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.

Leaders deliver results for a stronger Alabama

Thank you to the Alabama House of Representatives and the Alabama Senate for your bi-partisan support of the Rebuild Alabama Plan. Because of your leadership, this historical effort will result in safer roads, thousands of new jobs, and a stronger Alabama.  Finally, it’s time to #RebuildAL.

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After 133 launches, Alabama built rockets boast 100% mission success

Thank you to the United Launch Alliance team and the entire workforce surrounding another successful launch.  Alabama’s Decatur based facility brings the utmost precision, passion and purpose to one of the most technically complex, critical American needs: affordable, reliable access to space.

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31 mins ago

Bipartisan bill to regulate vaping set for House committee hearing

MONTGOMERY — Alabama is currently one of only three states to not regulate vaping, but that could soon change.

HB 41, sponsored by Republican Rep. Shane Stringer and Democrat Rep. Barbara Drummond, both of Mobile County, is on the House Judiciary Committee’s agenda for Wednesday afternoon.

The bill would regulate the sale, use and advertisement of vaping – or “alternative nicotine products” – in the state.

In an interview with Yellowhammer News, both Drummond and Stringer emphasized that their bill is intended to protect the health and wellbeing of Alabama minors.

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“The motivation is simple,” Drummond emphasized. “We are trying to safeguard the teens in the state of Alabama.”

She outlined, “Vape shops, as it stands right now, are not regulated at all… And the bill came about because our drug education council locally brought it to our attention, but [Stringer and I] have both seen ourselves, as well as throughout the whole state, the rise of vape shops. They’re popping up everywhere in the state of Alabama.”

While it is too early to tell what vaping is directly doing to users’ health, Stringer and Drummond emphasized there is an objective gateway effect from vaping use and to smoking traditional cigarettes.

“Right now, there is no data that says what is the [direct] effect that these products are having on our young people. What we are seeing, and this is a national trend, is that you’re seeing smoking not going down, but increasing, among young people,” Drummond explained.

Stringer, a career law enforcement officer with stints as chief of multiple local police departments, said educators from every corner of Mobile County have voiced their concerns with the lack of state oversight on vape products and retailers “saying this is an epidemic and a problem what we need to address.”

“The products haven’t been out long enough to know the problems we could face in five, ten, 15 years from now,” he said. “It’s pretty similar to when smoking came out. There was basically no risk at that time, according to everyone. Now, look at all the data that we have to go with smoking… this is a new product we’re learning every day about.”

Stringer said statistics they were shown from the drug education council show an approximately 34 percent increase in children under 19-years-old that tried smoking after vaping.

“In Alabama, we don’t want to wake up one day and see the effects, negative effects on our kids,” Drummond added. “Right now, we’re trying to be responsible legislators to make sure that we look out for the welfare of our children.”

The two lawmakers also stressed that not only do vape shop operators have no restrictions on them, but the state has no way to even keep track of them currently.

Their bill would make it illegal to sell or give vape products to anyone under 19-years-old. The Alcoholic Beverage Control Board would regulate retail sales of the products, just as they do tobacco products. Retailers would have to obtain an annual permit, which includes an application fee of $300. Retailers would also have to comply with relevant FDA regulations and post signage warning of the dangers of nicotine usage.

Using vape products in certain places, including schools and child care facilities, would be prohibited.

‘This is something that is nonpartisan, it’s not anything that is about Republican or Democrat. This is something about our young people,” Drummond said. “Because if you look at the amount of nicotine that is showing up in these products, when they first hit the market, the nicotine levels were very low – like five percent. Now, it’s gone up to about ten percent. They’ve got other chemicals in there, like formaldehyde. What is the effect of that upon the brains of our kids? So, this is more of a public wellbeing bill for us.”

Stringer advised that he foresees widespread support in the legislature for the bill.

“Everyone agrees that there has to be some checks and balances [oversight] in place,” he concluded.

Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn

1 hour ago

House Majority Leader Ledbetter predicts Alabama to ‘move to number one’ nationally in automotive production after Port of Mobile expansion

Tuesday on Huntsville’s WVNN radio, House Majority Leader Nathaniel Ledbetter (R-Rainsville) said he did not think it would be very long before Alabamians started to see tangible benefits of the Rebuild Alabama Act.

The legislation that was recently signed into law by Gov. Kay Ivey after she called a special session will raise the gasoline tax six cents in September, then add an additional two cents in 2020 and 2021.

According to the DeKalb County Republican, road projects could start as early as the summer given the bill will allow for counties to bond half of the revenue the additional tax will generate that is distributed to the counties.

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“I really think it will be this summer,” Ledbetter said. “I think we’ll see it immediately, and the reason I say that is inside that bill there is a mechanism that the counties can use half of their money to bond with. So, I know there’s mine – I talked to the president of my county commission, and we’re looking at bonding half of that money. So if that happens, you’re going to see a lot of paving going down, and I think it will be significant, especially on those roads we can’t get buses across, or you know, the transportation has been limited due to the fact of the road conditions.”

Ledbetter also predicted one of the aspects of the law, which is to expand the Port of Mobile, will generate a positive impact statewide, especially with regards to the automotive industry.

