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.

Guest: Physicians are no longer on the front lines of this pandemic — You are

State Health Officer is a difficult role to fill, especially this year. While partisanship and conspiracies continue to divide us, it is the job of the State Health Officer to make decisions for the good of all people throughout Alabama. This is exactly what Dr. Scott Harris has done for Alabamians during (and before) the COVID-19 pandemic.

After reading a recent article about Dr. Harris, I was appalled but not surprised by the fact that he has received death threats over mask mandates and other preventative measures to slow the spread of COVID-19. Governor Kay Ivey enacted the first mask mandate on July 16, 2020, at the recommendation of Dr. Harris and others. After the initial mandate, Alabama’s case average and death rates quickly fell. Neighboring states without mask mandates – including Mississippi, Georgia, Florida and Tennessee – all continued to rise above Alabama’s average.

As President of the Medical Association of the State of Alabama, I would like to proudly declare my support of Dr. Harris and Governor Ivey in regard to the mask ordinance, social distancing guidelines, and other measures to protect the citizens of Alabama. Science and data have shown us time and time again that these guidelines work. That being said, why are there still Alabamians who push against these life-saving initiatives?

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While appealing to a sense of personal responsibility should be effective enough, it has proved not to be. What happens when personal responsibility is not enough, and people are endangering others? Mask mandates. Social distancing guidelines. Occupancy limitations.

Physicians and other health care providers have worked tirelessly to serve our patients, even at the cost of our own health and safety. What if I told you that we are no longer on the front lines of this pandemic, but you are? You have the power and capability to stop the spread of the Coronavirus that has taken over 3,450 lives in Alabama and 1.39 million lives worldwide. All you have to do to potentially save a life is to wear a mask in public, socially distance and wash your hands. These simple actions not only save lives, but can also help our physicians and hospital systems not get overwhelmed with patients. You can help keep your family and our families safe at the same time.

As we head into this holiday season, we can’t require people to keep themselves safe, but we are asking them to keep other people safe. Many people could be infected and transmit the disease to others without even knowing they are sick. I just hope that we can recontextualize the mask mandate and see it as a simple act of kindness to protect those around you. It seems like the least we can do for our families, friends, loved-ones, physicians, nurses, and communities as a whole.

John S. Meigs, Jr., MD is the president of the Medical Association of the State of Alabama

4 hours ago

Alabama Department of Mental Health Commissioner Lynn Beshear retiring; Kim Boswell appointed as successor

Governor Kay Ivey on Monday announced that Lynn Beshear will retire as commissioner of the Alabama Department of Mental Health (ADMH) effective December 16.

Beshear was appointed by Ivey to this position in July 2017, shortly after the governor took office.

Yellowhammer News earlier this year named Beshear a 2020 Woman of Impact.

“When Lynn was appointed, I knew that she would approach her role always thinking of what is best for the people of Alabama,” Ivey said in a statement.

“She has created a collaborative team approach within the Alabama Department of Mental Health to solve intricate problems regarding delivery of services for mental illness, substance abuse disorder and intellectual disability. I am truly grateful for her service to our state and wish her best in her next chapter,” she continued.

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While leading ADMH, Beshear has spearheaded several initiatives to increase access of services for Alabamians with mental illness, while navigating complexities of delivery by the department and community providers.

“It is been an honor to serve as the Commissioner of the department,” Beshear commented. “I am stepping into the next chapter of my life proud of the accomplishments of the department and am incredibly honored to have worked with such dedicated individuals who are committed to improving the lives of others. I profoundly thank Governor Ivey for her trust in me these last three years and have no doubt the department will continue to change the lives of the people of Alabama for the better.”

Ivey’s office in a release outlined that under Beshear’s leadership, ADMH launched Stepping Up Alabama, which uses the national model to reduce the numbers of jailed individuals with mental illness. Alabama is the only state to expand the goal to include ER’s and substance use disorder. It is anticipated that a case management component of Stepping Up will be in place in all 67 counties by the end of the Fiscal Year 2022.

Additionally, three mental health crisis centers were recently announced as crisis diversion centers, with the goal of individuals receiving “the right care, at the right time, in the right place.”

Expansion of school-based mental health, hiring a housing coordinator for individuals’ stabilization plan, and expansion of early childhood services and autism services are examples of ADMH’s expansion of services during Beshear’s tenure.

The governor on Monday also announced she is appointing Kim Boswell to be the new ADMH commissioner effective December 16.

Boswell reportedly has more than 36 years of experience working with individuals with mental illness, substance abuse disorders and developmental disabilities.

She currently serves as chief of staff for Beshear and has been both associate commissioner for Administration as well as director of Human Resources for the department. During her career, Boswell has worked as a planner to improve human service delivery systems, a Program Evaluator, a School to Work Transition Coordinator, and has also served as the State Office Administrator for the Alabama Department of Rehabilitation Services.

“I’m pleased to announce Kim Boswell as Commissioner for the Alabama Department of Mental Health,” Ivey stated. “She has spent the entirety of her professional career devoted to helping struggling individuals and I appreciate her willingness to serve in this new capacity. Her background as a mental health provider as well as administrator makes her uniquely qualified.”

The governor’s office noted that Kim Boswell is of no relation to ADECA Director Kenneth Boswell.

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

5 hours ago

Report: Democratic-aligned group tried to register dead Alabama woman to vote in Georgia

Georgia Secretary of State Brad Raffensperger on Monday said his office is investigating four different voter registration groups for potential wrongdoing ahead of the state’s crucial January 5 U.S. Senate runoffs.

