If beauty is in the eye of the beholder then deception is in the eye of the electorate

United We Stand but divided we fall

by Alex Hutchins

House of Usher

Just as sure as I am the writer of this article, the USA, our house is divided…

Just as sure as our planet orbits around the sun, our house is divided…

Just as sure as Republicans fight Democrats, our house is divided…

Yet, our founding fathers in their inevitable wisdom designed her, our country, this way.  So, who are our founding fathers?  They were:  John Adams, Samuel Adams, Benjamin Franklin, Alexander Hamilton, John Hancock, Patrick Henry, John Jay, Thomas Jefferson, James Madison, Thomas Paine, and George Washington.  These 11 revolutionists were willing to die for the freedom in which they believed.  Strong convictions one might say.  They were men of integrity, honor, and ethics.  They were men who “lived,” breathed,” “ate,” and wrote The Declaration of Independence.  George Washington was the only President that did not go to College and Patrick Henry is remembered more for his “Give Me Liberty or Give Me Death” speech at St. John’s Church than anything else.

Thomas Jefferson wrote into the Declaration of Independence that the power of the government is derived from the governed.  Before the colonies, kings ruled nations it was believed by the authority of God.  The Declaration of Independence was a radical document to say the least.  Our founding fathers created a Republic not a Democracy.  These two forms of government: Democracy and Republic, are not only dissimilar but unequivocal opposites.

The chief characteristic and distinguishing feature of a Democracy is: Rule by Omnipotent Majority. In a Democracy, the individual, and any group of individuals composing any minority, have no protection against the unlimited power of the majority.

Writing the Declaration of Independence

A Republic, on the other hand, has a very different purpose and an entirely different form, or system, of government. Its purpose is to control the majority strictly, as well as all others among the people, primarily to protect the individual’s God-given, unalienable rights.

But, when a Government sets aside individual rights in favor of the rights of a free-market, enterprise system by allowing special privileges for the wealthy, then the electorate of that Republic should take back control.  Today, unfortunately, we find ourselves in that unique and strange position.

In 2009, people with incomes over $200,000 claimed $67.8 billion in itemized tax deductions on their tax returns for that year. Of that amount, the largest share of $22.8 billion, or roughly 34% of the total, was claimed through the mortgage interest tax deduction. We can only assume that it was more in 2010.  And, this year, 2010, is important to me because that is the year that I got terminated and still had to pay IRS taxes.

Businesses, both large and small are allowed deductions that reduce their tax liability. 

A common list of these deductions is listed below:

Click to enlarge

advertising

bad debts from sales or services

bank fees on business accounts
car and truck expenses

commissions and fees
cost of goods sold

depreciation

dues for trade associations
employee benefits
gifts to customers, suppliers, etc.
insurance (casualty and liability)
interest

legal and professional services
meals and entertainment
office expenses
pension and profit-sharing plans
publications
rent or lease expense
repairs and maintenance
services performed by independent contractors
supplies and materials (not included in cost of goods sold)
travel expenses
utilities
wages of employees

A GAO study found that in every year from 1998 to 2005, approximately 55 percent of large corporations paid no corporate income tax. Of those companies who pay taxes, there is a line item on their Balance Sheet called Deferred Taxes where these companies only pay interest on their taxes due, while deferring their true tax liability until some future date.

Meanwhile, because of the various allowable deductions listed above, many corporations show paper loses while still generating a positive cash flow; and, of those companies that have a tax liability to defer, these companies are reporting record profits, while families are suffering due to an economic recession (caused by the greedy wealthy)  and the scourge of being unemployed.

2010 Unemployment Lines

Something ain’t right in this free-market enterprise system of ours that operates in a Republic, supposedly controlled by the electorate and that something is the art of deception at its best.