Politics

11:30 am TODAY! Rain or Shine March on the Mansion for Righteousness and Justice!

Calling for an end to racism and infanticide and a call to return to values of Dr. Martin Luther King and Frederick Douglass.

  • Unity Rally and March for Righteousness and Justice calling for an end to racism, and infanticide and a return to values of Dr. Martin Luther King and Frederick Douglass.
  • Free bus transportation available!

March On the Mansion
Saturday, February 23rd
11:30 am – 1:30 pm
The Capitol’s Steps
1000 Bank St
Richmond, VA

Free Tickets 

SPEAKERS:
Rev. Dean Nelson, Chairman of Douglass Leadership Institute (DLI) and Chairman of the Frederick Douglass Foundation (FDF)
 
Rev. William Keen, Southern Christian Leadership Conference (SCLC) Virginia President
 
Kevin Chandler, National Association for the Advancement of Colored People (NAACP) Virginia President

 

Following the march will be a Strengthening the Black Family event at Mount Olivet Church, 1223 North 25th Street, Richmond, VA 23221 from 3:00 PM to 5:00 PM (EST).

Strengthening the Black Family is a forum that celebrates the importance of family in the black community while highlighting the challenges facing many of our children due to single parent households, divorce and poverty. Coming from the political and policy world, this leadership training is transforming the lives of participants as they work in the business and political world.

 

GET ON THE BUS!

Greetings:

The Andrew Shannon Gospel Music Celebration will be providing passenger buses for professional transportation services for passengers in the Suffolk, Portsmouth, Chesapeake, Hampton, Newport News, Danville, Pittsylvania County, and Halifax County areas for the “March On The Mansion” on Saturday, February 23, 2019.

GET ON THE BUS TO RICHMOND, VIRGINIA
** FREE BUS RIDE**   

“MARCH ON THE MANSION!”
FOR RIGHTEOUSNESS & JUSTICE
  SATURDAY, FEBRUARY 23, 2019

WHERE: PATRICK HENRY MALL IN THE DILLARD STORE PARKING LOT ADJACENT TO THE OUTBACK STEAKHOUSE RESTAURANT IN NEWPORT NEWS, VA

WHEN: SATURDAY, FEBRUARY 23, 2019

BUS LOADING TIME: 9:15 AM

DEPARTURE TIME:    9:30 AM

ARRIVAL RICHMOND, VA  11:00 AM

DEPART RICHMOND, VA   2:00 PM

ARRIVAL NEWPORT NEWS 6:00 PM

ADDITIONAL PICK-UP LOCATIONS:

Lowe’s At Victory Crossing Shopping Center Portsmouth, VA

Saturday, February 23, 2019

Loading Time:     8:30 AM

Departure Time: 9:00 AM

ADDITIONAL PICK-UP LOCATIONS: 

Pick-up Date: Saturday, 02/23/2019

Pick-up Time: 07:00 AM

Vehicle Type: 55 Passenger Bus

Routing Details: Pick Up: Walmart Super Center, 515 Mt. Cross Road, Danville VA, 24540

ST: Riverdale Food Lion Shopping Center, 1020 Bill Tuck Hwy #1000, South Boston VA, 24592

ST: , Capitiol Square, 1000 Banks Street, Richmond VA,

Drop Off: Walmart Super Center, 515 Mt. Cross Road, Danville VA, 24540

For more information, contact (757) 877-0792; (757) 218-8157; (757) 842-2746

or (434) 489-3114. 

Thank you for your assistance and consideration.

 With kindest regards.

 Andrew Shannon



Global Intangible Low-taxed Income (GILTI) And Other Tax Provisions Of Great Interest

Reprinted with the Author’s Permission.  Originally published in Bacon’s Rebellion.

In proposals which would further distance Virginia from the tax reforms of President Donald Trump, the General Assembly is being asked to let Virginia corporations keep two major deductions no longer allowed at the federal level.

The protection of a well-connected few will outweigh a possible benefit to the many, which seems to be what always happens when Virginia tries tax reform.

TCJA Adds 1.2 BillionIf the General Assembly agrees, the chance for a general corporate income tax rate reduction probably goes away. The protection of a well-connected few will outweigh a possible benefit to the many, which seems to be what always happens when Virginia tries tax reform.

