Healthy, “Wealthy,” & Wise

S T O R I E S

Surgery in Spain

Jim Stockwell

In February 2005, I made a choice to go to Spain for a hernia operation. I took the time to do the research on this elective surgery that could have done irreparable harm to my physical health. I paid approximately $500 to learn that, in the United States, the procedure and one day in the hospital could run me as much as $10,000, with no guarantee it would not be more.

I had options, and I used them. I got in touch with my brothers in Spain, and they set me up with a private clinic. Spain has a public health care system, so its citizens do not have to pay anything or maybe very little for their healthcare; I would have to pay of course. It helped that I had room and board provided to me by my brothers for the recovery period, and also in my favor is that I am fluent in Spanish, so I flew to Spain.

The quality, care, cleanliness, and privacy of the clinic and its staff were superb. I was in the hospital for one overnight, and it cost $1,970. The environment was equivalent to walking into any clinic or hospital in our country, except you were greeted by extremely cordial attendants, had very little waiting, and the first person you were introduced to was the anesthesiologist.

A Massive Accident, and Recovery

Neil Golder

I’ve been resisting war taxes for about 20 years. I’ve had (and paid for) health insurance off and on over those years. My present job gives me a small fund for medical expenses, and I use the Ithaca Health Fund (a grassroots, community funded healthcare cost assistance program based in Ithaca, NY).

In 2003 I was run over by a car and seriously injured. The driver’s No Fault insurance paid for most of my medical expenses, up to $50,000. What it didn’t cover I paid out of the small settlement that I got. I was able to recuperate at home, thanks to a tremendous outpouring of support. People did all sorts of things, from sleeping over, housecleaning, gardening, home maintenance, giving me rides, massage—you name it. I am so thankful.

Not long after the accident, I got a notice that my wages were going to be garnished. It wasn’t the first time I’d been garnished, but I think I worried about it more since I was in such a vulnerable state. My income hovers around the taxable rate, so a garnish is not so bad, but now and then my work situation requires additional hours, and the government gets to skim off the extra if there’s a levy. I’ve not yet figured out how to avoid this. When I received the settlement, I seriously thought I’d like to get the IRS off my back and maybe work a deal with them. They say I owe about $20,000, which would clean out quite a bit of the settlement, but I couldn’t bring myself to do it.

Right now, I am on my wife’s health insurance (about $180/month for my part). I can’t really afford it very well, but feel I should have it for a while. In my town we’ve also had significant fundraisers to help a chronically ill person; it doesn’t pay for gigantic hospital bills, but it helps.

I think it’s really important for war tax resisters to have community; and I think there’s probably a lot more community out there than people realize.

Health Care in Cuba

David Waters

An arthritic knee from Viet Nam war wounds had me in almost constant pain. In order to get screening doctors at the Veteran’s Administration (VA) to refer me to the orthopedic clinic, I had gone to private doctors, had x-rays done, and received a diagnosis of traumatic osteoarthritis with recommendations that a total knee replacement be done.

Since I had been to Cuba many times with Pastors for Peace caravans challenging the U.S. embargo against Cuba, I had some familiarity with their medical tourism program. So, I decided to explore that as a treatment option while at the same time doing battle with the VA.

Through a friend on a delegation to Cuba, I had x-rays and pertinent medical history delivered into the appropriate hands at the Cira Garcia hospital. From a doctor at that facility I received a treatment plan that included tests to be done pre- and post-operative, 21 days at the clinic, rehab, etc. The cost would be $4,475(US). A companion could stay at a clinic guest house for $40 per night, meals included.

The plan was to “correct the deformed tibia,” a procedure that would, according to the doctor, “give greatest benefit and preclude replacement of the knee with a prosthetic device.”

I did not follow up on this because I felt it was the VA’s responsibility to take care of the war related injury. So, I stayed with the pain for a year until they did the total knee replacement.

Access to the Cuban clinic was made possible with the help of a connection not available to everyone. Doing research for this piece, I found that access to Cuban medical tourism isn’t easy. The website included below has excellent information on services offered, but I received no return on the email posted at the Cira Garcia site. Even a contact at the Cuban Interest section in Washington, D.C. has not provided me with information about how best to access the “meditour” system.

A quick word about travel to Cuba. From the U.S. you can’t. From any other country it is done easily. Under U.S. law it is illegal to spend money in Cuba (but it is legal in the U.S. to become disabled because you can’t afford health insurance). So, with that in mind, and since WTRs will do what they need to do, here’s the website: www.cirag.cu.