“I don’t think there is any question about that,” he said. “The thing I think we’ll see – Alabama rank third as far as automotive manufacturing in the country. I think we’ll move to number one. I really do. I think this is that big of a game changer. I think aerospace engineering, and some of those jobs going to the port, building airplanes and building the ships – we’re going to move up the ladder because we got availability in the port to bring the ships in and out, the post-Panamax ships we hadn’t seen.”

“You know, the sad part about it is we build all these automobiles in Alabama – a lot of those were being shipped out of Savannah because we can’t get them out of our port,” Ledbetter added. “I think once this happens, we’ll see the roll off-roll on where we’ll be carrying cars to Mobile from Huntsville, from Lincoln, from here in Montgomery to see them delivered, or shipped out from Mobile.”

@Jeff_Poor is a graduate of Auburn University, the editor of Breitbart TV and host of “The Jeff Poor Show” from 2-5 p.m. on WVNN in Huntsville.

2 hours ago

7 Things: ‘Clean lottery’ bill may not be clean, Trump says Democrats can’t ‘pack the court’ which they are saying they want to do, bills to ‘Build the Wall’ and end Common Core are introduced and more …

7. President Donald Trump and conservatives vs. social media giants

— Earlier this week, Representative Devin Nunes (R-CA) sued Twitter and some users over harassment, shadow-banning, censorship and facilitating defamation. Part of his claim is that their content-based moderation makes them responsible for what is on their platform. President Trump has also jumped into the fray, saying Twitter and Facebook are targeting Republicans for censorship and Congress needs to get to the “bottom” of it.

6. A new potential candidate emerges in GOP primary race — She’s a former Miss America

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— The race to face Senator Doug Jones (D-AL) in the 2020 general election is on and former Miss Alabama, and Miss America, Heather Whitestone McCallum is reportedly polling the race, which most see as a potential prelude to entering the contest. The weak incumbent is already attracting big names like Congressman Bradley Byrne (R-Mobile), who is in the race. Congressman Mo Brooks (R-Huntsville) and failed 2017 candidate Roy Moore are possible candidates as well.

5. The U.S. Supreme Court says crime-breaking illegal aliens can be held after their sentences are complete

— The Supreme Court ruled that the federal government could detain non-citizens who have committed crimes that would make them deportable. The law says the government must arrest these illegal immigrants when they are released from custody and then process them through an immigration court. The problem arose when the individuals were not held instantly and instead were picked up years later. Justice Samuel Alito wrote for the majority that “neither the statute’s text nor its structure” spoke in favor of the ACLU or illegal immigrants’ positions.

4. Information that led to the raid on Michael Cohen’s office was part of a long-term investigation

— The unsealed warrants and documents that have been released give everybody something to hang their hat on. We already know Cohen pleaded guilty to tax crimes, campaign finance violations, false statements to a bank and lying to Congress, but the search warrants show federal prosecutors also suspected that Cohen could have violated foreign lobbying laws and committed money laundering. He was not charged with those crimes. Nothing released shows any collusion, which is really what everyone really wants to hear about, yay or nay.

3. Senate Pro Tem Del Marsh (R-Anniston) is offering two pieces of  legislation conservatives will love 

— You may be able to help “Build the Wall” by checking a box on your tax return after the Senate leader proposed a bill that would allow a taxpayer to voluntarily send a portion to of their state income tax refund to an organization called We Build the Wall, Inc. Marsh is also offering a bill to repeal Common Core in Alabama. More interestingly, the bill would forbid the state board from taking on any national standards in any subject. As Senate pro tem, Marsh is in a good position to get his bills on the floor of the Alabama State Senate.

2. Democrats are advocating to expand the Supreme Court; President Donald Trump says it is not going to happen

— Multiple Democratic candidates for the presidency and one “conservative” talk show host have made it clear that they would like to fracture some of the norms that our society has held dear for centuries. They want to undo the Electoral College and “pack the Supreme Court.” The president has made it clear he is not interested in the game, saying, “I wouldn’t entertain that.” Trump added, “I can guarantee it won’t happen for six years. We have no interest in that whatsoever.” While the media pretends this isn’t what Democrats are saying, Sen. Kamala Harris (D-CA), Sen. Elizabeth Warren (D-MA), Sen. Kirsten Gillibrand (D-NY), former Congressman Beto O’Rourke (D-TX) and South Bend Mayor Peter Buttigieg have all suggested some form of it.

1. Senator Jim McClendon (R-Springville) has officially filed a lottery bill that he called a “clean bill”; The Poarch Band of Creek Indians don’t agree

— The next controversial bill for the Alabama legislature has finally been filed, and a lottery is going to get its day in the legislative body. There are two bills that really do one thing: One bill allocates the revenue from any lottery into a clean split with 50 percent for both budgets, and the other bill creates a constitutional amendment that would legalize a lottery that would put the amendment up for a vote of the people in the 2020 primary elections. McClendon says this is a “clean bill” that would keep casino card and table games illegal in Alabama. It would also protect facilities that are running questionable electronic bingo and allow them to run virtual lottery terminals, which is essentially a slot machine with extra steps.