Darwin:
By the time I wrote this report to take with me to the L.A.
Committee of Evidence, I had finally (duh!) figured out Miscavige's
and OSAs tack, operating, as they were, well removed from the scene
by piping everything through their stooges at CC Int. I had been
entirely perplexed about why they continued to trump up these
idiotic, false allegations of "tax protester" activities, when
neither I, nor any of the few "Scientology Seven" who I knew
personally were engaged in anything of the kind. Then it dawned on
me that the ONLY WEAPON IN THEIR ARSENAL WAS TO DISCREDIT THE SOURCE
OF ATTACKS ON SPDS. It was then, it is now, it always will be THE
ONLY WEAPON IN THEIR ARSENAL. (I said it before, I quote myself now:
'Duh!)
So I decided to set forth my philosophy on the subject and the
source of that philosophy.
And here it is now.
Randy McDonald
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MAA CC Int 30 September 1995
---------------------
Randy McDonald
cc: LRH Comm CC Int
Comm Ev
IJC
KNOWLEDGE REPORT
As I have been named as an Interested Party in a Committee of
Evidence, and have been accused of "Tax Protester Activities," I am
submitting this Knowledge Report on myself to present to the
Committee and all concerned a written statement of the exact and
only ideas that I embrace, espouse, and disseminate that have to do
with taxes and their relationship to government and to life.
I freely admit to actively disseminating the following ideas, and to
applying them in my life as an applied religious philosophy. As I
embrace NO other ideas regarding taxes, I can only conclude that the
ideas listed herein, and the practice of these concepts in
application, are the things I am accused of, and so I felt it
important to lay them out exactly, in writing, for the record.
The following quotes, then, constitute the entirety of my personal
philosophy on the subject of taxes:
"Income tax is a suppressive effort to crush individuals and
businesses and deprive the state of national gross product."
L. Ron Hubbard
HCO PL 25 June 1967
"SCIENTOLOGY ORGS TAX AND BALANCE SHEETS"
"Anyone trying to say that inflation is inevitable and
income tax vital is simply suppressive or stupid."
L. Ron Hubbard
Ability Magazine #13, 1966
"ECONOMICS"
"Taxes exist only to destroy businesses. Be impudent. Get
rich and to hell with them. Governments are just a reactive bank
we have to live with for a while."
L. Ron Hubbard
HCO PL 28 January 1965
"HOW TO MAINTAIN CREDIT STANDING AND
SOLVENCY"
"All right, look at your tax collector. When taxes start
going up to certain percentages that penalize the company (and
worker) and give it an unmanageable burden, make it difficult to
service the machinery, make it difficult to introduce new tools
and equipment for a new product, etc., why, the tax man starts
putting businesses out of business. They've been doing that in
America and are nearly finished with the job in England. ...
"Ideally, a company should work itself out of debt, not into
it. But because of suppressive, penalizing tax percentages and
bank interest rates, a company works itself into debt so one
could say that the tax collector is in collusion with the banker
in these sectors. ...
"There is another twist to this. What do governments (and
sometimes even banks) do with these tax collections and other
pounds of flesh gouged from the carcasses of people trying to
get on with their jobs? They hand them out as 'foreign aid,' and
dole, welfare and other activities designed to degrade. ...
"Simple. So simple. It's too simple for these idiots not to
be able to con everybody in the society into believing that it's
very complex. But they don't want the public to understand this
because they've got a racket going and they know it's a racket.
..."
L. Ron Hubbard
HCO PL 2 September 1982
"AND THAT IS BANKING"
"Governments, the tax man, bankers and even accountants on
Earth (and in most space civilizations as well) operate on the
principle that they are there to take money from activities for
their own use. It is to be noted that robbers have the same
idea. ...
"...The head of the Federal Reserve-judging by his financial
'practices'-...probably rubs his hands and chortles all night at
the thought of people in rags. And I am sure that an IRS man is
never happier than when he has just got through bankrupting a
business."
L. Ron Hubbard
HCO PL 3 September 1982
"DEPUTY FBO FOR MARKETING OF
ORG RESOURCES FOR EXCHANGE (D/FBO MORE)
PURPOSE"
"The unhappiness and tumult in current society is oddly
current with the Keynesian economic theory of creating want.
It's a silly theory and has lately become to be abandoned. But
it was in vogue forty years or more, as I recall. It produced
the 'welfare era' of the psychiatrist and the total slavery of
the taxpayer!"
