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HALF of Americans don't pay income tax despite crippling government debt
Daily Mail (UK) ^ | February 22, 2012

Posted on 02/22/2012 5:46:16 PM PST by ConservativeStatement

Only half of U.S. citizens pay federal income tax, according to the latest available figures.

In 2009, just 50.5 per cent of Americans paid any income tax to the federal government - the lowest proportion in at least half a century.

And the number of people outside the tax system could have climbed even higher since as the economic downturn has continued to bite and unemployment has remained high.

(Excerpt) Read more at dailymail.co.uk ...


TOPICS: Culture/Society
KEYWORDS: incometax; taxes
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And yet some people don't see this as a crisis.
1 posted on 02/22/2012 5:46:27 PM PST by ConservativeStatement
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To: ConservativeStatement

Since every working American pays 15% of their wages in social security income taxes and Medicare income taxes, who are these 50.5% of Americans?


2 posted on 02/22/2012 5:51:22 PM PST by P-Marlowe
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To: ConservativeStatement

The malign fruit of Cloward-Piven, Marxism, Bill Ayers, etc. Team Obama’s goal has so CLEARLY been to get that number past 50 percent of those eligible to vote. After that, it’s game over for the great republic we’ve had since 1789.


3 posted on 02/22/2012 5:53:25 PM PST by rockvillem
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To: ConservativeStatement
The federal income tax was DESIGNED to affect only the top 1 or 2 percent of wage earners.

The fact it directly affects over 50% of wage earners, and 100% of wage earners through it's Social Security FICA tax, is a demonstration of its abject failure to meet its first objective.

It is time to consider other, modern forms of financing for the federal government.

It is utterly stupid and a demonstration of bankruptcy of thought to imagine that this antiquated and failing tax system should be expanded!

4 posted on 02/22/2012 5:53:53 PM PST by muawiyah
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To: ConservativeStatement

Some do pay in blood when they die in battle but let us not mention that, they all signed and knew it, right? I mean, we do not need to represent these people.

On the other hand, we have plenty of illegals on welfare who are getting a huge representation in Congress... and they not only pay zero taxes, they take welfare paychecks and free hospital stays. They know America is assumed to be Dr.Spock provider for them, while they kill each other and stick with each other... because we are the slaves and they are the adults.


5 posted on 02/22/2012 5:55:49 PM PST by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: ConservativeStatement

Everybody should pay something.

This Business of People riding for free is way out of control.

Time to just go to a Flat Tax percentage for Everyone.

Same Percentage for Everyone when you spend money.

That would make everything Fair across the board!


6 posted on 02/22/2012 5:55:59 PM PST by EnglishOnly (Fight all out to win OR get out now.)
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To: ConservativeStatement

Everybody should pay something.

This Business of People riding for free is way out of control.

Time to just go to a Flat Tax percentage for Everyone.

Same Percentage for Everyone when you spend money.

That would make everything Fair across the board!


7 posted on 02/22/2012 5:56:14 PM PST by EnglishOnly (Fight all out to win OR get out now.)
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To: muawiyah
It is time to consider other, modern forms of financing for the federal government.

Like charitable donations.

8 posted on 02/22/2012 5:57:51 PM PST by bigheadfred
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To: ConservativeStatement
I doubt that's the "crisis" you thought about ~ in fact, this concern over 50% being taxed and 50% not being taxed (by this one tax, one of many we might add) is a manifestation of the very evil Democrat "fairness" arguments.

Frankly, an income tax is, de novo, from its very inception, UNFAIR. The income tax fosters class jealousy and conflict ~ we don't need any more of that.

9 posted on 02/22/2012 5:58:12 PM PST by muawiyah
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To: EnglishOnly
As I said, an income tax fosters class jealousy.

Just get rid of the income tax. Be done with it.

10 posted on 02/22/2012 6:00:30 PM PST by muawiyah
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To: ConservativeStatement
That's like saying prisons are full despite the fall in the crime rate. In reality, the fall in the crime rate is due to the imprisonment of offenders. Just as the rise in federal debt is due to the fact that less than 50% of income earners pays federal income taxes. Taking more people off the federal income tax rolls was one of Bush's greatest mistakes as a RINO compassionate conservative. People who aren't taxed to pay for government programs don't object when those programs are increased in scope and size.
11 posted on 02/22/2012 6:01:01 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: bigheadfred
If you want to do that go right ahead.

