Oct 30, 2012 | Constitution, Economy, Taxes
By Dr. Harold Pease
Viewing past presidential elections, and the one we are now in, it becomes very obvious to me that the winner will be the one who gathers the most special interest groups by promising them favors in return for their vote, often from the public treasury. Today there are between 9 and 15 thousand lobbyists working on Capitol Hill seeking ever-larger portions of the tax pie for their faction. Purchased politicians can’t say no. When they can’t actually meet all the promises they have made, they simply raise the debt ceiling which signals the Federal Reserve to print more paper money, a process sometimes called quantitative easing. Hence we have passed to our children a debt in excess of 16 trillion dollars.
The Founding Fathers were quite familiar with the need to control special interest groups, then referred to as factions, as absolutely critical to liberty. Democratic governments in both Athens and Rome had bred and fed factions thus, “bread and circuses” was the cry of their factions before their loss of liberty.
James Madison, Father of the U.S. Constitution and the Bill of Rights, defined a faction, in The Federalist Papers No. 51, as “a number of citizens, whether amounting to a majority or minority of the whole, who are united and activated by some common impulse of passion, or of interest, adverse to the rights of other citizens, or to the permanent and aggregate interests of the community.” He saw the source of factions as being “the various and unequal distribution of property. Those who hold, and those who are without property, have ever formed distinct interests in society. Those who are creditors, and those who are debtors, fall under a like discrimination.”
Tension over income distribution will always exist because we do not share the same talents or work ethic. The problem with democracy, he continued, is that “there is nothing to check the inducements to sacrifice the weaker party, or the obnoxious individual. Hence, it is, that such democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security, or the rights of property; and have in general been as short in their lives, as they have been violent in their deaths.” Free men are not equal and equal men are not free.
George Washington warned that factions “put in the place of the delegated will of the nation the will of party, often a small but artful and enterprising minority of the community” (Congressional Record, Feb. 19, 1973, S2653). He admitted that they “may now and then answer popular ends, they are likely, in the course of time and things, to become potent engines, by which cunning, ambitious, and unprincipled men, will be enabled to subvert the power of the people, and to usurp for themselves the reins of government; destroying afterwards the very engines which have lifted them to unjust dominion.” Unions come to mind. Factions are focused only upon themselves and demand an ever larger share of the public pie until there is no pie. Look at Greece.
Madison knew that factions could not exist in non-free states, they could simply be outlawed, but in free states only a republic could control them. The Constitution was specifically designed to do just that by offering them no incentive to assemble on the federal level. Congress was given but four powers: to tax, to pay the debts, and to provide for the general welfare and common defense. Clauses 2-9 of Section 8, Article 1 defined what general welfare is and 10-17 what common defense is. No money was set aside for, or provided to, any special interest. The power distributed benefited all equally and at the same time. The federal role was as referee only. Our Constitution does not redistribute wealth; it leaves the individual to do that by his work ethic. It remains the fairest way. The Founders, who were all veterans, even resisted the temptation to carve out special privileges for themselves. With no money to divide, the vultures had no reason to assemble.
Unfortunately, the resistance to use the public treasury to further special interests did not last. A transcontinental railroad was desirable in the late 1860’s and the country was willing to look the other way, ignoring the Constitution, when two railroads, the Union and the Central Pacific, were given the privileged contracts. The completed track laid in 1869 wet the lips of other railroad building companies who thought that they should get monies from the public treasury as well. The government, invaded by “me too” applicants financed three additional transcontinental railroads by the early 1890’s.
Benjamin Harrison decided to promise veterans monies from the treasury in his election against Grover Cleveland, who honorably refused to do so. Harrison’s win opened Pandora’s box. Now that some were getting access to the treasury, other groups and causes felt that they should as well. Franklin D. Roosevelt and Lyndon B. Johnson opened it even wider allowing anyone with a cause to get taxpayer monies. Armies of special interest groups now assemble on the Capital to feed off the public trough. Damaged is the view that the federal government can only do and finance the listed items in Article I.
Factions will inevitably destroy our republic unless we return to the list. It will not be easy. We are addicted to debt, having everything right now, and passing it along to our children. Still, the foundation is there. Every remodel is first ugly and dirty before it shines, but getting back to where government cannot show favoritism to any group, interest, or faction is critical or this patient is terminal. The Founders had to start from the beginning to control factions. We already have machinery in place to do so but lack statesmen who will use it. It is time to find those statesmen.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College. To read more of his weekly articles, please visit www.LibertyUnderFire.org.
