Saturday, May 9, 2020

TAXATION IS THEFT

I wish I could take credit for the simple yet brilliant assertion that taxation is theft. I read it in some nondescript location on the web, which you will find by googling the subject matter. It is not clear who wrote it but I am grateful to the author. In my enthusiasm to spread this revelation (i.e., taxation is theft), I have been emboldened to attempt to improve the author’s flow of logic. Hence, I have taken the liberty of making minor edits to the piece. It reads like a mathematical proof as follows:

Beginning of Quote

My contention is that taxation is theft. Taxation is the extortion, by violence or threat of violence, of the funding necessary to run the government. I’d like to present a little evidence, in the form of definitions, as to the fact that taxes are indeed a form of extortion.

1    Tax, noun, a sum of money demanded by a government for its support (underscore mine)

      Note: the word used in the “tax” definition is not “requested,” not “desired,” but “demanded.”
      That reveals an interesting fact: taxes are not voluntary.

2    Extort, verb, to wrest or wring (money, information, etc.) from a person by violence,
      intimidation, or abuse of authority; obtain by force, torture, threat, or the like

      What happens when you say “no” to the tax man?

3    According to Wikipedia, “Tax evasion is a crime in almost all developed countries, and the guilty
      party is liable to fines and/or imprisonment.” (underscore mine)

      Key words: fines and imprisonment

4    Fine, noun, a sum of money imposed as a penalty for an offense or dereliction

5    Imprison, verb, to confine in or as if in a prison

      What happens if you decide not to pay taxes?

6    They (the government) will take more money from you and/or throw you in a cage.

      What happens if you decide not to pay the fine and/or refuse to go to prison?

7    They (the government) will use force to make you comply. (underscore mine)

      To use force is to obtain by force is to extort; see 2 above

8    Hence, taxation is extortion. Taxation is theft.

End of Quote

Contrary to the above conclusion that taxation is theft, Adam Lee (an atheist writer and speaker living in New York City) writes:

“Libertarians say that taxation is like theft because it takes property from the unwilling. What they ignore, time and time again, is the crucial role of democratic consent. Taxes are not arbitrary impositions decreed by a faceless government. Rather, taxes are the dues we pay in exchange for membership in a society and access to all the services it offers.” (underscore mine).

The operative phrase that allegedly endows the government the authority to impose taxes is “the crucial role of democratic consent.” Yet, I am not aware of any instance in the brief democratic history of the Republic of the Philippines in which the single most important issue of taxation was ever put to a direct vote by the people.

In the first place, the Philippine revolution (which was voluntarily funded by Filipinos) around the end of the 19th century sought to overthrow the oppressive Spanish colonial government, including the oppressive taxes of the same. Unfortunately, our efforts then were usurped by the Americans, who took over the role of the Spanish colonial government.

When we were finally “granted” independence, the Philippine government took over the American colonial government structure, the formation of which Filipinos had virtually no say. Yes, there was a semblance (a mock-up, really) of a representative government during the transitional period prior to the establishment of the Republic, when the Philippines was a Commonwealth of the United States. However, the crucial matter of taxation was never vetted with the population at large, much less subjected to a democratic consent. Even if, hypothetically, taxation was subjected to some form of vetting then, Philippine democracy was at its infancy and our so-called representatives were simply inclined to plagiarize the Constitution of the United States and most everything that came along with it, including taxation—hardly a persuasive scenario of democratic consent.

Thus, we've established that taxation is theft by its very definition and we've also disabused the notion that there was ever any democratic consent to the imposition of taxes in the Philippines.

What follows is a cursory review of certain government services or so-called public services that have previously been the government’s responsibility and basis upon which to impose such fulsome taxes on its allegedly consenting constituents, the more recent privatization of most of these public services and what the Philippine government is actually delivering (or, more appropriately, NOT delivering) today, thereby exposing a glaring anomaly of double-dipping, over-charging and government parasitism--leading us full circle to our thesis that taxation, particularly in the Philippines, is highway robbery.

Electricity Services

In the past, electricity services in the Philippines were provided in the form of an integrated government monopoly (i.e., the National Power Corporation or NPC) in which generation, transmission and distribution were mostly controlled by the government. It is a capital intensive sector which has been and continues to be thoroughly mismanaged by the government (e.g., responsible for the graft-ridden, over-priced and unutilized Bataan Nuclear Power Plant) and culminated in daily and extended blackouts throughout the Philippines in the early 1990s. In the hands of the government, the electricity sector has been a major drain on taxes and a major contributor to the ballooning national debt. To illustrate, in 2001, NPC incurred over 20% of the total national debt (i.e., US$9.36 billion of the total government debt of US$46.31 billion).