The Atlanta Journal-Constitution reported that Raffensperger, a Republican, held a press conference at the State Capitol in Atlanta to outline these investigations.

The theme of the alleged actions by all four groups under investigation pertains to attempting to register people who do not currently reside in Georgia to vote in the Peach State’s runoffs.

One of the groups was founded by Stacey Abrams, a Democrat who lost the Georgia gubernatorial race in 2018; she has still not conceded that election. Her group allegedly solicited individuals residing in New York City to register to vote in Georgia.

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Another group, Vote Forward, is alleged to have attempted to register a dead Alabama woman to vote in the upcoming runoff.

Vote Forward is a 501(c)(4) aligned with Democratic groups and left-leaning causes.

The group’s other prominent Alabama tie?

On Vote Forward’s website, the organization cites its voter registration and turnout efforts in the Yellowhammer State as being effective in helping U.S. Senator Doug Jones (D-AL) win his 2017 special election bid.

In fact, the website says, “The project began as an experiment conducted by Scott Forman in Alabama in 2017. Encouraged by the success of that test, Scott and a small group of friends and fellow Opower alumni built this platform…”

On Monday, Raffensperger stressed that Vote Forward and the three other named groups “have a responsibility to not encourage illegal voting.”

“If they do so, they will be held responsible,” he added.

The outcome of Georgia’s runoffs is of paramount importance for Alabama, as U.S. Senator Richard Shelby (R-AL) will lose the chairmanship of the powerful Committee on Appropriations if Republicans do not win these two races.

The National Republican Senatorial Committee (NRSC) has launched a nationwide Georgia Battleground Fund leadership team to aid fundraising in their effort to hold the Senate majority. Led by Karl Rove as national finance chairman, this also includes state chairs and a distinguished team of national and honorary co-chairs.

Katie Boyd Britt — current president and CEO of the Business Council of Alabama and former chief of staff to Shelby — is the Alabama state chair for this effort.

“America’s fate rests on the outcome of these Georgia races,” stated Rove. “Democrats have not been shy about what they’ll do if Chuck Schumer and Nancy Pelosi run Congress, so it’s imperative every freedom loving American go all in for Senators David Perdue and Kelly Loeffler so they’re victorious. I’m honored to work with so many great Republican leaders from all 50 states and D.C. to ensure these two Senators have the resources to protect the last line of defense against the Democrats’ left-wing agenda.”

RELATED: Republican organizer leading team of volunteers to aid Senate races in Georgia

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

5 hours ago

Alabama sets state record for COVID-19 hospitalizations

Alabama recorded its largest yet number of COVID-19 patients in the hospital on Monday as the state’s coronavirus statistics continue to reach alarming levels.

There were 1,717 individuals in the hospital with COVID in Alabama on Monday, eclipsing the previous record of 1,613 set on August 6.

UAB Hospital, the state’s biggest and most prominent medical facility, is currently treating 125 coronavirus patients, a new high for the facility.

“125 patients means 125 patients receiving in-hospital, bed-specific care. These are patients who are either very sick, unable to get better, or potentially unable to survive without medical attention and care,” UAB explained about their hospitalized patients in a press release.

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Clicking image opens interactive chart in new tab (BamaTracker)
(UAB/Contributed)

UAB’s numbers include any patient admitted to the hospital with a diagnosed case of COVID-19.

The hospital’s numbers appear to indicate a worrying spike in the Birmingham metropolitan area. UAB was treating just 79 coronavirus patients on Thursday.

Overall, Alabama’s count of new coronavirus cases remains about as high as it has ever been. On average, 1,733 new cases have been added each day over the last week.

Clicking image opens interactive chart in new tab (BamaTracker)

Yellowhammer News is using statewide coronavirus numbers from BamaTracker in this piece. BamaTracker is a website that collects and displays coronavirus data published by the Alabama Department of Public Health.

Additionally, Yellowhammer is counting new cases as those confirmed by a chemical test performed in a laboratory. When adding results from rapid tests and other methods classified by ADPH as “probable” positives, Alabama’s seven-day average rises to 2,206.

Past trends in coronavirus data show that a spike in hospitalizations follows a spike in new cases by 2-3 weeks. A corresponding increase in deaths follows the increase in hospitalizations by around one month.

All but three of Alabama’s 67 counties reported a new COVID-19 case on Monday, indicating continued widespread transmission across the state.

Of all COVID-19 tests administered in Alabama over the last 14 days, 26.1% came back positive, the highest rate the state has suffered during the pandemic.

In recent days, for every eight tests administered, one was positive, per BamaTracker’s calculations.

Approximately 13 coronavirus deaths were reported in Alabama each day over the last week. The state’s death toll now stands at 3,246, with another 332 listed as “probable” but not yet confirmed by ADPH.

Doctors continue to recommend wearing face masks, staying at least six feet apart from others, and washing hands frequently as the best ways to slow the spread of the virus.

Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: henry@yellowhammernews.com or on Twitter @HenryThornton95.

6 hours ago

Alabama’s state Christmas tree to be delivered on Tuesday

Alabama’s official Christmas tree will be delivered to the State Capitol on Tuesday, the governor’s office said.

This year’s tree, donated by Robbins Taylor, Sr., is an Eastern Red Cedar arriving from Letohatchee in Lowndes County.

The tree stands about 35 feet tall and will be displayed on the front steps of the State Capitol building in Montgomery.

Following its delivery, the tree will be decorated throughout the week with lights and other adornments before the traditional Christmas tree lighting ceremony, which is scheduled for Friday at 5:30 p.m.

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

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