Research check: we still don’t have proof that cutting company taxes will boost jobs and wages



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There still isn’t clear research showing company tax cuts will increase employment or wages.
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Ross Guest, Griffith University

If you read these headlines you might think we finally have proof that cutting company taxes will boost employment and investment:

These stories are based on analysis of the 2015 company tax cut by consultants AlphaBeta. But the study, as well as some of the media coverage of it, show a worrying misunderstanding of how company tax cuts work.

Simply comparing companies that receive a tax cut with those that don’t isn’t the right methodology to conclude that the 2015 tax cuts created more employment or higher wages.




Read more:
There isn’t solid research or theory to support cutting corporate taxes to boost wages


Cutting taxes lets companies keep more of their profits, allowing them to invest in new equipment and premises for example. The company then needs to hire more workers to work with these new assets. The newly created jobs require businesses to compete for workers and this increased demand pushes up wages across the entire economy.

Suppose a retail company gets a tax cut and opens a new store. It advertises for workers, many of whom are already employed by a rival store that didn’t get the tax cut. The first company will need to offer the workers higher wages to entice them away. The rival store will need to consider matching the wages in order to keep the workers.

In other words, even workers in companies that don’t receive the tax cut should see a wage rise.

Going through the AlphaBeta report

In 2015, the federal government cut the tax rate from 30% to 28.5% for businesses with less than A$2 million in revenue. Eligible businesses saved around A$2,940 on average because of the tax cut.

AlphaBeta used transaction data from 70,000 businesses to compare businesses just below the A$2 million threshold to companies that were just above it.

The analysis looked at the differences between the two groups of firms in terms of whether they hired new workers, invested in their businesses, increased worker wages, or kept some of the cash as a reserve.

AlphaBeta chalked any differences between companies that received the tax cut and those that didn’t to the company tax cuts.




Read more:
The full story on company tax cuts and your hip pocket


As reported in The Australian, AlphaBeta found that companies that received the tax cut increased their employee headcount by 2.6%. The companies that didn’t receive the cut increased employment by just 2.1%.

This difference turned out to be “statistically significant”, meaning it is very unlikely to be the result of random chance.

As the Sydney Morning Herald pointed out, AlphaBeta also concluded that 51% of the tax cut was kept as cash, 27% went towards new investment, but only 3% was paid to workers in higher wages.

In other words, wages increased by just A$1.44 per week. This is not only a small amount, it was also found to be not statistically significant.

Problematic methodology

The main issue with this study’s methodology is actually noted by AlphaBeta in the report itself (and echoed in the coverage by the ABC and Sydney Morning Herald).

The problem is that we cannot draw any conclusions about the effect of company tax cuts on jobs or wages by studying a bunch of firms that received them and another bunch that did not, even if the firms are only slightly different.

This is because, as noted above, the effect of company tax cuts on jobs and wages take place in the entire labour market. An increase in demand for labour flows through to all business, and therefore, so do higher wages.

So we should not expect to see wages rising only in those businesses that receive the tax cuts. The finding that an increase in wages is small and insignificant is exactly what we would expect to see from this study.

Another problem is that we do not know whether the characteristics of the companies in AlphaBeta’s sample. Were some industries with particularly pronounced employment or wage increases over represented in one group but not the other, for instance?

Studying the effect of company tax cuts on employment and wages also requires a longer time period – sometimes years – and careful control of other factors affecting jobs and wages in some firms relative to others.

Blind review:

The analysis in this review is generally fair and reaches a sound conclusion regarding the AlphaBeta report. However, the logic behind company tax cut raising wages is somewhat simplified.

A cut in company tax lowers the costs of production and can flow to labour, capital (including equipment and buildings) and consumers. Economics tells us that who actually benefits from a tax cut depends on what is more responsive to the tax – labour, capital or output.

The lower production costs from a company tax cut can lead to greater output and lower prices as consumers buy more goods and services. This depends, of course, on how responsive consumers are to changes in price.

In the short-run labour is more mobile than capital, which is usually regarded as fixed. Therefore, in the short-run most of the benefit is borne by owners of capital (the companies) in the form of higher after-tax profits.

However, over the longer term, companies invest their after-tax profits in the business. So most of the benefit of the tax cut goes to workers though higher wages as the increased “capital stock” (such as equipment) makes labour more productive.

The ConversationIt follows that there is no reason to expect a significant increase in wages over a period of one or two years (as the AlphaBeta report covers). Indeed, such a result would be somewhat surprising. – Phil Lewis

Ross Guest, Professor of Economics and National Senior Teaching Fellow, Griffith University

This article was originally published on The Conversation. Read the original article.

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There isn’t solid research or theory to support cutting corporate taxes to boost wages


Fabrizio Carmignani, Griffith University

The argument that cutting the Australian company tax rate will lead to higher investment and wages, more employment and faster GDP growth does not have solid empirical or theoretical backing.

A close look at the economic research in this area shows a lack of consensus. Different studies, looking at different samples of countries, over different periods of time, reach different conclusions.

And the predictions made by theoretical models are sensitive to the underlying assumptions and structures built into the models themselves.

Many of the issues surrounding tax cuts remain unsettled – such as the size or length of the impact, how it affects inequality and the relationship with other government policies.