NPC . . . You’re Fired!

The good news is, NPC has actually been fired--most of NPC at least. In 2001, the Electric Power Industry Reform Act of the Philippines (EPIRA) became law, which resulted in the privatization of most of the assets of NPC and the deregulation of the power sector. This means that taxpayers are no longer required to fund most of NPC. A major tax burden had been plugged by EPIRA about twenty (20) years ago, yet our taxes have NOT been reduced.

In addition to this glaring anomaly in taxation, EPIRA was practically drafted by the most influential vested interest in the Philippine power sector, the Lopez Group, which had by then recovered Manila Electric Company (MERALCO) from the government. EPIRA allowed cross-ownership between power generation and power distribution, permitting the Lopez Group to self-deal by way of selling electricity from subsidiary power generation facilities to a subsidiary power distributor at the expense of the consumer. Like all profit-oriented enterprises, the Lopez Group acted to protect its business interest. Also true to its lazy, incompetent and corrupt form, the government dropped the ball and lost a major opportunity to establish a truly competitive electricity market that would benefit consumers.

To make matters worse, when the Lopez Group lost control of MERALCO and the legislature could finally plug the said cross-ownership loophole in EPIRA, the lawmakers sat idle while another business group (the Suharto-Crony Salim Group of Indonesia through the money laundering enterprise of Manny Pangilinan) took control of MERALCO and set-up their own power generation enterprise to continue self-dealing at the expense of consumers. Hence, the government lost another major opportunity to establish a truly competitive electricity market. In the absence of true competition in the power generation sector, it is no wonder the electricity rates in the Philippines are among the highest in Asia.

To wit, the government ran our entire power utility infrastructure into the ground, contributed substantially to the hemorrhaging national debt, brought in the private power sector to fix its problems (albeit at a premium price to consumers), and sat idly while vested interests promulgated legislation and policies that limit true competition in power generation at the expense of consumers.

It takes several decades to mess-up such a critical sector in an economy and the government did just that with the Philippine power sector over the past 60 years and counting.

Government should be out of everything in the power sector except in regulation. Exponentially LESS taxes (as there should be no more taxes for power-related infrastructure) should be invested in improving the skills, competence and integrity of the Energy Regulatory Commission (ERC), which remains a weak and reactionary political lapdog at its current stage of evolution.

Fire the Residual NPC (NPC-SPUG and RECs)

What is left of NPC is the Small Power Utility Group or SPUG, which is mandated to supply electricity to far flung islands / areas and highly subsidized by our taxes and electricity rates. Similarly, the 121 rural electric cooperatives or RECs (as of July 2018), under the oversight of the National Electrification Administration (NEA), which are mandated to distribute electricity in rural areas and also highly subsidized by our taxes and electricity rates, remain firmly entrenched. In essence, while most of NPC had been fired under the EPIRA, the “residual” SPUG and RECs (Residual NPC) continue to operate like 121 mini-NPCs all over the Philippines, providing mostly substandard services to its rural customers while surreptitiously squandering taxpayer and consumer subsidies.

The subsidy in the form of the Universal Charge for Missionary Electrification (UC-ME) shouldered by Filipino consumers for electricity services rendered in off-grid areas is expected to balloon to P28.373 billion by the end of 2021. “Based on the current policy of uniform subsidy per kilowatt-hour of electricity consumption in off-grid areas, the total annual UC-ME requirements is estimated to increase from the 2011 level of P7.784 billion to P28.373 billion by end of 2021,” said the Department of Energy (DOE) in a notice. This translates to an increase in consumer subsidies of 365% over a period of 11 years, which does not even include the subsidies from our taxes. Clearly, this bottomless pit of subsidies in the electricity sector needs to be plugged.

In an article published by the Business Mirror dated July 8, 2018, 87 (out of 121) RECs get NEA’s “AAA” grade. The AAA rating is the highest score given by the NEA to RECs that indicates the power distributors’ full compliance on 4 parameters; namely, financial, institutional, technical and reportorial requirements.

