The 2010 Philippine Presidential Race:

“Walang Atrasan” Presidential Aspirants : Who Are Most Likely To File Their Certificates of Candidacy ?

With the coming month of November as the period for filing the certificates
of candidacy for president of the Philippines, who are the persons most likely to run the 2010 presidential race?

And who among the touted presidentiables will blink and back out?

The following persons are noted to be the “walang atrasan” presidential aspirants, in alphabetical order :

de Castro , Noli (Vice President)
Fernando, Bayani ( MMDA Chairman)
Legarda, Loren (Senator)
Mercado, Norberto (Bishop of Council of Overseers of the Nation’s
Evangelization)
Roxas, Mar (Senator)
Teodoro, Gilberto (Secretary of National Defense)
Villanueva, Eddie (Spiritual Leader of Jesus is Lord)
Villar, Manny (Senator)

Three of the “walang atrasan” presidential aspirants are alumni of the University of the Philippines, namely (in alphabetical order) :

Legarda, Loren
Mercado, Norberto
Villar, Manny

The five others are graduates of others schools : Noli de Castro (University of the East), Bayani Fernando (Mapua Institute of Technology), Mar Roxas (Ateneo de Manila), Gilberto Teodoro (Ateneo de Manila), and Eddie Villanueva (Philippine College of Commerce).

Two of the eight presidentiables are graduates of the National Defense College of the Philippines(NDCP), the “war college” of the country : Bishop Norberto Mercado (Class 21) and Secretary Gilberto Teodoro (Class 33) .

Six of them are Tagalogs : Noli de Castro (Mindoro), Bayani Fernando (Marikina), Loren Legarda (Manila), Gilberto Teodoro (Tarlac), Eddie Villanueva (Bulacan), and Manny Villar (Manila).

One is an Ilocano – Norberto Mercado (Tarlac).

Another one is a Bisaya – Mar Roxas(Capiz).

The other media-touted presidential aspirants who will most likely back out from the race, for one reason or another, are the following : Joseph Estrada , Chiz Escudero, and Dick Gordon.

Makati Mayor Jejomar Binay and Senator Panfilo Lacson had already stated that they would not pursue their plans to run for president.



Internet Asian News and Features

EXTEMPORANEOUS ADDRESS OF DR. NORBERTO L. MERCADO

BEFORE AN INTERNATIONAL CONFERENCE FOR THE POOR AND MARGINALIZED, KASIH SAYANG MOUNTAIN RESORT OVERLOOKING MOUNT KINABALU, KOTA KINABALU,SABAH,MALAYSIA ON APRIL 28,2009



2010 Presidential aspirant Dr. Norberto L. Mercado posed for a sentimental photo with his son, John Mark Morales Mercado at Mt. Kinabalu, Ranau, Sabah, Malaysia. Mt. Kinabalu, the highest mountain in South East Asia, is covered with clouds.




Filipino Christians and Muslims want to show to the whole world that religion is no barrier to camaraderie and friendship. Dr. Norberto L. Mercado and his son Engr. John Mark Morales Mercado happily posed for this photo with Filipino Muslim businessmen and their assistants in Sandakan, Malaysia.


* * * * *

Brothers and sisters in Christ, I will be running for President of the Philippines in the 2010 national elections in my country. Combating poverty is one major issue which I will tackle.

I am aware that I am the least -moneyed and least-known among the
candidates in our country's coming presidential elections. It will be just like the classic David and Goliath battle, for I will face Political Goliaths in my country. They have the ample campaign funds, big political machineries, and
they are well-known and well-trained in political combat.

But I am not scared in the coming battle, for I have the Lord God as my Protector and Guide - the same God who guided and protected David. In fact, I am excited to do the battle.

I am excited because I have a message from the Lord to the Filipino people. This message is centered on 2 Chronicles 7:14, in which the Lord God declares : " If My people which are called by My name shall humble themselves and pray, and seek My face, and turn from their wicked ways, then I will hear from heaven, I will forgive their sins, and heal their land."

The first part of my campaign message is the necessity of repentance. This is God's condition for the healing and redemption of our land - that we first repent from our sins, humble ourselves, pray and seek His face.

Thus, it is not just the politicians who are called by God to repent, to turn from their wicked ways, but everybody,especially His people.

The electors who sell their votes for P500 or USD10 to the politicians must equally repent from their sins. For it is a sin to sell one's vote because this is against the law of the land. In fact, this is the major cause of corruption.

When the voters sell their votes to the politicians, these politicians will have to recoup their expenses during the campaign period. And so, when they are in office, they get involved in financial anomalies to recoup their expenses and to help those who financially helped them during the campaign also recoup their expenses.

It is no surprise then that these acts of selling and buying votes during elections result to a vicious cycle of graft and corruption which greatly affects the service of government to the poor. The government fund which is allotted to social services is greatly diminished due to financial anomalies in government projects.

And so in the coming presidential campaign, I will tell our people that
if we don't repent and turn from our evil ways, there will not be a healing of our land. For repentance is God's condition to the redeeming of the land. Without repentance, it is impossible to stop corruption in government.

The second part of my campaign message is this : Once we repent from our sins and obey the Lord, He will fulfill His promise to forgive our sins and heal our land. He will give us good ideas to redeem our nation, for the Word of God states that good and righteous ideas come from the Lord. He will also do supernatural acts to bless our land..

In response to my prayers, the Lord has given me initial ideas in redeeming the land from hunger and poverty which stalk millions of my countrymen. In direct relation to these initial ideas, I will ask the Filipino voters "FIVE QUESTIONS" during the campaign period.

The First Question : "Do you want free college and university education with monthly student allowance?"

If the voters will answer "Yes!", then I will request them to campaign for me, and vote for me and my runningmate, so that we will win and do our job. While on our way to the airport at Clark Air Field, I saw the headline of a daily tabloid which states : "MILLIONS CAN'T GO TO COLLEGE". This is why I will make free college and university education with monthly student allowance as a campaign issue.

