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.

1 hour ago

Techstars Alabama EnergyTech Accelerator taking applications for 2021 class

Startups from around the world are encouraged to apply for the Techstars Alabama EnergyTech Accelerator 2021 class.

In its second year, the innovative program, located in Birmingham, seeks early-stage startups focused on emerging energy technologies. Areas of interest include smart cities, electric grid resiliency and sustainability, industrial electrification, connectivity and electric transportation.

The class will run for 13 weeks and include 10 companies. Through their participation in Techstars Alabama EnergyTech Accelerator, startups will receive seed investment, business coaching and mentorship through Techstars’ worldwide network of business leaders.

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At the end of the 90 days, the program will culminate in Demo Day, a public pitch event on Dec. 9.

“We had a fantastic first year, made successful through the hard work and creativity of our inaugural class, even during a pandemic,” said Nate Schmidt, Techstars Alabama EnergyTech Accelerator’s managing director. “If you have an energy tech startup, you simply don’t want to miss out on the amazing opportunities and relationships this accelerator will provide your business.”

Techstars Alabama is supported by Alabama Power, the Economic Development Partnership of Alabama, the Alabama Department of CommerceAltecPowerSouth and the University of Alabama. They play a key role in the accelerator process, with the common goal of growing the number of startup companies based in Alabama and making the area a hub of innovation activity.

The application deadline is May 12. For more information, visit the Alabama EnergyTech Accelerator program page at Techstars.

(Courtesy of Alabama NewsCenter)

3 hours ago

VIDEO: Gov. Ivey extends mask mandate, lottery could be an option as gambling bill languishes, Merrill backs off ‘no excuse’ absentee balloting and more on Alabama Politics This Week …

Radio talk show host Dale Jackson and political consultant Mecca Musick take you through Alabama’s biggest political stories, including:

— Did Governor Kay Ivey make the right decision when she extended the mask mandate?

— Is the Alabama Legislature going to look to move forward with the lottery if they can’t get a more comprehensive gambling bill?

— Why did Secretary of State John Merrill support and then retract his support for “no excuse” absentee voting?

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Jackson and Musick are joined by Matt Murphy of Talk 99.5 in Birmingham to discuss the issues facing the state of Alabama this week.

Jackson closes the show with a “Parting Shot” at Alabama Democratic Party Chairman and State Representative Chris England (D-Tuscaloosa) for not following through on his plan to make the party more relevant in Alabama.

Dale Jackson is a contributing writer to Yellowhammer News and hosts a talk show from 7-11 AM weekdays on WVNN and on Talk 99.5 from 10AM to noon.

5 hours ago

Mo Brooks: Stopping H.R. 1, amnesty keys to winning in 2022 midterms — ‘Then we will be able to neuter Joe Biden’

FLORENCE — With the third month of the 117th Congress now underway, House Democrats have pushed forward in their efforts to pass H.R. 1, which would impose so-called reforms to the country’s voting system.

Also among the priorities for Democrats, who control the White House, House and Senate, are immigration measures that could include amnesty for illegal aliens.

During an appearance at the Shoals Republican Club on Saturday, U.S. Rep. Mo Brooks (R-Huntsville) panned those efforts and said he hoped to stymie the progress of House Democrats on those two fronts.

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Brooks told those in attendance that if Republicans could prove successful in those efforts, it would set the GOP up for wins in the 2022 midterm elections and hamstring President Joe Biden’s push to promote a left-of-center agenda.

“We’ve got to stop H.R. 1, and we’ve got to stop the amnesty and citizenship that Joe Biden has promised,” he said. “If we do those two things, then we’re going to take back the House in 2022. I hope we will take back the Senate in 2022. And then we will be able to neuter Joe Biden over the next two years if we control the House and Senate and set the stage as well for us taking back the White House in 2024 with whoever our nominee may be.”

@Jeff_Poor is a graduate of Auburn University and the University of South Alabama, the editor of Breitbart TV, a columnist for Mobile’s Lagniappe Weekly, and host of Mobile’s “The Jeff Poor Show” from 9 a.m.-12 p.m. on FM Talk 106.5.

7 hours ago

2021 Birmingham Heart Walk goes virtual

COVID-19 has forced many nonprofits to shift gears in their fundraising efforts and the American Heart Association (AHA) is no exception. The AHA’s 2021 Birmingham Heart Walk has been reimagined as a digital experience this year to maintain necessary safety protocols due to the ongoing pandemic.