The only reason to grade these RECs is to determine if they are attractive enough to be privatized and cut-off from any form of taxpayer and/or consumer subsidy. Assuming the above grading system of NEA is credible, then well done. Now it’s time to privatize these “AAA” rated RECs and their respective SPUG generating assets--but NOT to the same entities to prevent self-dealing between generation and distribution. This would also be an opportune time to plug the self-dealing loophole in EPIRA and finally disallow any cross-ownership between power generation and power distribution to establish a level playing field in power generation.

If these “AAA” rated RECs are truly viable entities, then the private sector would acquire them (and the SPUG generating assets selling power to RECs) and the government should remove all subsidies associated with these privatized assets that will result in the privatized SPUG generating assets and privatized RECs to reflect the true cost of electricity to consumers under a rational and transparent regulatory regime. Thereafter, the NEA should focus on shaping up the remaining 34 RECs to achieve the AAA rating--for subsequent privatization and elimination of subsidies, which should result in the complete dissolution of the Residual NPC and less taxes.

The good news is, the DOE is actually planning to phase out consumer subsidies for off-grid areas over a period of 2 to 5 years, depending on the purchasing power of the consumers in a particular off-grid area. The phase out of consumer subsidies would be 50% each year for “rich areas” and 20% each year for poorer areas.

The bad news is, the DOE plans to have the government (i.e., taxpayers) assume the cost of the phased out consumer subsidies. Such is the convoluted half-assed policies of our government that have little regard for its already overburdened taxpayers. It’s one step forward and ten steps back.

The DOE claims it wants to encourage the private sector to develop and deploy microgrids in underserved areas of the country. Yet, it persists in keeping SPUG and RECs in the hands of the government, transferring the burden of subsidy from consumers to the taxpayers, thereby eliminating virtually any accountability on the administration of these subsidies by the government.

Indeed, ten steps in the wrong direction. It looks, sounds and feels like the electricity sector’s version of the Oil Price Stabilization Fund or the OPSF prior to the deregulation of the oil industry in the Philippines. It’s the Cro-Magnon’s regulatory black box, devoid of any logic and transparency. It was perfected suited for Philippine politicians, who manipulated and abused the OPSF to derive “pogi points” from the stupid masses at the expense of the few taxpayers--and has long been abolished by the deregulation of the oil industry in the country. Unfortunately, the very same concept is being contemplated by the DOE with respect to the Residual NPC, which will precisely prevent private enterprises from pursuing microgrids and supplying electricity to the least developed areas in the country.

Once and for all, get rid of the Residual NPC. The privatization of SPUG and RECs AND the elimination of all subsidies (i.e., consumer and taxpayer subsidies) to these privatized entities will reflect the true cost of power generation and distribution to consumers, thereby attracting private enterprises to pursue microgrids in underserved areas of the country--and provide relief to taxpayers.

Fire PSALM

Another Philippine Government Owned and Controlled Corporation (GOCC) in the power sector that has spun out of control and has become (surprise, surprise) another tax burden is the Power Sector Assets and Liabilities Management Corporation or PSALM, a relatively new government entity established under EPIRA to privatize NPC, “program” NPC’s remaining debt and facilitate a competitive and consumer-friendly electricity market. It has had over 18 years (as of June 2019) to fulfill its mandate and, like most government agencies, has evolved into another useless, salary-sucking, self-perpetuating bureaucratic liability--read PSALM screws electricity consumer. PSALM was not meant to exist for very long and it has clearly outlived its usefulness. PSALM should conclude its affairs immediately, close shop as planned and provide relief to taxpayers.

NGCP

EPIRA included the privatization of the transmission assets of NPC, which is now owned and operated by the National Grid Corporation of the Philippines (NGCP)--a joint venture between the family of Henry Sy and the National Grid of China.

In layman’s terms, the NGCP is like the sole and exclusive superhighway that permits electrons to travel through its transmission lines (like vehicles on an expressway) from the source of electricity (power plants) to distributors of electricity (foremost of which is MERALCO in the Greater Metropolitan Manila Area and other private utilities and RECs throughout the country) in exchange for a tolling fee, which is regulated by the government--in particular, the Energy Regulatory Commission or the ERC--and ultimately paid for by the consumer.

In short, the government should no longer be taxing for transmission assets and services, which are now paid for by consumers by way of tolling fees to the NGCP--a private entity regulated by the ERC. The question is, where is the reduction in our taxes?