Jul 9, 2012 | Constitution, Healthcare, Taxes
By Dr. Harold Pease
With respect to the Supreme Court’s ruling on National Health Care, Justice Anthony M. Kennedy said that the court majority “regards its statutory interpretation as modest. It is not.” Then, noticeably disturbed by the ruling, added. “It amounts to a vast judicial overreaching. It creates a debilitated, inoperable version of health care regulation that Congress did not enact and the public does not expect.” He called it “judicial legislation” and accused Chief Justice John Roberts of trying to “force on the nation a new act.”
Judicial activism is when a law of Congress is interpreted by the Supreme Court in such a way as to give it new meaning. George Washington warned us in his Farewell Address of the inclination of government to do so. “Let there be no change by usurpation; for though this, in one instance, may be the instrument of good, it is the customary weapon by which free governments are destroyed.” Usurpation, in his day meant twisting things around to extract meaning that was initially not there.
So what did Justice Roberts twist or legislate that changed the National Affordable Healthcare Act (Obamacare) as passed by Congress? At the top of the list, his rewrite called it a tax when Congress never passed it as a tax and the political party passing it, and their President, Barack Obama, emphatically resisted any description of it as such. Rich Lowry, a political commentator, said it best. “Obamacare as passed by Congress had a mandate to buy health insurance and a penalty for failing to comply. Obamacare as passed by the Supreme Court has an optional tax for those without health insurance. Obamacare as passed by Congress required states to participate in a massive expansion of Medicaid, or lose all their federal Medicaid funds. Obamacare as passed by the Supreme Court makes state participation in the Medicaid expansion optional.” In short, “Obamacare as passed by Congress didn’t pass constitutional muster. Obamacare as passed by the Supreme Court didn’t pass Congress” (The Umpire Blinks, by Rich Lowry, The Corner, National Review Online, June 29, 2012).
Judicial Legislation or Activism is not new. The desire for the Court to “legislate” through decisions expressed itself more fully the last sixty years as it attempted to “right” perceived wrongs instead of sending the faulted legislation back to the legislative branch for correction by the peoples’ representatives. By altering legislative law it has moved into state prerogatives such as education, state residency requirements, and imposed federal standards of procedure on local police to name but a few. In broadening its power base, far beyond Constitutional restraints, it has almost destroyed the idea of two co-equal governments, one federal the other state, known as federalism.
In the National Affordable Healthcare Act the Supreme Court has effectively retrained further encroachment (mutilation) of the Commerce Clause but opened wide the interpretive door that the federal government can control anything it taxes. So, does this mean that if the federal government wishes to control free speech, press, assembly, religion, guns, or any other activity, it first simply levies a tax on that activity? Apparently judicial legislation creates a “need” for additional judicial legislation. God help us!!
We must return to our foundation the U.S. Constitution as written, without all the judicial or executive alterations that go beyond this document. According to Article I Section I, “All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.” There is no authority for either of the two other branches of government to make law—any law; and law made by Congress is specifically listed in Article I, Section 8 where 18 clauses identify the powers of the federal government. So, even Congress cannot make any law they like. The issue of health is not noted and is therefore, as per Amendment 10, entirely a state issue. The Supreme Court majority ruling ignored this long-term clarity and instead chose to violate the document they are charged with upholding.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College. To read more of his weekly articles, please visit www.LibertyUnderFire.org.
Jun 11, 2012 | Globalism, Take Action, Taxes
By Dr. Harold Pease
Like a bad penny that one cannot get rid of, the idea of giving the world’s oceans, some 70% of the globe, to the United Nations is once again before the Senate Foreign Relations Committee. The “full court press,” led by Committee Chairman John Kerry, heard testimony favoring the idea from Secretary of State Hillary Rodham Clinton, Secretary of Defense Leon Panetta and Chairman of the Joint Chiefs of Staff General Martin Dempsey. Additional hearings are scheduled this month with a favorable vote scheduled, they hope, before July. President Barack Obama would like a full Senate vote before November to avoid the ratification of the Law of the Sea Treaty from becoming an election issue but is willing to wait, if need be, until December. Then, while his party retains control of the Senate even if the Republicans win the election, quietly force it through before January, as he did the National Defense Authorization Act.
