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Tax Increase Package Pulled at Last Minute: Could Come Back

Brandon Moseley

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By Brandon Moseley
Alabama Political Reporter

On Tuesday, May 12, the Republican controlled Alabama House of Representatives opened the legislative day with a calendar featuring tax increases – something most Republican House members have pledged to voters never to vote for.  In the hours before the session began though a number of sources were saying that the revenue bills would be pulled at the last second.  The plan being promoted by Speaker of the House Mike Hubbard (R-Auburn) and House Ways and Means General Fund Committee Chairman Steve Clouse (R-Ozark) would have raised an estimated $150 million annually in tax increases for the General Fund.

As expected, when the House opened at 1:00 PM negotiations were well under way on a new calendar of business.  The House Rules Committee introduced a new calendar of business that didn’t look anything like the old calendar.

Gone were the four new tax increase bills.

The biggest was a bill (HB572) to increase the tax on cigarettes by 25 cents per pack and decrease the discount to wholesalers on tobacco tax stamps from 7.5 percent to 4.75 percent. The bill was projected to generate an estimated $66 million in revenue for the state’s beleaguered general fund. HB572 was sponsored by Rep. Patricia Todd (D-Birmingham). Alabama Governor Robert Bentley (R) has asked for an 85 cents per pack tax increase.

HB267, sponsored by Chairman Steve Clouse, would increase the lease tax on rental cars from 1.5 to 2 percent. HB267 would generate an estimated $6 million.  Gov. Bentley had asked for a much larger tax increase on rental and leased cars.

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The Hubbard/Clouse plan also called for a bill, HB578, to increase the fee on car titles from $15 to $25.  This was projected to generate $14 million per year for the state of Alabama’s general fund and was sponsored by freshman State Representative Chris Sells (R-Greenville).

Finally HB581 was also on the original calendar.  HB581 raised the maximum business privilege tax from $15,000 to $22,000.  This one move was projected to generate $39 million a year for the general fund.  HB581 was sponsored by Rep. Elaine Beech (D-Chatom).

All of the bills were postponed when the new calendar replaced the old, thus none were voted down by the House.  Any of them can come back with a new calendar.  The House and Senate are reportedly in intense negotiations on a compromise General Fund Budget.

State Senator Harri Anne Smith (R-Slocumb) said in a statement on Facebook, “There is a slow down because there is a lot of discussion between Senate and House on The REAL PROBLEM we face and that is the General Fund Budget….Sometime we are addressing one issue on the floor of the Senate while work is being done to craft a solution to other problems that take more work. The Budget will start in the house and it is good to see our own Rep. Steve Clouse (Chairman of the House General Fund) up stairs with us in The Senate Chambers sitting down with Senator Author Orr (Senate General Fund Chairman) discussing all the solutions that could be presented to the committee and the public. It is not easy to get an agreement on a solution and it is so good to see them working together. There is HOPE.”

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Gov. Robert Bentley has demanded passage of a massive $541 million tax.  The Hubbard/Clouse tax plan would have just raised $150 million a year.  Most sources estimate that shortfall in the state’s General Fund at ~$261 million for the 2016 fiscal year beginning on October 1.  Speaker Hubbard also supports a compact with the Poarch Band of Creek Indians (PCI) giving the Indians a state recognized monopoly in exchange for a $250 million payment plus taxes.

Gov. Bentley has threatened to make legislators return for special sessions until he gets the tax money that he is demanding.

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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USDA is seeking rural energy grant applications

The deadlines to apply for grants is Feb. 1, 2021, and March 31, 2021. Applications for loan guarantees are accepted year-round.

Brandon Moseley

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(STOCK PHOTO)

United States Department of Agriculture Deputy Under Secretary for Rural Development Bette Brand on Wednesday invited applications for loan guarantees and grants for renewable energy systems, and to make energy efficiency improvements, conduct energy audits and provide development assistance.

The funding is being provided through the USDA’s Rural Energy for America Program, which was created under the 2008 Farm Bill and reauthorized under the 2018 Farm Bill. This notice seeks applications for Fiscal Year 2021 funding.