Read more:
Qantas and other big Australian businesses are investing regardless of tax cuts


The recent International Monetary Fund (IMF) forecast for the American economy highlights some of the issues.

In short, the IMF acknowledges that the recent US tax cuts will have a positive impact on economic growth in 2018-19. However, this is conditional on the US government not cutting expenditure, is likely to be short-lived, and will come at the cost of increased government deficits.

In this light, corporate tax cuts seem to be a long-term pain for a short-term gain, which is probably not what we need in Australia.

Conflicting information

Let’s start with the point that is probably least controversial – that a reduction in the corporate tax rate will lead to an increase in wages.

Think of the output produced by a corporation as a pie. This pie is shared among shareholders (in the form of dividends), banks and other lenders (in the form of interest paid on loans), workers (in the form of wages) and the government (in the form of taxes).

If we reduce the government’s share then there is more for everybody else, including workers. And some data do suggest that wages increase when corporate tax rates decline.

Yet economists disagree on the extent to which wages would actually increase in response to a tax cut.

Some research suggests that this increase might be small, even in a country like Germany, which is often used as an example of the beneficial impact of tax cuts on wages.

Certain aspects of the German economy and industrial relations system make it more likely that German workers will benefit from corporate tax cuts compared to Australian workers.

In Germany, workers’ representatives sit on company supervisory boards, which monitor and appoint members of management boards.

This means German workers have a stronger say when it comes to sharing the pie. For any given decrease in the slice of the government, German workers are more likely to get a bigger slice for themselves. This is not necessarily the case in Australia.

It is therefore difficult to draw implications for Australia from studies that look at the experience of Germany or other countries with significantly different institutional arrangements.

Furthermore, the fact that wages should increase in response to a corporate tax cut does not automatically imply that other economic variables will also respond positively. For instance, the more wages increase in response to a corporate tax cut, the smaller the increase in employment is likely to be.




Read more:
The full story on company tax cuts and your hip pocket


This leads to an even more controversial question: what is the effect of corporate tax cuts on real economic activity, such as employment and GDP growth?

The trickle-down effect of corporate tax cuts rests on the idea that business investment would increase once taxes are cut, which in turn leads to the creation of more jobs and faster economic growth.

However, this line of reasoning neglects the fact that investment decisions in today’s globalised world are not necessarily driven by the corporate tax rate.

Many other factors come into corporate investment decisions, such as the quality of institutions, the proximity to important markets, and the cost of labour (wages).

Because of these other factors, the impacts of tax cuts on employment and growth can be small, short-lived, or conditional on other government policy actions, such as managing debt.

In a similar vein, recent theoretical work that incorporates more realistic assumptions about the economy (such as the distribution of entrepreneurial skills in the population) suggests that a tax cut only has a significant impact on economic growth when the tax rate is initially high.

This means that even within a given country, the effect of a corporate tax cut can change depending on initial economic and policy conditions.

Putting tax cuts in a broader context

Beyond growth and employment, the effects of corporate tax cuts should also be considered in terms of deficit and inequality.

From the point of view of the public budget, a cut in the tax rate has to be somehow financed. How?

A first possibility is that the tax cut pays for itself. This is essentially the idea that as the tax rate goes down, the increase in the tax base (e.g. pre-tax corporate profit) is sufficiently large to ensure that the total tax revenue increases.

However, an increase in the tax base would require a significant and sustained increase in business investment, which, as we have already seen, does not necessarily happen.

The government could increase other taxes, but this means the government would effectively be taking from one group of taxpayers (possibly workers themselves) to give to corporations.

Another option is to reduce some government expenditures. But this could also involve taking from one group to give to another. If the decision is made to cut social welfare and public goods like education and health, then more vulnerable segments of the population will bear the cost of lowering the corporate tax rate. This means more inequality in the economy.

Of course the government could decide to just let the deficit be. This would result in higher debt. But can Prime Minister Turnbull (or President Trump for that matter) accept that?

The ConversationThe central economic challenge for Australia is to promote long-term, inclusive growth. Are we confident that this is what corporate tax cuts will deliver? Based on the economic research that I have read, the answer is no.

Fabrizio Carmignani, Professor, Griffith Business School, Griffith University

This article was originally published on The Conversation. Read the original article.

Five ways to kickstart the economy — without cutting company taxes



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The Productivity Commission has recommended sweeping changes to how infrastructure is governed.
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Jim Minifie, Grattan Institute

The Productivity Commission has released the first in a planned series of five-yearly updates on productivity in Australia. The report shows that there is much the Australian government can do to boost productivity and living standards.

These include changing how government delivers or controls education and health, and how it manages infrastructure. Interestingly, for the Commission, policy to improve productivity in the private sector (primarily tax and regulation), while still important, plays second fiddle.

The Commission backs up its recommendations in these huge domains by a compendium of analyses spread over hundreds of pages in 16 supporting papers.


Read more: Why reforming health care is integral for our economy


The Productivity Commission’s review comes amid a period of slow productivity growth in Australia and around the developed world. Fifteen years ago, most economists expected that the internet revolution and the rapid shift of manufacturing to China would, for all the disruption they entailed, sustain strong growth in the rich world. But those hopes were dashed.

A wide range of research has identified many possible culprits for the productivity slowdown. These include mismeasurement, that “easy wins” such as universal education have already been used up, ageing, risk aversion, and a hit to investment and innovation from the global financial crisis.