In addition to this anomaly in taxation, the Philippine government exhibited a total lapse in judgement when it awarded the ownership, operation and franchise of the entire electricity transmission assets of the country to a joint venture essentially controlled by the National Grid of China--essentially China, which has now invaded our Exclusive Economic Zone (EEZ) in the West Philippine Sea.

One could argue that the NGCP is a 60/40 JV between the family of Henry Sy and the National Grid of China, respectively, and therefore is controlled by a Filipino entity in compliance with the Philippine Constitution. However, even the business conglomerate of Henry Sy never owned nor operated a national transmission grid prior to the NGCP and thus is highly dependent on the expertise of the National Grid of China. So, think again, who is really in control of the NGCP?

As Senator Risa Hontiveros said in a privileged speech in December 2019, “Kasinungalingan ang pagsabing ‘advisory role’ lang ang Tsina. China is in charge of the nuts and bolts of our country’s power grid, with full control of operations and maintenance.”

When push comes to shove, Emperor Xi Jinping can literally give the order to “turn off” the lights in the Philippines and we won’t be able to do anything about it. Far more imperative and strategic than the sarswela of Duterte and ABS-CBN (i.e., a long-standing vendetta between the Marcos family and the Lopez family being imposed by an errand boy) is the immediate review of the legislative franchise granted to the NGCP and the need to either dilute or eliminate altogether the forty percent (40%) ownership of the National Grid of China--unless China abandons our EEZ in the West Philippine Sea. Given how much China owes the Philippines today--see US$137.5 billion Philippine Invoice to China--the shares of the National Grid of China in the NGCP could easily be offset by the government from our massive receivables from China.

Today (20 years after EPIRA), the Filipino consumer is still paying uber-exhorbitant prices for electricity due to the ultra-corrupt and grossly incompetent machinations of government over the past 60 years up to the present time. The main benefit of EPIRA (at least on paper) is NO MORE TAXES for major infrastructure projects in the power sector (a major relief in taxes, theoretically) as these projects fall squarely in the hands of the private sector, which, in turn, is exacting its pound of flesh from the electricity consumer. So be it but, in light of the substantially privatized and deregulated electricity sector, the same consumers should be relieved of paying taxes, which has NOT happened.

The government is no longer providing these vital services in the electricity sector. The government is no longer spending on this highly capital intensive sector. Yet, our taxes have NOT been reduced. Further, whatever residual is left in the public sector should also be completely privatized, devoid of any subsidies whatsoever (i.e., fire NPC-SPUG, RECs and PSALM), and provide relief to taxpayers.

The point is, electricity services, previously in the domain of the public sector and thus a major drain on our taxes, have already shifted into the hands of the private sector (i.e., privatization of most of NPC assets, deregulation of the electricity market and the reduction of subsidies thereof). The shift to the private sector should continue by way of privatizing RECs and SPUG generating assets, and winding down PSALM as originally mandated, thereby reducing further (if not eliminate altogether) the substantial taxes still allocated to subsidize the segments of the electricity sector that remain in the hands of an inefficient, incompetent and corrupt government bureaucracy. Yet, why is the government taxing us even more intensely today, even as we pay some of the highest electricity rates in the region? Where has all the tax relief gone with respect to the initial privatization of NPC and the deregulation of the electricity sector? When will the government finally complete the privatization (and eliminate subsidies) of the Residual NPC, dissolve PSALM and provide some relief to taxpayers?

Water Services

Like electricity services, water services in the Philippines were previously a government monopoly. The Metropolitan Waterworks and Sewerage System (MWSS) was responsible for the supply, transmission and distribution of water to customers in Metro Manila--although it was able to provide piss-poor services to only two-thirds of Metro Manila. It is also a capital intensive sector that was thoroughly mismanaged by the government and culminated in one of the highest percentages of non-revenue water among comparable institutions in the world.

According to the Asian Development Bank, the amount of non-revenue water (NRW) (water supplied but not billable due to leakage and illegal connections) was more than 60 percent. This was much higher than in Seoul (35 percent), Kuala Lumpur (36 percent) and Bangkok (38 percent), and only comparable to Jakarta. Tariffs were low and MWSS was dependent on government subsidies (i.e., taxpayers). In the 1990s, MWSS was saddled with over US$1 billion in debts owed to the Asian Development Bank, the World Bank, the Japan Bank for International Cooperation, among other lenders. It was another major drain on taxes and a major contributor to the ballooning national debt.