This is not a party issue. Presidents and secretaries of state from both Republican and Democratic Parties have favored this idea. Virtually all administration leaders from either party, and the advocates noted above, are Council on Foreign Relations members, an organization decidedly globalist in philosophy, and thought to be the mother of this idea.
The treaty evolved out of a series of United Nations Conventions on the Law of the Sea between 1973 and 1982, with the third such convention, known as UNCLOS III, being the most important. It is designed to create government dictating every aspect of the world’s oceans. What began as an effort “to codify certain navigational rights had … morphed into a ‘constitution for the oceans.’ ”
So what does the Law of the Sea Treaty, commonly, and hereafter, referred to as LOST, do? All ocean bordering nations are allowed a total jurisdiction outreach of 12 nautical miles from their shoreline, called Territorial Waters, plus another 200 nautical mile Exclusive Economic Zone with sole exploitation rights over all natural resources. All ocean water thereafter was International Water, controlled and managed by organizations created by the treaty but under the oversight of the United Nations. Under this new treaty the United Nations would own and control 70% of the earth’s surface.
Presently nations share fishing rights, treasure hunting or other extraction activities on a first come first serve basis and pay taxes on such gains to their respective countries—every country owns the sea. Under LOST, when ratified by a 2/3rds vote of the U.S. Senate, any wealth extracted from the oceans would be taxed by the United Nations alone. LOST creates the Seabed Authority with power not only to tax and distribute the monies gathered but to manage ocean research, impose production quotas, and create a multinational court to render and enforce its judgments; in short, a world government over seven-tenths of the globe. The United States would be subject to an international government of bureaucrats, none elected, and few would be sensitive to traditions of our republic. Moreover, LOST favors what is known as the New International Economic Order, which all socialists and globalists want—the redistribution of wealth to poorer nations.
Of interest is the fact that the only president to oppose LOST since its inception, also had the least affiliation to the globalist Council on Foreign Relations. President Ronald Reagan very publicly, refused to sign primarily because of the treaties threat to U.S. sovereignty. “He also dismissed the State Department staff that helped negotiate it. And in case anyone didn’t get the message, he sent special envoy Donald Rumsfeld on a globe-trotting mission to explain his opposition and urged other nations to follow suit.” Moreover, in a 1978-radio address entitled “Ocean Mining,” he said, “no national interest of ours could justify handing sovereign control of two-thirds of the Earth’s surface over to the Third World.” His new negotiator, Ambassador James Malone, later explained why Reagan’s vehement opposition to LOST, “The treaty’s provisions were intentionally designed to promote a new world order—a form of global collectivism… that seeks ultimately the redistribution of the world’s wealth through a complex system of manipulative central economic planning and bureaucratic coercion” (Still lost on the Law of the Sea Treaty, Brandenton Herald, Edwin Meese III, June 5, 2012).
So far the Senate, as before has not ratified LOST, but can they withstand the “full court press” to do so now? Twenty-seven Senators have indicated that they will not support ratification. Many more are needed to decisively stop this action. Do you know where your senators are on this issue? All globalists must be removed from power or this “bad penny” will return again and again until the United Nations owns and controls the oceans. U.S. Sovereignty is at stake.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College. To read more of his weekly articles, please visit www.LibertyUnderFire.org.
May 18, 2012 | Immigration, Take Action, Taxes
By Dr. Harold Pease
An atomic bomb like story dropped April 27, when Channel 13 Eyewitness News, an NBC affiliate in Indiana opened with “Millions of illegal immigrants are getting a bigger tax refund than you. Eyewitness News shows a massive tax loophole that provides billions of dollars in tax credits to undocumented workers and, in many cases, people who have never stepped foot in the United States. And you are paying for it!” Bob Segall, narrator of the news segment 13 Investigates, begins with the disclosure of a longtime tax consultant, who produced thousands of tax returns easily documenting his claims, from illegal immigrants.