Knee Surgery for a Self-Employed WTR

Vicki Rovere

Shortly before Thanksgiving of 1999, I stepped out of a car and felt a searing pain in my right knee. Over the previous months I had felt sharp pains when I squatted while building a raised floor in my living room; one time at the theater I had to move to the end of a row because it was too painful to sit with my leg in a bent position. But that November day it was clear I needed to see a doctor.

At the time I had health insurance, which I had found through the National Association of the Self-Employed. I rarely need medical help, and I wanted the insurance for catastrophic coverage. So I chose a policy with a $5,000 deductible, which kept the premium low. (I think it started at $100 a month, and gradually rose to $150.)

Because such large deductibles are unusual, even the medical staff was unfamiliar with the procedures. The MRI cost $1,000; the doctor said his fee for arthroscopic surgery was something like $7,000. I explored other options. I tried applying for Medicaid but was turned down because I had insurance. I had heard that some people had gone to Canada for elective surgery, but I couldn’t find anything on the Internet. If I went to a clinic in New York I wouldn’t be able to choose my doctor, and I had no idea of the competency level of the staff.

Finally, a breakthrough (and this is key): I learned that the insurers have fixed amounts they pay doctors for each procedure, and the doctors in each plan have accepted this. The payment for the arthroscopy was listed at $3,000, and this was all my doctor was entitled to, even if I was paying it myself. Same for the MRI—I think it was half the cost, and I got a refund for part of what I had already paid. What with other costs of the operation and then a course of physical therapy, I finally exceeded the $5,000 deductible; the insurance paid 80% of additional costs.

Low Income WTR Choices

We talked to an accountant who is also a war tax resister, who is interested in helping WTRs think ahead. These are his opinions and not advice from the NWTRCC office, but it may indicate another option for some readers. More information on this topic can be found on the website Don’t Owe Nothin

What I am finding with the WTRs who are being referred to me is that many don’t file tax returns. However, since most of them live simply enough, I find that they would qualify for the Earned Income Credit and/or other credits and would actually get money back as well as not pay taxes. There are currently tax credits and deductions that are available now that weren’t years ago. The tax laws are always changing, but as of 12/31/04 to 12/31/06, a couple filing a joint return could make $36,000, put $6,000 into an IRA and owe no taxes. A single person could make $18,000 and put $3,000 into an IRA and wouldn’t owe any taxes. Other tax planning strategies are available for those who are covered by an employer retirement plan as well. If people haven’t filed in years and they are self-employed, they also have not been paying into the Social Security system, generally. If they were aware of how much money they could make and still not pay taxes, they could start putting some money away for retirement, pay into the Social Security system, and still not pay income taxes.

Applying for Social Security: One War Tax Refuser’s Story

by Payno Warbucks

Note: This essay was written in 2002. Barring major changes in the Social Security system, the basic information remains relevant.

Many war tax refusers do not file federal income tax returns and do not pay income or Social Security taxes. Therefore, they are concerned about their eligibility for Social Security benefits and Medicare when they reach retirement age and may not be able to support themselves or pay medical bills from work income alone. I was one of those.

The statement sent to me annually over the last few years by the Social Security Administration showed that in 21 of the first 24 years of my working life I earned wage income, with Social Security taxes withheld, so there was no doubt that I had earned enough credits for retirement benefits eligibility. I had filed no income tax returns since 1959 and had prevented withholding of all income tax from almost all wages earned after that by claiming extra allowances on W-4 forms filed with my employers. However, Social Security eligibility is not based on returns filed or income tax paid, but on income and Social Security withholding, as reported by employers, and on self-employment income, if reported on income tax returns.

In the next 22 years of my working life (as a self-employed carpenter) no income was reported to the IRS and no taxes or Social Security were paid. Seeing long columns of zeros on annual Social Security Statement mailings, I wondered what questions would be asked about this if I applied for Medicare and Social Security.

I turned 65 in June 2002, and began to need medical insurance coverage for emerging health problems. Because I had made no contributions to the Social Security Retirement Fund for 22 years, I initially intended to apply only for Medicare benefits and to defer applying for retirement benefits until I might need them because of inability to continue working. Applications can now be made by Internet, phone, or in person at a Social Security office. Original documents (including federal income tax returns for the prior year) must be sent to Social Security and are then returned promptly by mail.

