In short, money paid from the Trust to a Trustee has no tax obligation (avoiding the income tax). This follows the Legal (and Biblical) Maxim "A worker is worthy of his wage". Even statutory trusts can do this, but a Bulletproof Trust goes further in it's protection by its ability to function as an Article IV § 2 citizen of United States via its Trustee, not a 14th Amendment citizen. (1) This citizen is understood in constitutional law as the private citizen. (2)
Last but not least, due attention must be paid to the Internal Revenue Service, for they are the lawful, legal entity, duly authorized to collect association dues (income taxes) from 14th Amendment citizens and other persons volunteering and availing themselves of the “privileges and immunities” regarding non-payment of debts in the system implemented under former H.J. Res. 192, 12 U.S. Code § 95(a), and 15 U.S. Code, ch. 41, § 1602(c)(d)(e). “They [participants] are considered as a debtor/creditor in a social security association (unchartered, unincorporated commune) whereby each person insures everybody else in the association by agreeing never to demand payment for debts. [It is] [u]nder this volunteer arrangement [that] these persons become primarily a U.S. citizen, secondarily a state citizen, ‘subject to’ clause 1 of the 14th Amendment, while the literal 10th Amendment rights are forfeited.” (3)
(1) See FARMERS LOAN & TRUST CO. V. C. &. A. RY. CO., 27 Fed. 146 (C.C.Ind. 1886); and SHIRK V. CITY OF LAFAYETTE, 52 Fed. 857 (CC.Ind. 1892). For an understanding of the profound superiority of Article IV § 2 citizenship over 14th Amendment citizenship, see Lee Brobst et al.
(2) See HALE V. HENKEL.
(3) Brobst et al.
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