2 October 1995 Mr. vine* KYAM. Senior Editor TOE SPOTLIGHT 300 Independence Avenue, S.E., Hashington, D.C. 20003 Dear He. RVMIs Notwithstanding it has been comnon knowledge since about 1984, at which time J. Peter Grace, Chairman of the Board of H. R.. Grace 6 Company (who has recently deceaaed), inforned then president Ronald H. Reagan, that none of the money collected by the Internal Revenue Service in payment of federal income taxe* was u«ed in the operation of the federal government, THE SPOTLIGHT, is nevertheleM, promoting alternatives to the present fcauduJ.eat tax system by publishing articles in THE SPOTLIGHT almost to the point of extolling those proposed «y«teas, and even going to far as to run paid subscription promotions in other publications (page 4, The National Educator, Sept. 1995) under the heading 'DBMB KMBIJ. FOR GMOaMEED INCOMB TM?'. As you should be aware, it was sometine in 1982 that President Reagan asked Mr. Grace to conduct a survey to cone up with ways to streamline the federal govemaent and save money. Mr. Grace was a very w—lthy busin— • —n, and therefore in a position to conduct such a survey. He put together some 160 of Arnrica's top business leaders to join in that effort. They contributed over $76 million in money, manpower and materials to coaplete the task. Not one cent ia government money was expended for the project, an unprecedented contribution by the private sector. The survey took about two ( 2) y«ar« to complete. U)pon completion, Mr. Grace presented to President Reagan the remits of the surveyi which, if my memory serves me correctly showed how the govern- ment could be ctreamlined, and in the process save about $500 billion. Now, that's quite a saving*. Howev«r, I'm sure you'll agree that such a large »m- ings would not come as a surprise to someone who is informed •bout the wute in federal govenuneitt. However, those same informed people were caught totally by surprise to leara that noae of the tax money collected by the Internal Rev- enue Service in payment of federal income taxes was used in the operation of the federal goveramat. That ME SPOTLIGHT is not privy to this FACT is al- most unbelievable. X£ you are privy to that PACT. you owe an explanation to your readers why THE SPOTLIGHT is now promoting alternative tax systems to the present deceptive fraudulent one. Since none of the money is used in the oper- ation of th~ federal government, it therefore is obvious even to the most un- informed, that we don't need an income tax system. Therefore, I •fczoag].y urge you to innediately take steps to inform your readers of what I have ' outlined in this letter, and retnct everything you have taken in promotion of alterna- tive systems. Your sincerity in that behalf can be demonstrated by publishing this letter, or at least pertinent information contained herein, that will clearly articulate the key points. Such information should appear in the next possible future issue of THE SPOTLIGHT. Since it's your stated position to correct errors immediately, and this most certainly is an error, you shouldn't hesitate to do so in this instance. was Mr. Grace the only one who knew this FACT? NO, he wasn't. Mr. Nord Oavis, Jr. of Northpoint Teams, Topton, North Carolina knew thi« long before 1984. In fact, be has written a document titled *SUI JURZS', wherein he re- veals the total dfceptim lid fraud practiced by the ZRS. I have reproduced on the next page of this letter, a copy of page 32 of that 37 page very informa- tive document, showing how the income tax money ends up in the hands of the ONZIB) NATZOBS. Therefore, it's high time for the United States Congress to level with the American people and cease this crap about proofing a new tax system in place of the present deceptive and fraudulent one controlled by the Internal Revenue Service, whose only purpose is to fraudulently collect funds received by them in payment of income taxes, and turn over those funds to its. page I Exhibit "G"