2 years ago

Tax cuts will create 4,600 Alabama jobs, raise family income across the state by $519, study says

 

 

The tax cut bill on track for passage today will create 4,632 jobs in Alabama and boost the income of the average middle-income family by more than $519, according to a study released this week.

The estimates come from an updated analysis by the Tax Foundation, which projects that the Tax Cuts and Jobs Act will raise the gross national product by 1.7 percent nationwide over the long run and create 339,000 new jobs. What’s more, wages will grow by 1.5 percent, with after-tax income rising 1.1 percent by the end of the decade even after some temporary provisions expire, according to the think tank. The average middle-income family can expect an increase of $649.43 in take-home pay.

And that is assuming that Congress does not extend the tax cuts, as lawmakers did when supposedly temporary features of tax cuts passed under George W. Bush were set to expire.

“The increase in family incomes is due in part from individual income tax reductions and the broader rise in productivity and wages due to economic growth,” wrote Nicole Kaeding, an economist at the Tax Foundation. “These estimates take into account all aspects of the Tax Cuts and Jobs Act, including changes to the individual and corporate tax codes.”

The House of Representative passed the bill Tuesday but will have to come back and do it again today after lawmakers discovered a procedural problem.

For Alabama, the benefits would lag most of the rest of the country. The $519.43 increase in after-tax income exceeds the average gain in only five other states — Arkansas, Kentucky, West Virginia, Louisiana and Mississippi.

The state fares even worse on the jobs front. The Tax Foundation’s projected increases of 4,632 works out to a rate of 95.2 jobs per 100,000 residents. Only New Mexico, Arizona and Mississippi would have smaller job gains as a share of residents.

The Tax Foundation’s projected gains for both the nation and Alabama are not as robust as the think tank’s analysis of the version passed by the House last month. That report foresaw the creation of 890,000 jobs nationwide and increase of $2,243 in after-tax incomes.

Alabama’s position vis-a-vis other states did not change in the latest analysis.

The think tank attributes the lower projections to changes made to the bill during the legislative process. For instance, the just the difference between a 20 percent and a 21 percent top corporate tax rate is a tenth of a point of growth, a tenth of a point in wage increases and two tenths of a point of after-tax incomes, according to the foundation.

“The permanent corporate rate cut to 20 percent is the most growth-producing provision in either of the two plans,” wrote Tax Foundation President Scott Hodge before the House and Senate ironed out differences in their two bills. “The economic consequences of scaling that provision back should not be dismissed easily.”

The Republicans in Alabama’s delegation all voted “yes,” along with most of the GOP. The 227-203 vote included “nays” from a dozen Republicans. No Democrats supported it. The results likely will be the same when lawmakers vote again today.

“It will lead to greater economic growth, higher wages, and more jobs, which is exactly what the American people sent President Trump and the Republican Congress to Washington to do,” Rep. Bradley Byrne (R-Fairhope) predicted during debate on the House floor.

Rep. Gary Palmer (R-Hoover) praised the vote.

“Our tax plan not only puts more money in the pockets of the American people, but will also launch economic growth,” he said in a statement. “Over the previous eight years our economy only grew at an anemic 1.8 percent per year because businesses were shackled by a complicated and burdensome tax code that was designed for a 1986 economy.”

Sens. Richard Shelby (R-Tuscaloosa) and Luther Strange (R-Mountain Brook) joined the other 49 Republicans — ailing Sen John McCain (R-Ariz.) did not vote — in passing the bill in the upper chamber on a 51-48 vote. In a statement, Shelby called it a “once-in-a-generation opportunity to change Americans’ lives for the better.”

Rep. Terri Sewell (D-Birmingham), however, ripped what she termed a “tax sham,” objecting during floor debate to the GOP characterization of the bill as a Christmas gift to the American people.

“I have never seen such intellectual dishonesty in my life,” she said. “It’s more like the grinch that stole Christmas.”

Brendan Kirby is senior political reporter at LifeZette.com and a Yellowhammer contributor. He also is the author of “Wicked Mobile.” Follow him on Twitter.