One of the Commission’s background papers covers many of these contributors to slow growth.

Australian productivity has grown faster than in many other high-income economies since the financial crisis, largely thanks to the mining boom and to our having avoided a deep recession.

But productivity growth has not been strong enough to keep wage growth strong in the face of declining export prices and some broader weakness as the mining investment boom comes off. Getting policy settings right is urgent to reduce the risk that Australia slides into the stagnation that other high-income economies have experienced.

The recommendations

The new report identifies five priorities to revitalise productivity: health, education, cities, market competition, and more effective government.

The Commission’s estimates imply that its policies would eventually boost GDP by at least two per cent, with additional non-market benefits in longer lives and quality of life.

In health, the report recommends changing funding arrangements, cutting low-value treatments, putting the person at the centre of health care, shifting to automated pharmacy dispensing in many locations, and moving to tax alcohol content on all drinks. The Commission estimates that the value of these reforms is at least A$8.5 billion over 5 years.

In education, the report makes recommendations to build teacher skills, better measure student and worker proficiency, extend consumer law to cover universities, and improve lifetime learning, including better information about the performance of institutions. The Commission does not put a dollar value on these reforms.


Read more: Myth busting claims on the impact of the company tax cut


In cities and transport, the report recommends improved governance to stop poor projects being built, budget and planning practices to properly provide for growth and infrastructure, and policies to get more value out of existing and new assets (including road user charges, extending competition policy principles to cover land use regulation, and replacing stamp duties with land tax). The Commission estimates that these reforms would be worth at least A$29 billion per year in time.

To improve market competition, the report suggests a single effective price be placed on carbon, an end to ad-hoc interventions in the energy market, better consumer control of and access to data, and reforms to intellectual property to support innovation. The Commission estimates that these reforms would be worth at least A$3.4 billion per year.

Finally, to improve government, the report recommends that the states and the Commonwealth develop a new formal reform agenda that clarifies who has responsibility for what, tax changes, measures to improve fiscal discipline, and tougher accountability for implementation of agreed initiatives. The Commission does not put a dollar value on these reforms.

What’s missing?

The review’s omissions are informative, and some are glaring.

First, cutting company taxes is conspicuously absent from the proposals. It seems unlikely this omission is an oversight. It would seem, instead, that the Commission does not see a company tax cut as a priority for productivity growth, and is happy for government to make its own case for a tax cut.

Still, the report would have been stronger had it considered the tax mix more fully. There is credible case for a company tax cut, though it is not the only way to stimulate investment, it would take years to pay off, and it would hit the budget without increase in other taxes or spending cuts.

Second, the report gives short shrift to population growth. Governments are racing to keep pace with population growth in Melbourne and Sydney in particular, yet the report does not consider how population contributes to congestion, how it dilutes the value of natural resource rents, and how the challenges it creates for governments make it more difficult for them to deliver reforms that would boost productivity.


Read more: City planning suffers growth pains of Australia’s population boom


Third, the report does not give enough attention to reforms to improve market functioning. Many consumers in retail markets for services like energy and superannuation do not know how to identify good products, and so consumers often bear the costs of excess marketing or an excess of providers.

It seems likely that the Commission did not want to prejudge the subject of a current Commission inquiry on superannuation, but other markets have similar problems.

There are other gaps. The report does not give enough attention to macroeconomic stability, or even note the risks posed by the Australian house price boom. It does not mention the problematic National Broadband Network. It pays too little attention to the role of social safety nets in helping people manage risks and making the economy more flexible.

And finally, the report could have made stronger recommendations for better measurement. It is ironic that it finds the biggest opportunities in the health and education sectors, whose output is not measured with much accuracy.


Read more: Myth busting claims on the impact of the company tax cut


Overall, the report is something of a landmark, and the Treasurer deserves credit for commissioning it. It condenses much of the policy advice the Productivity Commission has made in recent years, and adds new insights (for example, on land use).

It provides credible, if incomplete recommendations for improving health and education, and cities and transport. It undersells the value of further reforms to private sector regulation and tax. But it underscores how much governments can do on the “home turf” of the things they control most directly.

The ConversationNow it is up to Commonwealth and state governments to absorb its insights, integrate them into their agendas, and put them into action.

Jim Minifie, Productivity Growth Program Director, Grattan Institute

This article was originally published on The Conversation. Read the original article.

Latest Persecution News – 11 May 2012


Egyptian Judge Frees Attackers Who Knifed Christian

The following article reports on the latest news of persecution in Egypt, where Salafi Muslims who attacked a man, cutting of his ear in an attempt to force him to convert, have had all charges dismissed.

http://www.compassdirect.org/english/country/egypt/article_1532636.html

 

The articles linked to above are by Compass Direct News and  relate to persecution of Christians around the world. Please keep in mind that the definition of ‘Christian’ used by Compass Direct News is inclusive of some that would not be included in a definition of Christian that I would use or would be used by other Reformed Christians. The articles do however present an indication of persecution being faced by Christians around the world.

Conviction of Legislator in India Falls Short of Expectations


In murder of Christian, Hindu nationalist sentenced to seven years for causing ‘grievous hurt.’