The Second Question : " Do you want the Personal Income Tax and the Inheritance Tax on lands abolished?"

Our people are heavily taxed. We pay several direct and indirect taxes. I want to eliminate the direct taxes such as the Personal Income Tax and the tax on inherited lands to ease our people's tax burden. So I will ask the voters if they favor this. If they say "Yes!", then they should campaign for us, and vote for us so will win.

The Third Question : " Do you want the E-VAT on gasoline,oil,diesel,power,electricity,water,food and medicine completely removed, and the E-VAT on the rest of the goods and services marketed
reduced to seven per cent?"

We have to reduce the costs of goods and services to check inflation.

The Fourth Question : "Do you want the national debt solved?"

Our national budget beginning 2009 is P1.4 Trillion.
Half of this national budget will be used to pay our external and internal debt. That means only P700-Billion is left. Of the amount left, half is lost to government waste and corruption. This means that only one fourth of the annual national budget is really used for social services and other government needs. We must, therefore, solve the national debt, and we have a God-given strategy in solving this.

The Fifth Question : "Do you want more jobs, and an honest and God-fearing government?"

We will wait for the voters replies to these FIVE QUESTIONS.

All of us who are gathered here believe in the importance of prayer. When we pray, the Lord God is moved. The Lord shows us His power. The Lord God whom we worship, the Creator of the vast universe,
is powerful. Please pray for me as I prepare myself for the coming battle.



-End of Address-

6th On-Line Presidential Forum

"Besides the Income Tax and the Real Estate Tax, I Will Eliminate the E-VAT on the GODPEW Products,as well as on food and medicine!" - Bishop of the Right and the Poor(BRP)

In the 6th On-Line Presidential Forum, 2010 Presidential aspirant BRP explains why he must remove the E-VAT on the GODPEW products, food and medicine. The "GODPEW products" are : Gasoline/liquefied petroleum gas, Oil, Diesel, Power, Electricity, and Water. BRP also calls them "trigger products".

To further help the poor, who are the most hurt sector when EVAT was imposed, BRP will also immediately reduce the EVAT on all other items to
seven (7) per cent, with the objective of incrementally reducing the EVAT to just three (3)per cent before his 6-year term of office ends.

Philippine Challenge : Due to the spiraling cost of oil per barrel in the international market, various sectors, including the influential Catholic Bishops' Conference of the Philippines, have been demanding for the removal of E-VAT on oil, diesel, and petroleum products. But the Arroyo administration has adamantly refused to remove the E-VAT on gasoline, oil, and diesel. If you will become the next President of the Philippines, will you remove the E-VAT on gasoline, oil, and diesel?

Bishop of the Right and the Poor (BRP) : Yes! The removal of the E-VAT on these products are necessary in my pro-people, pro-poor,pro- business program of government. In my first 100 days as President of the Republic, I will declare the removal of the E-VAT on these items. But I will also remove the E-VAT on three other "trigger products" - power, electricity, and water, as well as on food and medicine..

QUESTION : You can afford to do this?

ANSWER : Sure! I can.

Q : Why can you afford to remove the E-VAT on gasoline, oil, and diesel, but President Arroyo can not, or does not want to do it?

A : That's an interesting question. My answer is simple - the President has been using an inherited, flawed and burdensome economic model - the traditional 'tax-and-spend' model. The Mercado Economic Model(MEM) is completely different from the traditional model. It is an improved version of Reaganomics.

Q. Kindly explain the two economic models.

A. Philippine presidents since the time of President Manuel Quezon have been using the traditional 'tax-and-spend' model. The government needs money to fund its infrastructure and social services programs. So, they have to add and increase both the direct and indirect taxes. For instance, even now that the people are hard-up, we read in the papers pronouncements of certain public officials about the need to raise the excise tax and the EVAT on goods and services. Why? Their reason is the traditional reason - the government needs bigger fund to finance bigger government expenses in public works and social services. And so, the annual national budget has to be raised at the expense of the people. The Mercado Economic Model(MEM) will not do that. It will raise higher annual revenues for the government by first raising family incomes. I will do this by first raising the family incomes of Income Taxpayers through the total removal of the Income Tax.

Q. So the methodologies and objectives of the two economic models are different?

A . That's absolutely right.

Q. Why can't President GMA change her economic model at this point in time?

A. There's a saying, "You don't change horses midstream".

Q. So, in the Mercado Economic Model(MEM) which you will use if you are elected as the next President of the Philippines, do you absolutely believe in the necessity of totally removing the direct taxes such as the Income Tax and the Real Estate Tax on inherited properties?

A. Yes. In the Mercado Economic Model(MEM), the total removal of the Income Tax and the other direct taxes will create the following :

1) the rise of family incomes,savings and spendings;

2) the rise of business incomes, savings, and spendings;

3) the rise of government income,savings and spendings;

4) the creation of more jobs;

5) the increase in national productivity, and ;

6) the making of a strong and sustainable social and economic growth.

These are the things which the MERCADO ECONOMIC FORMULA (WEG+HIS+BP= SEG)/MERCADO ECONOMIC MODEL will do.

Q. The traditional economic model can't do this?

A. It can do one thing - increase government income at the expense of an overtaxed people. And when people are financially hard-up, they don't spend much, so businesses suffer. When businesses suffer, many of these close shop, and jobs are lost. Staggering national unemployment is the result.And when people lose their jobs, or new graduates can't find employment, then poverty looms. Is this happening in the Philippines today? You can answer it yourself.

Q. Why do you have to remove the E-VAT on the GODPEW products?

A. These are what I call "trigger products". The rise in the prices of these products will trigger the rise in the costs of other products. For instance, the rise in the costs of gasoline,oil, and diesel will cause the rise in the price of rice,sugar,vegetables, fish and other commodities. The rice planters , the sugar planters, the vegetable planters, and the fishermen need gasoline,oil, and diesel in the production of their goods. Naturally, the rise in the prices of gasoline,oil, and diesel will increase their total production cost. Add to these is the cost of transporting these products to the metropolis. And so, they will have to increase the costs of their produce. This is what happens,too, when they increase the costs of power, electricity, and water. These are badly needed in the production of goods and services. So, the increase in the costs of these products will "trigger" the increase in the costs of the products which are produced when manufacturers use them.

