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


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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.

10 hours ago

Geneva County Commission strips funding for school resource officer program

The Geneva County Commission has placed the Geneva County School system in a bind after it pulled funds committed to the school resource officer (SRO) program.

Per a Dothan Eagle report, the county commission voted in June to give $15,000 to the SRO program this year, including an additional $60,000 next year.

After commissioners found that the budget would not balance, they realized that the promised funding for the SRO program could not be provided.

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Fred Hamic, chairman of the Geneva County Commission, sent a letter informing Superintendent Becky Birdsong of the decision and included a $15,000 check.

Birdsong said she was “disappointed,” but assured she will work hard to ensure the SRO program remains in place.

“I am disappointed, but I am still committed to doing what’s right for our students,” Birdsong told Dothan Eagle. “We don’t want parents to be concerned that this is going to make our schools less safe. I’m not saying we have the money now, but I am going to work on this and try to secure funding for this.”

Birdsong said that she is working with parents to increase security on school campuses in the schools she oversees.

@RealKyleMorris is a Yellowhammer News contributor and also contributes weekly to The Daily Caller

10 hours ago

Steve Marshall talks liberal tech bias, joins select group of national officials tackling the issue

Alabama Attorney General Steve Marshall on Tuesday joined a select group of state attorneys general for “a productive dialogue” led by Attorney General Jeff Sessions and other Department of Justice (DOJ) officials regarding perceived discrimination against conservatives by leading tech companies.

Per a DOJ release, “The discussion centered on ways the Department and state governments can most effectively safeguard consumers using online digital platforms. Each state attorney general’s office shared their views of the important issues for federal and state authorities to consider when addressing these evolving technologies. The discussion principally focused on consumer protection and data privacy issues, and the bipartisan group of attendees sought to identify areas of consensus.”

In a statement to Yellowhammer News, Marshall – who joined the meeting by teleconference – made it clear that there was a long way to go before reaching a consensus on how to tackle the complicated issues of tech transparency and bias, saying, “To the degree that there was any consensus, it is that we still have a lot to learn about how to best protect consumer interests in this context.”

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“Today I participated in a bipartisan meeting of several state Attorneys General, hosted by Attorney General Sessions, to discuss consumer protection concerns related to the tech industry. The conversation covered many of the same concerns raised in recent Congressional hearings,” Marshall outlined.

He continued, “I appreciated the invitation to participate and was interested to hear the perspectives of the various states represented. To the degree that there was any consensus, it is that we still have a lot to learn about how to best protect consumer interests in this context.”

The DOJ, which was represented at the meeting by Sessions, Deputy Attorney General Rod Rosenstein, Principal Deputy Associate Attorney General Jesse Panuccio, Assistant Attorney General Makan Delrahim, Acting Assistant Attorney General John Gore and other senior staff, explained, “Many shared the view that it is essential for federal and state law enforcement authorities to work together to ensure that these challenges are addressed responsibly and effectively.”

Sessions’ DOJ will review the information and insights shared by the state attorneys general and expects the constructive dialogue will continue moving forward. Marshall, in an interview earlier Tuesday morning with Talk 99.5’s Matt Murphy and Andrea Lindenberg, made it clear that he prefers a market-based solution as opposed to stifling government regulation.

“It is a field that I think we need to tread very lightly,” Marshall explained. “You look at the ability of government to regulate – I think we do the military well and everything else is a struggle. So I think we need to be very, very careful in how we tread in that regard.”

The argument from some is that social media platforms are like modern-day utilities.

“You hear it coming more from Democratic AG’s across the country … it’s why, I think, you have to be very careful, because the market itself has the ability to regulate and one of the things that we have to do from the government side is do not tread into the world of antitrust lightly,” Marshall outlined.

Alabama’s attorney general used Google as an example, saying consumers have multiple choices in search engines, free online email providers and the web browsers themselves (Safari, Chrome, Internet Explorer, Mozilla, etc.).

“It is important, however, when you do hear the stories of internally that Google may be directing people for political purposes that otherwise is not disclosed. That is concerning,” Marshall said.

For Marshall, the questions of whether these tech companies should allow their left-leaning biases to affect consumers “need to be asked, whether or not government needs to get involved in that, however, is a different story.”

Marshall summarized that his overall view is the tech services need to be held accountable to being open and honest with what they are doing and then the market can effectively take care of the rest. If consumers do not like what the services are doing, competition, not the government, should be the counterbalance.

“To the extent that there is transparency, I think it’s a good thing. Across the spectrum, whether it be private business or in government, and in this field particularly, if they are able to respond to questions about how it is that they control content and what they do, then I think we all have knowledge and then can make decisions ourselves,” he advised.

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

11 hours ago

Strong like Samson, tough like Benaiah and wise like Solomon -Thomas Cox reveals his plan for himself and raising his kids

Finding the time to do everything in a day is tough, but Thomas Cox shared his secrets on “The Ford Faction.”

In this episode, Thomas Cox from Mealfit.co discussed where his parenting techniques come from and how he finds time to execute them. He breaks down the processes he does with each of his children.

First, he teaches them to be strong like Samson. He wants his kids to be strong in many ways: mentally, physically, socially and spiritually.

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Second, Thomas wants his kids to be tough like Benaiah.

