the government organized Citigroup and insurer American International Group Inc. bondholders, since the insurer received a $150 billion US bailout, and also made a deal with the government to convert some of its debt to equity. US government investment fell by more than 50 percent, and the government plans to convert up to $25 billion of its preferred stock to common shares, gaining a 36 percent stake in the bank. At Friday’s closing price of $1.50, government investment is worth approximately $11.5 billion. The bank itself has a stock market value of $8.2 billion as of market closing on February 27.
Analyst: Investors Should Avoid Citigroup Shares - Richard Ramsden, head of a group of analysts at Goldman Sachs Group, recommends that investors avoid investing in Citigroup shares: “It is unclear whether this is the last round of capital restructuring, which means that existing equity may be further diluted in the future.” The bank’s move to convert preferred shares to common equity led Moody’s Investors Service to adjust its senior debt rating for the bank from A3 to A2. Standard and Poor’s also changed its outlook on the bank’s debt from negative to stable. “Citi will face a tough credit cycle in the next two years, which will likely result in weak and volatile earnings,” S&P analyst Scott Sprinzen says. “We cannot rule out the possibility that further government support may prove necessary.” With the first two Citigroup rescue bailouts, the US Treasury bought $45 billion of preferred stock, and the Federal Reserve and FDIC guaranteed the bank against all but $29 billion of losses on a $301 billion portfolio of assets. With the third bailout, the Treasury, the Government of Singapore Investment Corporation, Saudi Prince Alwaleed bin Talal, and other preferred stockholders, agreed to take common stock at $3.25 a share, giving up dividends. The chairman of the House Ways and Means Committee, Charles Rangel (D-NY), says: “The administration and the past administration have tried so many different ways that we can only hope and pray that this time they get it right. It seems like with the banks it is a never-ending thing.” [Bloomberg, 2/28/2009]
Third US Rescue Forces Citigroup Board Changes - The Obama administration demonstrated its willingness to force changes on executives at top banks that receive taxpayer-funded rescue packages by pressing Citigroup to reorganize its 15-member board with new, more independent members. The move sends a message to Wall Street that there are consequences when taxpayer dollars are used to save them. “The government is the new boss, and the new executive committee is no longer on Park Avenue,” says Michael Holland who, as chairman and founder of New York’s Holland & Co., manages nearly $4 billion in investments. [Bloomberg, 3/2/2009]

Entity Tags: Government of Singapore Investment Corporation, Christopher Whalen, Charles Rangel, Alwaleed bin Talal, AIG (American International Group, Inc.), Federal Deposit Insurance Corporation, Vikram Pandit, US Department of the Treasury, Citigroup, Richard Ramsden, Moody’s Investors Service, Standard & Poor’s, Michael Holland, Institutional Risk Analytics, Scott Sprinzen, US Federal Reserve

Timeline Tags: Global Economic Crises

Fox News legal analyst Andrew Napolitano, a former federal judge and a guest on Fox News host Glenn Beck’s broadcast, says: “How about floating a constitutional amendment amongst the states? Let’s rescind the 16th Amendment. That’s the income tax. If 25, 30 states start thinking about it and talking about it seriously, the Congress will take note because they will be scared to death it will starve them out of existence. And they won’t be able to regulate progressively or retrogressively how we live.” [Media Matters, 9/7/2010] The 16th Amendment allows Congress to collect income taxes. It was passed by Congress and submitted to the states in 1909 and ratified in 1913, both under President William Howard Taft. Recently, far-right Republicans (see 1951-1967, 1970-1972, 1976-1978, Early 1980s, and 1985) and tea party activists have begun calling for its repeal, joined by some members of Congress (see April 28, 1999). [Media Matters, 9/7/2010; Legal Information Institute, 2011]