Q. So the rise in the costs of these products will trigger inflation, and so you have to bring down their costs by removing the EVAT to check inflation.

A. That's right. You can be a good economist.

Q. After losing the Income Tax and Real Estate Tax on inherited properties, do you really believe that you can still afford to remove the EVAT on the GODPEW products, as well as on food and medicine?

A. Sure! I believe in removing the E-VAT on the
GODPEW products, as well as on food and medicine which are very important for everyone. The rich can easily handle their purchases of food and medicine, even with the current 12 per cent EVAT. But the poor have real difficulty in doing this. This is the reason why I believe in eliminating the EVAT on these products. If I don't believe in this, then I won't do it.

Q. If you remove the EVAT on these products, the government loses income again.

A. That's the traditional way of looking at it. I see it differently. When I remove the EVAT on these products, the costs of the goods and services which are produced by using these will go down.When goods and services are cheaper, the more-moneyed former Income Taxpayers who now benefit from the removal of the Income Tax will buy more goods and pay for more services which they need. The volume of sales of goods and services will bring higher tax collections for the government. The consumers (i.e. the people) are happy and the government gains more for its annual national budget. The Mercado "GRP" or Government Revenue Plan is "minus 10 plus 81". This means that after losing 10 per cent of government income due to the removal of the Income Tax and the Real Estate Tax on inherited properties, I, as the Chief Executive, will give the government 81 per cent more in revenues which will come from five main sources of government funding. So, I have 71 per cent more, in addition to the annual national budget. This is my "trade secret", but I will reveal this at the national televised debates during the campaign period.

Q. So, your top priority in raising the annual national budget is the happiness and welfare of the people first.

A. This is my top priority. It is an absolute priority
in good public governance. As a follower of the Lord Jesus Christ, helping the people is my mission because God loves them, and is highly interested in their welfare and being. This is the reason why I want to run for President in 2010!

A Fighting Chance

Even if only 80 per cent ( or 16 million voters) of Income Tax sufferers who are registered voters want the Income Tax removed, and 20 per cent (or 4 million voters) of Income Tax sufferers want to continue paying the Income Tax which Bishop Bert want to totally remove!

Even if only 80 per cent (or 32 million registered voters) of the 40 million voters don't want to pay the E-VAT on the GODPEW "trigger" products - Gasoline/LPG, Oil, Diesel, Power, Electricity, and Water, while 20 per cent (or 8 million registered voters) of the total voters want to happily pay the E-VAT on the GODPEW products which Bishop Bert Mercado '73 want all removed!!!

Even if only 80 per cent (or 32 million registered voters) want FREE COLLEGE AND UNIVERSITY EDUCATION FOR ALL, and 20 per cent of the registered voters ( or 8 million)
don't want free college and university education for all Filipinos!!!

Bishop Bert will allot P100- Billion every year for FREE COLLEGE AND UNIVERSITY EDUCATION UP TO FIVE YEAR-COURSES FOR ALL FILIPINO YOUTH!

THERE IS MONEY FOR FREE COLLEGE AND UNIVERSITY EDUCATION UNDER THE MERCADO ADMINISTRATION!

Our Fighting Chance

By Faith in Christ, Our Fighting Chance in 2010 is a Conservative
80 % Victory !!!


"Now, faith is the assurance of things hoped for, the conviction of things not seen."(Hebrews 11:1)

"And without faith, it is impossible to please Him, for He who comes to God must believe that He is, and that He is a rewarder of those who seek Him." (Hebrews 11:6)

"For nothing is impossible with God."(Luke 1:37)

"With men this is impossible,but with God all things are possible." (Matthew 19:26)



The Red Sea parted and the Israelites crossed it.
The Jordan River dried up when the Israelites crossed it.
The sun stood still for one day while the Israelites routed their enemies.
A teen-ager named David less than 6 feet tall slaying a giant Philistine more than 9 feet tall who was trained in battle. And many more "impossibles".

These things happened that we may know the might and power of the Lord.

In recent months, a bishop of Paraguay named Bishop Fernando Lugo, money-less and organization-less, a complete political greenhorn, was elected on April 20,2008 as President of Paraguay!
The world was stunned! How could that be?
CHANGE. People want CHANGE!
And MIRACLES!
Miracles! They still happen. It is the Lord who makes miracles.

So, when I told two media persons based in San Jose, Antique that my chance of victory in 2010 is 80%, one of them was shocked and asked :" How can that be when you are unknown and your opponents are very popular." He was probably referring to most if not all of the 2010 presidentiables, except me.

My suspicion is this : in the 2010 presidential campaign, when all Filipinos are economically hard-up especially due to the US recession and high cost per barrel of oil (except those who are benefitting from the present dispensation),
the voters will look for, campaign for, and vote for someone who is not a traditional politician,
who has ideas to help them in their economic woes, and whom they can consider to be honest with money matters and with his principles.

Thus, I offer myself as one of the presidential aspirants - the least known, the least moneyed, but has been given by the Lord great and wonderful ideas for : 1) increasing family income ; 2) increasing business growth ; 3) increasing government revenues;4) increasing job opportunities or employment ; 5) increasing support for social services.

As I wrote before :

1. Of the 20 million registered voters(out of more or less 40 million), I believe that at least 80 % of them( 16 million) want the total abolition of the Income Tax and the Real Estate Tax such as the Inheritance Tax. I want a Zero-Income Tax Philippines.
And 20 % of the 20 million ( or 4 million) may not want to see the Income Tax abolished, and will willingly pay their withholding taxes(Income Tax) year after year after year until they grow old. They may also wish to see their children and grandchildren do the same thing. So, let them.
But if 16 million voters who are affected by the Income Tax will campaign for me and vote for me, that number of voters should be sufficient for a landslide victory. GMA won with 12 million plus votes over RonnIe Poe's 11 million plus votes.