NEW DELHI, July 2 (CDN) — Christians in Orissa state had mixed feelings about the sentencing on Tuesday (June 29) of state legislator Manoj Pradhan to seven years in prison for causing grievous hurt and rioting – but not for murder.

“Pradhan is not convicted of murder, but offenses of voluntarily causing grievous hurt by dangerous weapons and rioting were upheld,” attorney Bibhu Dutta Das told Compass. “Pradhan will be debarred from attending the Orissa Legislative Assembly unless the order of conviction is stayed by the Orissa High Court, or if special permission is granted by the court allowing him to attend.”

Kanaka Rekha Nayak, widow of murdered Christian Parikhita Nayak, acknowledged that the verdict on Pradhan and fellow Hindu nationalist Prafulla Mallick in the August-September 2008 violence against Christians did not meet her expectations. She said she was happy that Pradhan was finally behind bars, but that she “expected the court to at least pronounce life imprisonment on Pradhan and Mallick for the gruesome act that they committed.”

Das said he will try to increase the sentence.

“Pradhan spearheaded the riots and has several criminal charges against him – he cannot be let off with a simple punishment,” Das said. “We will be filing a criminal revision in the Orissa High Court for enhancing the period to life imprisonment.”

The day after Pradhan was sentenced, two Hindu nationalists were reportedly convicted of “culpable homicide not amounting to murder” in the burning death of a paralyzed Christian during the 2008 attacks on Christians in Orissa state’s Kandhamal district and sentenced to only six years of prison.

UCAN agency reported that Sushanta Sahu and Tukuna Sahu were convicted and sentenced on Wednesday (June 30) in the death of Rasananda Pradhan, a paralytic burned alive when Hindu extremists set his house on fire on Aug. 24, 2008. Church leaders criticized the lenient sentences.

Manoj Pradhan has been charged in 14 cases related to the August-September 2008 anti-Christian attacks. In seven of the cases he has been acquitted, he was convicted of “grievous hurt” in this one, and six more are pending against him.

Of the 14 cases in which he faces charges, seven involve murder; of those murder cases, he has been acquitted in three.

After a series of trials in which murder suspects in the 2008 Kandhamal district violence have gone free as Hindu extremist threats kept witnesses from testifying, the testimony of Nayak’s daughter, 6-year-old Lipsa Nayak, helped seal Pradhan’s conviction.

His widow, Rekha Nayak, told Compass that due to the severe threats on her life that she has received, she and her two daughters were forced to flee the area and go into hiding.

There were around 1,500 Hindu supporters present for this week’s verdict, a source in the courtroom told Compass on condition of anonymity.

“We had to leave the place before the judgment was pronounced and could not enter that area for three or four days after the verdict,” said the source, adding that prosecuting lawyers and human rights activists received the main threats.

Along with the seven years of prison, the Phulbani Court sentenced the Hindu nationalist Bharatiya Janata Party (BJP) member of the Legislative Assembly of Orissa from G. Udayagiri, Kandhamal to a fine a little more than US$100, as it did for Mallick. The verdict came from Fast Track Sessions Court I Judge Sobhan Kumar Das in the Aug. 27, 2008 murder of 31-year-old Parikhita Nayak, a Dalit Christian from Tiangia, Budedipada, in Raikia block of Kandhamal district.

Pradhan was also accused of setting fire to houses of people belonging to the minority Christian community.

“I have the highest regard for the judiciary,” Pradhan told Press Trust of India after this week’s verdict. “We will appeal against the verdict in the higher court.”

Cases have been filed against Pradhan for rioting, rioting with deadly weapons, unlawful assembly, causing disappearance of evidence of offense, murder, wrongfully restraining someone, wrongful confinement, mischief by fire or explosive substance with intent to destroy houses, voluntarily causing grievous hurt and voluntarily causing grievous hurt by dangerous weapons or means.

Dibakar Parichha of the Cuttack-Bhubaneswar Catholic Archdiocese told Compass that the judgment was “a good boost to the Christian community.”

“When the trials were on, the Nayak family faced terrible times,” Parichha added. “Pradhan and his associates threatened Kanaka Rekha, the widow of the deceased, right inside the courtroom of dire consequences if they testified about them.”

Archbishop Raphael Cheenath of the Cuttack-Bhubaneswar diocese issued a statement saying that the verdict had boosted confidence in the judiciary that criminals will be punished.

“People have been waiting for good judgment, and we have confidence in the judiciary that criminals will be punished,” Cheenath said, adding that the sentence will show criminals that the law will not spare any one. “One day or other, they will be punished.”

The Rev. Richard Howell, general secretary of the Evangelical Fellowship of India, told Compass that the verdict offered some hope.

“The fact that something has happened gives us some hope that more convictions would take place in the trials to come,” he said.

Calling the conviction “justice that was long overdue,” Howell said that not much can be expected from Fast Track Courts as no security is provided to witnesses.

 

Girl’s Testimony

During the 2008 anti-Christian attacks that followed the death of Hindu leader Swami Laxmanananda Saraswati, Lipsa Nayak’s parents and her sister had taken refuge in the forest to escape the fury of the Hindu extremists, but the rampaging mob tracked them down.

Lipsa, then 4 years old, along with her mother and then 2-year-old sister, Amisha Nayak, watched in horror as the crowd allegedly beat her father for two hours and then killed him by cutting him into pieces and burning him.