Entity Tags: Fox News, Andrew Napolitano, Glenn Beck

Timeline Tags: Civil Liberties, Domestic Propaganda

Fox News legal analyst Andrew Napolitano, a former federal judge and a guest on Fox News host Glenn Beck’s broadcast, advocates repealing the 16th Amendment, something he has done previously on Beck’s show (see April 28, 2009). Beck asks about “this solution that you and I have talked about on a constitutional amendment, or a threat of a constitutional amendment.” Napolitano replies: “If two-thirds of the states ask the Congress to call a constitutional convention to consider the adoption of this amendment, which I’ll describe in a moment, as it gets closer and closer to the two-thirds necessary and Congress would be required to call the convention, you’ll see some reaction on the part of Congress to attempt to placate the states that want to call this. Now, the constitutional amendment is a simple one. It simply abolishes the 16th Amendment and states affirmatively that Congress shall have no power to tax the personal incomes of individual persons. If that were enacted, it would starve the federal government back into the original footprint that the founders intended for it. But as it gets closer to enactment, Congress will have to do something for fear that it might be enacted.” [Glenn Beck, 5/6/2009; Media Matters, 9/7/2010] The 16th Amendment allows Congress to collect income taxes. It was passed by Congress and submitted to the states in 1909 and ratified in 1913, both under President William Howard Taft. Recently, far-right Republicans (see 1951-1967, 1970-1972, 1976-1978, Early 1980s, and 1985) and tea party activists have begun calling for its repeal, joined by some members of Congress (see April 28, 1999). [Media Matters, 9/7/2010; Legal Information Institute, 2011]

Entity Tags: Glenn Beck, Andrew Napolitano, Fox News

Timeline Tags: Civil Liberties, Domestic Propaganda

Following the furloughs of nearly 8,000 workers in May, Puerto Rico announces that it will lay off an additional 16,970 public workers to prevent a government shutdown as well as to prevent damage to the island’s credit. Government officials are hoping that the layoffs will assist in allaying a $32 billion deficit. Cuts in contract spending, a freeze on hiring, and temporary taxes have already been implemented. The island is in the third year of a recession and the unemployment rate is at 15 percent. Says Carlos Garcia, president of the Government Development Bank of Puerto Rico, “Today is an extremely difficult day for all Puerto Ricans.” Garcia adds that, as a result of the layoffs, the island’s unemployment rate will rise to 17 percent, higher than any US state. Some of the workers will be contracted by the US Treasury to assist in collecting outstanding debts of over $3.6 billion owed by residents, private companies, and other entities. Others will be hired for jobs in education. Most workers will be laid off on or around November 6. According to Garcia, the move could save the island $386 million. “The layoffs are unavoidable,” Governor Luis Fortuno tells Puerto Ricans in a recorded news media event. “Not doing anything would have been devastating to our economy, your pocketbook, your family, and our society,” he says. “It would have meant more increases, more taxes, and another government shutdown.” Organized labor leaders have announced an October 15 protest to be held all over the island. [Huliq News, 9/25/2009; Associated Press, 9/26/2009]

Entity Tags: Carlos Garcia, Luis Fortuno, US Department of the Treasury, Government Development Bank of Puerto Rico, Puerto Rico

Timeline Tags: Global Economic Crises

Former Govenor Mike Huckabee (R-AR), a Fox News host and a presumed 2012 presidential candidate, calls the passage of the 17th Amendment “one of the dumbest things we ever did in this country.” Huckabee, appearing as a guest on Fox News Radio’s Brian & the Judge, also says that Republicans should consider calling for the repeal of the 16th Amendment, saying, “I think we ought to talk about repealing the 16th Amendment, which authorizes the IRS.” He then says that Americans should “talk about—this is one of those things that senators would never agree, but one of the dumbest things we ever did in this country was the 17th Amendment.” He adds: “The original Constitution and the way we operated for the first 120 years of our existence, senators were appointed by state legislators to represent the broader interests of the states to make sure the federal government didn’t take too much power into itself. And most people don’t even remember that. But we have had an increasing problem of too much centralization of federal power at the expense of local and state governments—the antithesis of our Constitution—because we’ve put all this power in the popular election of senators and representatives.” [Media Matters, 10/16/2009] The 16th Amendment allows Congress to collect income taxes. It was passed by Congress and submitted to the states in 1909 and ratified in 1913, both under President William Howard Taft. The 17th Amendment provides for the direct election of US senators, rather than their selection by state legislators, in part to eliminate cronyism and corruption in their ascension to the US Capitol. It was signed into law by President Woodrow Wilson in 1913. Recently, far-right Republicans (see 1951-1967, 1970-1972, 1976-1978, Early 1980s, and 1985) and tea party activists have begun calling for their repeal, joined by some members of Congress (see 1951-1967 and April 28, 1999). [Media Matters, 9/7/2010; Legal Information Institute, 2011; Legal Information Institute, 2011]