2. Of the 40 million voters, 80 % ( or 32 million voters) may want to see the E-VAT on Gasoline/LPG, Oil,Diesel, Power,Electricity and Water(GODPEW products) removed, while 20 %(or 8 million voters) may not want to see the E-VAT removed because they want to pay for it. So, let them.
I will remove the E-VAT on the GODPEW products to check inflation.

3. Of the 40 million voters, 80% (or 32 million voters) may want the FREE COLLEGE AND UNIVERSITY EDUCATION UP TO 5-YEAR COURSES, while 20 % (or 8 million voters) don't want FREE COLLEGE AND UNIVERSITY EDUCATION .

I will allot an initial of P100-Billion every year from the Actual Annual National Budget for FREE COLLEGE AND UNIVERSITY EDUCATION to prepare the young people for their responsibilities in the future. There will also be a Presidential Scholarship Fund for exceptional students (with very high IQs) who wish to pursue Medicine,Law and Graduate Studies(Master and PhD) in Science, Technology, and the Arts.

To me, the best asset of a nation is its educated, enlightened, and spiritually and morally principled citizenry.

These are the reasons why I have been telling people, both verbally and in written form, that I believe I have 80 % chance of victory in the 2010 Presidential campaign.

I believe in the might and power of the Lord God. He can make all things possible!

I request believers to pray for my success in the 2010 polls.
"Nothing is impossible with God."(Luke 1:37)

The Daily Tribune

Click here to read more...

Fifth On-Line Presidential Forum

The Income Tax and Unemployment in the Philippines

The collection of the Income Tax for almost 100 years, from March 1,1913 until today, and the problem of unemployment is discussed in the Fifth On-Line Presidential Forum.

The discussant BRP, Chairman of the Foundation of Strategic Economics(FSE), claims that the Income Tax collection is one major cause of unemployment .

He explains that the problem of unemployment in the Philippines which causes poor productivity can be addressed if the Income Tax is abolished. For this reason, his first public pronouncement if he gets elected as President in 2010 will be the suspension of the collection of Income Tax by the BIR pending the abolition of the said tax by Congress thru the amendment of the National Tax Code of 1997.

Philippine Challenge: Your formula, the MERCADO FORMULA which is WEG + HIS + BP = SEG, includes BP or Better Productivity as a major factor for a strong and sustainable social and economic growth or SEG. Do you think we have BP or Better Productivity in the Philippines?

Bishop of the Right and the Poor(BRP) : To be candid, No. Definitely not. We have poor productivity compared to our Asian neighbors. It's easy to know if we have Good or Better Productivity by simply looking at our nation's employment rate. Last year(2007), there were more than 4 million unemployed and underemployed Filipinos combined. That's official data. The unofficial data maybe even higher. And our unemployment rate increases each year. When a country is not utilizing a good portion of its labor force in producing goods and services, as shown by its employment rate, then you know that its productivity level is poor.

QUESTION : Why do we have many unemployed Filipinos?

BRP : Well, first, many of our high school graduates don't get college education for one reason or the other. Second reason, even our college graduates find difficulties in job hunting, especially today, because their courses or trainings don't match with the available jobs. Consider the many available jobs in call centers. Most of our college graduates can't speak good English. You can't use Tagalog when you communicate to American BPO clients. Third, we don't have that many jobs offered by existing local and foreign companies operating in the country, with the exception of the BPOs. We can cite other reasons such as poor salaries. Therefore, our college graduates don't have the drive to find local employment. They remain unemployed until they apply for jobs abroad as domestic helpers or laborers.

QUESTION : You are the foremost advocate of the abolition of the Income Tax. Do you think the collection of the Income Tax is a major cause of unemployment?

BRP : Yes, it is. The government is not saying it, but it is.

QUESTION : Why is it a major cause of unemployment?

BRP : First, let's look at the number of individual Income Taxpayers as of this year, 2008. Government datum states that there are more than nine(9) million Income Taxpayers today. By 2010, there will be more than ten(10) million . Let's take just one Income Taxpayer - the teacher. My niece is a high school teacher, and she told me that P2,500 is deducted as withholding tax (Income Tax) from her P12,000 salary every month. How much is the total amount withheld for the Income Tax annually? That's a total of P28,000 every year. From one teacher alone. She goes to school early by taking two rides everyday. She goes home late, taking another two rides. She works hard, but she feels that her industry is not compensated well. So, industry is not well compensated. This is the feeling of almost five hundred thousand teachers(500,000) and school staffs all over the country. Let's go to the withheld tax from the salary of my niece . With that amount, it is possible for her to start a "Rolling Store" and employ one person. A new "Rolling Store" costs just P22,000 or even less. Think of the number of Filipinos that the more than ten(10) million individual Income Taxpayers can employ in various micro businesses once the Income Tax is terminated, even if each taxpayer employs just one person in her small business. Wow! They can employ the more than 4 million unemployed, and wipe out the unemployment problem .

QUESTION : So, the poor income of the Income Taxpayers prevent most of them from being entrepreneurs and employers?

BRP : Exactly. Even if we train them as entrepreneurs, how can they start businesses if they don't have the capital? You want them to borrow from the bank or from the "5/6 operators" to start and sustain their businesses? That's possible. But how many are eager to do so, considering the loans' interests, and the possibility of failure? However, if the government gives up the income Tax as a form of yearly investment to the Income Taxpayers, then the income Taxpayers can use their annual added income to start micro businesses without being worried in paying loans and their corresponding interests. There are two more possible sources of massive employments once the Income Tax is abolished.

QUESTION : What are these two other sources?

BRP : One, the existing commercial and industrial corporations. Two, the foreign investors who may set up their companies here.

QUESTION : They can provide massive employments to Filipinos if the Income Tax is abolished? How?