The deadlines to apply for grants is Feb. 1, 2021, and March 31, 2021. Applications for loan guarantees are accepted year-round.

REAP helps agricultural producers and rural small businesses reduce energy costs and consumption by purchasing and installing renewable energy systems and making energy efficiency improvements in their operations.

Eligible systems may derive energy from wind, solar, hydroelectric, ocean, hydrogen, geothermal or renewable biomass (including anaerobic digesters).

USDA encourages applications that will support recommendations made in the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity to help improve life in rural America.

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Applicants are encouraged to consider projects that provide measurable results in helping rural communities build robust and sustainable economies through strategic investments.

Key strategies include achieving e-Connectivity for rural America, developing the rural economy, harnessing technological innovation, supporting a rural workforce and improving quality of life. For additional information, see the notice in the Federal Register.

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Trump says that coronavirus vaccine deliveries will begin within two weeks

Trump said that front-line workers, medical personnel and senior citizens would be the vaccine’s first recipients.

Brandon Moseley

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(STOCK PHOTO)

President Donald Trump said Thursday that coronavirus vaccine deliveries will begin as early as next week.

“The whole world is suffering, and we are rounding the curve,” Trump said. “And the vaccines are being delivered next week or the week after.”

Trump made the announcement during a special Thanksgiving holiday message to U.S. troops overseas via teleconference. Trump said that front-line workers, medical personnel and senior citizens would be the vaccine’s first recipients. He also argued that his election opponent, former Vice President Joe Biden, should not be given credit for the vaccines, which were developed during the Trump administration.

Trump referred to the vaccines, which were developed and tested in less than ten months as a “medical miracle.”

Regulators at the FDA will review Pfizer’s request for an emergency use authorization for its vaccine developed with BioNTech during a meeting on Dec. 10. The director of the FDA’s Center for Biologics Evaluation and Research says a decision is expected within weeks, possibly days after that key meeting.

The latest trial data for Pfizer and BioNTech’s vaccine showed that it was 90 percent effective.

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The CDC plans to vote next week on where the distribution of approved vaccines will begin and who will be allowed to get the first vaccines when they become available.

Dr. Celene Gounder, a member of Biden’s COVID Advisory Board, warned against rushing a vaccine to market.

“The single biggest risk of rushing an approval would be Americans’ distrust the vaccine,” Grounder said. “It’s essential people feel confident this is a safe and effective vaccine.”

Moderna said that its vaccine is 94.5 percent effective in preventing COVID-19.

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AstraZeneca says its preliminary results showed its vaccine ranged from 62 percent to 90 percent effective depending on the dosage amount given to participants. AstraZeneca is having to launch a second round of global trials to clear up the discrepancies.

Many Americans appear to have ignored CDC warnings to scale back Thanksgiving holiday plans. More than six million Americans flew over the holiday week, raising fears by public health officials that the surge in coronavirus cases we are experiencing now will be followed by a bigger surge in the next three weeks.

As of press time, there have been 62 million diagnosed cases of coronavirus cases in the world, including nearly 13.5 million in the United States, but many cases are mild and go undiagnosed.

A CDC researcher estimates that the real number of infections in the U.S. has topped 53 million since February. More than 1.4 million people have died around the world since the virus first appeared in China late last year. The death toll includes 271,029 Americans and 3,572 Alabamians.

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The Iron Bowl is Saturday

Alabama will have to play without head football coach Nick Saban who has tested positive for the coronavirus.

Brandon Moseley

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The 2019 Iron Bowl (VIA ALABAMA FOOTBALL/UNIV. OF ALABAMA ATHLETICS)

The Auburn University college football team will play the University of Alabama at Bryant-Denny Stadium in Tuscaloosa on Saturday with the game kicking off at 2:30 p.m. Attendance is strictly limited because of COVID-19 restrictions. The game will be televised on CBS stations.

Alabama will have to play without head football coach Nick Saban who has tested positive for the coronavirus and is experiencing mild symptoms. Offensive coordinator Steve Sarkisian will coach the Crimson Tide in Saban’s absence. He has a 46-35 record as a head coach at USC and Washington.