Everyone employed in the U.S. is required to pay taxes. Because illegal immigrants do not possess a social security number the IRS gives them an individual taxpayer identification number, or ITIN. The tax loophole deals with the Additional Child Tax Credit “meant to help U.S. working families who have children living at home” by giving them a credit of up to $1000 per child. The problem is that illegal immigrants have learned that they too can claim this and are doing so for kids in Mexico who have never lived here—lots of them. The whistle blower showed the television station refunds of $10,300 for nieces and nephews of one filer, yet another $11,000 for his nieces and nephews. “I can bring out stacks and stacks,” the tax consultant said.
Eyewitness News selected one of the cases and found multiple adult illegals even using the same filing address. “One of the workers, who was interviewed at his home in southern Indiana, admitted his address was used this year to file tax returns by four other undocumented workers who don’t even live there. Those four workers claimed 20 children live inside the one residence and, as a result, the IRS sent the illegal immigrants tax refunds totaling $29,608.” The reporters found only one child actually living in the mobile home. When they asked were the others were they were told that they live in Mexico. In fact, they had never lived here. An interview of other illegals revealed that both, filing under false address and listing children who had never been in the U.S., was not uncommon.
The reporters next interviewed Russell George, the U.S. Department of Treasury’s Inspector General for Tax Administration and learned that “the IRS has known about the problem for years,” that he himself has repeatedly warned them and still they have done nothing about it. Last year the Inspector General “released a new report showing the problem now costs American tax-payers more than $4.2 billion.” He added, “Millions of people are seeking this tax credit who, we believe, are not entitled to it.” How big is the problem? The Inspector General continued, “undocumented workers filed 3.02 million tax returns in 2010. Seventy-two percent of those returns (2.18 million) claimed the additional child tax credit.” And then he added another bombshell. “In 2010, the IRS owed undocumented workers more in claimed additional child tax credits than it collected from those workers in taxes.” You might want to read that last sentence again.
The reporters were rebuffed at every attempt to interview the IRS. “Despite repeated phone calls, e-mails and a visit to IRS headquarters in Washington, the agency said none of its 100,000 employees had time to meet.” Finally, in an email the IRS did admit that this practice was known to them for over a decade but that they were only following the law “as it is written.”
This explanation did not satisfy the tax consultant either, who said that he repeatedly informed the IRS of other discretions practiced as well, such as the filing of “phony documents and false income to claim tax credits.” They did not care about that either. “These were fraudulent, 100% fraudulent tax returns, but I got no response; absolutely none. We never heard a thing.”
Obviously the IRS does not care and is an accomplice in fraud to the tune of $4.2 billion a year. The next question is does Congress care enough to investigate, and reign in its unruly 1913 creation, or is it corrupt as well? Why not ask your congressman if he will take the lead in this investigation.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College. To read more of his articles, please visit www.LibertyUnderFire.org.
Feb 17, 2012 | Taxes
By Dr. Harold Pease
President Barack Obama’s favorite president, as is the case with so many Americans, is Abraham Lincoln who shares a national holiday, Presidents Day, with George Washington. But this bond certainly could not be because of shared political ideology. Lincoln was for the free market and decidedly against socialism—just opposite of President Obama. He saw nothing in the Communist Manifesto, published in 1848, worthy of emulation.
On the ownership of property Abraham Lincoln’s feelings were especially strong, he said, “Property is the fruit of labor; property is desirable; is a positive good in the world. That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprises” (The Collected Works of Abraham Lincoln edited by Roy P. Basler, Volume VII, pp. 259-260). To him there was no need to take by force the wealth of those who produce and give it to those less productive. The “share the wealth” philosophy articulated by Obama as a presidential candidate in 2008 to “Joe the plumber,” would have been foreign ideology to the Civil War president.
The answer for the poor was not class envy, first identified by Aristotle some 2,500 years ago as being the natural inclination of those with less, a philosophy implemented by Lenin in Russia when the communists identified those holding property as enemies of the state and liquidated some four to eight million farmers, the “Kulaks” (“The Russian Kulaks,” InDepthInfo.com). Then they wondered why the country had such a horrific famine in 1921-1922. Lincoln’s answer to the poor, from which he sprang himself, “Let not him who is houseless pull down the house of another, but let him labor diligently to build one for himself, thus by example assuring that his own shall be safe from violence….”
Unfortunately, many in our society have forgotten the “labor diligently” part of his phrase and have come to expect the government to provide, from the industry of others, their every need. On that score Lincoln also had words. “You toil and work and earn bread, and I will eat it.” He viewed this principle as a form of tyranny to those who work. Today 47.5 % of the adult population pay no federal income tax; many actually receive benefits for which they have paid nothing.