I was thinking more along the line of a sophisticated USER FEE system ~ now that we have computers that handle enough data to allow us to estimate on an ongoing basis directly attributable, assignable and non assignable costs (overhead) for every agency and every process.

Any federal operation that CANNOT be addressed in that manner should be devolved to the states.

12 posted on 02/22/2012 6:04:34 PM PST by muawiyah
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To: ConservativeStatement

There are now more freeloaders riding in the wagon than there are pulling it. We in a heap O trouble.


13 posted on 02/22/2012 6:06:13 PM PST by FlingWingFlyer (It's time for the DemocRAT voter base to start paying their "fair share" of taxes.)
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To: Zhang Fei
Look, people who benefit from a government service that can't be paid for by the users of that service are FREE RIDERS ~ not the poor schlemiels who don't have enough income to tax.

You put the cart before the horse when you focus on what happens with the federal income tax rather than who uses the government.

Ronald Reagan did America a great favor by beginning the process of removing the personal income tax burden from the working poor!

14 posted on 02/22/2012 6:08:13 PM PST by muawiyah
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To: FlingWingFlyer
Look, people who benefit from a government service that can't be paid for by the users of that service are FREE RIDERS ~ not the poor schlemiels who don't have enough income to tax.

You put the cart before the horse when you focus on what happens with the federal income tax rather than who uses the government.

Ronald Reagan did America a great favor by beginning the process of removing the personal income tax burden from the working poor!

15 posted on 02/22/2012 6:10:18 PM PST by muawiyah
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To: FlingWingFlyer
Look, people who benefit from a government service that can't be paid for by the users of that service are FREE RIDERS ~ not the poor schlemiels who don't have enough income to tax.

You put the cart before the horse when you focus on what happens with the federal income tax rather than who uses the government.

Ronald Reagan did America a great favor by beginning the process of removing the personal income tax burden from the working poor!

16 posted on 02/22/2012 6:10:32 PM PST by muawiyah
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To: ConservativeStatement

No one should pay any income tax as far as I’m concerned.

The working poor also have to be considered. They aren’t exactly freeloaders. If someone makes $30,000 a year they aren’t going to pay much in income taxes and if they have dependents, they likely aren’t paying any. However nobody gets out from under social security.


17 posted on 02/22/2012 6:12:28 PM PST by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: P-Marlowe

That is the right question, and why you won’t see a breakdown of those who aren’t paying federal income tax.

(all information from CIA Factbook)

US Population 313.8m

Age structure:

0-14 years: 20.1%,
65 years and over: 13.1%

1) To start with, 33.2% of Americans are mostly too young or two old to work. No work, no income taxes.

2) 76% of those not paying income tax is because they earn under $25,000 a year. You cannot get blood from a turnip.


18 posted on 02/22/2012 6:14:24 PM PST by yefragetuwrabrumuy
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To: EnglishOnly

Read The Creature From Jeykel Island and you will know why we have an income tax and why we don’t need it at all period.


19 posted on 02/22/2012 6:16:38 PM PST by Captain7seas (FIRE JANE LUBCHENCO FROM NOAA)
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To: ConservativeStatement

The DM was desperate to provide cover for socialism in deliberately misinterpreting the results of this study.

“Not Represented on a Taxable Return”: means children whose parents DO pay some tax are part of the 50.5% who DO pay taxes/”Represented on a Taxable Return”. Most retirees have retirement income, to they too are “Represented on a Taxable Return”.

So the DM’s statement: “The figures include children, the retired and others who do not participate in the labour force.” is deliberately misleading. They want you to believe that ALL children and retirees are part of the 50% who don’t pay taxes. Quite false. They’re on both sides, with most retirees on the “Represented” side, not the “Not Represented” side.

Equally fallacious is the DM’s claim that “Nonetheless, they largely reflect the sudden jump in the unemployment rate after the 2008 financial crisis and subsequent recession.” is quite misleading

And how does a 4-5% increase in unemployment account for 12-15% fewer taxpayers? It’s because since GWB took office, they raised the minimum taxable income amount you need to make to pay taxes. More don’t earn enough to pay taxes than lost their jobs. The DM lied to hide this point.