BRP : Once the Income Tax is abolished, the more than ten (10) million Income Taxpayers in 2010 will have more money to purchase goods and pay for services. The demand for goods and services by more than ten(10) million Income Taxpayers and their families will go up. The existing companies will have to hire more employees to produce more goods to cope with the demand. That's business. If you don't cope with the demand, your competitors will. In fact, new competitors will rise to meet the need. Let's use a coffee company again as an example. Let's say that as of now, one million Filipino families consume one regular bottle of NESCAFE each month. Then, the Income Tax is abolished, and Income Taxpayers will have more money. Instead of drinking "ricecoffee", ten million families want to drink NESCAFE. What will NESTLE do to meet the new demand? Management will look for lands for coffee planting. It will hire coffee planters, tenders, harvesters, processors, and marketers. That's just one coffee company hiring thousands of new workers to meet the new demand.

QUESTION : Alright. What about the foreign investors?

BRP : There are not many foreign investors who desire to put up their commercial or industrial plants in the Philippines for various reasons such as corruption, peace and order, poor incentives, high corporate tax, poor infrastructure, etcetera. One major reason is the low "return on investment" or ROI. It is common sense. If you are the investor, why should you invest in a country where you have low ROI, and considering the high risks, when you can invest in another country where you can have higher ROI ? One major cause of this low ROI of foreign investors in our country is the low income of Filipino consumers compared to other countries. Why low income? Because of the heavy taxes. If you are the investor, will you put up a plant in the Philippines if your products can't be sold that well because many Filipinos can't afford to buy your products? Maybe not. But if your products can be sold well because the Filipino consumers have the money to buy these, then you will not hesitate to put up your plant here and hire Filipino workers. That's business and common sense. The challenge to Filipinos, therefore, is to demand for the abolition of the Income Tax. That's why I am leading the "Stop the Income Tax(SIT) " movement. It is the major cause of low incomes for families and businesses, low spendings, low savings, low employment, low or poor productivity, and therefore, poor social and economic growth.

QUESTION : So, what will you do in 2010?

BRP : I will ask the more than 10 million Income Taxpayers : 'Do you want to continue paying the Income Tax year after year after year after year until you grow old?' And I will also ask the young voters, another 10 million, who are not paying the Income Tax yet : ' When you start working, do you want the government to deduct the withholding taxes from your salaries year after year after year after year until you grow old? Let's wait for their reply. I am eager to hear it myself.

Fourth On-Line Presidential Forum

"Less taxes is the MERCADO FORMULA's key to increasing family income,business growth, and government revenues."

*BRP wants to abolish the income tax to increase family income, business sales, and government revenues.

* He also wants to abolish the Real Estate Tax on inherited properties to improve the lives of farmers,laborers, fishermen and small businessmen.

*Government taxes on power and oil will also be reduced to improve manufacturers' productivity, reduce prices of goods and services for households, and increase the income of bus, jeepney,taxi,and tricycle drivers.

In the Fourth On-Line Presidential Forum, 2010 Presidential Candidate BRP (Bishop of the Right and the Poor), Chairman and Dean of the UPSCAAI Open Economic Institute, and President of the Foundation of Strategic Economics, states that the old economic model of increasing taxes to support government spending is a flawed and weak economic model . He expounds on why, besides the abolition of the Income Tax, he wants the tax on inherited lands removed. He also stressed the necessity of decreasing the taxes imposed by the government on power, oil and petroleum products to ease the Filipino people's economic hardships.

For a national and international discussion of these issues, we request you to send the Fourth On-Line Presidential Forum to your e-mail list. Thank you and God bless you and your dear ones.

QUESTION : You have made it clear during the past three On-Line Presidential Fora that you want to remove the Income Tax. Is the Income Tax your only target?

Bishop of the Right and the Poor (BRP) : No.

QUESTION : You mean you want to target other taxes as well?

BRP : Yes. I want to remove and reduce other taxes.

QUESTION : What are these other taxes which you want to remove or reduce?

BRP : I want to remove the tax on inherited lands. I also want to reduce the taxes imposed by the government on power, particularly electricity, as well as the taxes on oil and petroleum products.

QUESTION : Kindly explain first why you want to remove the real estate tax on inherited lands. Why?

BRP : Well, it's simple. Many second-generation, or after World War 11, farmers,laborers,fishermen, and small businessmen have inherited agricultural lands and residential lands from their parents. The government has imposed real estate taxes on these pieces of land. Because of these imposed taxes, many inheritors have not been able to obtain Transfer Certificates of Titles indicating ownership of these properties. Since they don't own the lands yet, for they are still in the names of their deceased parents or owners, the inheritors of these real estate properties can not use these lands as collaterals in obtaining loans from the banks . They need capital to improve the productivity of the lands, but capital formation from the real estate properties through loans is next to impossible because they are not the registered owners yet. Suppose you are a farmer with three children, and you inherited three hectares of agricultural land from your parents who are both deceased. You were taught by a Land Bank agricultural officer that it is possible to plant three crops a year, and even plant coconut and other fruit trees in-between your farm. You want to improve your farm's productivity and increase your family's income. But you need CAPITAL. You need P300,000 for this project. Where will you get P300,000 if you are a farmer? Your Land Bank friend tells you that you can borrow from the bank by using your farm as collateral. Much as you want, you can't use that farmland as bank collateral unless you have the Transfer Certificate of Title(TCT) as the owner of the property. And you have not applied for the Transfer Certificate of Title because you don't have the money to pay the imposed government taxes on your inherited property. So, as a farmer, you are reduced to a pitiable harvest of your three-hectare farm. And that's why you are poor, and will continue to be poor. You can't send your children to college, and they will most likely be poor like you,too. This scenario is nationwide, and it is very frustrating because it dampens the productivity of farmers, laborers,fishermen and small businessmen who have inherited real estate from their parents.

QUESTION : Are you implying that it is government which is pulling down land productivity because of the Real Estate Taxes it has imposed on these properties?