Entity Tags: Mike Huckabee, Fox News

Timeline Tags: Civil Liberties, Domestic Propaganda

The Echelon Building in Austin, Texas, in the aftermath of Andrew Joseph Stack’s suicide crash.The Echelon Building in Austin, Texas, in the aftermath of Andrew Joseph Stack’s suicide crash. [Source: Jack Plunkett / Associated Press]Andrew Joseph Stack, a software engineer and pilot in Austin, Texas, burns his house down, then takes to the air in his Piper Dakota plane and crashes it into an Austin office building in an apparent attempt to destroy the large IRS office inside. Stack dies in the crash, as does IRS manager Vernon Hunter. Thirteen others are wounded, two critically. IRS revenue officer Peggy Walker, who is sitting at her desk when Stack’s plane crashes into the building, will later tell a reporter: “It felt like a bomb blew off. The ceiling caved in and windows blew in. We got up and ran.” IRS agent William Winnie says he was on the third floor of the building when he saw a light-colored, single engine plane coming toward the building. “It looked like it was coming right in my window,” Winne tells reporters. He says the plane veered down and smashed into the lower floors. “I didn’t lose my footing, but it was enough to knock people who were sitting to the floor,” he recalls. Two days before his flight, Stack, a software engineer, posted an angry rant on his personal Web site. “Nothing changes unless there is a body count,” he said, and went on to blast corporations, the Catholic Church, and bailouts for Wall Street. Stack wrote about the “storm raging in my head” and railed against taxation without representation. “Anyone who really stands up for that principal is promptly labeled a ‘crackpot,’ traitor, and worse,” he wrote. He expressed his anger at the “handful of thugs and plunderers [that] can commit unthinkable atrocities,” including bailed-out General Motors executives and the drug and insurance companies who “are murdering tens of thousands of people a year and stealing from the corpses and victims they cripple.” He hopes that “the American zombies wake up and revolt.” He concluded: “Violence not only is the answer, it is the only answer. I know I’m hardly the first one to decide I have had all I can stand.… I saw it written once that the definition of insanity is repeating the same process over and over and expecting the outcome to suddenly be different. I am finally ready to stop this insanity. Well, Mr. Big Brother IRS man, let’s try something different; take my pound of flesh and sleep well. The communist creed: From each according to his ability, to each according to his need. The capitalist creed: From each according to his gullibility, to each according to his greed.” The note was signed, “Joe Stack (1956-2010).” Before the attack is determined not to be foreign terrorism, at least two Texas Air National Guard F-16 fighter jets are scrambled in Houston, and President Obama is briefed. [New York Daily News, 2/18/2010; CBS News, 2/18/2010; CBS News, 2/18/2010; Associated Press, 2/19/2010; Your News Now, 2/25/2010] The press soon reprints the entire posting, which the Associated Press calls “a rambling anti-government manifesto.” [CBS News, 2/18/2010; Associated Press, 2/19/2010] Federal authorities find a note in Stack’s car, parked at the Georgetown Airport where he took off; the note says there is a bomb in the airport. The FBI investigates and finds no bomb. [CBS News, 2/18/2010] Stack used to play in a rock band; Pam Parker, whose husband leads the band, says Stack is usually “easy-going,” and though he “talked politics like everyone[, he] didn’t show any obsession.” The Web posting “sounded like his voice, but it was nothing I ever heard him say. Clearly there was crazy in him but it must have been way in the back of his head, it wasn’t who Joe was.” Patrick Beach, who also played in the band with Stack, tells a reporter, “I talked to a lot of people who knew him better than I did, and no one saw anything like this coming.” Beach says it is hard to comprehend how Stack, whom Beach says loved his wife and stepdaughter, could be the same person who wanted to “commit mass murder.” [CBS News, 2/18/2010; Associated Press, 2/19/2010] According to Stack’s father-in-law Jack Cook, Stack has a “hang-up” about the IRS, and his marriage to his wife Sheryl is strained; Cook says the night before Stack’s attack on the IRS building, his wife had taken her daughter to a hotel to get away from Stack. [Associated Press, 2/19/2010] The press later learns that Stack is in the middle of an audit for failing to report income, in a case centered around his “Universal Life Church,” a “home church” founded by Stack and his wife. Stack had declared the church a tax shelter in violation of federal law, and had been ordered by the court to pay over $14,000 in back taxes along with an undisclosed amount in penalties, fines, and interest. [Your News Now, 2/25/2010]

