Preparing to run for office means fending off rumors. No surprise that as I prepare to reenter Montgomery politics next year, I have gotten tips that “people are asking about your finances” and “do you have a tax problem?”
So, I am going to beat the rumor-mongers to the punch by telling you that even they get it right sometimes. I do owe back federal taxes for one year, 2015, and the amount, roughly $272,000, is almost double what my wife and I currently earn in wages. I had a large one-time surge in income because I cashed out four years of stock options I earned from serving on a corporate board of directors.
I spent those options on three big ticket items: unexpected family medical bills, paying the tax penalty from the stock sales and financing my race for Mayor of Montgomery. If I knew the tax code as well as I should have, I would have known that the $325,000 I paid the IRS was still not enough.
I am in debt because I made the fundamental error of calculating my own tax rate and getting the baseline wrong: I thought that a stock transaction would be taxed at a rate of 20 percent. In fact, if the stock is held for less than a year, it leaps to a much higher rate, in this case, nearly 40 percent. A former member of the congressional tax writing committee should have known better: if I had more money in those days than the mid six figure congressional salary, I suspect I might have been more attuned to the specifics of what tax laws do to families. I was a pretty good congressman, but I should have known every nuance of the tax code I voted on revising numerous times.
The same ignorance about the difference in long and short-term capital gains spilled over into another blunder, not appreciating that every individual stock sale within the year triggered new taxes and new debt to the IRS.
My “do it yourself accounting” meant that the taxes I paid the federal government in 2016 were about $270,000 short, not a good place to be when it took another year to find work. For the last two years, we have survived on a rickety structure of dwindling savings, a blend of salary and consulting fees that have yet to exceed $100,000 annually, and my wife’s modest salary as a non-profit employee. I have withdrawn virtually half of my retirement account to stay afloat during periods without work.
My tax lawyer and I have spent several years petitioning the IRS to accept payment plans, negotiated settlements, and we are still stuck in the maze of IRS bureaucracy.
When you owe federal taxes, the government files a lien even if you are trying to work out a resolution, and it remains until the debt is paid. A lien is not a pretty thing to have sitting on your credit and it puts an anchor on any lottery you might win, or any property that you might sell.
But a lien doesn’t make a citizen a tax cheat or a tax dodger. Those slurs describe people who file false returns and try to hide their income from the government. Most liens are not a sign of irresponsibility. They are a sign you are powerless to pay a bill that way exceeds your current means.
The sources spreading the rumors about my tax debt no doubt hope that a tax lien is toxic enough to be a disqualifier from political office.
A year and a month from now, when Montgomery elects its next mayor, we will see. I happen to believe that enduring a financial crisis, instead of closing the door, ought to make your service more informed and more sensitive. I have had an involuntary education in what it means to be a middle-aged man who lacks the capital to start his own business, the client base to attract a law firm, or the family wealth to ride a parent’s coattails. I have established I am no tax expert, but I put faith in the reality that Montgomery is full of folks who have struggled when our dreams and hopes didn’t come through. Perhaps a leader should know up close what that burden feels like.
At minimum, my tax fight ensures I can’t be another politician who cavalierly regards taxes as just the leveraging of other people’s money to wager on my good ideas. That awareness won’t intimidate me into taking an automatic no new taxes pledge, but it reinforces my caution about the reflex I hear these days in Montgomery that the real answer to our failing schools is “make them pay more taxes.”
I live first hand with the unfairness in our code, which for example taxes the royalties from the books a dozen congressmen write at a lower rate than the stock transactions millions of ordinary Americans make. I am dealing with the inequity of a tax law that does not adequately account for the current inability to pay. And while I left the Republican Party, they aren’t wrong when they say that the government takes too much of the money we earn.
Stacy Abrams, who may become Georgia’s first black governor in November, is right when she says that her $200,000 of debt to credit cards and IRS liens should not block her ambition, or the aspirations of us mere mortals who are trying to recover from our personal recession. In this depressing political age, more of us flawed, imperfect, indebted mortals should step forward and own the lessons from spending time in the valley instead of running from them.
Opinion | Amendment 4 is an opportunity to clean up the Alabama Constitution
The 1901 but current Alabama Constitution has been amended about 950 times, making it by far the world’s longest constitution. The amendments have riddled the Constitution with redundancies while maintaining language and provisions — for example, poll taxes — that reflect the racist intent of those who originally wrote it.
A recompilation will bring order to the amendments and remove obsolete language. While much of this language is no longer valid, the language is still in the document and has been noted and used by other states when competing with Alabama for economic growth opportunities.
The need for recompilation and cleaning of Alabama’s Constitution has been long recognized.
In 2019, the Legislature unanimously adopted legislation, Amendment 4, to provide for its recompilation. Amendment 4 on the Nov. 3 general election ballot will allow the non-partisan Legislative Reference Service to draft a recompiled and cleaned version of the Constitution for submission to the Legislature.
While Amendment 4 prohibits any substantive changes in the Constitution, the LRS will remove duplication, delete no longer legal provisions and racist language, thereby making our Constitution far more easily understood by all Alabama citizens.
Upon approval by the Legislature, the recompiled Constitution will be presented to Alabama voters in November 2022 for ratification.
Amendment 4 authorizes a non-partisan, broadly supported, non-controversial recompilation and much-needed, overdue cleaning up of our Constitution.
On Nov. 3, 2020, vote “Yes” on Amendment 4 so the work can begin.
Opinion | Auburn Student Center named for Harold Melton, first Auburn SGA president of color
The year 1987 was a quiet one for elections across America but not at Auburn. That was the year Harold Melton, a student in international studies and Spanish, launched and won a campaign to become the first African American president of the Auburn Student Government Association, winning with more than 65 percent of the vote.
This was just the first of many important roles Harold Melton would play at Auburn and in an extraordinarily successful legal career in his home state of Georgia, where his colleagues on the Georgia Supreme Court elected him as chief justice.
Last week, the Auburn Board of Trustees unanimously named the Auburn student center for Justice Melton, the first building on campus that honors a person of color. The decision was reached as part of a larger effort to demonstrate Auburn’s commitment to diversity and inclusion.
In June, Auburn named two task forces to study diversity and inclusion issues. We co-chair the task force for the Auburn Board with our work taking place concurrently with that of a campus-based task force organized by President Jay Gogue. Other members of the Board task force are retired Army general Lloyd Austin, bank president Bob Dumas, former principal and educator Sarah B. Newton and Alabama Power executive Quentin P. Riggins.
These groups are embarking on a process that offers all Auburn stakeholders a voice, seeking input from students, faculty, staff, alumni, elected officials and more. It will include a fact-based review of Auburn’s past and present, and we will provide specific recommendations for the future.
We are committed to making real progress based on solid facts. Unlike other universities in the state, Auburn has a presence in all 67 counties through the Alabama Cooperative Extension System. Our review has included not only our campuses in Auburn and Montgomery but all properties across our state. To date, we have found no monuments or statues recognizing the history that has divided our country. We will continue our fact-finding mission with input from the academic and research community.
Our university and leadership are committed to doing the right thing, for the right reasons, at the right time. We believe now is the right time, and we are already seeing results.
In addition to naming the student center for the Honorable Harold Melton, we have taken steps to highlight the significant role played by Harold Franklin, the student who integrated Auburn. We are working to enhance the historical marker that pays tribute to Mr. Franklin, and we are raising its visibility in campus tours as we pay homage to his contributions as our first African American student. Last month, we awarded Mr. Franklin, now 86 and with a Ph.D., a long-overdue master’s degree for the studies he completed at Auburn so many years ago.
We likewise endorsed a student-led initiative creating the National Pan-Hellenic Council Legacy Plaza, which will recognize the contributions of Black Greek organizations and African American culture on our campus.
In the coming months, Auburn men and women will work together to promote inclusion to further enhance our student experience and build on our strength through diversity. The results of this work will be seen and felt throughout the institution in how we recruit our students, provide scholarships and other financial support and ensure a culture of inclusion in all walks of university life.
Our goal is to identify and implement substantive steps that will make a real difference at Auburn, impact our communities and stand the test of time.