BRP : I'm not just implying it. I'm saying it. It is the government which is at fault in improving land productivity because of its greed. To maximize land productivity, we must remove the tax on inherited farmlands and residential lands.

QUESTION : Why include residential lands?

BRP : Okay! Let's say that you are a laborer. You inherited just a house and lot from your deceased parents. You have five children, and you are the only breadwinner in your family. Your wife takes care of your growing children who will soon go to college? You have a regular salary from your company which has employed you as one of its "machine operators" for the past 10 years. Since your children are in the elementary school and in high school, you have begun to experience the severe economic grind. Your wife tells you that she wants to start a carinderia below your two-storey house, but she needs P200,000 capital for fixing and painting, and the daily carinderia purchases. Where do you get capital? You have already borrowed from SSS for past needs, and you are paying both loan premium and interest. You seek the help of your brother, but he doesn't have money,too. You owe money from the "5-6 lender". You have nobody to turn to for help. Then, your wife suggests that you loan from the bank, using your house and lot as collateral. She promises that in two years time, she will do her best to manage the carinderia well so you can pay the loan. Much as you want to use the house and lot as bank collateral, you can't because ownership has not been transferred to you. The house and lot are still in your parents' name. Why? Because you have no money to pay for the compounded Real Estate taxes imposed by the government on your piece of residential land .You can find this situation all over the Philippines. So, this government-imposed taxes on inherited properties is another cause of the sufferings of millions of farmers, laborers,fishermen,and small businessmen all over the country. That's why I want to remove this tax. To me, this tax is oppressive because it has made millions of Filipino families poor when they could have used their inherited lands to make their families rich.

QUESTION : But if you remove the Real Estate Tax, what will the government have?

BRP : More revenues, of course! And this is what I have been trying to explain in the past three On-Line Presidential Fora. Let's look at our examples of the family of the farmer and the family of the laborer. As the President, I order the BIR to suspend the collection of the Real Estate Tax. Then, I ask Congress to abolish the tax because this is what the people want. That the people elected me as the Philippine President is a proof of that. The tax is abolished. Now, it has become very easy under my administration to transfer certificates of ownership to inheritors of these pieces of lands. The family of the farmer has become richer because they are able to use the land as their bank collateral. The farmer has been planting three crops a year, and has even planted coconut trees and fruit trees in between his three-hectare farm. They have paid back their loan because of the successive bumper crops from rice, peanuts,and watermelon. The family of the laborer or "machine operator" has become richer because his wife has managed the carinderia well. In fact, after two years, they have fully paid their loan,too. Since their family income has increased, they are able to buy more goods and pay for more services. They can buy Nescafe, pairs of shoes, clothes, socks, dresses,shirts,rice,fish,vegetables, fruits, canned goods including corned beef, Coke, Pepsi, brand new radio and TV set, various appliances, and many other manufactured goods. They even go to MacDonalds,KFC,Jollibee, and Starbucks! And you know that the government collects the excise tax and the E-VAT from the manufactured items. So, the government has gained more taxes from the goods they buy. And there are millions of families like them who may also do their feat if they have the capital. And this capital can be obtained if they can use their inherited properties as bank collaterals. Do you understand what I am saying? Less taxes is the MERCADO FORMULA's key to increasing family income, business growth, and government revenues.

QUESTION : Okay! I get your point. But why do you also want to reduce the taxes on power and oil? Let's take power first. Why do you wish, as the President of the Philippines, to reduce the tax on power?

BRP : Power in the Phillpines is one of the most expensive in Asia. Do you know what this means? It means that Philippine manufacturers' capability and capacity to produce is dampened by the very expensive power rates. It means that we have a low manufacturers' productivity compared to many Asian countries because manufacturers try to limit the use of power, which includes electricity, in the production of goods and services. Let's remember the MERCADO FORMULA which is - WEG+HIS+BP=SEG. BP in the formula stands for "Better Productivity", that is HIGH in quantity and quality. The letters HIS represent "High Income Spendings and Savings", WEG represent "Wise,Exemplary,Godly and Good Government". These combination results to SEG, which means Strong and Sustainable Economic Growth. If the cost of power is high, causing low manufacturers' productivity, then it will contribute to Low or Poor Economic Growth. High power costs will not only affect productivity, but the prices of manufactured goods as well. This will cause lower or poorer sales. So how can manufacturers grow? Or how can they survive? If they fold up due to high operating costs, many people will lose their jobs. On the other hand, if I reduce the tax of power, then this will result to higher manufacturers' capability and capacity to produce manufactured goods. They can lower the prices of their products because I lowered the tax. More people will buy their products, and they will have better sales. They can hire more people as they increase productivity. As their sales and income grow, they will hire more people, thereby increasing employment. They can afford to increase the salaries of their workers. And because more of their manufactured goods are sold both in the local and international markets, and the government has a tax on each manufactured item sold, then the government will have higher tax collections because of the increased volume of items sold. This is the MERCADO FORMULA!

QUESTION : And the reason for decreasing the tax of gasoline and oil products?

BRP : Decreasing the government tax imposed on gasoline will also result to an increase in tax collections. It will benefit the government as much as it benefits the consumers and the transport operators in particular, and the total business scenario.

QUESTION : How come? How will this happen when you decrease the tax?

BRP : Well, when government decreases the tax it imposes on gasoline and petroleum products, bus drivers, jeepney drivers,taxi drivers,tricycle drivers and transport operators will have higher earnings. But not only that - they will also buy more gasoline and petroleum products. With more earnings, they can buy more buses,jeeps,tricycles,and cars which will be consuming more gasoline and petroleum products. An increase in the volume of sales of these products will mean higher tax collections for the government because more liters of gasoline consumed will mean more taxes collected.

QUESTION : Where did you get this economic concept? What kind of economics is this?