Entity Tags: Andrew Joseph Stack, Pam Parker, Internal Revenue Service, Jack Cook, Barack Obama, William Winnie, Associated Press, Universal Life Church, Peggy Walker, Vernon Hunter, Sheryl Stack, Texas Air National Guard, Patrick Beach

Timeline Tags: US Domestic Terrorism

Representative Steve King.Representative Steve King. [Source: The Iowa Republican (.com)]Some on the political right label Andrew Joseph Stack, who killed himself and an IRS manager by crashing his private plane into an Austin, Texas, office building (see February 18, 2010), a hero. The labeling begins when Stack’s adult daughter, Samantha Bells, calls him a hero because of his antigovernment views on an ABC morning talk show. While his suicide attack was “inappropriate,” she says, “[m]aybe now people will listen.” White supremacist Web sites and forums fill up with expressions of approval and support, according to the Southern Poverty Law Center (SPLC). One poster on the neo-Nazi Web site Stormfront calls Stack “a true HERO!!!” While Stack had no apparent connections to white supremacist or other hate groups, the SPLC’s Mark Potok says, many of those groups’ members have become excited by Stack’s action. “A few other white supremacists suggested that lionizing Stack could be a bad thing for the radical right, but they appeared to be in a minority,” Potok observes. Ken Hunter, who lost his father Vernon Hunter in the crash, says he is alarmed by the fact that some people are portraying Stack as noble and courageous. “How can you call someone a hero who after he burns down his house, he gets into his plane… and flies it into a building to kill people?” he asks on the same ABC broadcast. “My dad, Vernon, did tours of duty in Vietnam. My dad’s a hero.” [Christian Science Monitor, 2/22/2010] The controversy intensifies when Representative Steve King (R-IA) blames the IRS for Stack’s actions. He refuses to condemn the attack, or Hunter’s murder, saying instead: “I think if we’d abolished the IRS back when I first advocated it, he wouldn’t have a target for his airplane. And I’m still for abolishing the IRS, I’ve been for it for 30 years and I’m for a national sales tax.… It’s sad the incident in Texas happened, but by the same token, it’s an agency that is unnecessary and when the day comes when that is over and we abolish the IRS, it’s going to be a happy day for America.” Asked if Stack’s grievances against the IRS were legitimate, King responds: “I don’t know if his grievances were legitimate, I’ve read part of the material. I can tell you I’ve been audited by the IRS and I’ve had the sense of ‘Why is the IRS in my kitchen? Why do they have their thumb in the middle of my back?‘… It is intrusive and we can do a better job without them entirely.” [Think Progress, 2/22/2010]

Entity Tags: Southern Poverty Law Center, Internal Revenue Service, Andrew Joseph Stack, Ken Hunter, Steve King, Mark Potok, Stormfront (.org), Samantha Bells

Timeline Tags: US Domestic Terrorism

US Representative Cynthia Lummis (R-WY) says some of her constituents are so worried about the upcoming reinstatement of federal estate taxes—so-called “death taxes” that impose taxes on estates worth over $3.5 million—that they are planning to discontinue dialysis and other life-extending medical treatments so they can die before December 31. Loomis declines to name anyone who is making such plans. Instead, she says many ranchers and farmers in the state would rather pass along their businesses—“their life’s work,” she says—to their children and grandchildren than see the federal government take a large chunk. “If you have spent your whole life building a ranch, and you wanted to pass your estate on to your children, and you were 88-years-old and on dialysis, and the only thing that was keeping you alive was that dialysis, you might make that same decision,” she tells reporters. Congressional Republicans are fighting to renew the tax cuts on wealthy estates which were implemented during the Bush administration. The cuts exempt large inheritances as well as certain wage income, interest, dividends, and capital gains. In 2009, the tax’s top rate was 45 percent, but estates worth less than $3.5 million, or $7 million in the case of married couples, were exempt. That left less than 1 percent of all estates subject to the tax. Loomis and many Republicans have falsely characterized the tax as negatively impacting family farms and small businesses. The tax cuts are slated to expire in 2011. The exemption will shrink to $1 million and the top rate will rise to 55 percent. Lummis says the children of some people choosing death over taxes told her of their parents’ decision. She refuses to identify them and says it will be their decision to come forward. [Associated Press, 10/29/2010]

Entity Tags: Cynthia Lummis, Bush administration (43)

