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.

11 mins ago

Artificial reef teeming with life in Gulf of Mexico

An artificial reef created in the Gulf of Mexico four years ago appears to be teeming with life.

In 2016, two of Alabama Power’s retired boilers were sunk off the coast of Mobile County to improve the marine ecosystem. The giant steel structures previously used to turn steam into power have also proven to be a boon for offshore anglers.

“We put the reef down in the water that day, and it looks like you are just putting in something not useful and, now to see it flourish as a fish habitat and all the wildlife that’s there, it’s actually exciting,” said Susan Comensky, Alabama Power vice president for Environmental Affairs. “It’s a great success, and we are so grateful for what everybody brought to the table to make it a success.”

For decades, thousands of man-made objects, like old ships and concrete bridge rubble, have been sunk off the Alabama coastline. The 200,000-pound boilers were sunk from a barge donated by Cooper/T. Smith Corp., a marine transportation firm headquartered in Mobile.

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Artificial reef off Alabama coast is full of marine life from Alabama NewsCenter on Vimeo.

The state’s artificial reef zone stretches almost from Florida to Mississippi and out 60 miles from shore. The result is one of the country’s best places for offshore fishing.

“We have several thousand (artificial) reefs off the coast of Alabama, and we have the biggest and best red snapper fishery in the world,” said Chris Blankenship, Alabama Department of Conservation and Natural Resources commissioner. “We have built an incredible fishery off the coast of Alabama that is really unrivaled anywhere in the Gulf of Mexico or, really, in the country.”

The reefs have been a boon for the fish and the state’s economy.

“Every weekend that the red snapper fishery is open, as well as amberjack, gray triggerfish, vermillion snapper, there are people with thousands of boats that buy gas and bait and stay in hotel rooms. All of that adds to quite a big economic impact for the coastal areas of our state,” Blankenship said.

However, it’s not just anglers that are drawn to the reefs.

“A wide range of user groups can benefit from this reef – recreational anglers, commercial anglers and any kind of eco-tourism, things like scuba divers and underwater photography,” said Craig Newton, biologist with the Alabama Marine Resources Division.

The project is an example of what can be done when people work together for a common cause, planners say.

“What it does is allows all of us to maximize our resources to accomplish great things and do so in a way that our members and the people of Alabama can benefit,” said Tim Gothard, executive director of the Alabama Wildlife Federation.

The coordinates for the reef are 29 47.544, 87 59.104.

Find out more about the Marine Resources Division by visiting its Facebook page.

(Courtesy of Alabama News Center)

11 hours ago

Jones ‘really troubled’ that Trump’s legal team ‘treating this like defending a criminal case’

Following the first day of President Donald Trump’s legal team making their case to the Senate in the president’s impeachment trial, Senator Doug Jones (D-AL) on Saturday afternoon released yet another video update.

The latest video came after Jones on the day previous called the evidence presented by the Democratic House impeachment managers “compelling.”

Jones’  Saturday video specified that he found Democratic arguments about both impeachment articles as “compelling.”

“Number one, I still think the House [impeachment managers] made a compelling argument on both Article One and Article Two last night,” Jones outlined. “You probably already read all the news, I thought they did a pretty good job of pulling all the evidence together that points to their burden of proof in Article One and Article Two.”

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“Today, I was hoping to hear a lot of facts from the [president’s legal team], and we did hear some facts from the president’s counsel,” he continued. “Some facts that didn’t bring out — there was nothing really new for me because I spent a lot of time going through the transcripts and the evidence. And so there were not a whole lot of surprises to me.”

Jones then said, “There were a couple of things, though, that really troubled me a lot. Number one: I do not appreciate the fact that the president’s counsel immediately started out talking not about House managers and their case but about House Democrats, playing to the partisan nature of the entire country. [From] the very beginning of this, I asked people to go out of their partisan corners. I thought that the House managers did a pretty good job of that. But immediately the president’s folks, playing I assume to the president and his base, immediately started talking — and they did it repeatedly — talked about House Democrats.”

“I am not a Senate Democrat in this instance, I am a United States Senator charged with a responsibility of trying to do impartial justice,” Jones added. “So I don’t care to hear the partisan rhetoric. That’s number one.”

“Number two: the president’s counsel seems to be treating this like defending a criminal case,” Alabama’s junior senator further explained. “That’s how I take this. Even though this is not a trial in that sense, it’s certainly not a criminal case.”

Jones subsequently opined that during the Senate impeachment trial, the burden of proof does not completely fall on the House impeachment managers, unlike how it would on the prosecution in a criminal trial.

Jones later claimed that having witnesses testify during the Senate impeachment trial would actually “speed up” the process rather than delay it.