Through the event design, AHA is striving to get more people moving in Birmingham while continuing to raise life-saving funds and keep participants safe in the process. The Birmingham Heart Walk is Saturday, June 12, from 9-11 a.m. and participants can walk from anywhere.

Leading up to the event, participants are encouraged to track their activity through the “Move More Challenge” using the free Heart Walk activity tracker app that can be downloaded from Apple or Google Play. Once registered, users have 30 days to log minutes, and any activity counts. Top movers and fundraisers will be recognized on Heart Walk day.

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“The American Heart Association holds a special place in my heart,” said Southern Company Vice President of Technology David Coxwho will chair the walk for the second time. “They have done so much for my family and for my daughter, Emily, who was born with multiple congenital heart defects. I’m pleased to partner with this outstanding organization in their efforts help our community connect and stay active as we adapt to this virtual world.”

More than 600,000 Americans die each year from heart disease, and the risks have only been compacted by the pandemic. Among COVID-19 hospitalizations, 40% are heart or stroke patients, so this year, donations from the Heart Walk will help fast-track COVID-19 research and train front-line workers in addition to the many other research projects and resources funded by the AHA.

Fundraising and activities for the Heart Walk are beginning to ramp up as the warmer months approach.

“Now is the time to sign up, lace up and start fundraising for the 2021 Birmingham Heart Walk,” said Hannah Carroll, Heart Challenge director of the Birmingham AHA. “Signing up now ensures you won’t miss any of the fun this year, like Rally Days and our new activity tracker.”

On Feb. 18, Cox hosted a virtual kickoff for business leaders in the Birmingham area who will be fielding teams at this year’s Heart Walk. He encouraged counterparts to begin their fundraising efforts by saying, “We’re here for a reason – to fight for a world of longer, healthier lives.”

To view Emily’s story, click here. To learn more about the 2021 Birmingham Heart Walk or to create a team, click here.

(Courtesy of Alabama NewsCenter)

10 hours ago

Schoolyard Roots growing stronger, smarter kids in Alabama

When kids participate in the life of a garden, they see the complete cycle of growing food, cooking and preparing it to eat. School gardens are exciting places for kids to learn basic academic subjects, too.

The Tuscaloosa community came together more than 10 years ago to develop a garden-based learning program called the Druid City Garden project, now called Schoolyard Roots.

Schoolyard Roots employs a full-time teaching staff that provides garden lessons for students, as well as professional development training for teachers. The school gardens provide an outdoor experience rare to many students. They are more likely to make healthy choices and try new foods. Students gain a sense of responsibility, to collaborate and work together as a team.

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“When we see a child’s health and education improve, we know that we’re not only investing in that child’s life today – we’re helping them build a better future,” said Nicole Gelb Dugat, interim executive director. “Schoolyard Roots builds community through food. By increasing access to fresh, locally grown produce, we empower our community to make healthy and sustainable food choices.”

In March 2020, the impact of COVID-19 significantly affected the teaching community. Almost immediately, the Schoolyard Roots team began distributing produce from its gardens directly to local families. By the end of last year, the program had distributed more than 750 pounds of fresh garden vegetables to the community.

“We stewarded our gardens as fresh-air sanctuaries, where children and adults could relax, refocus and reconnect,” said Dugat. “Through it all, we shared vegetables and flowers. We cultivated moments of peace and learned together. We could not have done any of it without our incredible community of supporters.”

They found hope and inspiration in the small miracle of seeds planted by the students. Gardens bring joy, peace and courage in times of struggle. And gardens remind us to have hope for new growth and what is to come.

Schoolyard Roots partners with Tuscaloosa-area elementary schools to bring learning to life through teaching gardens. The nonprofit works in 11 elementary schools across Tuscaloosa County.

Its mission is to build healthy communities through food with the Gardens 2 Schools program.

Gardens support and encourage healthful eating as a key component of children’s physical wellbeing, which can aid their academic and social success, too. The garden is woven through many aspects of a school’s curriculum and adapted for different grade levels.

“The Gardens 2 Schools program cultivates curiosity,” Dugat said. “The program teaches the students how to work together (and) learn self-reliability and compassion.”

(Courtesy of Alabama NewsCenter)