In 1997, the MWSS was successfully privatized with Maynilad winning the concession for the western zone of Metro Manila while Manila Water Co. won the concession for the east. Both firms absorbed the debts of MWSS and collectively invested close to P100 billion to provide water and sewerage connections. The original Maynilad went bankrupt in 2003 but was eventually taken over by a new investor in 2007. Today, 96% of Metro Manila is interconnected via underground pipes.

These days, water flows freely in our taps albeit with occasional interruptions. It is worlds away from the conditions we suffered in the 1990s. It is another example that the private sector is infinitely more competent in delivering services than the government.

Notwithstanding the tirades of Digong against the water concessionaires for winning their cases against the Philippine Government in the Permanent Court of Arbitration in Singapore (Maynilad won their case in 2018, where the government was urged to pay the company P3.4 billion. Manila Water recently got a favorable ruling in November 2019, assuring the company of P7.4 billion from the Philippine government.), the more important question is, if the private water concessionaires are “milking” the Filipino consumer by charging fulsome water rates (i.e., no more subsidies from the government), why has there been no relief to the taxpayer for water services that are no longer in the hands of the government? Hence, it would appear that the real culprit “milking” the Filipino is none other than the government itself.

At least, we are getting much better water services from the private sector (albeit at a premium price) compared to the chronic water crisis in the days of the inept and graft-ridden MWSS. Indeed, if the MWSS, which has evolved into a government regulator in the water sector, was remotely competent, the water concessionaires would have lost their arbitration cases against the government. So I say to the government and MWSS, regulate the water concessionaires and protect the Filipino consumer. That’s what you’re paid to do but give us back the tax relief corresponding to the privatization of MWSS.

Telecommunications

The Philippine Long Distance Telephone Company (PLDT) was established on November 28, 1928 by way of legislation known as Act No. 3436. This resulted in the merger of four (4) telephone companies under the operations of an American telephone company, GTE, thereby creating a private monopoly to provide telephone services throughout the entire Philippines.

By the 1930s, PLDT had an expansive fixed-line network and for the first time linked the Philippines to the outside world via radiotelephone services, connecting the Philippines to the United States and other parts of the world.

Telephone service in the Philippines was interrupted due to World War II. At the end of the war, the Philippines' communications infrastructure was in ruins. U.S. military authorities eventually handed over the remains of the communications infrastructure to PLDT in 1947, and with the help of massive U.S. aid to the Philippines during the 1940s and 1950s, PLDT recovered so quickly that its telephone subscribers outpaced that of pre-war levels by 1953.

Fast-forward to the Marcos dictatorship. On December 20, 1967, backed by the Marcos regime, a group of Filipino businessmen led by Ramon Cojuangco (a Marcos crony) took control of PLDT after buying its shares from GTE. The press release of the new owners was to bring reliable telephone services to the rural areas. However, PLDT actually stagnated and eventually became one of the many graft-ridden, thoroughly mismanaged and highly subsidized Philippine GOCCs that was typical of the era of Marcos crony capitalism.

In the 1970s, PLDT was nationalized. In 1981, in compliance with the convoluted policies of the Marcos dictatorship, PLDT purchased substantially all of the assets and liabilities of Republic Telephone Company, another failing GOCC that should not have existed in the first place.

Under this new government monopoly, service expansion was severely curtailed or practically nonexistent. In the Martial Law years, people would apply for phone service only to wait for years and years on end behind an impossibly long application backlog. It was not unheard of for people and small businesses back then to barter for a single telephone line in the black market for tens of thousands of pesos. This is in spite of the fact that during the years it was nationalized (from 1970 to 1986), PLDT was NOT paying corporate income taxes, which was essentially a subsidy to a corrupted entity that had become a milking cow of Marcos.

The incumbent Singaporean Prime Minister Lee Kuan Yew referred to the situation when visiting the Philippines during the term of President Fidel V. Ramos. He said, albeit in jest, “In the Philippines, 95% of the population has no telephone, while the remaining 5% are waiting for that dial tone.”

After Marcos was overthrown in 1986, PLDT was re-privatized, thereby relieving taxpayers (theoretically) the burden of subsidizing a substandard and corrupt government-owned telecom monopoly. Yet, taxpayers never derived any relief from the privatization of PLDT.