Quite the hatchet job to deliberately mis-portray this study.


20 posted on 02/22/2012 6:20:30 PM PST by risen_feenix
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To: yefragetuwrabrumuy; xzins
76% of those not paying income tax is because they earn under $25,000 a year.

My daughter made $23,000 last year. She not only paid 15% of her earnings in FICA, she paid over $1500 in Federal Income Tax and $200 in State income tax.

Like I said, who are these 50.5%

21 posted on 02/22/2012 6:21:48 PM PST by P-Marlowe
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To: muawiyah
As I said, an income tax fosters class jealousy. Just get rid of the income tax. Be done with it.

I totally agree. And I support the Obama plan to tax net worth. People like Warren Buffet who are eating on golden dinner plates ought to pay more. The 'net worth' tax where a wealthy person pays 10% of his/her net worth each year until they are penniless is the way to go. Just think of it, no more wealthy rock stars or movie actresses. John Travolta's airport would belong to the people and he can eat at the soup kitchen. With the net worth tax in place, the excess dollars can be redistributed to those who would vote democrat in all future elections ( as long as they have money to eat and gamble at the nearest casino and that their kids all get chicken nuggets for lunch at school ).

Bottom line ---- the net worth tax would be quicker and less painful to get to a fully socialistic state. Might as well lay back and enjoy it....

sarc/off

22 posted on 02/22/2012 6:30:41 PM PST by eeriegeno (<p>)
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To: P-Marlowe

For every gallon of gas you buy how much goes to the Federal Government? Something like 50 cents. That’s a pot load of money going to the Federal Government right there. Income tax is just a part of what goes to the Federal Government. They aren’t hurting because not enough people pay. They’re hurting because they’re scum bags. Pure and simple. A pox on all of them.


23 posted on 02/22/2012 6:33:49 PM PST by vigilo
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To: ConservativeStatement

let me ask....in prep for some leftist arguement....how many of those US citizens are children who don’t work?


24 posted on 02/22/2012 6:37:47 PM PST by cherry
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To: vigilo

People who bitch about freeloaders aren’t paying attention. There are those who are getting screwed less and those getting screwed more, but, if you buy gas you are PAYING!!! The freeloaders are in DC and in the Federal Reserve becoming MULTI-MILLIONAIRES. We need to turn against THEM rather than letting them turn us against each other while they skate free of any consequences for what they’ve been doing for DECADES!!


25 posted on 02/22/2012 6:41:26 PM PST by vigilo
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To: muawiyah
Ronald Reagan did America a great favor by beginning the process of removing the personal income tax burden from the working poor!

And in the process removed most income tax deductions from everybody and lengthened the depreciation timetables on improved real estate, which arguably contributed to the recent collapse of commercial real estate.

26 posted on 02/22/2012 6:48:34 PM PST by elkfersupper ( Member of the Original Defiant Class)
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To: ConservativeStatement

“Two centuries ago, a somewhat obscure Scotsman named Tytler made this profound observation:

“A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.” “


27 posted on 02/22/2012 6:49:09 PM PST by BwanaNdege (Man has often lost his way, but modern man has lost his address - Gilbert K. Chesterton)
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To: eeriegeno
And I support the Obama plan to tax net worth.

What's it like over there on the Dark Side?

28 posted on 02/22/2012 6:51:19 PM PST by elkfersupper ( Member of the Original Defiant Class)
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To: P-Marlowe
My daughter made $23,000 last year. She not only paid 15% of her earnings in FICA, she paid over $1500 in Federal Income Tax and $200 in State income tax. Like I said, who are these 50.5%

The state income tax payment is a non-sequitor as we're talking federal income tax.

Is your daughter self employed? If not, she didn't pay 15% in FICA, she paid half that, her employer paid the other half (yes, I understand the argument that if that tax wasn't there she COULD have the additional employer participation in her pocket, or not). FICA has been sold as insurance premiums (hence the I in OADSI) and most people think of it as a retirement program.