Rekha Nayak filed a complaint and a case was registered against Pradhan, Mallick and others for murder, destroying evidence, rioting and unlawful assembly. Pradhan was arrested on Oct. 16, 2008, from Berhampur, and in December 2009 he obtained bail from the Orissa High Court.

Despite his role in the attacks, Pradhan was the only BJP candidate elected from the G. Udayagiri constituency in the 2009 Assembly elections from Kandhamal district. He had campaigned inside jail.

On March 14, Rekha Nayak and her daughter Lipsa testified in court in spite of the threats. Rekha Nayak reportedly testified that when the Hindu mob demanded that her husband renounce Christianity or face death, he kept quiet, which led to his death.

Prosecution and defense lawyers questioned Lipsa for more than 90 minutes, and she reportedly answered all questions without wavering. Asked by the judge if she could identify the killer of her father, she pointed to Pradhan.

So far he has been exonerated of murder charges against him for “lack of witnesses.” Christian leaders say that Pradhan has been intimidating witnesses because of his position as a member of the Legislative Assembly.

The government of Orissa has set up two Fast Track courts to try cases related to the violence that spread to more than a dozen districts of Orissa. The attacks killed more than 100 people and burned 4,640 houses, 252 churches and 13 educational institutions.

Trials are being held for 38 cases in which 154 people have been convicted and more than twice that many have been acquitted, as high as 621 by one count. Victims filed 3,232 complaints in the various police stations of Kandhamal district. Of these, police registered cases in only 832 instances.

“Nearly 12,000 people are accused in the riot case – 11,803 are out on bail,” said attorney Das.

Report from Compass Direct News

Signs of Witness Intimidation Mount in Orissa, India


Fear factor results in transfer of rape case; meantime, 6-year-old girl says politician is killer.

NEW DELHI, April 2 (CDN) — Due in part to intimidation of witnesses in Kandhamal district, a judge this week granted a change of venue for the trial of men accused of gang-raping a nun during anti-Christian attacks in Orissa in 2008.

The trial will be transferred from Baliguda, Kandhamal to Cuttack, near the Orissa state capital of Bhubaneswar. Justice Indrajit Mohanty of the Orissa High Court on Tuesday (March 30) ordered the inter-district transfer of the trial. The nun, Meena Lilita Barwa, had argued that witnesses would be intimidated into refraining from testifying if the trial were held in Kandhamal district.

She also argued that Kandhamal’s intimidating atmosphere made it too dangerous for her appear in court there. Christians were hopeful that the transfer would lead the administration to review police and court processes in Kandhamal district.

Police have arrested 19 people for allegedly assaulting the nun on Aug. 25, 2008 and parading her half-naked through the streets.

Hindu Politician Identified as Killer

After a series of trials in which murder suspects in the 2008 Kandhamal district violence have gone free as Hindu extremist threats have kept witnesses from testifying, a 6-year-old girl has identified a powerful local politician as the man who killed her father.

In testimony at Fast Track Court No. 1 on March 14, Lipsa Nayak of Kandhamal identified Manoj Pradhan, a member of the Legislative Assembly of Orissa, as the man who cut and burned her father to death when Hindu extremists attacked Christians following the Aug. 23, 2008 death of a local Hindu leader.

Pradhan has been accused in nine cases of murder and in 14 cases of arson. So far he has been exonerated on the murder charges against him for “lack of witnesses.” Christian leaders say that Pradhan has been intimidating witnesses because of his position as a member of Legislative Assembly. Lipsa’s mother, 32-year-old Kanak Rekha Nayak, has said that Pradhan and his associates have threatened to harm her family if they identified him as the killer.

The Nayak family lived in Tiangia, Budedipada, in Raikia block of Kandhamal district. During the anti-Christian attacks that followed the death of Hindu leader Swami Laxmanananda Saraswati, Lipsa’s parents and her sister had taken refuge in the forest to escape the fury of the Hindu extremists, but the rampaging mob tracked them down.

Lipsa, then 4 years old, along with her mother and 2-year-old sister, watched in horror as the crowd allegedly beat her father, Parikhita Nayak, for two hours and then killed him by cutting him into pieces and burning him.

Prosecution and defense lawyers questioned Lipsa for more than 90 minutes, and she reportedly answered all questions without wavering. Asked by the judge if she could identify the killer of her father, she pointed to Pradhan, the MLA from the Hindu nationalist Bharatiya Janata Party (BJP) from G. Udayagiri, Kandhamal.

Her mother later told media, “They played with him for a few hours before cutting him into pieces and dousing him with kerosene.”

Accused as a primary suspect in the murder along with Pradhan is Kali Pradhan. The government of Orissa has set up two Fast Track courts to try cases related to the violence that spread to more than a dozen districts of Orissa. Maoists have taken responsibility for the killing, though Hindu extremists accused Christians in an effort to spark anti-Christian violence. The attacks killed more than 100 people and burned 4,640 houses, 252 churches and 13 educational institutions.

Christian leaders have denounced the legal process in the Kandhamal violence, saying not only that witnesses have been threatened and the intimidated but that police investigations have been negligent or corrupt.

“There has been no conviction in any case of murder,” said Dr. John Dayal, a member of the National Integration Council. “More than 70 people were killed, and trial is being held only for 38 or so of those deaths. Eleven murder cases have been tried with no one being indicted or sentenced for murder so far – because of terrible investigation by the police, a poor show by the prosecuting lawyers and shoddy judicial process.”