Naming the student center for Justice Melton is but one example. In response to this decision, he said, “Auburn University has already given me everything I ever could have hoped for in a university and more. This honor is beyond my furthest imagination.”
Our job as leaders at Auburn is more than honoring the Harold Meltons and Harold Franklins who played a significant role in the history of our university. It is also to create an inclusive environment that serves our student body and to establish a lasting legacy where all members of the Auburn Family reach their fullest potential in their careers and in life.
Opinion | Alabama lags behind the nation in Census participation with deadline nearing
The United States Census is starting to wind down around the country with a Sept. 30 deadline for the national population to be completed. However, a United States District Court has recently ruled that the date may be extended another 30 days to allow more time for the census to take place.
Regardless of the deadline, Alabama has work to do when it comes to the census.
To date, the national average for participation around the country has been almost 65 percent for the census.
Unfortunately, Alabama residents are providing data to the census at a lower percentage, around some 61 percent of the state population.
There is already concern among state leaders that if that number does not reach above 70 percent, then the state will lose a seat in Congress, a vote in the electoral college and millions of federal dollars that come to the state every year.
The percentage of participation has varied widely around the state, from a high of 76 percent in Shelby County to a low of 36 percent in neighboring Coosa County.
State leaders are making a final push to request Alabama residents fill out the census in the last month before it is closed.
We will find out later this fall if Alabama passes the national average of participation in the census compared to other states to retain both its future representation and share of federal dollars.
In the meantime, Alabamians need to fill out their census forms.
The state is depending on it.
Opinion | This Labor Day let’s honor Alabama’s workers
In July, the Southwest Alabama Labor Council made the tough decision to cancel what was going to be our 75th annual Labor Day Parade in Mobile in order to ensure the safety of our affiliates, members, and the general public.
Needless to say, I’m crushed. Each year, there’s nothing I look forward to more than gathering with union members far and wide to celebrate Alabama’s union members. After all we have been through in 2020, no one deserves a day of love and celebration more than our workers.
For many of us, Labor Day represents a day off to enjoy our last day of summer. But Labor Labor Day is so much more than just picnics and gearing up to go back to school—it is a day to honor America’s working people. In the face of this unprecedented pandemic, it’s important now more than ever to support Alabama’s workers first.
Unfortunately, Alabama was ranked the worst state in the country to work during the COVID-19 pandemic. When I first read this, I was heartbroken. Then I got angry.
The COVID-19 pandemic has spotlighted challenges that have always faced Alabama’s working people. Inequality. Poor working conditions. No mandated sick or family leave. For decades, Alabama’s labor movement has fought tooth and nail for these sorts of protections, only to be pushed back by members in Congress who want nothing more than to destroy unions at the expense of our working people.
In Steve Flowers’ Sept. 3 column, Flowers points out how different things were in Alabama not too long ago. From 1946-66, “Alabama was the most unionized state in the South by far. In fact, every major employer in the State of Alabama was a union shop.”
Ordinarily, I’d feel crushed reading such a statement. But like my anger mentioned earlier, this time around, I’m determined.
This Labor Day, we have a chance to build back the power of the labor movement in our state by gearing up for what could be the most important elections in Alabama’s modern history.
At the forefront, we have the opportunity to elect Joe Biden as the President of the United States, thereby ending the most virulently anti-labor administration we have seen in the last century.
And here in Alabama, we all-in for the fight to re-elect Senator Doug Jones. Sen. Jones has been nothing but an ally to our working people, especially in pushing his Senate colleagues to take up HEROES Act — a comprehensive COVID-19 relief bill currently sitting untouched in Mitch McConnell’s lap.
In total, the Alabama AFL-CIO has endorsed ten candidates running for office in 2020. By electing politicians who will fight for America’s working class and uplift the labor movement, we can keep making real progress in the fight for a fair economy and a just society.
This Labor Day, whether it’s time to head in after a socially-distanced gathering with loved ones or a Zoom call with friends, take the time to reflect on why we get to celebrate this holiday. Labor unions bring the freedom to balance life and work — the freedom in knowing that one job is enough, that you can be with a sick child or parent without losing your job, that you can report hazards without being fired. This Labor Day, let’s get fired up for a better Alabama.