The focus so far in the tax conformity debate has been on individual taxpayers, but $318 million of the $1.2 billion in new revenue generated by conformity over two years will come from corporations. You won’t find that number in any presentations from the Northam Administration, but the Senate Finance Committee reported it (see chart above.) In future years the new corporate income taxes grow faster than the individual taxes.

It works the same as with individual taxes. Congress eliminated several popular deductions but compensated with major rate cuts, leaving lower taxes overall. If Virginia conforms to all the lost deductions but keeps its corporate tax rate the same, the result is higher taxes overall.

Many businesses don’t use either deduction, but some that do are pushing hard to maintain them at the state level.

There are several bills pending in the House and Senate that propose to reduce the state’s corporate income tax rate from 6 to 5 percent, in two half-percent steps. That step has been endorsed by the National Federation of Independent Business and the Virginia Manufacturers Association.

If the $300 million in expected corporate tax revenue growth is all you can work with, both steps cannot be taken at once. The 2019 General Assembly must either restore deductions to protect the select few or cut the rates to benefit all. (It also might do nothing on corporate taxes, and just spend the money.)

It is the same question as with the competing proposals dealing with individual taxes. Do you fully conform to the new federal system, but use the revenue to provide general tax relief through a higher standard deduction or lower rates? Or do you reject key parts of the new federal system and restore the status quo ante Trump.

The largest of the two deductions involved interest expenses, which are still deductible but now more limited under the new federal rules. Bills to restore the full interest deduction in Virginia include House Bill 2701 and Senate Bill 1697. According to the conformity revenue study commissioned by the Northam Administration, the new rules will cost certain Virginia taxpayers an additional $123 million for Tax Year 2018 and $90 million for Tax Year 2019.

That one conformity provision accounts for two-thirds of the additional revenue generated from corporations in 2018 and 2019.

The other issue has smaller dollars attached to it, about $7 million a year. Everybody enjoys the associated acronym, GILTI, which stands for Global Intangible Low-taxed Income. The bills to create a Virginia-only deduction for GILTI are House Bill 2700 and Senate Bill 1698. Virginia has long allowed a deduction for income earned overseas, so there is a strong argument that exempting this new category of taxable income is in line with that old policy.

Because there are individual bills, it is easy to adopt one and reject the other, which could happen. More details follow on the interest deduction, a.k.a. IRC Section 163(J).

As previously noted, Congress didn’t eliminate interest deductions for businesses but imposed major new limits. Those seeking to keep the full deduction on their state taxes argue it will make Virginia more attractive to investment and point to other examples where Virginia has refused to conform on business deductions.

“Congress only limited interest deductibility to pay for a lower federal corporate income tax rate and 100 percent expensing,” reads an industry handout supporting the deduction. “This way, companies are incentivized to invest in new assets without over-relying on debt. However, Virginia decouples from federal 100 percent expensing under IRC §168(k). Therefore, Virginia should decouple from IRC §163(j) because Congress intended for these provisions to act together.”

The sheet is being distributed by an organization known by the acronym OFII, made up of foreign-owned companies, which often do have complicated corporate structures and internal loans going back and forth across borders. Arguments over how to tax those structures and transactions have gone on as long as the U.S. has had an income tax.
Here is how the Department of Taxation described the issue in a recent presentation:

“Prior to TY 2018, the deduction of investment interest was limited. For individuals, the deduction is limited to investment income. For corporations, interest may be disallowed if debt-to-equity ratio exceeds 1.5/1.0 and net interest expense exceeds 50% of adjusted income. Disallowed interest may be carried forward.

“Beginning in 2018, the deduction is limited to 30% of the business’s adjusted income. Special rules or exemptions for partnerships, certain utilities, and businesses with gross receipts less than $25 million. Disallowed interest may be carried forward.”

It’s way more complicated than that. The actual IRS guidelines on the issue are long and illegible.

Easier to understand are two articles from Forbes magazine, here and here, which indicate Congress had policy reasons for what it did and was not just trying to grab revenue. For businesses or individuals, deductions nudge taxpayers toward a certain decision or investment. Congress was interested in reducing the incentives for corporate debt and creating a level playing field between debt and equity.