Watching others acquire wealth was, in fact, a sign of a healthy economy for Lincoln. “I take it that it is best for all to leave each man free to acquire property as fast as he can. Some will get wealthy. I don’t believe in a law to prevent a man from getting rich; it would do more harm than good.” Nor would he have supported the hundreds of laws that we have today that disincentivize a man trying to acquire wealth.
Lincoln might have added, “When has a poor man ever created a full time job for anyone?” Hate the Wall Marts or the McDonalds all you want but they provide the poor thousands of jobs. Do not bite the hand that feeds you then wonder where the jobs and prosperity went as did the early Russian communists. The “share the wealth” philosophy, which Lincoln opposed, has never brought long term general prosperity for any people, any place, or any time.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College. To read more of his weekly articles, please visit www.LibertyUnderFire.org
Feb 1, 2012 | Constitution, Economy, Taxes, Tea Party
By Dr. Harold W. Pease
The French philosopher Alexis de Tocqueville in 1840, once prophetically said, “The American Republic will endure until the day Congress discovers that it can bribe the public with the publics’ money.” That day is here!!
Both parties have succumbed to the temptation of getting elected by promising ever more goodies from the public coffers, irrespective of constitutional limits, and to the point that they have irresponsibly enslaved our children with 15.25 trillion dollars indebtedness. Both parties are blatantly guilty with democrats far more so the last three years. The national debt has increased at an average of 4 billion dollars a day under President Barack Obama. The seriousness of this led Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff to exclaim, “Our national debt is our biggest national security threat.”
Last summer both big government parties, Democrat and Republican, unable to come to any agreement, turned their authority over to what was called a “Super Committee” of six democrats and six republicans and still could not reduce the debt by 1.2 trillion dollars over ten years. Impasse!!
Everything is talked about in the presidential debates except this national security threat. We will just pretend it away. Why? Because both parties know that the cuts that have to be made to save the terminal cancer patient have to be drastic, career politicians, which they are, do not want the media to blame their party—which it will! So, the ship (the United States) will sink for lack of real leadership, each party blaming the other.
Not so fast! The Tea Party Patriot movement comes to the rescue again. They predicted correctly that neither party really represents limited constitutional government and both are addicted to debt. It is like an addict prescribing his own detox program. Consequently Freedom Works, a Tea Party affiliate, selected 12 of their own members and through the Internet invited 150,000 members to make suggestions on what should be done.
The Tea Party Plan cuts, caps, and balances federal spending. The budget is balanced in four years, without tax hikes, and remains balanced. Federal spending is reduced by $9.7 trillion over the next ten years. The plan shrinks the federal government from 24 % of GDP to about 16 %. Finally it stops the growth of the debt and begins paying it down. Within a generation there would be no national debt. Bold indeed!
These goals are accomplished, their report continues, by repealing ObamaCare, eliminating four unconstitutional, costly, inefficient Cabinet agencies—Energy, Education, Commerce, and HUD—and reducing or privatizing many others, including EPA, TSA, Fannie Mae, and Freddie Mac. The report calls for ending farm subsidies, government student loans, and foreign aid to countries that don’t support us—luxuries we can no longer afford. Social Security is saved and improved by shifting ownership and control from government to individuals, through new SMART Accounts, a program successfully tried in Chile. It gives Medicare seniors the right to opt into the special Congressional health care plan. Moreover, it suspends pension contributions and COLAs for Members of Congress, whenever the budget is in deficit.
The new plan offers a rational transition to ownership of our own retirement and more control and choice over our health care. Why did the government fail to accomplish the same thing—even behind closed doors? Remember, Congress, as Alexis de Tocqueville predicted, has learned that it can bribe the public with the publics’ own money. Their first concern is to protect their jobs and party. Outsiders, without a personal stake in the outcome, can see much more and do much more without the inevitable political wrangling. Will the media give this plan a fair hearing or will they simply ignore it?
I will follow in another column with Tea Party specifics on dealing with unfunded liabilities in Medicare and Social Security which the two big government parties will never talk about.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College. To read more of his weekly articles, please visit www.LibertyUnderFire.org
