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5 months ago

Last-minute tax filers take heart: Alabamians started working for themselves 11 days ago

Tuesday is the final day to pay your 2017 taxes, but if you live in Alabama, at least you have stopped working for the government for the rest of this year.

Alabama’s “Tax Freedom Day” came 11 days ago, on April 5, according to the Washington-based Tax Foundation. That is tied with Oklahoma and Tennessee for the third earliest day in the country, behind Alaska and Louisiana, which are tied at one earlier — April 4.

Last year’s Tax Freedom Day in Alabama fell on April 9, four days later than this year. But the Tax Foundation cautions that direct comparisons at the state level are not possible because of significant changes to the methodology.

Tax Freedom Day is the date on which taxpayers have earned enough money to pay their federal, state and local taxes for the year. On average, that date falls on April 19 this year — two days after the deadline to file taxes.
It is a way to visualize the tax burden, which is roughly 30 percent of income. That includes not just federal income taxes but all taxes paid to government at all levels — state, local and federal.

This year, Americans will fork over $3.4 trillion in federal taxes, alone. State and local governments take another $1.8 trillion on top of that. The combined $5.2 trillion is 30 percent of the nation’s gross domestic product.

“Americans will collectively spend more on taxes in 2018 than they will on food, clothing, and housing combined,” tax analyst Erica York wrote in the Tax Foundation report.

But chin up, American taxpayer. The Tax Cuts and Jobs Act, passed by Congress last year, will make this year’s Tax Freedom Day come three days earlier.

But the Tax Freedom Day does not include the effects of borrowing, which are substantial. Since 2002, federal expenses have surpassed revenue, with the annual deficit reaching $1 trillion from 2009 to 2012. The Congressional Budget Office projects this year’s deficit will grow from 665 billion to $806 billion, with a return to trillion-dollar deficits on the horizon.

Including all that red ink pushes Tax Freedom Day back — by 17 days in 2018, to May 6.

Before big government took hold in the 20th century, Americans hardly had to work at all before achieving tax freedom. For the first two decades of the last century, Tax Freedom Day hovered around Jan. 20. The entire rest of the year’s income could be spent on food, housing and other expenses.

That date began to creep later and later starting in the 1920s, however. Spikes in debt sent the adjusted Tax Freedom Day spiraling in the 1920s and again in the 1940s. In fact, the latest deficit-inclusive Tax Freedom Day on record occurred in 1945 — on May 25.

Alabama fares better than most of its peers because its residents, on average, make less — and therefore pay less in taxes — and because the state and local tax burden is relatively light.

“The total tax burden borne by residents of different states varies considerably due to differing state tax policies and the progressivity of the federal tax system,” York wrote.

So even if Alabama and a high-income state have the same tax policies, Alabama’s net tax burden will be less because its residents will pay less in federal taxes than the residents of the state with more higher-income residents.

New York State residents — who have the latest Tax Freedom Day in the nation — will be working for the government until May 14. That is more than a full month later than their counterparts in Alabama.

Other states with a late Tax Freedom Day are New Jersey, Connecticut and the District of Columbia — all at May 3.

@BrendanKKirby is a senior political reporter at LifeZette and author of “Wicked Mobile.”

 

2 hours ago

Krispy Kreme offering coffee-glazed doughnuts this week only: Here’s where you can get them in Alabama

Krispy Kreme will offer their new “Coffee Glazed” doughnut and “Original Glazed” flavored coffee starting Monday, and 13 Alabama locations will participate.

While the new coffee will become a permanent fixture on the menu, the coffee-glazed doughnuts will only be available through Sunday.

In addition to enjoying both new products throughout the week, Alabamians can grab a free Krispy Kreme coffee, of any size, on National Coffee Day – Saturday, September 29 – at participating locations, with no purchase necessary. Krispy Kreme Rewards members receive the extra perk of a free doughnut with their coffee on that day.

Here are the participating locations:

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  • Auburn
  • Birmingham
  • Decatur
  • Dothan
  • Florence
  • Foley
  • Gadsden
  • Hoover – New Patton Chapel Road
  • Hoover – Highway 280
  • Huntsville
  • Mobile
  • Montgomery
  • Tuscaloosa

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

5 hours ago

AL House Speaker Mac McCutcheon ‘can say for sure that you’ll see a lottery bill’ in 2019

With Mississippi recently adding sports betting to its legal gambling options, the pressure is on for Alabama to not only follow that lead, but to institute a state lottery as well.

While one prominent Republican state lawmaker already has predicted a sports gaming bill will be considered by the Alabama Legislature in 2019 yet be a long-shot to pass, Speaker of the House Mac McCutcheon (R-Monrovia) told WHNT that a lottery bill will definitely be on their agenda. However, its fate will be determined by the specifics of that now-hypothetical bill.

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“I can say for sure that you’ll see a lottery bill in the first session coming up,” McCutcheon said. “Now, I can’t determine what the vote’s going to be because I’ve got to see the bill.”

A sizable part of the debate will revolve around where the lottery proceeds would go: to education, the general fund or a combination of the two.

“Could be both, it’s hard to say at this point,” McCutcheon advised.

State Sen. Arthur Orr (R-Decatur), who chairs the important senate appropriations committee entitled Finance and Taxation Education, echoed that specifics will shape a lottery’s case, adding that education should be a part of the equation.

“I do think if you’re going to have a lottery, earmarking money for educational purposes tends to generate a more successful lottery than monies just going to the government,” Orr explained.

While McCutcheon knows a lot of the details are yet to be determined on a proposed lottery, he outlined what could sink the bill-to-be.