He then remarked, “I go back to the abuse of power. And I go back to foreign, national security that we have here. That’s where these witnesses are so, so important. Because as you will hear over the next day or so, so much of what the president’s lawyers said is pretty disingenuous about withholding aid…”

Jones said, “With all due respect, the [president’s] phone call on July 25 was not perfect.”

He raised the “serious issue” of what Rudy Giuliani and Lev Parnas were doing in Ukraine ahead of July 25.

“So, with all of that, I’m still waiting for facts that contradict — that completely dispute some of the House managers,” Jones commented in his conclusion. “And those witnesses may exist. They may exist. It may exist in the form of John Bolton and Mick Mulvaney and Mr. Duffey and others; let’s hear them.”

Watch:

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

14 hours ago

Roby: We must stand for life

Every year, thousands of Americans gather in our nation’s capital to participate in the March for Life. This annual event is an opportunity for pro-life advocates from across the country to join together and demonstrate their concern for protecting all life.

With a single ruling, the Supreme Court deemed abortion legal throughout the United States. We are now 47 years removed from the infamous Roe v. Wade decision, and the advocates for life around the country are stronger than ever.

Many traveled far and wide to be in Washington for this year’s March, which occurred this past week. I know that some pro-life supporters traveled from Alabama’s Second District – almost 900 miles – to defend the unborn.

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It’s no secret that I am unapologetically pro-life. That is a belief I have always held close to my heart, and I have made it known since my first day in Congress.

I believe that human life begins at conception, and our laws and policies should reflect a commitment to protecting life at every stage. I feel a strong responsibility to do everything in my power to fight for the unborn.

This platform I have been given is a special opportunity to stand up for those who cannot stand up for themselves.

I have repeatedly spoken out in the House of Representatives regarding my strong opposition to abortion, and I have proudly cosponsored several pro-life bills in Congress. I have always been and will always remain a strong advocate against American taxpayer dollars being used to fund abortions and aiding in the destruction of human life.

As a member of the House Appropriations Committee, I have helped craft legislation that directs federal funding away from organizations like Planned Parenthood and instead toward community health and women’s organizations that provide family planning care in place of abortions.

While not everyone here in Congress may share my convictions about life or certain policies surrounding the rights of unborn children, our pro-life momentum is still powerful. We now live in a society where abortion activists are celebrating victories for so-called “women’s health” when it comes to this issue, though we have recently seen several pro-life victories across the nation.

Governor Kay Ivey signed the Alabama Human Life Protection Act into law in May 2019 banning abortion in the state of Alabama at any stage of pregnancy. This piece of legislation was a significant step taken to advance the pro-life agenda in the state. Additionally, a 2014 Louisiana abortion law will come before the Supreme Court this spring, and it could be a potential vehicle for the Supreme Court to revisit Roe v. Wade.

I admire all federal and state leaders who stand firm in their beliefs to defend America’s unborn children. I recently spoke on the House Floor regarding my strong opinion on this subject. I would like to say “thank you” to each and every American who continues to speak up for those who cannot speak up for themselves.

America was founded on the principle that every human being has rights, dignity, and value. Although we continue to fight the good fight here in Washington and back home in Alabama, our work is far from complete. I promise to not stop fighting until our laws protect life at every stage, and I hope you won’t stop either.

Every life deserves a voice, and I will not back down until we accomplish our goal.

Representative Martha Roby represents Alabama’s Second Congressional District. She lives in Montgomery, Alabama, with her husband Riley and their two children.

16 hours ago

Three Alabama lakes get spruced up with ‘The Preserves’ recreation sites

Three new public recreation sites have been added at Lake HarrisLay Lake and Lake Martin as part of Alabama Power’s “The Preserves.”

These areas consist of trails, gazebos, benches, interpretive signs and pollinator plots. From hiking, and biking to bird-watching, The Preserves are core to the Alabama Power ideal of merging nature with crafting special places.

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“These lands allow people to explore, learn and grow a deeper appreciation of our state’s ecology and natural beauty. They allow our citizens to access and enjoy our lakes. They are inclusive and open to all,” said Ed Windsor, recreation development assistant with Alabama Power.

“The Preserves project is unique in that it gives us a chance to take existing areas around lakes and create a space for residents to not only learn about and enjoy nature but also make memories and see the importance of protecting our environment.”

Lake Harris now has The Preserves at Little Fox Creek, located off Alabama Highway 48 between Lineville and Wedowee. This site, already home to a public use boat ramp and Piedmont Plateau Birding Trail, will now feature an enhanced trail system totaling 5 miles. The site is managed in partnership with the Lake Wedowee Property Owners Association.

Additionally, the area will have two pollinator plots, interpretive signs, benches, a boardwalk and two gazebos for the public to enjoy.