BRP : I operationally define this as "volume economics". It is revolutionary. The Lord God has revealed this to me, in the same way that He has revealed it to Christians like former US President Ronald Reagan and former British Prime Minister Margaret Thatcher. In the US, they call this "Reaganomics". In Great Britain, they call it "Thatcherism". In the Philippines, we call this the MERCADO FORMULA, or market formula. Both President Reagan and Prime Minister Margaret Thatcher have led their respective countries in the biggest and most successful economic leaps in their nation's history by using the ideas God gave them. They are both believers in Christ. It is high time that we also use this form of economics in the Philippines, as the Lord God has revealed it to us. God is the Highest and Ultimate Source of wisdom. He is far wiser than all economists combined. Let start the MERCADO FORMULA with the abolition of the Income Tax.

Third On-Line Presidential Forum

Corruption in Government
and the Income Tax Collection

The China ZTE's $329-Million National Broadband Network(NBN) aborted deal with the Arroyo administration has threatened the President's survival . The aborted deal is one of the various Official Development Assistance(ODA) given to the government in the form of loans. Is there a relation between corruption in government and the collection of the income tax?

The raging issue of corruption in government and the imposition of the income tax is discussed in this Third On-Line Presidential Forum.

We notice the growing interest of our readers in the campaign for the abolition of the Income Tax through their e-mails.

We encourage our E-mail Friends to send this Third On-Line Presidential Forum to your e-mail list for a national and international discussion of this topic. Thank you, and God bless you.



QUESTION : You gave a good exposition during the Second On-Line Presidential Forum on how family income,business growth, and government revenues will increase as a result of the abolition of the income tax. Obviously, this program of yours when God will make you as the President of the Philippines is super excellent!!! Finally, our people will have hope for a brighter future. Praise God! But another major cause of our people's suffering is corruption in government. Do you think that the imposition of the Income Tax assists corruption?

Bishop of the Right and the poor(BRP) : Yes. I think these two issues are related.

QUESTION : In what way?

BRP : Well, the imposition of the income tax to Filipino taxpayers since 1913
has created a "financial comfort zone" for the government. Income Tax is a sure income. Now, having a sure income has emboldened our political and economic planners to keep on borrowing from foreign creditors. For instance, let's take the issue of Official Development Assistance(ODA). Foreign countries such as China, Japan, South Korea, Taiwan, as well as the World Bank and the Asian Development Bank among others, have given us so-called financial assistance through what we mistakenly term as Official Development Assistance or ODA. These ODAs are in fact "sovereign loans", which means that they are backed up by the government funds. These are the loans which are often said as disadvantageous to the government and the Filipino people. Example of these loans are the controversial and aborted the US$ 329-Million National Broadband Network(NBN) with China ZTE. Joey de Venecia and Jun Lozada said that there was a US$130-Million grease money connected to the project, or almost 40 % of the project's cost. US$130-million at the current exchange rate is more than five billion and two hundred million pesos (P5,200,000,000) "commission" or "grease money". It's good that President Arroyo canceled the project.Let's pray for her. Life has become more difficult for her lately. We have been praying for her. There are other ODA projects from "donor" nations which have been approved by NEDA, such as the Subic-Clark-Tarlac Expressway Project which is backed up by the US$355-Million Loan from the Japan Bank for International Cooperation(JBIC). The Export-Import Bank of China is lending the Philippine government US$400-Million for the North Luzon Railway project, which on-going. China also wants to lend the Philippine government US$542-Million for our Cyber Education project. A common characteristics of these loans are: 1) excessive bids and cost overruns; 2) procurement of materials from the "donor" countries; 3) the projects are undertaken mostly by the companies of "donor" nations. This issue will take a long time to discuss, but suffice to say, the loans have naturally produced a balloon of foreign debt. This foreign debt, not to mention the local debt, is backed up by the government funds which are derived mostly from taxation, which includes the income tax. Our government is emboldened to keep on borrowing because they can always tax the people, and it has been doing so.

QUESTION : Does this attitude of the government abet corruption?

BRP : Sure! Whoever is arranging the project, even if the cost is beyond the so-called ABC or approved budget contract, can always justify it by saying that the Philippine government can pay the loan. They can always say, "i-tax natin ang tao, bayad yan"! This is a dysfunctional attitude which does not help our people and our country at all.

QUESTION : But don't we need these projects for national development?

BRP : Yes. But we have to look more closely at these loans. Then, we should ask ourselves if we really need these foreign loans to undertake these projects. I believe that there are other ways of financing badly needed projects, and these ways have to be tapped.

QUESTION : What will you do to these loans if you are the President?

BRP : I will politely tell China, Japan, and other ODA donors that I will have to study their offers. In their present form, I will most likely reject them.

QUESTION : Wouldn't this prevent the undertaking of these projects?

BRP : No. Not necessarily. We will have to tap more liberal sources of funding for much-needed projects. And we must be creative and resourceful, putting our faith in God and in our people. That's why I have been batting for the abolition of the income tax, so that family incomes will grow, business will expand, and government revenues will increase. When we reach this point, we can tap local funding and manpower to put up these projects. In fact, even at this point in time, we can already do some of these with the able assistance of the private sector. Some, not all. The rest, we can do step by step, according to our ability as a nation to earn income.

QUESTION : Are you a conservative spender?

BRP : There is a cardinal rule which every wise person or government should adhere to : "Do not spend more than what you can earn." Look at the American people and their government. They are spending more than what they are earning. And look what's happening to America now. Let's pray for the American people. I love Americans. It was an American who introduced me to Christ. Another American discipled me in my Christian life. Let's pray that the good Lord will deliver the Americans from continued recession or a possible depression like the Great Depression in the 1930s. If this will happen, and let's pray it will not, the world maybe nearer to Armageddon. Read Matthew 24 and you will know what I mean.

QUESTION : Will the abolition of the Income Tax discourage corruption in government?

BRP : Yes.

QUESTION : In what way?