1 min ago

Ivey to undergo outpatient procedure with ‘very high rate of success’ after cancer discovered early

Governor Kay Ivey on Thursday announced that she will undergo an outpatient procedure at UAB on Friday after a recent routine exam revealed she had spot on her lung.

After more testing, “a tiny, isolated malignancy” was confirmed, meaning the spot was indicative of cancer.

The procedure and subsequent radiation treatments are not expected to interfere with her duties as governor, Ivey said in a statement.

Ivey said “this was discovered early, and it is very treatable.”

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She added that the procedure “has a very high rate of success” and expressed great confidence in Alabama being “home to some of the world’s leading physicians.”

The governor welcomes prayers and support from around the state.

Ivey’s full statement as follows: 

Throughout my life, I am constantly reminded that I have so much for which to be thankful; God has been incredibly gracious to me.

One of the highest honors you have given me is serving as your governor.

Because I always shoot straight with you, I want to share a recent challenge that has been placed in front of me.

Within the past few weeks, during a routine exam, my longtime family physician discovered a spot on my lung that was unusual. Additional tests confirmed that this was, indeed, a tiny, isolated malignancy.

The good news is I am one of the fortunate ones where this was discovered early, and it is very treatable.

The better news is Alabama is home to some of the world’s leading physicians. My team of doctors have assured me this treatment has a very high rate of success and will have a minimal impact on my schedule.

Tomorrow morning, I will travel to UAB for an outpatient procedure, which will allow me to soon begin a series of specialized radiation treatments. None of this will prevent me from continuing to serve as your governor and doing the work you elected me to do.

Naturally, I welcome your prayers and your support. Just as so many others who have been affected by cancer, I am confident of God’s plan and purpose for my life and feel extremely fortunate this was caught so early.

May God continue to bless each of you and the great state of Alabama.

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

29 mins ago

On this day in Alabama history: Alabama legislature ratified the 19th Amendment

Sept. 19, 1953

The fight for the right for women to vote officially ended in 1920 when Tennessee became the 36th state to ratify the 19th Amendment to the U.S. Constitution. In Alabama, there was an active suffragist movement, led by the Alabama Equal Suffrage Association, but opposition by some Alabama groups resulted in the Legislature not taking up the amendment, and after Tennessee signed on the issue was moot. Thirty-three years later, the Legislature decided to “record its approval of extending the right of suffrage to women” and officially ratified the 19th Amendment. Although the Alabama Equal Suffrage Association dissolved in 1920, many of its leaders and members joined the newly founded League of Women Voters, which remains active today in Alabama elections.

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1 hour ago

Canfield elected chair of Alabama Commission on Artificial Intelligence, Waggoner vice-chair

The Alabama Commission on Artificial Intelligence (AI) and Associated Technologies recently held its inaugural meeting, at which commission members elected Alabama Department of Commerce Secretary Greg Canfield as chairman and State Senator Jabo Waggoner (R-Vestavia Hills) as vice-chairman.

The commission plans to schedule additional meetings over the next seven months, with all meetings being open to the public.

The members will deliver a report in May to Governor Kay Ivey and the Alabama Legislature, recommending strategies and policies on how AI and other emerging technologies will be of benefit to the Yellowhammer State’s economy.

In a statement on Thursday, Canfield explained the importance of the commission’s work.

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“Artificial intelligence is a powerful, disruptive technology that has the potential to forever change the way we live our lives and how businesses across Alabama operate,” he emphasized.

“It’s critical that we understand how AI will bring about these sweeping changes, and this Commission will help us develop insights into what the future has in store for Alabama’s citizens and businesses,” Canfield concluded.

Waggoner spearheaded the legislative resolution that formed the commission. His leadership has been, and continues to be instrumental, in this process. The powerful chair of the Senate Rules Committee identified the goal of Alabama being on the cutting edge of AI research and job creation in the technology sector.