By coincidence, I spent half of 2001 in federal prison for a School of the Americas Watch protest, so my income was unusually low and not taxable for that year. It was the perfect year for filing my first straight income tax return in 42 years. My adjusted gross income for 2001 was $661.68, which included $18.48 for a month and a half of food service employment in federal prison. I owed $81 in Social Security tax, but was entitled to an Earned Income Credit of $40 because of low income, which reduced my total due to $41. I recommend to non-paying non-filers that you plan to earn low income in the year before applying, so that you can file without incurring income tax claims that year.

I chose to apply by phone. The interviewer reviewed with me my record, the dates, facts, and documents required for an application. She argued that it would be financially advantageous for me to apply for the retirement benefit at 65, rather than waiting until later. When I persisted in asking for the Medicare benefit only, she asked, “Are you just going to leave this money lying there?”

The Social Security website on how to apply for benefits says, “If you have a copy of the Social Security Statement please be sure the earnings listed for each year are accurate, especially the years after 1977 and any years you served in the U.S. military.” The interviewer reviewed my earnings record and pointed out that there were no earnings credited for 1978-2000. I had carefully thought through how I would answer such questions. I replied, “I can’t document that for you. I have to go with your figures.” I planned to stick with that response, but she didn’t question me any further about the issue. When she summarized the interview in the form of a typed application that was sent to me, she paraphrased my response to these questions as follows: “My earnings history was reviewed with me and it is correct; I have not worked during the last 23 years in public employment.” (The term “public employment” apparently did not mean government employment, but employment for forms of compensation that are taxable or publicly reported.)

If this conversation is representative of Social Security Administration policy, they are not interested in probing the earnings record as reported to them by the IRS, which collects or does not collect the required taxes. They seem more interested in paying out the prescribed benefits based on the reported earnings. Higher reported earnings would in fact lead to a higher level of benefits to the applicant.

After I was approved for Medicare, I reflected further on the Bush tax cut that put the budget back into deficit; his request for a $48 billion increase in military spending for 2003; his Star Wars and Iraq invasion plans. If I left my Social Security entitlement money lying there, as the interviewer put it, the money would not be used for benefits to elderly or disabled people. Social Security revenue surpluses would again be used to finance a federal military deficit, as they have been for most of my working life. I decided to claim the benefits and appropriate any surplus in my personal budget to urgent works of peace and justice, as I have always done. So, three months later, I applied for the retirement benefit. The interviewer for this application didn’t get into my earnings record. It happened that I was eligible for a higher level of benefits as a widower, based on the reported earnings of my deceased former wife, because I had been married to her for more than ten years.

In conclusion, I recommend that non-filing, non-payers plan to work for reported wages for at least ten years over the course of a working life. I believe from my experience that not filing returns and not having any reported income for substantial blocks of years will not, under present practices, prevent people from qualifying for benefits at retirement age.

S T O R I E S

Dan Lundquist

The process for distribution of my mother Grace’s estate is beginning. Grace died in 2004. I receive no distribution from the will. There is, however, a statement in the will that Grace has already provided for me, a guard against any claim that Grace inadvertently left me out of the will.

I am the only one of my siblings who has claims by the IRS for unpaid military taxes (tens of thousands of dollars over the decades, some of which may have passed beyond the ten-year statute of limitations.)

The estate is distributed equally to my three siblings who will over time direct one-quarter of their inheritance to me. We have yet to work out the details, but my understanding is that they each can gift me $13,000 per year without incurring a gift tax.

Grace’s estate is estimated to be less than the $1 million Minnesota inheritance tax level, which in turn is less than the federal $3.5 million inheritance tax level, so no inheritance taxes are due on the estate.

Anonymous 1

My uncle died and left money to my parents who decided to pass it along to the three kids. Because they didn’t want to pay tax on the gifting or have us burdened with it, they gave us each $33,000 in installments. As a WTR I chose to put the majority in escrow and a fair chunk in a mutual fund that has no military, nuclear, or petroleum investments—but in my brother’s name. He was OK with this and still is, as he makes very little income and so does not have to pay tax on any interest income. I guess I’m lucky in that way.

One form of support I have is the Conscience and Military Tax Campaign, based in Seattle. They have an escrow account in which I’ve deposited money. The account does not bear my Social Security number, and therefore is harder to trace.