By 1995, with the passage of the Telecommunications Act and the subsequent deregulation of the Philippine telecommunications industry, PLDT had been de-monopolized and competition followed. However, given the inherently shallow market in the Philippines, most of the new aspiring entities either fell by the wayside or were acquired by dominant players, which the market has whittled down to the current duopoly of PLDT (acquired / controlled by the Suharto-Crony Salim Group of Indonesia through the money laundering enterprise of Manny Pangilinan) and Globe of Ayala. A third telecom player is being pushed by Duterte-Crony Dennis Uy with some Chinese State-Owned Telecom that will most assuredly compromise the national security of the Philippines.

Today, telecommunication services in the Philippines, which include landline phone connections, mobile phone connections, wired and wireless internet connections, cloud services, among other things, may be characterized as third-world services at first-world billing rates. Compare your actual internet connection speed versus the advertised internet connection speed you’re paying for and you’ll understand. It’s common knowledge among consumers, who have no other recourse than to switch from one shitty telecom service provider to another shitty telecom service provider.

Philippine consumers are being cheated by the current duopoly of telecom service providers in the country, due in large part to the government regulators (in particular, the National Telecommunications Commission or the NTC), who are either sleeping on the job or, worse, protecting the business interests of the telecom companies at the expense of the very consumers it’s supposed to protect.

A Monumental Swindle

The foregoing examples in the electricity, water and telecommunications sectors are analogous to other capital intensive sectors in the Philippines, such as expressways/tollways, mass transit systems and even PAL. Yes, I mean Philippine Airlines. Remember the days when PAL was like the private shuttle service of Marcos & Cronies and consistently gushing red ink at the expense of taxpayers?

The pattern of the government swindle has been quite consistent with respect to these important service sectors, previously the government’s responsibility but subsequently privatized.
  1. Government used to provide the public service or some mediocre semblance of it (e.g., electricity, water, telecommunications, North and South Expressway, LRT, PAL), which required massive capital and taxation.
  2. Government privatizes the public service, which no longer requires taxation. However, the government does NOT reduce taxes but actually increases and intensifies tax collection.
  3. Private sector services improve on past public services (now private enterprises) but overcharge consumers due to inadequate and corrupt government regulatory agencies.
Hence, the taxes imposed by the government for past public services that have been privatized is nothing short of highway robbery. Adding insult to injury, the same thieving / taxing government screws-up in performing its duties, in spite of its substantially diminished role as regulators of these private enterprises. What kind of a raw deal is that for taxpayers and consumers in the Philippines?

Funding the Destruction of National Resources

If you think the staggering government swindle (i.e., essentially double taxation of taxpayers) vis-a-vis the privatization of key service sectors is bad, consider the fact that our taxes have also been funding Philippine government agencies like the Department of Environment and Natural Resources (DENR) and the Bureau of Fisheries and Aquatic Resources (BFAR) under the Department of Agriculture (DA) that have permitted the rape, pillage and destruction of our forests and coastal/marine resources.

"Para kang kumuha ng martilyo at pinukpok sa sariling ulo." Translation. It's like grabbing a hammer and hitting yourself in the head.

The total land area of the Philippines is roughly 30 million hectares. In 1955, approximately 15 million hectares were covered in forests. Philippine forest land is under the ownership of the government and has been managed mainly for timber production. Usufructuary rights to timber resources have been awarded to the private sector through leasehold contracts called logging concessions or timber license agreements (“TLA”).

Poor monitoring and enforcement of such logging concessions, including kickback schemes between government officials and private concessionaires, led to the rape and pillage of such forests, thereby diminishing severely the forest resource base (and its contribution to the economy) of the Philippines and causing serious long-term environmental damage—including the destruction of aquifers, massive soil erosion and catastrophic flooding.

As of 2011, the Philippines was estimated to have less than 2 million hectares of forests left. Every year, during the summer season, it is increasingly difficult to tap into natural water sources and, during the rainy season, massive landslides occur in many denuded areas, burying whole towns and killing hundreds of individuals at a time. Downstream, prime agricultural lands are experiencing increasingly severe floods, destroying billions of pesos of crops and pushing our farmers deeper into poverty.

For more than half a century, the government, in cahoots with the political and military leadership, has systematically stolen a priceless resource from taxpayers and, in fact, is responsible for all the unnecessary loss of life, property and crops in connection with landslides and floods due to denudation.