As far as the percentage of people not paying federal income tax, they aren't single without dependents, so you're daughter (if I may assume she's not claiming dependents) doesn't qualify. Mostly they are single parent households with low income and large number of dependents. Check form 1040A and don't forget to add that child tax credit (refundable) in. I don't know where 50%+ came from , but the IRS does show around 47% not paying federal INCOME tax (this does not include payroll tax regardless of the fact that those receipts end up in the general fund anyway). They may pay through withholding, but the combination of refundable tax credits like EIC and child tax credit result in no tax liability and in many cases a refund of free money they didn't pay in, ostensibly to offset their payroll taxes (see SSA for an explanation of the EITC).

And to add to this, recently we've had a nice expose of a tax "preparation" scam here in Tidewater VA (and in other states since the company is in multiple states) of a company called "Mo' Money" tax service that was fraudulently preparing tax returns of mainly low income people which netted huge refunds (they made their money on a percentage of the refund). Thankfully they've been outted and are under investigation.

29 posted on 02/22/2012 7:03:40 PM PST by cidrasm
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To: elkfersupper

Do you understand what the command sarc/off means????


30 posted on 02/22/2012 7:07:41 PM PST by eeriegeno (<p>)
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To: cidrasm; xzins
Is your daughter self employed? If not, she didn't pay 15% in FICA, she paid half that, her employer paid the other half

No, she paid it all. The amount the employer pays is the same that she pays and it all comes out of HER earnings.

FICA has been sold as insurance premiums (hence the I in OADSI) and most people think of it as a retirement program.

I don't care how it is sold, it is a tax on income and to make it worse it is a tax on wages. Every working American pays 15% of their income in taxes before they pay any of the other non-FICA taxes. They also pay gasoline taxes, excise taxes, luxury taxes, and tons of hidden fees for every penny they spend.

The problem is not that these people aren't paying their fair share, the problem is that the government is just too damn big and government spending is out of control.

31 posted on 02/22/2012 7:14:59 PM PST by P-Marlowe
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To: ConservativeStatement

The LAST thing the federal government needs is MORE MONEY...
More money is poison to the federal government..

The federal government needs LESS MONEY and a broader tax base.. with less tax paid by each taxpayer..


32 posted on 02/22/2012 7:17:20 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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To: ConservativeStatement

33 posted on 02/22/2012 7:18:28 PM PST by Lancey Howard
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To: P-Marlowe

I’ve seen lower income people get more than enough back on their taxes through earned income credit that it more than made up for the 15%.


34 posted on 02/22/2012 7:22:19 PM PST by CommieCutter
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To: yefragetuwrabrumuy
NOT ONE of the 65+ year-old people that I know don't pay income tax. So scratch that 13.1%
35 posted on 02/22/2012 7:23:11 PM PST by EnquiringMind
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To: yefragetuwrabrumuy
2) 76% of those not paying income tax is because they earn under $25,000 a year. You cannot get blood from a turnip.

I raised three children, owned a home, drove 2 cars, took vacations, smoked cigarettes, drank booze and beer, had a dog, had a cat, dressed O.K., ate with the best of them, went out occasionally, and had a bank account.....and never made 30,000.

36 posted on 02/22/2012 7:25:45 PM PST by terycarl (lurking, but well informed)
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To: Zhang Fei
Taking more people off the federal income tax rolls was one of Bush's greatest mistakes as a RINO compassionate conservative.

Correct! Bush took people off the rolls and made the tables more progressive. And RINO's like McCain went along with the "taxcut for the rich" meme. Sheesh.

37 posted on 02/22/2012 7:26:05 PM PST by Poincare (Reality is not a fool.)
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To: terycarl

and always had a tax liability....paid it too!!!


38 posted on 02/22/2012 7:27:26 PM PST by terycarl (lurking, but well informed)
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To: ConservativeStatement

You have to consider that in the context of who owns the wealth.

http://www2.ucsc.edu/whorulesamerica/power/wealth.html

As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers). In terms of financial wealth (total net worth minus the value of one’s home), the top 1% of households had an even greater share: 42.7%.

And the top 1% of income earners actually pay a smaller percentage of their incomes to taxes than the 9% just below them.