I think it is easy to feel guilt or shame as a WTR when talking about personal wealth with other WTRs, since many in this movement tend to “live simply” or to at least attempt to do so. I like the approach of one WTR who talks about trying to make as much money as possible without giving the IRS a dime.

Anonymous 2

I asked my father not to include me in his will, because those assets [once mine] would be subject to scrutiny and seizure by the IRS. At my brother’s suggestion, my father stated in his will that he was not leaving me any part of his estate, and then proceeded to divide the estate into seven portions (I have six siblings), with one of my siblings receiving two of those seven portions. The unwritten understanding was that it would be passed on to me through that sibling.

What actually happened was that my father’s long illness and consequent adjustments to his assets meant there was no estate to divide up.

In addition, I was to receive money from my father’s life insurance policy, which I refused because I had to sign a statement saying I had no outstanding debts to the IRS. Having refused that disbursement, it was divided evenly among my six siblings, who then passed a share on to me.

I put that life insurance money into a loan fund run by Equity Trust, as a one year interest-free loan. After the year was up I paid some debts and used the rest of the money to start a business, so that I could be self employed.

My central objectives in being a war tax resister are 1) to pay as little as possible to the federal government, particularly the general fund, which pays for military violence and a generally oppressive foreign policy; 2) to redirect what would have been paid in taxes to groups doing good (nonviolent) work; and 3) to not cooperate with any subsequent collections by the federal government of taxes, penalties and interest accrued by me because of my resistance.

Some years this meant keeping my income below a taxable level and, from the beginning, choosing not to acquire substantial assets which could be seized by the government. Recently, this has also meant working for myself as an independent contractor (handyman/carpenter) and avoiding, when possible, regular jobs with W-2s, from which I have had a small amount seized.

All of this is to say, I am trying to leave no tracks with regard to money or assets received. Having a supportive family has made that task easier. My siblings were willing to facilitate the arrangements, and have been supportive of my decisions with regard to lifestyle.

Finding Alternative Housing & Community

By Karl Meyer

At age 67, my living situation, income, and health situations are excellent, secure and stable. I have Social Security retirement benefits of $600 a month.

I have good medical care and prescription drug coverage under a Medicare Plus HMO plan, with a premium of about $60 a month withheld from my Social Security check. My health is excellent, due to good genes and a healthy diet and lifestyle.

My economic picture is secure, with plenty of surplus income potential, and the IRS poses no known threat to me at all. This is due to years of unswerving commitment to nonpayment of any taxes for war, understanding the basics of how the IRS assessment and collection system actually works, and practical foresight and planning on how to make war tax refusal work within a viable income and lifestyle plan. The elements of this plan include the following:

1. A relatively simple and frugal way of life that is not ascetic, but relies on conservation, re-use, recycling, and low cost solutions to economic issues.
2. Living in community, with sharing of low-cost housing, food and transportation solutions. Seven years ago, at the age of 60, I began an intentional community in which I now live with six other younger people. We own three low-cost houses with no mortgage or rental payments. Our shared costs for all housing and utility costs are less than $100 per member, per month. In our urban garden we raise copious amounts of organic fruits and vegetables, and get additional food from quality dumpster diving. We use bicycles and low cost, secondhand vehicles for transportation. A person could easily get by in our community on an income as low as $2,000 per year. As a self-employed carpenter I can readily earn any supplemental income I want. At present I work about three months per year to earn income for savings, investment in our community, and our work for peace and social justice, as well as for recreation and personal needs and goals.

I do not file income tax returns or pay any federal income taxes. Our houses are owned by a cooperative corporation, which is structured to have no taxable income, because income is basically matched to expenses.

Two of us are in the 60s age bracket. We keep the community balanced with younger people, including young searchers just out of college. It’s my hope and plan that in a few years, when I may not remain as self-sufficient and self-reliant as I am now, the younger people will help me to continue with an active and useful contribution to broader community life.

I have a carefully thought out living will, and a plan to exit gracefully at a time of my own choosing—if I have that opportunity—when I feel that the time has come to return to the soil from which we spring and return in the life of bacteria, worms, plants and animals.

A 96-Year-Old WTR: How She Does It

Cynthia Foster (written in 2004, Cynthia died in February 2007 at age 99)

My strategy is to keep my taxable income as low as possible. In the early years of refusing to pay for war I was able to eliminate my taxable income with itemized charitable deductions. When the IRS put the 50% limit on deductions I could not reduce my income below the taxable bracket. Every year I give away half my income in charitable deductions!