And it was going after the kind of behavior described in this Forbes excerpt:

“When you allow businesses to deduct interest expense, big businesses will abuse that deduction. A primary example is so-called “earnings strippings,” where a U.S. corporation borrows money from a foreign affiliate in a low-tax jurisdiction. When the U.S. (affiliate) deducts the interest it pays on the borrowing, it “strips” the earnings out of the (pre-2018) high-tax U.S., and moves those earnings to a lower-tax or tax-indifferent locale.”


Break the Monopoly of the Virginia Education Association, Support SB 1236

In Virginia, Teachers have only one choice for a professional organization to represent them – the Virginia Education Association (a subsidiary of the National Education Association). The VEA has a monopoly on school divisions. It is time Teachers are given a choice of professional organizations and SB1236 gives them that choice! Please contact the following committee members and tell them to support teachers’ rights and vote yes on SB1236.

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The Structure of Political Revolutions

Peter Churins | Freelance Author

In a 1963 book entitled, The Structure of Scientific Revolutions, written by Thomas Kuhn, a professor of science history at the University of California, the author theorized that major changes in scientific fields do not evolve gradually, but rather they occur rapidly as beliefs in existing systems breakdown. When old methods won’t solve new problems, new solutions are found and change the underlying tenets by which those systems operate. This is known as a “paradigm shift.”

 

Trump giving speech

 

When old methods won’t solve new problems, new solutions are found and change the underlying tenets by which those systems operate. This is known as a ‘paradigm shift.’

Paradigm shifts are not limited to science or academia, but rather, occur across all types of systems, organizations, and structures – even a nation’s psyche. They are similar to a collective light bulb going off in a group of people’s heads when a better way of doing things comes about. Once adopted, a new paradigm replaces the old and a shift occurs.

Competing paradigms exist in other areas of human endeavor, not just science. For example, communism and capitalism have opposed each other since the turn of the 20th Century. However, communism never gained full traction except within the industries related to Hollywood, which it captured in the 1930s and still controls today. This is why actors, actresses, screen writers, and anything Hollywood are so far left. If one wants to work, he or she must be rabidly liberal. See Tinseltown Travelogue, Part 2 for a full expose.

A new political paradigm began in the tumultuous 1960s spurred on by dissatisfaction with the Vietnam War, African Americans seeking freedom from oppression at home, and the advent of a baby-boom generation coming into maturity. This was a generation that had no inkling of the horrors of World War II or the deprivation of The Great Depression.

This new paradigm was based upon the concepts of social justice, communal sharing, and egalitarianism. It took hold and grew to significant proportions. Socialism was a major tenet and presented a softer face than communism. Redistribution of wealth was easier to sell to impoverished citizens.

Poverty and social programs became the mantra of politicians, but the programs they established often did not work or worked in the opposite direction. Programs grew in size and number and stretched well beyond their original intent. Often these programs benefited administrators and elites rather than the people they were meant to serve. (See Businesses linked to McCaskill’s husband gets $131 million.)

Ironically as America has accumulated huge wealth, it has squandered it due to the increased size of government and irresponsible spending. Our national debt has grown out of control and threatens the viability of America. There is no end to the spending or borrowing.

Today, politicians offer Medicare-for-All while the present system is due to go bankrupt in about ten years. The U.S. Government has spent huge amounts of money on the Federal Department of Education since its establishment in the 1960s, yet the educational achievements of our children have steadily deteriorated from 1st to 17th in the world. Open borders and unlimited illegal immigration are touted as good for America, regardless of the costs.

The power of an un-elected Deep State has grown and hides within a bloated federal government as it challenges our elected institutions. It appears that Hillary Clinton illegally sold uranium assets to the Russians for which she has never been held accountable. She is presently at the center of a silent coup to overturn a duly-elected president. Fake News abounds and the mainstream media promotes its favored political parties and causes.  The list goes on.

However, with the election of President Donald J. Trump a massive paradigm shift may be occurring that will supplant the established order favoring big government and wanton spending.  Had Hillary Clinton been elected president, a totalitarian state based upon radical-socialist principles would have been realized. But she didn’t win, her dream of the presidency was crushed, and the progression toward a communist America was halted.

This is why the Democrat Party is reacting with such vengeance and pulling out all the stops with false accusations and acts of physical aggression towards duly-elected members of Congress or anyone disagreeing with them. It is all in reaction to their loss of power and control and they want it back.