Auburn will be coached by Gus Malzahn, who has a 67-33 record as a head coach. He is the fifth winningest coach in Auburn history, trailing only Shug Jordan, Mike Donahue, Pat Dye and now-Senator-elect Tommy Tuberville.

Alabama has a 7-0 record and is currently the No. 1 team in the country in the college football rankings. Auburn is 5-2 but with a win could still win the SEC West with wins in its remaining two games, and if Alabama were to lose another game down the stretch. Alabama is just one game ahead of Texas A&M for first place in the SEC West, but the Tide has the tiebreaker by virtue of having defeated the Aggies in head-to-head competition.

In addition to team honors, there is a lot riding for individual players in today’s game. Alabama redshirt junior quarterback Mac Jones has thrown for 2,426 yards and 18 touchdowns in Alabama’s first seven games. Jones’s strong performance has made him a Heisman contender and has earned him consideration as a possible first-round or high second-round draft pick by the NFL if he were to leave Alabama early.

Auburn quarterback Bo Nix has thrown for 1,627 yards and ten touchdowns over seven games.

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Alabama and Auburn played their first football game against each other in Lakeview Park in Birmingham on Feb. 22, 1893. The game is called the Iron Bowl because historically the game was played on a neutral site: Birmingham’s historic Legion Field. Birmingham at the time was best known for the iron that was mined there and then made into steel and other metal products.

The game is now played as a home and home series, but the Iron Bowl name has stuck with the rivalry.

Alabama leads the series with 46 wins to Auburn’s 37. There has been one tie. Auburn defeated Alabama 48 to 45 in last year’s high scoring contest.

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Health

Vaccines should protect against mutated strains of coronavirus

Public health experts say it will be some time before vaccines are available to the wider public.

Eddie Burkhalter

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(STOCK PHOTO)

Multiple vaccines for COVID-19 are in clinical trials, and one has already applied for emergency use authorization, but how good will those vaccines be against a mutating coronavirus? A UAB doctor says they’ll do just fine. 

Dr. Rachael Lee, UAB’s hospital epidemiologist, told reporters earlier this week that there have been small genetic mutations in COVID-19. What researchers are seeing in the virus here is slightly different than what’s seen in the virus in China, she said. 

“But luckily the way that these vaccines have been created, specifically the mRNA vaccines, is an area that is the same for all of these viruses,” Lee said, referring to the new type of vaccine known as mRNA, which uses genetic material, rather than a weakened or inactive germ, to trigger an immune response. 

The U.S. Food And Drug Administration is to review the drug company Pfizer’s vaccine on Dec. 10. Pfizer’s vaccine is an mRNA vaccine, as is a vaccine produced by the drug maker Moderna, which is expected to also soon apply for emergency use approval. 

“I think that is incredibly good news, that even though we may see some slight mutations,  we should have a vaccine that should cover all of those different mutations,” Lee said. 

Researchers at the University of North Carolina at Chapel Hill and the University of Wisconsin-Madison found in a recent study, published in the journal Science, that COVID-19 has mutated in ways that make it spread much more easily, but the mutation may also make it more susceptible to vaccines. 

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In a separate study, researchers with the Commonwealth Scientific and Industrial Research Organisation found that while most vaccines were modeled after an earlier strain of COVID-19, they found no evidence that the vaccines wouldn’t provide the same immunity response for the new, more dominant strain. 

“This brings the world one step closer to a safe and effective vaccine to protect people and save lives,” said CSIRO chief executive Dr. Larry Marshall, according to Science Daily

While it may not be long before vaccines begin to be shipped to states, public health experts warn it will be some time before vaccines are available to the wider public. Scarce supplies at first will be allocated for those at greatest risk, including health care workers who are regularly exposed to coronavirus patients, and the elderly and ill. 

Alabama State Health Officer Dr. Scott Harris, speaking to APR last week, urged the public to continue wearing masks and practicing social distancing for many more months, as the department works to make the vaccines more widely available.

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“Just because the first shots are rolling out doesn’t mean it’s time to stop doing everything we’ve been trying to get people to do for months. It’s not going to be widely available for a little while,” Harris said.

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