“We want Alabama to be a leader in AI research, innovation, technology start-ups, and technology jobs,” Waggoner stated. We believe that we are competitive with other states.”

He continued, “The Commission will look at how Alabama is positioned and ready for the opportunities of tomorrow. Those are some of the issues and questions this Commission is going to answer. We will meet with key business groups and different industry sectors to understand the impact of AI and automation on their industries.”

According to Waggoner, the commission will also examine how schools and universities can develop AI-educational programs, and investigate what privacy safeguards might be needed to protect consumers.

“We want Alabama’s education system in a place where we can equip students with AI-relevant skills through engineering and technology classes and apprenticeship programs,” he added. “As we promote innovation and educational readiness, we must also protect the privacy rights of citizens, and examine whether existing state laws are effective in regulating these emerging technologies. There’s a lot of work ahead.”

The commission will be divided up into five sub-committees, focused on the following:

  • state regulations, government oversight, and potential legislative action;
  • education and workforce development;
  • healthcare and medical services;
  • future and evolving industries, economic development, and research;
  • ethics, privacy and security.

The subcommittees will begin their work in mid-October.

State Senator Dan Roberts (R-Mountain Brook) was appointed to the commission by Senate President Pro Tem Del Marsh (R-Anniston). Roberts came away from the body’s initial meeting impressed at the experience and expertise of its membership.

“Artificial intelligence, machine learning, and deep learning are very complex subjects. Thankfully, I think we have some of the finest minds in our state working on this project. The sub committees that have been established will allow every person on the commission to hone in on their particular areas of expertise,” Roberts outlined.

The 25 members of the commission are as follows:

Greg Canfield – Secretary of Commerce (chairman)

Marty Redden – Acting secretary of the Alabama Office of Information Technology

Ivey’s appointees:

1. Dr. Hari Narayanan— Auburn

2. Dr. Gerry Dozier— Auburn

3. Dr. Jeff Carver – UA (Tuscaloosa)

4. Dr. Curt Carver – UAB

5. Dr. Alec Yasinac – USA

6. Dr. John Beck – UAH

7. Dr. James Cimino – UAB

8. Melvin Evans – Hand Arendall

9. Jim McLane – NaphCare

10. Jacob Kosoff – Regions Bank

Lt. Governor Will Ainsworth’s appointees:

Joshua Jones – StrategyWise

Dr. Vicki Karolewics – Wallace State Community College

Speaker of the House Mac McCutcheon’s appointees:

Rep. Kirk Hatcher

Rep. Craig Lipscomb

Marsh’ appointees:

Sen. Jabo Waggoner (Vice-chair)

Sen. Dan Roberts

Non-Voting members appointed by the governor:

J. Michael Hardin – Provost & vice president at Samford University

John Brandt – Southern Company

Leonard Tillman – Balch & Bingham

Mike Rowell – Senior VP & CIO at ALFA Insurance

James Mizell – Senior account executive at Microsoft

Jason Asbury – NXTsoft

Dr. Syed Raza – Jefferson State Community College

An Alabama CEO, also a commission member, said artificial intelligence is on the cusp of transforming every industry.

“Artificial intelligence is rapidly changing every industry, and it is incredibly important for us as a state to think strategically about what that means to our economy,” advised Joshua Jones, CEO of Birmingham-based StrategyWise, an AI and data science consulting firm.

He concluded, “I applaud Senator Waggoner and Secretary Canfield for leading Alabama to be one of the first states to really address these opportunities and changing dynamics systematically. It sends a message to the rest of the U.S. that Alabama is serious about investing in our future, and we’re growing our tech-based ecosystem. For companies that want to leverage all that AI has to offer, we’re going to be prepared with a trained workforce, accommodating public policy, and a strong tech infrastructure.”