The existing recreation area on Lay Lake, named Beeswax Creek Park, is located off Alabama Highway 145 in Columbiana on Beeswax Creek Park Road. Recent upgrades include a 2.75-mile trail system complete with a pollinator plot, an additional launching pier, interpretive signs, gazebos and benches. This site is managed in partnership with Shelby County Parks and Recreation Board.

Lake Martin’s new recreation area, Nature’s Way, is located on the southeastern corner of the reservoir, at the end of Old Tree Road in Dadeville. This area will feature a trail system totaling 4 miles with gazebos, interpretive signs, a boardwalk and benches.

These trails are open for hiking, running, bird-watching and biking. All these public recreation areas allow pets on leashes.

These sites come after the successful launch of three other new and upgraded sites last year.

Upgrades at Lake Logan MartinWeiss Lake and Neely Henry Lake have had a tremendously positive response from users.

“Continuing to provide these improvements in our communities is Alabama Power’s way of enhancing our state’s natural resources to give back in hopes that families will enjoy them more,” said Stephen Posey, recreation development assistant for Alabama Power.

The upgrades have been made possible through the help of businesses and contractors, like Foothills Contracting of Uniontown.

Alabama Power’s recreation team is working with Foothills Contracting to build the gazebos and kiosks for these public use areas.

“While traditionally used for fencing, this wood will provide a long-lasting structure with an incredible color and grain that will set it apart from anything else we have found in the state,” said Sage Coley, vice president of Foothills Contracting.

Foothills Contracting constructed the gazebos and kiosks with a unique and long-lasting type of wood known as Osage Orange.

“This was our first time building for a customer like Alabama Power, but it has been great seeing a company invest time and money to give back to the community and the kids. These playgrounds, trails and gazebos will be a great addition to the state’s lakes,” said Glynward Coley, owner of Foothills Contracting.

Alabama Power will continue to build The Preserves brand and make improvements to recreation sites on Alabama Power reservoirs. The Preserves project will focus on upgrades at more lakes in 2020, starting at Lake Jordan.

This story originally appeared in Shorelines magazine.

(Courtesy of Alabama NewsCenter)

19 hours ago

Watch: Jalen Hurts gives back to community, feels the love in return to Alabama

MOBILE — Former University of Alabama star quarterback Jalen Hurts played last season for the Oklahoma Sooners. But he is still the same player — and more importantly, the same person — that Crimson Tide fans have grown to love.

Back in the state of Alabama for Saturday’s Senior Bowl at Mobile’s Ladd-Peebles Stadium, Hurts has spent the week discussing the return and even got to reunite with his former head coach Nick Saban.

However, the best moments for the 2019 Heisman Trophy runner-up may have come in lesser publicized moments, when Hurts got the opportunity to interact with every day fans young and old at select times during the week.

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Take, for example, the adorable moment from Thursday, when Hurts was swarmed by a group of local schoolchildren while departing the University of South Alabama’s football complex after a closed indoors practice session (practices for the Senior Bowl are normally open to the public and at Ladd-Peebles, but Thursday’s weather forced a change).

“This is my dream, Jalen,” one wide-eyed student excitedly told Hurts, as captured in a video by Tyler Dragon.

Hurts, with a smile stretching ear-to-ear, seemed to be soaking in the moment as he stopped to talk with the kids.

He later shared the video with a short but sweet caption.

This scene was followed Friday morning by Hurts visiting young patients at the University of South Alabama Children’s & Women’s Hospital. Hurts was joined by other Senior Bowl players, as well as mascots like Bama’s Big Al.

You can view pictures from that visit here and here.

Friday continued to be a day of fan interaction for Hurts, starting with the Senior Bowl Experience presented by Alabama Power Company and its Meet the Players event presented by Coca-Cola.

As captured by Yellowhammer News, fans were stretched from wall-to-wall in the exhibit hall of Mobile’s Arthur R. Outlaw Convention Center as they stood in line to get a picture and/or autograph from Hurts. Hurts’ line far surpassed the Auburn and Crimson Tide team lines.

Unfortunately for many fans waiting in the huge line, Hurts had to leave Meet the Players before the event ended to get ready for the evening’s Senior Bowl Street Party and inaugural Mardi Gras Player Parade, presented by Wind Creek Casino and Austal USA. He left the exhibit hall to a horde of screaming fans.

One couple, a wife sporting a Bama t-shirt and her husband in Auburn Tigers attire, told Yellowhammer News that they had been waiting in line for two hours just to see Hurts. They, to say the least, were disappointed that their wait was in vain. However, it goes to show that Hurts’ popularity in the Yellowhammer State has somehow managed to cross the Iron Bowl battle lines, with even Auburn fanatics respecting — and at times adoring — the former Tide star.

Saturday’s Senior Bowl game will kickoff shortly after 1:30 p.m. CT on Saturday. The game will be televised on NFL Network.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn