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Tax reform explained: How it helps our culture, our families, our economics


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TOM LAMPRECHT:  Harry, it was last Wednesday President Donald Trump said the American worker received a great Christmas present. He was talking about the new tax bill legislation that was passed. Analysis says legislation could increase the national GDP by 1.7 percent and wages could see a bump by 1.5 percent.

THE TAX REFORM GOAL

DR. REEDER: The Republicans in the Senate rise or fall with this and the Democrats now are on record as having voted against, en masse, a tax credit and tax simplification plan. Certainly, that will become fodder in the next election if the tax plan succeeds – and it’s the kind of tax plan that you’ll start getting the feedback pretty quickly on it.

Let’s take a look at it, Tom. The original idea was to get the seven tax brackets down to three or five. That did not happen, yet they did lower rates in every single tax bracket, but they also took away deductions at the same time in an effort to simplify and the idea was some of these deductions that only the rich can take advantage of, either by being able to secure lawyers who are competent to do it and tax experts that they can take advantage of it so, in that sense, the deduction reductions were supposed to be middle class and lower class-friendly.

And the idea was to put it on a postcard – right now, the figure’s being used that over 90 percent will go to the postcard and the reason why is because the deductions available have been reduced in terms of these intricate deductions and they focused in on things like child adoption, marriage, that there are either tax credits or deductions associated with that.

HOW THIS HELPS CULTURE

Now whether it’ll be over 90 percent or not, as it’s being claimed, I don’t know. They’ve doubled the marriage benefit and they’ve doubled the child tax credit. Behind that, now from a Christian world and life view, of course, I applaud that because, A.), it is a step toward removing the penalties on those who are married and, B.), it is a step toward supporting marriage, which is best for the next generation.

Yes, a single parent is going to have a challenge in this, but there are other remedies available to the single parent. However, those who are cohabitating without marriage and have children, this will be quite a hit on their pocketbook which, again, encourages marriage, which is, I believe, a good thing in our society.

Properly developed and prepared marriages is a good thing and so a tax system that encourages family structure, I believe, is good and this one does, undoubtedly, encourage the family structure and so I would strongly encourage that.

TOM LAMPRECHT: Yeah, Harry, it is interesting because, for years and years, we heard the complaint that there was a marriage penalty and many critics of this new tax plan are coming out and saying, “Whoa, this is not fair. There’s now a penalty against people that are cohabitating that are not married.” Yet, at the same time, we see the family structure and, in certain demographics, that there’s an absentee of fatherhood and there’s been correlations drawn together that that equals troubled young men that are growing up in our society.

DR. REEDER: Exactly. Let me navigate back to my statement. I’m grateful it encourages the family structures – no longer a penalty, there’s now an incentive to marriage, which is better for the next generation. It has been proven that children need fathers and mothers in their life and they need the stability of a family, not two people cohabitating while it is convenient and then they walk apart and now kids don’t have a family structure to be raised in or people that it costs them to be married.

HOW THIS HELPS ECONOMICALLY

When you get to the economic side, it is estimated that this will, “cost the government $1.5 trillion” in the final analysis of revenue, but the government says, in the dynamic scoring, it would actually end up in a positive. If you have a 1.8 increase in the GDP, revenue side of that will more than make up for the $1.5 trillion loss.

We’ve already seen immediately upon the passage of this, dozens of companies – I mean, big name companies – gave $1,000.00 bonuses to their workers, made certain promises and, in some cases, in the process of building new corporate structures that they were going to build overseas and, in some cases, begin the process of moving them back. They also created an incentive for the offshore money to be brought back, which is in the trillions and trillions of dollars.

They also, because of the efforts of a couple senators such as Senator Langford and Senator Lee and Senator Rubio and others, they were able to restore the adoption assistance which, again, is family friendly. Kids that don’t have families, now there is help for those who go through the enormous price tag, which is anywhere from $20,000.00 to $50,000.00 to get through all the regulations for adoption.

Their point is, “We can’t remove the regulations because we want to make sure kids get in good homes, but we can give some support – some tax relief – to those who are going through that process,” and that was put back in place as well.

Another thing that was done, Tom, is that they doubled the amount before any tax is placed upon estate inheritance. I abhor the “death tax.” I think you’ve already taxed that money once and I don’t think it’s fair to tax it again. I think it’s the government just saying, “We’ve got the power to do it and we’re going to get you twice.”