BRP : Look at what I will do after I get elected as President, as the good Lord wills. My first act as President is to order the BIR to stop collecting the Income Tax, since this is the will of the people. That's why they elected me as President. My second act is to declare war against corruption. I will do this in a very unorthodox and strategic way. Read The Art of War and you can glean strategies which you can apply in any form of warfare, including the war against corruption. As my first operational step in the war against corruption, I will examine the National Budget Allocations(NBA). From this vantage point, I know how to attack corruption, which is the enemy. If the newly-appointed Secretary will come to me and ask me ,"Sir, how can we perform well when you have slashed our budget?", I will simply reply, "Look, in the recent years, your department has lost 40 per cent of your budget to corruption, and still your department managed to operate." I will tell him or her to manage his or her department well, even if its budget is slashed. " If your department does better and more upright, let's see your budget for the next fiscal year." I will remind Mr or Madam Secretary that we have just given up the Income Tax as an investment to our people, so we don't have that much as of the moment. But more revenues will eventually come , so we can examine his or her budget for the next fiscal year if his or her department does what is honest and right. There are various weapons for fighting corruption. The first weapon I will use as President is wisdom in budget allocations. I will have to deliver a strong message to my secretaries : "Shape up, or I will slash your budget! And when your budget goes down , you go down, too!"

2nd On-Line Presidential Forum

"The Income Tax Suppresses Economic Growth"

2010 Presidential aspirant "Dr. BRP" answers questions about the individual Income Tax which has been imposed by Congress upon Filipino household earners since the American period. BRP is the acronym of Bishop of the Right and the Poor. In this 2nd On-Line Presidential Forum, Dr. BRP, Chairman of the University of the Philippines System Christian Alumni International Open Economic Institute, asserts the need for the abolition of the individual Income Tax.

QUESTION : What will be your first act as the President of the Philippines ?

ANSWER : I will issue a presidential directive to the BIR to stop collecting the Income Tax. Then, I will ask Congress to amend the National Tax Code of 1997 because the people have spoken, and this is what the people want.

QUESTION : Why is it necessary to abolish the Income Tax?

Dr. BRP : My answer is simple - it suppresses economic growth.

QUESTION : In what way does the collection of the Income Tax suppress economic growth?

ANSWER : The imposition by Congress of the Income Tax upon Filipino income earners has lowered the Filipino household income for almost a century now since the Income Tax collection began in 1913. It is a colony tax which has continued up to this day. A low household income results to low spending and low savings. Low spending discourages and pulls down higher productivity. The result is poor economic growth.

QUESTION : How does a nation achieve high economic growth?

ANSWER : Through the MERCADO FORMULA(Market Formula), which is WEGG+HIS+BP=SEG or Wise,Exemplary,Godly and Good Government + Higher Income,Spending,and Savings + Better Productivity = Strong and Sustainable Economic Growth. There's no better way. You can't achieve high economic growth by suppressing the market forces. No way! The government has to increase family or household income. A higher household income will result to higher spending, and higher savings. Savings will eventually become expense, because we save so we can later on buy the things which we want. Higher spending will encourage higher productivity of goods and services . This is the way to attain higher economic growth.

QUESTION : It is easy to understand that removing the Income Tax will result to higher family income, and higher business growth. But how will its abolition result to higher government tax collections. I'm confused. Please explain.

ANSWER : I will explain this in a very simple manner by using a simple example. Consumers' confidence in the economy will naturally go up once their monthly income is increased. As a result, they have more money to buy goods and pay for services. Let's say that out of the 25 million Filipino households, one million household presently buy and consume one small bottle of Nescafe per month. One million bottles times 12 months equals 12 million bottles of Nescafe a year. For instance, the government gets a tax of one peso (P1) per bottle . That means an accumulated tax of twelve million (P12,000,000) pesos a year.Then, the government gives up the Income Tax as a form of investment to its people. Family incomes go up. Now, more families can afford to buy a bottle of Nescafe, and they also want to taste Nescafe. Let's say that out of the 25 million Filipino households, 10 million households buy and consume one small bottle of Nescafe per month. Ten million bottles per month times 12 months equals one hundred and twenty million (120,000,000) bottles of Nescafe. Since in this example, the government gets a one peso tax per small bottle of Nescafe, then it gets one hundred and twenty million (P120,000,000) pesos per year from this item alone. That means an addition of one hundred and eight(P108,000,000) accumulated tax. Do you get it?

QUESTION : Do you favor increasing E-VAT after abolishing the Income Tax?

ANSWER : My answer is a strong "No!" There's no need for that. I do not agree with those who are saying that we have to increase the E-VAT and the excise tax to increase government revenues so it can finance public construction and social services. I don't agree with this "tax and spend" formula. This has been the formula in the Philippines for centuries, and look at what we have become.

QUESTION : So, you are saying that it is possible to achieve higher government tax collections by eliminating the Income Tax?

ANSWER : Yes! That's what I'm saying.

QUESTION : Why didn't Filipino presidents urge Congress for the abolition of the Income Tax?

ANSWER : Well, it is sure revenue for the government. That's why. And every Filipino president since Manuel Quezon has inherited the Income Tax. And our presidents saw it as a necessary tax because it increases government revenues. It does. But at the expense of the Filipino families' income and business growth. In this present formula, the government is the winner and the Filipino families and businesses are the losers. The MERCADO FORMULA wants these three sectors - Filipino households, business sector, and government - as all winners. Isn't that a better idea?

QUESTION : Are there other ways of increasing family income without abolishing the Income Tax?

QUESTION : One other way is through entrepreneurship. And I fully support this. Let's encourage entrepreneurship. But entrepreneurship has limitations. Can you make 10 million income taxpayers as successful entrepreneurs? Remember, they are the teachers,policemen,soldiers,government employees, private employees, nurses, doctors, writers, announcers, broadcast journalists, artists, etcetera? Where will you get the capital for them?

The abolition of the Income Tax will result to more entrepreneurs because the taxpayers will have higher income.

QUESTION : It looks like you are determined to push through with this fight.

ANSWER : I am. I am fighting for the future of our country.