The 123 cases tried in the Fast track courts have resulted in 97 convictions and 323 acquittals, including several cases decided on Wednesday (March 31). Seven people in two separate cases were convicted of arson and rioting cases. Nata Pradhan, Jahala Pradhan, Ashok Mallick, Bapa Pradhan, and Udayanath Pradhan from Raikhala-Gadiapada village were sentenced for two years imprisonment for destroying the house of Birendra Nayak of the same village. They were also fined 2,500 rupees (US$55). In the other case, Ratnakar Pradhan and Parsuram Pradhan from village Tatamaha, Raikia block were convicted of riot and arson.

At the same time, Fast Track Court I Judge S.K. Das acquitted 20 people persons in three separate cases for lack of evidence.

“Witnesses are being coerced, threatened, cajoled and sought to be bribed by murderers and arsonists facing trial,” said Archbishop of Orissa Raphael Cheenath in a statement. Previously he had demanded that the cases of politically powerful persons such as Manoj Pradhan be transferred out of Kandhamal to ensure proper justice.

“We are deeply concerned about the high rate of acquittals in the Fast Track Courts,” Cheenath said. “Victims filed 3,232 complaints in the various police stations of Kandhamal. Of these, the police registered cases in only 832 instances.”

Orissa Chief Minister Naveen Patnaik filed a written admission in the Orissa Assembly in November 2009 in which he said 85 members of the Hindu extremist Rashtriya Swayamsevak Sangh (RSS), 321 persons of Hindu nationalist umbrella group Vishwa Hindu Parishad (VHP) and 118 persons of Hindu extremist youth wing, the Bajrang Dal, had been arrested for their involvement in the Kandhamal riots.

While the government says that situation is normalizing in Kandhamal, Christian leader like Dr. John Dayal give a different story.

“While it is possible to visit one half of the district of Kandhamal and discover only peace, it is the other half of the district which speaks of the continuing tyranny,” he said. “The bloodshed has stopped because of belated police action, but the miscarriage of justice and the lost peace continue to haunt thousands of people who have not been able to go back to their homes for fear of their lives. Thousands of children cannot go to school, especially the girls. What is worse is that many girls have been trafficked.”

The district collector banned all Christian organizations from coming to the district to bring aid to victims after the 2008 violence, he added, “and it took an appeal to the Supreme Court of India by the archbishop of Bhubaneswar for much needed relief to be given to the people in the then refugee camps.”

He expressed doubts about the government portrait of normalcy in Kandhamal.

“Even if the church does its best, only half of the 5,600 or so houses burned to the ground will ever be rebuilt,” he said. “The district collector and other officers of the civil and police system who are guilty of gross dereliction of duty continue to be in control. Thousands of men continue to be without jobs. Is this normalcy?”

Firebrand Arrested

On March 20, a controversial leader of the VHP, Praveen Togadia, was arrested as he tried to defy orders prohibiting him from entering Kandhamal. Togadia had played a major role in whipping up passions among the Hindus of Kandhamal after the killing of Saraswati.

Togadia had led a procession with the body of Saraswati through different areas of the district for more than 100 kilometers, sparking off or intensifying violence against Christians.

The government of Orissa came under heavy fire from civil society for allowing the procession, and on the latest occasion the local administration was careful to detain Togadia under the Section 151 of the Code of Criminal Procedure, which provides for authorities to make arrests to prevent potential offenses. Togadia was later released on bail.

Togadia termed the prohibition on his visit a “ban” that was “illegal and undemocratic.” In response to the “ban” on Togadia, the Hindu extremist Sangh Parivar and the BJP protested with a 12-hour bandh (shut down) in Kandhamal on March 20, while the VHP held demonstrations in Bhubaneswar, Berhampur, Bolangir, Sambalpur and Cuttack. VHP also blocked National Highway 217 for one hour and burned an effigy of Chief Minister Patnaik.

“The state government didn’t stop foreign missionaries from going to tribal areas of Kandhamal and other parts of Orissa,” VHP leader Swadesh Pal Gupta said. “They were being provided with full support and freedom. But when a leader who is an International Secretary General of VHP tries to go to Kandhamal, the government stopped him. We are staging a nationwide protest against this.”

Report from Compass Direct News 

Nigeria: 12 people slaughtered and tongues cut out


Attackers killed 12 people on Wednesday March 17 morning in a small Christian village in central Nigeria, cutting out most of the victims’ tongues in the latest violence in a region where religious fighting already has claimed hundreds this year, officials have said, reports CISA.

The attack almost mirrored the tactics used by those who carried out similar massacres in Christian villages last week when more than 200 people were slaughtered.

Under the cover of darkness and a driving rain, raiders with machetes entered the village of Byie early Wednesday, setting fire to homes and firing gunshots into the air to drive frightened villagers into the night, witness Linus Vwi said.

He said the attackers spoke Fulani, a language used mostly by Muslim cattle herders in the region. Officials and witnesses blamed Fulani herders for the killings last week.

Fulani community leader Sale Bayari denied that Fulanis took part in those killings, though he said the community suffered a similar massacre recently.