L. Ron Hubbard
HCO PL 6 July 1970
"IRRATIONALITY"
"Oddly enough one of the best ways to detect a suppressive
person is that he or she stamps on up statistics and condones or
rewards down statistics. It makes an SP very happy for everyone
to starve to death, for the good worker to be shattered and the
bad worker patted on the back.
"Draw your own conclusions as to whether or not Western
governments (or welfare states) became at last suppressives. For
they used the law used by suppressives: If you reward
nonproduction you get nonproduction. ...
"The cause of the Great Depression of the 1920s and 1930s in
the US and England...was income tax and government interference
with companies... .
"Income tax so penalized management, making it unrewarded,
and company law so hampered financing that it ceased to be
really worthwhile to run companies and management quit. ...
"In income tax, the more a worker makes the more hours of
his workweek are taxed away from him. Eventually he is no longer
working for his reward. He is working for no pay. If he got up
to 50 pounds a week the proportion of his pay (penalty) might go
as high as half. Therefore people tend to refuse higher pay (up
statistics), it has a penalty that is too great. On the other
hand a totally indigent nonworking person is paid well just to
loaf. The up statistic person cannot hire any small services to
help his own prosperity as he is already paying it via the
government to somebody who doesn't work."
L. Ron Hubbard
HCO PL 6 March 1966, Issue 1
"REWARDS AND PENALTIES-HOW TO HANDLE
PERSONNEL AND ETHICS MATTERS"
"To the degree that England and the US tax the individual
and seek to govern him they will dwindle in size."
L. Ron Hubbard
HCO PL 28 February 1966
"DANGER CONDITION DATA
WHY ORGANIZATIONS REMAIN SMALL"
"First consider a group which takes in money but does not
deliver anything in exchange. This is called rip-off. It is the
'exchange' condition of robbers, tax men, governments and other
criminal elements."
L. Ron Hubbard
HCO PL 10 September 1982
"EXCHANGE, ORG INCOME AND STAFF PAY"
"One of the highest crimes you could pull in that Marcabian
society, probably even today, is income tax; you make one comma
wrong and it's 'dead forever.' Sounds weird, doesn't it? So they
got everybody paying income tax-awfully restimulative. Probably
nothing much wrong with income tax if it were administered as a
tax, but it isn't; it's administered as a punishment, even on
this planet today.
L. Ron Hubbard
Lecture of 6 August 1963,
"Auditing Comm Cycles"
"...(T)he FOREMOST reason for a failing national prosperity
and inflation is a personal income tax agency. This runs a
vicious can't-have on every citizen and makes them PTS to the
government. Individuals even begin to run a can't-have on
themselves and do not produce. This IS the cause of a failing
national economy."
L. Ron Hubbard
HCO PL 12 May 1972R
"PTS PERSONNEL AND FINANCE"
"Government organized and conducted solely for
self-interested individuals and groups gives the society a short
life span. This imperils the survival of everyone in the land;
it even imperils those who attempt it. History is full of such
governmental deaths.
"Opposition to such governments usually just brings on more
violence.
"But one can raise his voice in caution when such abuses are
abroad. And one need not actively support such a government;
doing nothing illegal, it is yet possible, by simply withdrawing
one's cooperation, to bring about an eventual reform."
L. Ron Hubbard
"The Way to Happiness"
"To a large degree the society of Earth requires, as part of
its structure, names and the means to identify. The state finds
itself very satisfied whenever it increases its ability to
readily identify its citizenry, and will resort to almost any
pretext to collect the fingerprint s and dossier of one and all.
"Identity is such a liability and is so thoroughly MEST that
individuality is really not possible in the presence of sharply
defined identity."
L. Ron Hubbard
"Scientology 8-8008"
"We cannot afford to deny Scientologists that basic freedom
that is granted to everyone else: the right to choose whom one
wishes to communicate with or not communicate with. It's bad
enough that there are governments trying, through the use of
force, to prevent people from disconnecting from them... ."
L. Ron Hubbard
HCO B 10 September 1983
"PTSness AND DISCONNECTION"
All of my activities regarding taxes are governed by the standard
practice of these maxims and stable data, quoted from the scripture
of the religious philosophy to which I subscribe. Any report to the
contrary is a false report. (NOTE: Quotes from "The Way to
Happiness" are not part of any religious doctrine, but were written
by L. Ron Hubbard, and are embraced as part of my personal
philosophy.)
Jon Randall McDonald