WHO TAX REFORM HURTS

There’s a basic approval of the tax reform, but when you go and ask people do they approve it on an individual basis, there is a negative response. It’s almost 2 out of every 3 say, “I don’t like the tax package because it hurts me.”

Well, it does hurt people. No. 1, fewer people are getting married and it does hurt them. Almost everybody loses some pet deduction that they had worked into their system. What they don’t take the time to look at is, “Yes, you can go to this simplified system now. Yes, you lost some deductions, but your rates are being lowered and these valid credits are being put into place.” With the rates being lowered and these deductions and credits in place, what happens now is, actually, you don’t need to go to this intricate system of deductions. And, by the way, you don’t even need to hire as many tax lawyers and accountants as you used to, either.

WHAT ABOUT THE SPENDING?

From a Christian world and life view, I’m always for a limited government. People say, “Well, they didn’t reduce spending.” Tom, it has proven out under President Reagan, a Republican, and President Kennedy, a Democrat, when they went through this tax restructuring and reform, there was a drastic impact on the income of the government because of the increased activity economically.

There is one view that, “The government deserves the money and we’ll see what we want to give you back. And, by the way, there’s a pie and we need to cut it up and the government ought to get the biggest cut so that it can redistribute wealth.”

The other group says, “No, let’s let people redistribute wealth. The government has certain functions, so let’s tax to get those functions done. Otherwise, let’s let people keep their own money.” And, when you do, not only do we divide up the pie, the people will actually make more pies.

WHY THIS IS A STEP FORWARD

Therefore, from a Christian world and life view, I support it because it’s a step forward – not complete, by any means – a step forward on limited government affirming that people own their money, not the government, a step forward in supporting the family structure, a step forward in affirming something we desperately need and that is the adoption ministry that our government ought to have in place, a step forward of simplification so that people can understand what’s going on at least a little bit more clearly – more or less can understand – and it is a step forward toward creation of wealth instead of redistribution of wealth.

For those reasons, I would support what is being done. What I am hoping is it’s going to be such a significant step forward that other things that need to be done will yet be done and somehow, out there, there can be an effort to deal with the issue of budgeting and, dare I open up a box – and I am at the age that it’s okay for me to open this box – the “entitlement pieces.”

And I don’t just see them as entitlement because people paid into Social Security, but I believe it would be fair to put a reform in that raises the age of receiving it commensurate with the rising age of life expectancy. It was established back in the ‘30s and modified once since then in light of life expectancy at one age and that has clearly risen and so I think it would be appropriate that people would begin to collect those things at a later date.

If nothing else, at least that would be a step forward in reigning in the spending area. Now, speaking of the spending area, something that’s going to affect the spending area, Tom, is the President’s Security Speech and let’s take a look at that tomorrow.

Dr. Harry L. Reeder III is the Senior Pastor of Briarwood Presbyterian Church in Birmingham.

This podcast was transcribed by Jessica Havin. Jessica is editorial assistant for Yellowhammer News. Jessica has transcribed some of the top podcasts in the country and her work has been featured in a New York Times Bestseller.

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1 min ago

Rural Alabama school closes suddenly as board balks at repair costs

A northeast Alabama school district is closing a rural school instead of paying for repairs.

Thursday is the last day for Paint Rock Valley High School in Jackson County, after board members voted 3-2 to close the K-12 school last week.

The move was unexpected after Jackson County leaders kept open the 74-student school last year. But board members balked at $200,000 in needed repairs to the historic school. Board members say they feared more expensive repairs in the future.

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Jackson County superintendent Kevin Dukes tells news outlets that parents can choose between schools at Skyline and Woodville for their children next year. He says students will have more opportunities at larger schools.

Dukes says the school board could lease the vacant building for use as a community center.

(Associated Press, copyright 2018)

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1 hour ago

Alabama city again refuses to release body camera recordings

Officials in one of Alabama’s largest cities stand by their refusals to release recordings from police body cameras.

WHNT-TV reports the city has once again refused a request to release a recording.

The latest request came after a bystander’s video appeared to show a Huntsville police officer punching a suspect while trying to make an arrest. The department cleared the officer Monday, saying the video was part of a longer struggle.

Huntsville City Attorney Trey Riley says recordings are a “public record to a certain extent” but that doesn’t mean they’re “automatically available.”

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Riley says Huntsville will generally withhold recordings while a criminal case is ongoing.

The lawyer says the public can see videos if a case goes to trial, but acknowledges most cases don’t go to trial.

(Associated Press, copyright 2018)

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2 hours ago

How the Russia investigation helps Trump

This week, for the first time in months, a generic ballot poll showed Republicans beating Democrats in the midterm elections.