39 posted on 02/22/2012 7:29:10 PM PST by marsh2
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To: P-Marlowe
He restricts it to income taxes. I can't recall if it is 52 taxes on a loaf of bread or the other way around. No one escapes the Inquisition.
40 posted on 02/22/2012 7:39:51 PM PST by Domangart
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To: P-Marlowe

There talking federal taxes. You know the big refund checks that people get every year. I wish I could get one. lol. Although I pretty much have my taxes down to a science. I don’t get any back but I don’t have to write a check. So the only taxes they get from me for federal is what they take out of the check every month.


41 posted on 02/22/2012 7:45:55 PM PST by napscoordinator (A moral principled Christian with character is the frontrunner! Congrats Santorum!)
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To: cripplecreek
If someone makes $30,000 a year they aren’t going to pay much in income taxes and if they have dependents, they likely aren’t paying any. However nobody gets out from under social security.

However, why is a person who agreed to make 30,000 dollars a year for a family of four ending up making 34,000 dollars a year after their refund? That EIC MUST GO. That is the worst thing on Earth and totally ridiculous. Pay zero is not great but giving somone elses money to them is dreadful.

42 posted on 02/22/2012 7:50:54 PM PST by napscoordinator (A moral principled Christian with character is the frontrunner! Congrats Santorum!)
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To: marsh2

Wealth is not what you earn but what you keep.


43 posted on 02/22/2012 8:00:39 PM PST by hawgwalker
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To: cherry

I assume the term applies to “households”, to those who are competent adults in a position to at least fill out a 1040EZ to declare they have no taxable income (and probably a refundable credit to boot, which is the real problem). Methinks when you account for children, dependents, nonworking spouses, retirees, welfare, etc the real percentage of federal revenue contributors is scary low.


44 posted on 02/22/2012 8:03:23 PM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: ConservativeStatement

100 years ago, 100% of Americans didn’t pay income taxes.


45 posted on 02/22/2012 8:08:21 PM PST by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: ConservativeStatement

” - - - The Heritage Foundation argues that the reduction in the number of taxpayers will create an electorate dominated by non-taxpayers, who will always support higher taxes and spending because their own money is not at stake.”

Is this what Obama means by his term “expanding the tax base?” Seems clear to me that whatever The Obamanator says, the opposite is true.

Read more: http://www.dailymail.co.uk/news/article-2105131/HALF-Americans-dont-pay-income-tax-despite-crippling-government-debt.html#ixzz1nArtiuWV


46 posted on 02/22/2012 8:10:17 PM PST by Graewoulf (( obama"care" violates the 1890 Sherman Anti-Trust Law, AND is illegal by the U.S. Constitution.))
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To: P-Marlowe

“Since every working American pays 15% of their wages in social security income taxes and Medicare income taxes, who are these 50.5% of Americans?”

I don’t buy this either. If you add all the taxes, including taxes on taxed income on taxed income, the numbers are absolutely frightening, particularly on the East Coast. Where I live, I can’t go to the bathroom in my own house without paying a school tax, in a bathroom on which I pay property (predominantly school) tax, using income from which I pay a school tax (we have local taxes).

Basically, if you are not living as a hobo, hermit, or as a seriously hard-core survivalist, the “floor” is probably around 15%, depending on where you live, and it goes up from there.


47 posted on 02/22/2012 8:18:14 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: ConservativeStatement
We don't need to feed the government anymore.

Lower taxes substantially by eliminating government spending, waste and dramatically cut the sized of government at all levels.

While were at it, eliminate the unionization of government employees at every level.

48 posted on 02/22/2012 8:23:39 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: P-Marlowe
Since every working American pays 15% of their wages in social security income taxes and Medicare income taxes, who are these 50.5% of Americans?

Those are Federal income taxes being discussed, not FICA (social security) nor Medicare.

Historically, FICA and Medicare were considered to be "payroll taxes" since they were thought of as "insurance," where you will eventually get back what you paid in. Income tax was thought to fund the government.

And the Earned Income Tax credit was designed to "refund" the FICA and Medicare taxes paid.

Mark

49 posted on 02/22/2012 8:26:12 PM PST by MarkL (Do I really look like a guy with a plan?)
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To: ConservativeStatement

Also, either totally eliminated property taxes, or dramatically reduce them.


50 posted on 02/22/2012 8:27:06 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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