“If we have a lottery bill out there, it must be clearly defined so that the people of Alabama have no doubt what the lottery issue is going to be,” McCutcheon emphasized. “We don’t want to confuse that bill with other gambling interests. If it’s going to be a lottery, let’s make it a statewide lottery, so the people can look at it, and then let’s make a determination on how we’re going to vote on it.”

The lottery would go to a referendum of the people as a constitutional amendment if it was passed by the state legislature. The governor has no power to sign or veto a lottery bill.

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

7 hours ago

VIDEO: Sen. Doug Jones’s easy out on Kavanaugh, Democrats must navigate state’s love of Trump, Alabama Socialist seek municipal office and more on Guerrilla Politics…

Radio talk show host Dale Jackson and Dr. Waymon Burke take you through this week’s biggest political stories, including:

— Will Judge Brett Kavanaugh be confirmed or not based on the he said/she said accusation?

— Does Sen. Doug Jones view his issues as a reason to vote against him or as an excuse?

— How much does Alabama’s love of Trump effect Alabama Democrats’ chances?

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Jackson and Burke are joined by Republican candidate for State House (District 3) Andrew Sorrell.

Jackson closes the show with a “parting shot” directed at those who judge Kavanaugh’s accuser as telling the truth with no evidence.

9 hours ago

Rep. Gary Palmer warns Brett Kavanaugh brouhaha threatens America’s ‘experiment in self-government’ — ‘I think this is going to have consequences for the Democrats’

On Friday’s broadcast of Alabama Public Television’s “Capitol Journal,” Rep. Gary Palmer (R-Hoover) expressed his skepticism over the sincerity of Senate Democrats regarding the sexual misconduct allegations aimed at U.S. Supreme Court associate justice nominee Brett Kavanaugh.

Palmer warned that weaponizing a “scandal” in these situations may impact the country’s ability to self-govern.

“It looks to me like since the Democrats had this information as early as July, or maybe earlier than that, and they didn’t bring it forward — this was intended to derail the confirmation, not to do justice for an individual who claims to have been harmed,” he said. “And the thing that really concerns me about all of this, regardless of what side of the aisle you’re on, is how this impacts our ability to continue this experiment in self-government because when you weaponize scandal as a political weapon  — it’s very destructive to the process, not just the individuals involved, but the entire process.”

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He added that ultimately, this could backfire on Democrats.

“I think this is going to have consequences for the Democrats,” Palmer added. “At some point, you can cry wolf too many times. And again, I think this is dangerous for people that have been harmed. It will get to the point where it’s just another claim. And at the same time, you’ve got Keith Ellison, who I serve with in the House, who has a claim against him by a woman who is being totally dismissed by the left, even though there’s more evidence there. There’s text messages, documentation from her doctor — you see where this is heading? I’m very concerned for our country and what we’re doing to ourselves. I think it has dire consequences down the road.”

@Jeff_Poor is a graduate of Auburn University and is the editor of Breitbart TV.

11 hours ago

Rep. Martha Roby: Tax reform 2.0 gains momentum

Less than a year ago, Congress passed and the President signed into law the Tax Cuts and Jobs Act to simplify our complicated tax code and lower rates for all Americans. Thanks to tax reform and other pro-growth policies, our economy is booming. You don’t just have to take my word for it – here are some numbers from the month of August:

–U.S. employers added more than 200,000 jobs as wages increased at the fastest year-on-year pace since June of 2009.

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–Unemployment claims reached a 49-year low. The last time jobless claims fell to this point, it was December of 1969.

–Small business optimism hit a new record high.

–The number of individuals employed part-time who would prefer full-time work but could not find it has fallen to the lowest level since before the 2008-2009 recession.

–U.S. manufacturing grew at the fastest pace since May of 2004.

These numbers all serve as proof that the American people are better off now than they were just two years ago. I am eager to see this strong momentum continue, and I am glad to report that we aren’t slowing down our efforts to foster economic growth right here in the United States. Recently, the House Ways and Means Committee passed Tax Reform 2.0, a series of bills that would modify and build upon the Tax Cuts and Jobs Act.

The first bill in the series, H.R. 6760, the Protecting Family and Small Business Tax Cuts Act of 2018, would put in place several changes to the individual income tax rate. Since the Tax Cuts and Jobs Act provisions are set to expire at the end of 2025, perhaps the most important changes H.R. 6760 would implement are making the tax rate changes and the Child Tax Credit permanent.

According to a Tax Foundation study, making these individual income tax changes from the Tax Cuts and Jobs Act permanent would increase long-term Gross Domestic Product (GDP) by 2.2 percent and create 1.5 million new full-time equivalent jobs.

The second bill in the series, H.R. 6757, the Family Savings Act of 2018, includes a number of important reforms to retirement accounts. For example, individuals would be able to contribute up to $2,500 into a savings account annually, and any withdrawals would be tax free.

The third bill in the series, H.R. 6756, the American Innovation Act of 2018, would allow businesses to deduct their start-up costs. Businesses could either deduct the lesser of their start-up expenses, or for firms with more than $120,000 in expenses, deduct a flat amount of $20,000.

Our tax reform overhaul provides much needed relief to American families, creates jobs here in the United States, grows our economy, and allows hardworking taxpayers to keep more of their own money in their pocket. We now have a unique opportunity to continue delivering on our promise to give the American people more of the results they deserve.

Committee passage of Tax Reform 2.0 is just the first step in the legislative process to make parts of our tax overhaul permanent. I will continue to listen to the people I represent in Alabama’s Second District and work alongside my colleagues in Congress to improve this package of legislation as we move towards advancing these pro-growth policies to the House floor for a vote.

U.S. Rep. Martha Roby is a Republican from Montgomery.