According to Reuters, Republicans are now leading by six points. And while that poll is obviously an outlier, the movement of the generic ballot in the direction of Republicans isn’t: The average lead for Democrats has been dropping steadily since late February, from a nine-point lead to a four-point lead.

Why?

Certainly, the economy has something to do with it: The job market continues to boom; the stock market continues to hover around 25,000; and GDP continues to grow steadily. And, certainly, foreign policy has something to do with it: There are no catastrophic foreign wars on the horizon, and President Trump’s gutsy calls to pull out of the Iran nuclear deal and move the U.S. embassy in Israel to Jerusalem resulted in zero serious backlash.

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Democrats opposed the Trump tax cuts and have whined incessantly about Trump’s Middle East foreign policy, even going so far as to demonstrate a certain level of warmth toward terrorist group Hamas. This isn’t exactly brilliant politicking.

But there’s another reason Democrats seem to be dropping like a stone, too: their Russia obsession. The reality is most Americans think the Russia investigation is going nowhere. As of early May, just 44 percent of Americans though the FBI special counsel investigation of President Trump and his associates is justified; fifty-three percent thought that the investigation is politically motivated. Three-quarters of Americans think Trump should cooperate with the probe, but Americans are skeptical that there is a there there.

And so far, Americans have been right. Special counsel Robert Mueller’s investigation has resulted in indictments of Trump associates on a charge of lying to the FBI, but there have been no indictments related to the original brief of his investigation: election collusion with the Russians. Meanwhile, each day seems to bring new headlines regarding the extent of the FBI investigation, dating all the way back to mid-2016. Americans aren’t going to read all the details of the various stories — they’re just going to take away that law enforcement was all over the Trump campaign, has come up with nothing thus far and continues to hound the Trump White House.

Furthermore, Democrats are getting discouraged. They were promised a deus ex machina — an alien force that would swoop in to end the Trump presidency. They hoped it would be Mueller; they were convinced the election was stolen. It wasn’t, and it’s unlikely Mueller will end Trump’s presidency.

So when Trump fulminates about the supposed sins of the “deep state,” few Americans are exercised. Most shrug; some even nod along. Democrats seethe but have no new fodder for their ire — and every day that passes with the media chumming the waters and coming up empty drives down enthusiasm even more. And Trump’s focus on Russia means that he spends less time tweeting about other topics — which helps him, since he’s less likely to make a grave error on those fronts.

If Mueller truly has nothing, there’s a serious case to be made that the Russia collusion investigation actually helped Trump more than it hurt him. And Democrats might just have to come up with a plan for dealing with Trump’s policies other than praying for an avenging angel to frog-march him from the White House.

Ben Shapiro, 34, is a graduate of UCLA and Harvard Law School, host of “The Ben Shapiro Show” and editor-in-chief of DailyWire.com.

(Creators, copyright 2018)

2 hours ago

Here are Alabama’s population gainers and losers

Baldwin County long has been Alabama’s fastest-growing county, so perhaps it should be no surprise that one of its towns is the state’s fast-growing municipality.

According to population estimates released Thursday by the U.S. Census Bureau, Loxley added 335 new residents from July 2016 to July 2017. The 16.7 percent growth rate over that 12-month period topped the state.

It came in just ahead of fellow Baldwin County towns Summerdale (12.3 percent) and Silverhill (12 percent).

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Three other Baldwin cities also made the top 20 — No. 9 Spanish Fort (5.1 percent), No. 16 Fairhope (3.7 percent) and No. 17 Foley (3.3 percent).

They were among 179 Alabama municipalities that saw growth from mid-2016 to mid-2017. Meanwhile, 244 cities and towns lost population, while another 36 remained exactly the same.

Census figures show much of the rest of the South remains booming. Of the 15 American cities with the greatest numerical gains over the past year, eight are in the region. The South also has 10 of the 15 fastest-growing cities on a percentage basis.

While the biggest cities get most of the attention, that is not where most people live — either in Alabama or across the country. Nationally, only 3.9 percent of cities have 50,000 residents or more. Only nine Alabama cities meet that threshold. The nearly 1.7 million people who live in those cites make up about 34 percent of the state’s residents.

“The U.S. is a nation of small cities and towns,” Census Bureau demographer Joseph Bowman said in a statement. “Of the 19,500 incorporated places, about 76 percent had fewer than 5,000 people and almost half of these places had fewer than 1,000 people.”

