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12 months ago

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


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Listen to the 10 min audio

Read the transcript:

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.

3 hours ago

Christmas with Can’t Miss Alabama has spectacular entertainment with ZooLight Safari and Galaxy of Lights

It’s that time of year to eat, drink and be merry.

ZooLight Safari

Christmas magic is at the 25th annual ZooLight Safari with seasonal songs and holiday classics. Celebrate with writing letters to Santa, crafts, ornament decorating, train and carousel rides and holiday games. Join in the fun Dec. 14-23 and Dec. 26-31 from 5-9 p.m. Admission is $10 and ride tickets are $3.50. Parking is free.

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Learn more at https://www.birminghamzoo.com/.

Holiday Spectacular 2018

Enjoy holiday songs at the Red Mountain Theatre Company (RMTC) through Sunday, Dec. 16. Conservatory students will perform at the Holiday Spectacular with local artists to warm your heart and set the stage for a magical season. Showtimes are Wednesday through Saturday at 7:30 p.m. and Saturday and Sunday at 2 p.m. Free parking is available on the street in front of the theater and the Park Rite deck, or on the corner of Fourth Avenue North and 19th Street. Paid parking is available in front of the building on 19th Street.

The RMTC is at 301 19th St. N. in Birmingham.

Tickets are available at RMTC.

Christmas at the Falls

It is a wonderful time of the year at Noccalula Falls. Regular park activities are closed to accommodate nightly Christmas entertainment through Sunday, Dec. 30. Festive holiday lights with a visit from Santa will create a magical adventure for all. Admission is $15 and children 3 and under are free. The venue is at 1500 Noccalula Road, Gadsden, 35904.

Call 256-549-4663 or visit www.noccalulafallspark.com.

Galaxy of Lights

Drive through Galaxy of Lights at the Huntsville Botanical Garden through Monday, Dec. 31. The light display and other traditional holiday scenes will be enjoyable from the comfort of your car. Admission is $25 for up to 10 people. Information about vans, buses and discounts are found here.

For details, go to Driving Night FAQ.

The venue is the Huntsville Botanical Garden at 4747 Bob Wallace Ave.

Just Josh – A Chili Country Christmas

Grammy-award nominee Josh Goforth will be in concert at the annual Chili Country Christmas at the We Piddle Around Theater in Brundidge Dec. 14-15. Goforth is a traditional musician and one of the finest fiddle, banjo and guitar players in the country. Audiences will stomp and clap to his fiddle with stories of his grandpa and life in Appalachia. He has performed at the Grand Ole Opry, Carnegie Hall, throughout Europe and Japan and every state except Hawaii. Tickets are $20, which include the pre-show and chili supper.

Doors open at 6:20 p.m.

For tickets or more information, call 334-685-5524 or 334-670-6302.

Santa’s Underground Workshop at Rickwood Caverns

Santa’s Underground Workshop is underway through Sunday, Dec. 23 from 2-8 p.m. at Rickwood Caverns State Park. Visitors can experience the magic of the season, by viewing over 30,000 colored lights and holiday ornaments, as they walk 175 feet down into the cave. “We had a wonderful time last year with our first Santa’s Underground Workshop,” said Rickwood Caverns State Park Manager Amanda White. “We’re looking forward to sharing the amazing cave with our friends who are regular visitors, as well as those who may have never been here before. Admission is $10 per person, ages 4 and older. Groups of 20 or more can get tickets for $8 each.

For more information visit: https://www.alapark.com.

Lawson State Community Choir in concert

The Lawson State Community College (LSCC) Quartet Christmas Concert is Sunday, Dec. 16 at 4 p.m. at the Birmingham Public Library downtown in the East Grand Reading Room. The performers include the LSCC Quartet, comprised of Kayla King, Heavyn Leigh Whiteside, Javaris Williams, and Jemanuel Pullom. The choir will perform popular Christmas songs and carols, such as “Winter Wonderland,” “Have Yourself a Merry Little Christmas” and “Silent Night.” LSCC is led by Dr. Jillian Johnson.

For more details, call 205-226-3746 or visit www.bplonline.org.

2018 Governor’s Mansion Christmas in Montgomery

The Alabama Governor’s Mansion holiday tour is Monday, Dec. 17 from 5:30-7:30 p.m. Visitors will view the holiday décor, listen to live choir performances and have access to Alabama-made goods in the gift shop.

Call 334-242-7100 to inquire about free tickets.

Enjoy an evening with ‘Dancing with the Stars’

“Dancing with the Stars: Live!” returns to Birmingham Tuesday, Dec. 18 featuring Bobby Bones.  Enjoy everything from ballroom to jazz to modern to hip-hop dance styles. The show starts at 8 p.m. at the Birmingham-Jefferson Convention Complex.

Tickets are available through Ticketmaster.

Alabama Shakespeare Festival

The Alabama Shakespeare Festival presents “The Sound of Music” through Sunday, Dec. 30 as a part of its 2018-19 season. The production tells the beloved story of Maria, a young and spirited nun-turned-governess, and the Von Trapp family. The 1965 film adaption starring Julie Andrews won Best Picture at the Academy Awards. Other adaptions have won Tony and Grammy awards.

For tickets, click here.