According to AP, six people were wounded in the overnight raid and taken to a local hospital, said Mark Lipdo, leader of a regional Christian nonprofit group. He said attackers burned down 15 homes during the violence.

The dead included seven women, four children and one man, Lipdo said. It was unclear why attackers took the victims’ tongues.

State spokesman Gregory Yenlong appealed for calm, saying the government remained on top of the situation and would bring the attackers to justice. However, killings continue despite a dusk-till-dawn curfew in a region supposedly protected by Nigerian security forces.

Attacks this month came after more than 300 people were killed in the January violence in the nearby city of Jos and its surrounding villages.

Nigeria, a country of 150 million people, is almost evenly split between Muslims in the north and the predominantly Christian south.

The recent bloodshed has been in central Nigeria, in the nation’s "middle belt," where dozens of ethnic groups vie for control of fertile lands.

Rioting in September 2001 killed more than 1,000 people. Up to 700 people were killed in Muslim-Christian battles in 2004. More than 300 residents died during a similar uprising in 2008.

Report from the Christian Telegraph 

Islamic Assailants Kill Hundreds of Christians Near Jos, Nigeria


Fulani herdsmen strike Christian villages, slaying mainly ethnic Berom with machetes.

LAGOS, Nigeria, March 8 (CDN) — An uneasy calm prevailed in Plateau state, Nigeria today following the killing of hundreds of Christians early yesterday morning in three farming villages near Jos by ethnic Fulani Muslims.

The mostly ethnic Berom victims included many women and children killed with machetes by rampaging Fulani herdsmen. About 75 houses were also burned.

State Information Commissioner Gregory Yenlong confirmed that about 500 persons were killed in the attacks, which took place mainly in Dogo Nahawa, Zot and Rastat villages.

“We were woken up by gunshots in the middle of the night, and before we knew what was happening, our houses were torched and they started hacking down people” survivor Musa Gyang told media.

The assailants reportedly came on foot from a neighboring state to beat security forces that had been alerted of a possible attack on the villages but did not act beforehand.

The attack on Sunday is the latest in several religious clashes in the state in recent months that have claimed lives and property. Plateau state is a predominantly Christian state in a country almost evenly divided between Christians and Muslims. The Muslim minority has been contesting ownership of some parts of the state, leading to frequent clashes.

Bishop Andersen Bok, national coordinator of the Plateau State Elders Christian Fellowship, along with group Secretary General Musa Pam, described the attack as yet another “jihad and provocation on Christians.”

“Dogo Nahawa is a Christian community,” the Christian leaders said in a statement. “Eyewitnesses say the Hausa Fulani Muslim militants were chanting ‘Allah Akbar,’ broke into houses, cutting human beings, including children and women with their knives and cutlasses.”

Soon after the militants besieged Dogo Nahawa, the Christian leaders said, at 1:30 a.m. they contacted the military, which is in charge of security in the state.

“But we were shocked to find out that the soldiers did not react until about 3:30 a.m., after the Muslim attackers had finished their job and left,” they stated. “We are tired of these genocides on our Christian brothers and state here that we will not let this go unchallenged.”

Pentecostal Fellowship of Nigeria (PFN) President Ayo Oritsejafor decried the attack on the Christian community as barbaric and urged the federal government to stop the killing of innocent citizens or risk a total breakdown of law and order.

“I have just returned from a trip abroad,” he said. “While I was away, I was inundated with reports of another catastrophe in the Jigawa state capital, where several churches were burnt, and just as I was trying to settle down and collate reports from the field, I am hearing of another on Sunday morning.”

Director of Social Communications, Catholic Archbishop of Lagos, Rev. Monsignor Gabriel Osu said the Sunday killing in Jos is a major setback for the country’s effort to gain the confidence of the international community.

“Do you know that because of things like these, anywhere Nigerians travel to they are subjected to dehumanizing scrutiny?” he said. “Any act of violence at this time is totally condemned, and the government should make haste to fish out all identified perpetrators of such heinous crimes against God so that we can move forward as a people united under one umbrella.”

On Friday (March 5) the National Youth President of the PFN, Dr. Abel Damina, expressed concern over cases of clandestine killings of Christians in remote parts of Plateau state by Islamic extremists and called on the federal government to retrieve sophisticated weapons in their possession.

“Even as I speak to you now, I am receiving reports that some clandestine killings are still going on in the remote areas of Plateau State by the fundamentalists,” Damina reportedly said. “They pounce on Christians and kill them without anybody knowing much of their identity except that they are Christians.”

He added that recently he visited the governor in Jos regarding the crisis and secured photos of Christian victims.

“Young men, Christians, were going to their farm to harvest their produce and the fundamentalists pounced on them,” he said. “They were called infidels. At the last conference, we received reports with photographs of the fundamentalists using AK-47 rifles to destroy our churches. Where did they get the arms from? We have reports of truck loads of arms that had been intercepted, and we did not hear anything about them.”

Report from Compass Direct News 

Christians Accused of Desecrating Quran Freed in Pakistan


Country’s notorious ‘blasphemy’ law used against innocent father, daughter.

LAHORE, Pakistan, December 16 (CDN) — A Christian in Faisalabad district and his 20-year-old daughter were released on Monday (Dec. 14) after 14 grueling months in jail on false charges of blaspheming the Quran.