Most of Alabama’s populous cities followed well-established trends over the past year. Birmingham retained its position as Alabama’s biggest city but shrank by about a quarter of a percentage point, to 210,710.

Montgomery and Mobile also lost residents. They and Birmingham have lost population since the 2010 census.

Huntsville, which passed Mobile in 2017 to become the third-biggest city, added another 2,629 residents. That was the most of any municipality in the state. Since 2010, the Rocket City’s population has jumped 8 percent. It now trails second-place Montgomery by just 4,933 people.

Among the top 10 cities, two others have outpaced Huntsville on percentage basis. Auburn grew by 2 percent since mid-2016 and is up to 63,973 residents. That is up 20 percent since 2010. And Madison jumped 2.2 percent on year and 13.8 percent since 2010, to 48,861.

Alabama’s 20 biggest cities got a new member over the past year — Daphne, in Baldwin County, replaced Homewood at No. 20. And Prattville swapped places with Gadsden at 13 and 14, respectively.

Here is a look at Alabama’s fastest-growing municipalities since the 2010 census:

  • 1. — Hayden, which has grown 203.6 percent.
  • 2. — Pike Road, which has grown 72.4 percent.
  • 3. — Summerdale, which has grown 60 percent.
  • 4. — S. Florian, which has grown 49 percent.
  • 5. — Loxley, which has grown 43 percent.
  • 6. — Fairhope, which has grown 36.6 percent.
  • 7. —Westover, which has grown 32 percent.
  • 8. — Uniontown, which has grown 30.7 percent.
  • 9. — Priceville, which has grown 30.3 percent.
  • 10. — Chelsea, which has grown 27.8 percent.

@BrendanKKirby is a senior political reporter at LifeZette and author of “Wicked Mobile.”

 

3 hours ago

7 Things: Kushner security clearance HUGE news, paper targets Alabama immigration law, Trump wants to withhold aid from countries who send ‘animals,’ and more …

1. A conclusion that is obvious, but not being drawn: Jared Kushner is probably in the clear

— Kushner had his temporary security clearance revoked months ago, leading to speculation that he was dirty. He just got that clearance approved.

— If he was under any threat of being compromised this would not have happened, so this is big news for the whole Trump-Russia narrative.

2. Alabama is to blame for losing a Congressional seat, not rampant illegal immigration

— The Decatur Daily editorial team accuses Alabama of being responsible because they did not create a friendly environment for illegal aliens, they even took them to task for daring to pass anti-immigration laws (Arizona will pick a seat and they had a similar law).

— Congressman Mo Brooks and Attorney General Steve Marshall have filed a lawsuit seeking to make sure only legal citizens are counted for Representation.

3. President Trump continues to beat the drum on MS-13, threatens to withhold aid for countries who won’t stop them

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— Ramping up his previous rhetoric, Trump added a nugget: He wants to cut foreign aid for the countries that send illegal immigrants and he will base aid on the number of their citizens who crossed the border.

— The ACLU and top Democrats continue to moan about Trump’s willingness to demonize gangs, so he called them “animals” again.

4. The NFL decided having a large portion of their fan base pissed-off was a bad idea, players still don’t get it

— The owners are attempting to end a multi-year controversy over kneeling by telling the players to “respect” the anthem or stay in the locker room.

— In spite of an almost $100 million dollar “social justice” play by the owners, the players have decided to keep fighting, claiming “management has chosen to squash the same freedom of speech that protects someone who wants to salute the flag in an effort to prevent someone who does not wish to do so.”

5. Democrat outreach to middle America continues, proposals to raise taxes roll out

— Rep. Jared Polis (D-Colo.) plans to introduce a bill Wednesday that would undo tax cuts passed late last year, which has support softening under constant misleading media attacks.

— The repeal will coincide with new spending of taxpayer money toward erasing student loan debt and improving college affordability, which doesn’t make college more affordable.

6. Huntsville student sent to ICU after being slammed by a security guard

— The security guard was attempting to break up a fight between Steven Franklin and other students, he was slammed on the ground and hit his head.

— Huntsville City Schools is investigating the incident, the guard is no longer on campus and he will not return for the rest of this school year.

7. If a politician has blocked you on Twitter, that politician violated your 1st Amendment rights, or something

— A federal judge says the president’s Twitter account constitutes a “public forum” and using its block feature silences voices.

— This ruling will obviously be challenged, and it is not applicable to Alabama yet, but if it stands, get ready for people to slide into politicians’ DMs with public records requests.