Similarly, negligence and corruption in government has resulted in the destruction of our coral reefs, mangroves and sea-grass beds. According to The World Bank (Philippine Environmental Monitor 2005):
  1. Only 4 to 5 percent of coral reefs in the Philippines are in excellent condition;
  2. More than 70 percent of the mangrove forests have been converted to aquaculture, logged or reclaimed for other uses; and
  3. Half of all sea-grass beds have either been lost or are severely degraded.
Over the course of several decades, the fishing industry, which was supposed to be regulated by the government (funded by our taxes), was practically issued a “license to destroy” and given a free hand to engage in destructive fishing practices to maximize profit, resulting in the overexploitation of the very ecosystem that sustained the industry.

The World Bank reports states, “One of the consequences of this coastal degradation is the decline in fisheries catch-per-unit effort.” In other words, much more effort is required to catch much less fish today in the Philippines.

It’s one thing to pay taxes and derive no benefit. It’s another matter altogether to pay taxes for half a century and wake-up to find that your forests and coastal/marine resources are nearly all destroyed because the government agencies you have been funding to protect these resources have been making hay with the pillagers all these years.

Too Much Government/Taxation/Theft Everywhere

The very nature of taxation is theft. The particular application of taxation in the Philippines exacerbates the gravity of the theft. We can discuss at length many more examples of too much government and correspondingly too much taxation/theft in the Philippine government, ranging from the bloated police force (the increasing number of private subdivisions, industrial estates, high-rise residential and office condominiums--essentially private enclaves all over the country--that outsource and pay for their own private security services negates the need for a police force that de-facto becomes the body-guards and “wang-wang” escorts of government officials and cronies at the expense of taxpayers), the inutile military (let’s not even aspire for a military to defend against foreign aggressors; how about just crushing once and for all the local muslim extremists and the communists, which is apparently too much to ask), government banks (synonymous to behest loans--SOP during the Marcos dictatorship and now with Duterte-Crony Dennis Uy--at the expense of taxpayers; the phrase that comes to mind, “ginisa (ang taxpayer) sa sariling mantika”; there are enough private banks in the country; government should get out of banking), government media (numerous private media outlets today provide adequate public service; government media has once again become a propaganda tool of the government administration and now even China; "Wow China!" segment in Philippine government radio and China propaganda shows in Philippine government TV at the expense of Filipino taxpayers), government intelligence (the runaway intelligence budget of Duterte at an all time record-high in the entire history of the Philippines of P8.28 billion in 2020; pay for whatever Duterte wants, including prostitutes he cannot screw because of his erectile dysfunction and thousands of trolls to spread lies, misinformation, fake news, propaganda, shift the blame, change the conversation, etc. without any accountability to taxpayers), the fire department (suhol muna bago namin patayin yung sunog; in other words, bribe me first or else watch your property burn; by the way, you need to buy all of your fire protection equipment from me at twice the market price before I issue your building's fire permit), the postal service (if you want to lose a letter or package, be sure to send it through the ever reliable Philippine Postal Corporation) and, yes, even garbage collection (supplemental income for the incumbent mayor of highly urbanized cities in the country). And the list of unnecessary taxation and government waste and corruption goes on and on.

Conclusion

At every conceivable angle, the resounding and inescapable conclusion is: TAXATION IS THEFT. In particular, Philippine government taxation has been and continues to be, more than ever, an audacious self-perpetuating rip-off devoid of any democratic consent.

Albert Einstein is believed to have said, “Insanity is doing the same thing over and over again and expecting different results.” If we, the taxpayers, do the same thing (pay taxes) over and over again, then surely we can expect the Philippine government to do the same thing (rob us, the taxpayers) over and over again at an ever increasing rate and intensity; that is, unless we are insanely hopeful that the Philippine government, out of the goodness of its heart, will miraculously evolve into a squeaky clean and efficient organization . . . in your wildest wet dreams!

     As the saying goes, “Less talk, less mistakes.”

     Consider “Less government, less corruption, less taxes.”

     I prefer “Minimize government, minimize corruption, minimize taxes.”

Unfortunately, this is the stuff of revolutions--the bloodiest and most violent kind--because these bloated parasites entrenched within the bowels of the bureaucratic kleptocracy will not budge without a fight. At any cost, they will maintain the status quo and perpetually enslave the taxpayer, who happens to be you and me.

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