Ice Skating

Ice skating at Railroad Park continues through Sunday, Jan. 6. The 50-by-80-foot rink will open seven days a week, Sunday through Thursday from 11 a.m. to 9 p.m. on Friday and Saturday from 10 a.m. to 10 p.m.. Ticket prices include skate rental, tax and unlimited time on the ice. Children 12 and under are $10, adults are $12 and groups of 20 or more skate for $9 per person. Tickets are available online or at the rink. Tickets are valid for the entire day. Although skates are included in the ticket price, individuals are welcome to bring their own skates. The rink will be closed Christmas Day.

Visit www.railroadpark.org/iceskating for season passes.

For details, email info@railroadpark.org or call 205-521-9933.

(Courtesy of Alabama NewsCenter)

4 hours ago

On this day in Alabama history: Alabama admitted to the Union

December 14, 1819

Alabama became the 22nd state on Dec. 14, 1819, the only state added to the United States that year. The young United States acquired the British claims to all lands east of the Mississippi River, including present-day Alabama, as part of the treaty that ended the American Revolution. Alabama was originally part of the Mississippi Territory, which up until then was claimed by the colony of Georgia. Under pressure from white Southerners to see two slave states emerge, Congress created the Alabama Territory out of the eastern half of the Mississippi Territory on March 3, 1817. William Wyatt Bibb was named governor. The population grew rapidly, which led to petitions for statehood, which was granted two years later.

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Read More at Encyclopedia of Alabama.

For more on Alabama’s Bicentennial, visit Alabama 200.

(Courtesy of Alabama NewsCenter)

4 hours ago

Ivey’s inaugural events to promote children’s literacy

In keeping with the theme “Keep Alabama Growing,” Governor Kay Ivey’s inaugural committee on Friday announced plans to promote children’s literacy throughout the January 2019 inaugural festivities.

“Investing in the next generation is critical to our ability to keep Alabama growing,” Ivey said in a press release. “As we prepare for four more years of growing opportunities for Alabamians, I can’t think of a better place to begin than with our children’s literacy, ensuring they get a strong start.”

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As part of this effort, the governor’s inaugural committee will be hosting book drives at the Gulf Coast Inaugural Celebration on January 12 and the Inaugural Gala in Montgomery on January 14. The books collected will be donated to the Alabama Literacy Alliance, a nonprofit dedicated to improving literacy in communities across the state.

Tickets to the Gulf Coast Inaugural Celebration are available to the general public here. The $25 ticket price will be waived for attendees who bring four children’s books to the celebration.

The Inaugural Gala in Montgomery is invitation only.

More details will be announced in the coming weeks and posted here.

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

5 hours ago

Ohio-based Gregory Industries set to invest $4.21 million in Decatur steel plant

Ohio-based galvanized steel company Gregory Industries plans to make a $4.21 million capital investment in a Decatur steel plant, according to Decatur Daily.

The investment will consist of the purchasing of 100,000 square feet of the Willo Products building and 13 adjacent acres at the site for a galvanized steel tubing plant.

Gregory Industries recently purchased Mid-Ohio Tubing. Once the Morgan County plant undergoes renovations and begins operations, it will carry the name Mid-Ohio Tubing.

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Company officials hope to have the plant open by June. The plan is to hire 20 employees at an average annual wage of $47,000 and add four more employees by the end of the third year.

According to Mike Rothacher, the Gregory vice president of corporate services, the company will hire a plant manager, maintenance workers, machine operators and general laborers.

The Industrial Development Board of Decatur approved $172,400 in state, city and Morgan County tax abatements for the company.

Morgan County Economic Development Association president and CEO Jeremy Nails connected with Gregory officials after Nucor found out the Ohio company was looking to expand by venturing into the south.

“We rely on existing industries to put us in contact with companies that they deal with,” Nails said. “We don’t have a lot of available buildings so we were fortunate that this building was available. It’s a win-win for Gregory and Willo.”

The Gregory plant will produce galvanized steel tubing that will be used in material called G-street metal framing. The plant will feature a tubing mill and a roll-forming mill.

Kyle Morris also contributes daily to Breitbart News. You can follow him on Twitter @RealKyleMorris.

6 hours ago

Alabama House Speaker McCutcheon hospitalized with heart issue, expects to be released following treatment

Alabama Speaker of the House Mac McCutcheon (R-Monrovia) announced on Friday that he has been hospitalized with a heart issue but expects to be released following treatment over the weekend.

“Deb and I appreciate the prayers of healing that so many have made on my behalf, and I am well on the road to recovery,” McCutcheon said in a press release.

“Tests indicated that I had a blocked blood vessel in my heart, which resulted in the fatigue and shortness of breath that I felt, and the issue will be treated with simple medication,” he explained.

While returning home from the legislative orientation session at the Alabama State House on Thursday, the speaker suffered mild chest pains and shortness of breath and was driven to an emergency room for examination.

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McCutcheon outlined that he first assumed he was suffering from a case of bronchitis, but an EKG indicated a heart issue, which blood tests later confirmed.

His physician recommended a heart catheterization, and those results showed a blood vessel that had closed but did not require a stent and could be treated with medication.

During his recovery, the speaker said he will continue working on House committee assignments and other legislative issues in preparation for the upcoming organizational and regular sessions of the Alabama Legislature. The organizational session begins on January 8.

During the 2014 legislative session, McCutcheon underwent heart bypass surgery and returned to work before the session ended.

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