He said, “Toughness is one of the biggest parts of our lives we have to get better at so we can adapt to what’s happening around us.”

Finally, you have to be wise like Solomon.

Thomas told host Ford Brown, “I think if you’re not spending a lot of your day on self-development, you are missing the boat.”

Subscribe to the Yellowhammer Radio Presents The Ford Faction podcast on iTunes or Stitcher.

Rep. Byrne: Breaking down Tax Reform 2.0

Since Congress passed the Tax Cuts and Jobs Act last year, the American economy is booming, and Alabama families have more money in their pockets. By lowering taxes and simplifying the tax code, we have unlocked our economic potential and made life better for hardworking Americans.

The economic numbers speak for themselves: higher wages, lower unemployment, more jobs, bigger paychecks, employee bonuses and much more. Under the Tax Cuts and Jobs Act, the average family in Southwest Alabama will see their tax bill decrease by $2,187 a year.

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The good news is that we aren’t stopping here. This week, the House is expected to vote on additional changes and improvements to the tax code, something we are calling Tax Reform 2.0. Working with President Trump, we will continue to make the tax code even fairer and more competitive.

Tax Reform 2.0 includes three major pieces. Here’s a quick overview.

First, we want to make the tax cuts for small businesses and middle-class families permanent. Due to Democrat obstruction and arcane rules in the Senate, the Tax Cuts and Jobs Act was only able to lower taxes for ten years. Under Tax Reform 2.0, we will make the tax cuts permanent.

The non-partisan Tax Foundation found that making the middle-class and small business tax cuts permanent will create 1.5 million new jobs and increase gross domestic product (GDP) by 2.2%. This further expands our economy and makes life even better for families and small businesses.

Making these changes permanent, will also lock-in the simpler tax filing process. As you may remember, the Tax Cuts and Jobs Act simplified the tax code to the point where many Americans are now able to complete their taxes on a postcard-style form. A Tax Foundation study shows that this will save Americans between $3.1 to $5.4 billion in compliance costs. Instead of needing an accountant to navigate the complicated code, most Americans will be able to file on their own.

Second, Tax Reform 2.0 promotes family savings and helps more Americans plan for retirement. Currently, too many Americans have been unable to save for retirement or put money aside to cover unforeseen emergencies.

We want to help small businesses provide retirement plans to their workers by allowing small businesses to join together to create a 401(k) plan more affordable and by giving employers more time to put new retirement plans in place. Just as important, we will help more workers participate in retirement plans by exempting small retirement accounts from mandatory payouts and by eliminating the age limit on IRA contributions.

We don’t stop there. Tax Reform 2.0 will create and expand additional programs to help Americans save. For example, our plan creates a new savings account to offer a fully flexible savings tool that families can use at any time right for them, expands 529 education savings accounts, and creates a new baby savings program to help with the birth of a new child or an adoption.

Finally, Tax Reform 2.0 will help grow the economy by promoting start-up businesses and spurring innovation. We do this by allowing new businesses to write off more of their initial start-up costs and by making it easier for start-ups to bring in new investors. America must lead the way on innovation.

As you can tell, Tax Reform 2.0 builds upon our efforts in the Tax Cuts and Jobs Act to ensure the American economy remains strong. We do that by allowing Americans to keep more of their hard-earned money in their pockets. I fundamentally believe our country is the strongest when money is with the people instead of the government.

U.S. Rep. Bradley Byrne is a Republican from Fairhope.

12 hours ago

Ivey, Merrill celebrate National Voter Registration Day – ‘Easy to vote and hard to cheat’

Tuesday is recognized as National Voter Registration Day (NVRD), which Alabama Governor Kay Ivey and Secretary of State John Merrill celebrated by encouraging all of the state’s eligible voters to register.

The annual occasion is the largest single-day drive to register voters of the year. Merrill joined hundreds of different partners around the nation to observe NVRD, with Merrill specifically encouraging a “voter refresh” effort to update state voter rolls with correct information about Alabama citizens.

“Since I became Secretary of State, we have registered more than a million new voters who have helped us shatter state records for voter registration and participation in our elections,” Merrill said in a release.

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“But we also want our voter rolls to be up-to-date, so we are urging everyone to take a moment to make sure their current address is correct in the state system. We are pleased to participate in this special day that encourages more participation in our electoral process. We continue to work daily to make sure every eligible U.S. citizen in our state is registered to vote and has a photo ID. We want to make it easy to vote and hard to cheat,” Merrill continued.

NVRD, held on every fourth Thursday of September since 2012, is endorsed by the National Association of Secretaries of State and the National Association of State Election Directors. Since 2012, more than 1.4 million people around the nation have registered to vote or update their registration as part of this event alone. This year, libraries, schools and other partners will hold local voter registration drives.

Since Merrill took office, Alabama has registered 1,064,616 new voters, bringing the state’s total to 3,418,839 as of September 7. Yellowhammer State residents can update their voter registration information by downloading the “Vote for Alabama” app on a smartphone or visiting the Secretary of State website here.

“There is no freedom more integral to this Republic than the right to vote and participate in our democratic process,” Merrill emphasized. “I am so proud we are able to work with the partners involved with National Voter Registration Day to help make increased participation a reality here in the state of Alabama.”

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