Timeline Tags: Domestic Propaganda

Representative Michele Bachmann (R-MN), a contender for the 2012 Republican presidential nomination, says Congress should not raise the nation’s debt limit (sometimes called the “debt ceiling”) even though many economists and financial leaders warn of economic catastrophe if the US does not raise that limit. Bachmann says Congress is considering bills that would force the government to make payments on debts even if the debt ceiling remains unchanged. [Associated Press, 4/30/2011]

Entity Tags: Michele Bachmann

Timeline Tags: Global Economic Crises

Grover Norquist, a highly influential conservative lobbyist and activist, says that if President Obama wins re-election in 2012, Congressional Republicans will impeach him to regain control of the nation’s governance. Norquist, the president of Americans for Tax Reform and a hardline opponent of government taxation, tells the National Journal that he expects Obama to raise taxes on the wealthy in 2013. He is best known for his anti-tax pledge, which almost all Congressional Republicans and a few Democrats have signed, and which states their absolute opposition to any tax hikes of any kind. The online news site National Confidential says that signers who break that pledge will likely “face a primary opponent funded by Norquist and his shadowy multi-millionaire donors.” Norquist says of Obama’s record of cutting taxes on middle- and lower-class taxpayers: “He came up with this idea for the one-year tax holiday so he could claim that he’s for a tax cut. Mind you, it’s a temporary tax cut, but he does not want to run as a tax increaser. I think [Republicans are] in reasonably good shape. Between now and November, I believe we will see a one-year extension of the FICA tax [cut]. I believe we will see the extension of [the break on] depreciation spending. And then the third one that you could have is repatriation. If I was Obama’s political consultant, I’d have put repatriation on the table when he extended the Bush-era tax cuts by two years [in 2010]. The estimates are that it would bring $6 [billion] to $800 billion back. If I were president, I would love to have that money flow back into the real economy, not the Solyndra economy, the year before I’m running for office.” [National Journal, 1/28/2012; National Confidential, 1/28/2012] “Repatriation” is the idea that American corporations can receive one-time tax breaks by putting their foreign earnings into the American economy. Norquist’s reference to “the Solyndra economy” refers to the controversy surrounding the recently bankrupted Solyndra Corporation, which received $528 million in federal loan guarantees and which some conservatives, including Norquist, have attempted to tie to the Obama administration. [Investopedia, 2012; New York Times, 2012] Norquist predicts that if re-elected, Obama will allow a number of tax cuts on large corporations and the wealthy to expire at the end of 2012, and this, he says, will allow Congressional Republicans to begin impeachment proceedings. “We’re focused on the fact that there is this Damocles sword hanging over people’s head,” he says. “What you don’t know is who will be in charge when all of this will happen. I think when we get through this election cycle, we’ll have a Republican majority, [though] not necessarily a strong majority in the Senate, and a majority in the House. The majority in the House will continue to be a Reagan majority, a conservative majority. [House Speaker John] Boehner never has to talk his delegation going further to the right. If the Republicans have the House, Senate, and the presidency, I’m told that they could do an early budget vote—a reconciliation vote where you extend the Bush tax cuts out for a decade or five years. You take all of those issues off the table and then say, ‘What do you want to do for tax reform?’ Then, the question is, ‘OK, what do we do about repatriation and all of the interesting stuff?’ And, if you have a Republican president to go with a Republican House and Senate, then they pass the [Paul] Ryan plan [on Medicare],” referring to House Representative Paul Ryan’s plan to virtually end Medicare and replace it with a privatized voucher system. If the Democrats retain control of Congress and the White House, Norquist says: “Obama can sit there and let all the tax [cuts] lapse, and then the Republicans will have enough votes in the Senate in 2014 to impeach. The last year, he’s gone into this huddle where he does everything by executive order. He’s made no effort to work with Congress.” [National Journal, 1/28/2012] According to the US Constitution, “The President, Vice President, and all Civil Officers of the United States, shall be removed from Office on Impeachment for and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors.” [Constitution of the United States, 6/21/1788] It is unclear how Norquist frames his prediction of Obama’s allowing tax cut legislation to lapse as constituting “Treason, Bribery, or other high Crimes [or] Misdemeanors.”

Entity Tags: Solyndra Corporation, John Boehner, Obama administration, Paul Ryan, Grover Norquist, Barack Obama, Republican Party, US House of Representatives, US Senate

Timeline Tags: 2012 Elections

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