Khalil Tahir, attorney for Gulsher Masih and his daughter Ashyana Gulsher (known as Sandal), said the case was typical of the way Pakistan’s blasphemy laws can be used to harass innocent Christians.

“Christians are the soft targets, and most of the people implicated in these inhumane laws are Christians,” Tahir said. “We Christians are fighting for the same, noble goal – to provide justice to the victims of blasphemy laws.”

Masih said that inmates beat him at least five times since he was arrested on Oct. 23, 2008. His daughter was arrested two weeks earlier, on Oct. 10.

“These long 14 months seemed like ages,” Masih told Compass. “There was one inmate, Ghulam Fareed, a rich man, who always harassed me, trying to coerce me to convert to Islam by saying he would make me rich and would send me abroad.”

Fareed, who also promised high quality education for Masih’s children, joined with Islamic extremists jailed for terrorist acts to beat him in an effort to force him to “come into the fold of Islam,” Masih said. While in jail, he said, his wife told him that their daughter had been beaten several times by the superintendent of police.

Masih and his daughter were charged under Section 295-B of the Pakistan Penal Code for blaspheming the Quran. Before charges were filed in October 2008, Masih said an initial incident occurred on Aug. 25, when Ashyana Gulsher found some burned pages of the Quran in a garbage dump outside their community of Chak No. 57, Chak Jhumra in the district of Faisalabad.

Masih said she handed the charred pages to a woman, Lubana Taj, saying, “These are the holy page of your Quran and I found them in the garbage, so you take it.”

There were still some pages left, which she gave to their neighbor, Khalida Rafiq, who burned them, he said.

“She had borrowed wheat from us a few weeks ago, and when my wife demanded it back, Khalida Rafiq said that we had burned pages of the Quran and was now accusing us of taking wheat,” Masih said. “Some other women of the village also accused my children of making paper airplanes of the pages of the Quran.”

The escalating conflict was defused with the help of other neighbors who knew the truth, he said, and local Muslim cleric Amam Hafiz Muhammad Ali also intervened, saying Masih’s daughter had done a good deed and questioning why the neighbor women were repaying her with evil.

“We thought that the matter was buried, but it arose again on Oct. 7, 2008,” Masih said. On that day 20-year-old Muhammad Qasim went throughout the village on bicycle exclaiming that Christians had burned the Quran, Masih said. Upon hearing this, village landlord Rana Sarwar called Masih and told him that his children had burned the Quran and had used pages to make paper airplanes.

“I told them that I was working in Asghar Christian Colony and never knew about the incident, and the son who had been accused of blasphemy had gone to school,” Masih said.

His accusers were unmoved, he said.

“In the evening when I was returning home, I heard announcements from several mosques that Christians had burned the Quran,” he said. “After hearing the announcement, people began pouring in. These announcements were made by Tariq son of Hafeez, Maqbool son of Hafeez and Maulana Tawaseel Bajwa.”

When Masih called emergency police, they arrested him and sent him to the Jhumra police station, Faisalabad.

“The police asked me where my children were, and when I told them that the children were in the village, the police went back to arrest them,” he said. “Rana Sarwar, Wajid Khan and Rana Naeem Khan came into the police station and argued that my children had blasphemed, so why was I the one being beaten? I told Rana Sarwar in front of the police that if my children have done this, then I was ready to bear consequences.”

Police told them that the crowd outside wanted to hang him and that this was why they had arrested him. Masih said that the next day Deputy Superintendent of Police (DSP) Yousuf Zai came and asked him why he had committed blasphemy.

“Rana Sarwar then told the DSP that it was all a political ploy, and that I had been implicated in the case for voting for the opposition party,” he said. “If that day those Christian Members of Parliamentary Assembly had spoken up, then the police complaint wouldn’t have been registered against me.”

Masih added that the station house officer felt that he was innocent but had become legally entangled due to lack of support from the community. Masih said that the next day, Oct. 8, a few Muslims gave conflicting statements against him when charges were filed.

“One said he saw me burning the pages of the Quran at 10 a.m., the other said that he saw me burning the pages at 12 p.m. and still another said that he saw me burning the pages of the Quran at 2 p.m.,” he said. “When I was sent in jail, the investigation office swore that I was innocent.”

In a further contradiction, the complainants accused him of cutting up pages of the Quran and tossing them in the air, not burning them, Tahir said.

The complainant in the case was Mohammad Farooq Alam, and other prosecution witnesses named were Mohammad Maqbool Ahmad and Mohammad Akber, according to Tahir.

Masih said that initially he appeared before Judge Zulfikar Lon, but that whenever a judge asked for witnesses, he was transferred.

“In this manner eight months passed, and then Judge Raja Mohammad Ghazanfar came” and refused to be transferred, Masih said.

After Tahir’s cross-examination of witnesses, Ghazanfar dropped all charges and ordered their release.

“During cross examination, I proved that the whole case was concocted, frivolous, fake and that the charges against the accused Christian brother were unfounded,” Tahir said.

Tahir said that he had provided only legal assistance to the victims, with Johnson Michael, chairman of the Bishop John Joseph Shaheed Trust, providing paralegal assistance. An MPA in the Punjab Parliament, Tahir is the body’s secretary for Human Rights and Minority Affairs and also serves as executive director of advocacy group Action Against Discriminatory Laws Trust Pakistan.

Report from Compass Direct News