PHILIPPINE VOYAGER

The American economy is hurting in a way it hadn’t hurt before and it did not arise overnight. It was a sinister plan by the “private sector with money and tax cut privileges” to take over the functions of Government and make more money not only from the taxes being paid by us as middle class taxpayers but also to make us pay directly for Government services (like healthcare) that were PRIVATIZED as “spoils of war” when Conservatives gain control of the administration. This service should have been free as part of the WELFARE OF THE PEOPLE CLAUSE OF THE U.S. CONSTITUTION by virtue of the taxes we pay.

CORPORATISM AND DOUBLE TAXATION.The creeping menace is called “Corporatism” with some politically-connected corporations taking over and running profitably thru monopolistic activities certain functions of Government, health care being one of its highly visible victims. Roads and bridges built with public money are next in sight by these elite who did not pay the taxes for its construction, they just want to take over it in order to minimize Government presence in activities that are historically part of the Government’s covenant with the people. Example is the present healthcare situation in the U.S.A.

The net effect is a form of double taxation thru monopolies granted by elected Conservatives running the Government and legalized thru judicious “tax cuts”. We have paid your taxes whether in the direct or indirect form. As such we expect Government to deliver to us taxpayers, a well-planned and executed healthcare it being a part of the GENERAL WELFARE CLAUSE OF THE U.S. CONSTITUTION. But sad to say Government has abdicated it duty to serve us and another private entity delivers our healthcare thru payment of “health insurance” directly by us the taxpayer. And what do we get in return, a measly tax deduction. That’s what I call “mongrelized double taxation” we paid the Government taxes and we have to pay another company to give us healthcare but with several restrictions. Do we really have to pay for it when you have already paid it thru the taxes you pay?

That is why I vehemently dislike the tax cuts practiced by Republicans and Conservatives. Large corporations being unelected bodies have an insidious purpose, to exert control over the social and economic and eventually the political life of our society. Remember the U.S. corporations running the puppet governments of some South American countries at the turn of the 20^{th century? It is “imperialism” if done outside the borders of the United States and presently called corporatism within our borders with the same effect and purpose, to privately benefit from purely Government functions.}

TAX IS THE LIFE BLOOD OF GOVERNMENT, TAX CUT HAS BLED US INTO RECESSION AND BAIL-OUTS, AND WE ARE HURTING WITH JOB LOSSES AND FORECLOSURES!The tax cut calls by Republicans and Conservatives have continually deprived the U.S. Government of its necessary taxes to fulfill its broad mandate. Government has an obligation to look after the welfare of the (all, not the rich only) people as provided under U.S. Constitution. The tax cut privileges and loopholes have enabled the rich to pay only 10% of the burden of supporting the U.S. Government, the middle income earners pays at least 87% of the burden (see table below).

 Breakdown of Federal Revenues (Source: Council of Economic Advisors, Economic Indicators (Washington D.C., U.S. Government Printing Offices, 1967, 1977, & 2004) shows that percentage wise individuals pay more taxes than the “poor” Corporations.

 Those Republicans and Conservatives crying for “tax cuts” are not following Christians tenets because of their unwillingness to share the burden of supporting Government that works to help the less privileged to enjoy the same amount of benefits, welfare and care (education, health, public services and utilities) due to every resident and citizen of the United States as assured by the Constitution under the “Welfare Clause”, (it is in the Preamble if you don’t know that’s why I am reproducing it for the Tax Cuts and Trickle-down Economy proponents, to read).

Years Individual income tax               

1965    1975    1988      2004

Individual Income Tax

43%      45%       44%       43%

Social insurance taxes etc.,     

 20        32           37          39

Corporation income tax           

23          15           10          10

Other                                                      

 14          8            9              8

——   ——    ——       ——

100%   100%   100%    100%

By the way, as a fiction of law, U.S. corporations are also considered citizens having the right to acquire properties and to sue or be sued among other attributes. But the “tax cuts” of Republicans and Conservatives combine has so hobbled the economy so much that the victimized tax-paying, patriotic middle class, meaning us, are now called to bail out “tax cut” corporate beneficiaries for its reckless behavior thanks to its “trickle down voodoo economics”. The “trickle down economy” simply means the POOR has to subsidize the RICH.

 Ouch!

 ”We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”

THE CONSTITUTION IS THE CONTRACT BETWEEN GOVERNMENT AND THE CITIZENRY.The Lord Jesus, knowing that a Government is bound in a contract with the people and tasked with keeping the peace, law and order, maintenance of a system of educational, maintenance of a system of health care for the whole citizenry and those sojourning into its territory, maintaining an adequate food supply, assuring merchants to peaceably carry out their his trade, and other activities of a civilized and organized society during Caesar’s rule said: “Render unto Caesar those which are Caesar’s and render unto GOD those which are for GOD”. And for this benefit of living under a Roman Government the Lord Jesus paid his taxes together with Saint Peter the Apostle, He did not ask for a tax cut though He is Lord of All.

 WHERE THE MONEY WENT? 

Now the question should be asked, “Where the money went”. As stated in the breakdown of Income Tax Payments of Individuals and Corporations alike, the corporations have niggardly participated in the support of Government thru taxes. As to where it went? Ask the corporations who are doing business here and abroad. They sent their factories abroad to exploit the low wages and investment tax-holidays afforded by repressive regimes backed by the U.S. Government and NOW won’t even repatriate their profits here per advice of “Tax cuts gurus”. Imagine calling themselves American companies and not wanting to pay the American Government the tax due them? If I remember my taxation properly, U.S. corporations doing business abroad are given a preferential treatment on incomes from abroad to pay only the difference between taxes they pay the host Government of the foreign country and the taxes due to them had they done business here and operating in the United States. It is called tax crediting under the principle of tax-reciprocity.

 Overseas U.S. corporations are allowed by the U.S. Government to pay a preferential rate and most of the time the foreign Governments gives U.S. Corporations income tax holidays and other tax subsidies not enjoyed by domestic corporations. So in sum most of them do not pay taxes there nor taxes here in the United States. Where is it? Your guess is as good as mine or better yet, ask the Conservatives/Trickle down economists to explain the merits of their programs and why we are in these dire straits. I hope they answer honestly.

 THE ROOT OF RECESSIONThe recession we are in now was brought about by the reckless manner the Government was managed not by George W. Bush alone but in conspiracy with the trickle down economists and tax cut gurus. Here is what the tax-cuts do to us: If you are a boxer who do you hit with your punches, your opponent or the referee? It seems the tax cuts hits the referee or Government for that matter so that he is unable to do his job. Aside from the tax cuts, regulation laws were either ignored, put into the dustbin, and was broken such that a casino like atmosphere pervaded the bonds market what with derivatives and double derivatives. Trouble was just a whiff away.

 To learn the benefits of the Bible in our daily lives, tune in to www.theoldpath.tvwhere Bro. Eliseo Soriano of the Church of GOD International, explains it in service to God and fellowmen as he exposes all false practices and falsities in religion. [Written by Deo Quiogue]