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

2 hours ago

Decatur Mayor Tab Bowling open to Tennessee River toll bridge — If that moves freight, freight companies, truckers ‘would just be thrilled to do it’

For decades, traffic headed west from Huntsville and other points toward the Shoals has relied upon the Captain William J. Hudson “Steamboat Bill” Memorial Bridges to cross the Tennessee River into Decatur. Once traffic crosses that bridge, it either heads south on U.S. Highway 31 toward Hartselle and Cullman, or it makes a hard-right 90-degree turn on to U.S. Highway Alternate 72 and heads toward Muscle Shoals, Tuscumbia and Sheffield.

As the manufacturing base in northern Alabama expands, freight traffic is expected to increase at that intersection and make the turn west even more precarious for commuters and commercial traffic.

During an appearance on Huntsville radio’s WVNN on Wednesday, Decatur Mayor Tab Bowling discussed that spot and possible solutions for the future, which could include a tolling component.

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“If you were to go now and sit in the Doubletree Hotel, which is where you’re talking about there where you make that turn to go to the Shoals, and just look at the amount of freight that comes in out of Memphis — Memphis is the distribution hub for America,” Bowling said on Wednesday’s broadcast of “The Jeff Poor Show.” “And that freight that comes out of Memphis, straight down [U.S. Highway Alternate] 72, and then it makes its way across our bridge and goes various routes from there — into Huntsville, Madison, Athens, gets on [Interstate] 65, has different directions it can go from there. But whenever we start producing a thousand cars a day, we have 4,000 employees plus the tiered suppliers who will be there. The amount of freight that will come in to take care of that I believe is going to double.”

Bowling noted the situation at the Hyundai facility near Montgomery as a sign of what is to come and commended Gov. Kay Ivey for the commitment to widen the existing Interstate 565 that connects Decatur and Huntsville.

“We visited the Hyundai facility manufacturing a thousand cars a day just south of Montgomery — just-in-time deliveries: batteries, tires, things of that nature — they receive a truck a minute,” he continued. “You think widening [Interstate] 565 is important? Heck yeah, it’s important. We’re thankful Gov. Ivey is going to get that done for us in the Spring of 2020.”

The Decatur mayor said the completion of a nearby overpass for Alabama Highway 20 remains his current top priority.  Once that is completed, Bowling said exploring the possibility of an alternate route over the Tennessee River would be appropriate.

“We’re working on an overpass on [Alabama] Highway 20 where Apple Lane Farms is,” he said. “That’s Decatur, and that’s a build grant that we received for $14 million from the Federal Highway Department. We’re very thankful for that. A lot of people made that happen. Once that project gets going, then we’ll start working on the other. But we want to be sure we do everything to make sure that project gets going first.”

As for the possibility of using tolls to finance a new bridge, Bowling said he expected that those moving freight would be “thrilled” if it expedited transit and that if it would improve commuter traffic on existing structures, it could be a possibility.

“If that moves freight, I would believe that the freight companies, the truckers would just be thrilled to do it,” Bowling explained. “If we were to take the trucks off of the [U.S.] Highway 31 bridges, I believe that our commuter traffic — it would be a lot easier to make that commute. And so, we’ll see what we can do. We’ll come up with a traffic plan. We’ll do traffic counts. Things to prove it out.”

@Jeff_Poor is a graduate of Auburn University, the editor of Breitbart TV and host of “The Jeff Poor Show” from 2-5 p.m. on WVNN in Huntsville.

3 hours ago

Patriot Flag to be displayed in Mobile on Thursday to honor fallen American heroes

The Patriot Flag will be displayed at the USS Alabama in Mobile on Thursday, September 19.

According to WALA Fox 10, the flag is currently on a national tour intended to honor and thank fallen American men and women who made the ultimate sacrifice for our nation’s freedom and safety.

Measuring 28 by 60.5 feet and weighing 50 pounds, the Patriot Flag’s nationwide journey began on the 15th Anniversary of 9/11 when the flag was displayed at all three locations that were attacked by radical Islamic terrorists. The tour will end in 2021, on the 20th anniversary of the attacks.

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On Thursday, the flag will be unfurled at 3:00 p.m. at Battleship Memorial Park. Mobile Fire-Rescue firefighters will assist.

You can read more about the tour and see photos from previous stops here.

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