I had no financial strain but did have considerable mental and psychological strain coping with double seizures and the IRS system of applying credit for money seized.

My step-granddaughter Carol is my health proxy and legal guardian. Her husband operates a real estate business out of the first floor apartment in a large, old three-apartment house. I live in the second floor apartment, and I have lots of sunshine, a fine view to the west, and lovely sunsets.

I have Medicare, Blue Cross Blue Shield health insurance, and a comfortable government pension that I inherited as the widow of Emery Foster, and my own Social Security. The good government health insurance policy, National Alliance of Postal and Federal Employees, that I inherited from my husband ceased to operate last year. We were given the option to choose another plan. With Carol’s help I chose Blue Cross. I could not have made the change without her help. As I grew older, deafness became a problem in communication. A punch button phone system is nearly impossible for me to use. I battle with it and when I fail, Carol makes my calls for me.

New England War Tax Resistance (NEWTR) is my support group. The New England Regional gathering of WTR was supportive and helpful after my pension check was intercepted without warning in June of 2002 by the IRS, and I was put on automated collection for life. After collecting for June and July of that year, they mysteriously stopped. I didn’t ask them why! For an entire year I operated on the assumption that they would resume collecting. They have not. In my latest contact with IRS, explaining why I was not paying the money I owe, the agent put me in the category designated uncollectible. No more dunning for payment, but they are still collecting interest and penalties.

I’m not a typical war tax resister, if there is such a creature. It was easy for me. I had only myself to consider. I have never felt intimidated by the IRS. I have enjoyed many conversations with IRS agents. I always felt in control.

For one who is free and unencumbered, war tax resistance is easy. Try to remember that you are in control. Seek support from other resisters. But if or when it becomes more than your circumstances can bear, you can stop.

A Supportive Community

Juanita Nelson

Only one year of our lives did my life partner Wally and I have health insurance. We decided early on that we would not apply for Social Security or Medicare (for which we would most likely not have been eligible because of war tax resistance and almost no contributions) or Medicaid unless absolutely destitute.

From time to time we’d grapple with “What will we do when we’re too old or ill to grow enough to feed ourselves and earn enough from the garden for our meager cash needs?” Never coming up with a plan, we lived in the present and kept on doing what we were doing.

Eventually we did capitulate and accept free care from the local hospital (required to serve the poor to qualify for federal funds) and the county’s Community Health Clinic. By enrolling in MassHealth, prescriptions are filled for a dollar each.

Helpful as these programs are, I prefer to deal directly with private practitioners. When I required a hysterectomy, I let the surgeon know that, while I expected to pay something, I could not, on our five to six thousand annual gross, afford his standard fee. He waived all payment and has performed free check-ups since 1995. I consider the arrangement sharing the wealth. Though I know his largesse is hardly causing hardship, I take him a string of garlic each year as thanks. In other cases, including bills for lab work, I have written letters stating our income and including payment for 10%-20% of charges.

Our greatest support has also been of the direct sort: our community. Its core is Pioneer Valley War Tax Resisters, but the circle is much wider. Long before we, in our eyes, had reached elderhood, the Nelson support group built a railing from our door to Traprock Peace Center (about 170 footsteps distant), where we use the phone. Roof extensions were added so that wood could be stored close to the house, sheltered from the elements, and reached from the back door.

Twice Wally had skilled, loving care from hospice. The major contribution from hospice was an aide who came daily to change the bed and bathe Wally plus phone consultation available 24 hours a day. We used the service first in 2000.

Two years later we spent the last weeks of Wally’s life with friends who graciously squeezed us into their home—along with a hospital bed, daily visits from the hospice, and a steady stream of visitors and helpers who provided gourmet meals, transportation, music, and just sitting with Wally.

Wally died in May 2002. With a host of volunteers, I continue in the house we built. At 81, I am still quite capable of drawing water from the well, stacking wood, and carrying the chamber pot to the outhouse. (It’s a little harder to light the two gas lamps since I seem to be shrinking.) Still, I appreciate the younger, stronger backs that insist on taking over such chores.

Care of the elderly and infirm would be simpler if we lived in intentional communities of one sort or another, proximity making it possible to fold the care more easily into the rhythm of our lives. Those being cared for could make whatever contributionsthey could. But until we make such arrangements, I recommend settling in an area with kindred spirits of all ages.