Government

The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

This story was originally published by ProPublica. In 2007, Jeff Bezos, then a multibillionaire and now the world’s richest man, did not pay a penny in federal income taxes. He achieved the feat again in 2011. In 2018, Tesla founder Elon Musk, the second-richest person in the world, also paid no federal income taxes. Michael Bloomberg managed to do the same in recent years. Billionaire investor Carl Icahn did it twice. George Soros paid no federal income tax three years in a row. ProPublica has obtained a vast trove of Internal Revenue Service data on the tax returns of thousands of the nation’s wealthiest people, covering more than 15 years. The data provides an unprecedented look inside the financial lives of America’s titans, including Warren Buffett, Bill Gates, Rupert Murdoch and Mark Zuckerberg. It shows not just their income and taxes, but also their investments, stock trades, gambling winnings and even the results of audits. Taken together, it demolishes the cornerstone myth of the American tax system: that everyone pays their fair share and the richest Americans pay the most. The IRS records show that the wealthiest can — perfectly legally — pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year. Many Americans live paycheck to paycheck, amassing little wealth and paying the federal government a percentage of their income that rises if they earn more. In recent years, the median American household earned about $70,000 annually and paid 14% in federal taxes. The highest income tax rate, 37%, kicked in this year, for couples, on earnings above $628,300. The confidential tax records obtained by ProPublica show that the ultrarich effectively sidestep this system. Read more.

by Jesse Eisinger, Jeff Ernsthausen and Paul Kiel, ProPublica

$125,000 Fund Set Up for Rewards in Shootings of Children

On May 18, Katrina Grady, a nursing assistant for more than 20 years, stopped on the side of Warrior Road to provide aid to what she believed was an injured person in a car. The car was empty, and Grady’s family came under fire. Her 8-year-old daughter, Katilynn, was hit by a rifle bullet and injured in the shoulder and head. Grady was told by doctors that it was a miracle she was alive. “The doctors told me that if she had moved her head any other kind of way, it would have been another situation right now,” Grady said. Tuesday, Grady stood before a crowd at a press conference arranged by Mayor Randall Woodfin and made an emotional plea for change as her daughter stood off to the side. Woodfin announced formation of a $125,000 Gun Violence Against Children Fund, a collaboration with more than 20 churches and organizations to combat gun violence against children in the city. Crime Stoppers will administer the fund to pay $25,000 in reward money for information leading to the arrest of individuals responsible in each of five cases involving children under the age of 10. Arrests already have been made in a sixth case involving another child. “Never in a million years would I have expected something like that to happen,” Grady told the crowd. “For six kids to get shot, we’ve got to do better. Somebody knows who (did) this to my child and I want justice. It hurt me more than anything.” Read more.

by Michelle Love

Birmingham Council OKs Law to Allow Museum to Return Native American Art

The Birmingham Museum of Art will soon return several works of art to two Native American tribes that have requested them back. An ordinance passed Tuesday by the Birmingham City Council has cleared the way for the return of several items to the Tlingit and Haida tribes of Alaska. Read more.

by Sam Prickett

Petelos Plans ‘Uncommon Retirement Process’

Tony Petelos had planned to have his replacement in place before he retired from his position as Jefferson County manager. But a new county manager has yet to be hired as Petelos counts down to the end of his county career. He laughed Tuesday at the notion that the delay in hiring his successor is because it’s so hard to replace him. “The commission waited,” he said. “They lost two months before they decided to move forward with hiring somebody to do a national search. For two months, nothing happened.” Petelos’ last day officially on the job is Friday, June 18. He has vacation days lined up, so he will remain on the payroll for a while. His will be an uncommon retirement process, he said. “Technically, the way it works is when people retire, we're still paying them but they're not here,” he said. “They clean out their desk and they're gone. I'm gonna do mine a little different. I'm not gonna clean my desk out. I will come back if they need me on certain things.” Read more.

by Solomon Crenshaw Jr.

Tuberville Talks Military, Vaccines in Montgomery Stop

MONTGOMERY -- U.S. Sen. Tommy Tuberville made stops in the Capital City Thursday as part of his swing through the state during the Senate recess. After visits to Maxwell Air Force Base and the 187th Fighter Wing at Dannelly Field, Tuberville lauded the missions of Alabama's military installations and spoke of the importance of maintaining them. "There's a lot of tradition here," he said, speaking of Montgomery's history with the Air Force and the "Red Tails" legacy of the 187th. "It's important that we keep it going. Obviously, coming here in the future we've got one of the best weapons the world has ever known in the F-35. We're excited about that. I'm here today to walk around and take a look to see what we can do to move that up, get the needed buildings built quicker and faster..." Read more.

by Todd Stacy, Alabama Daily News

Five Things You Need to Know About Alabama’s New Medical Marijuana Law

Alabama's new medical marijuana law is more than 100-pages long. We did the hard work and pulled out the highlights that may impact you. Read more.

by Miranda Fulmore, WBHM

As Prison Lease Plan Fizzles, Ivey, Lawmakers Considering Options

As the clock ran out on Gov. Kay Ivey’s plan to lease new prisons, several lawmakers say they want to consider using some of the more than $2 billion in new federal Coronavirus relief money on improved prison infrastructure. Earlier this year, Ivey signed lease agreements with Tennessee-based CoreCivic to build two large men’s prisons. Tuesday was the deadline for those agreements to be final and Ivey confirmed to reporters Wednesday that the lease route is no longer an option as support from potential underwriters has fallen away. “To that end, my team and I will meet with legislative leaders again in the coming days to review all that we have learned through this process thus far, including the complexity and depth of the multi-faceted challenge at-hand," Ivey said in a statement. "Anyone who is serious about these issues understands that replacing our failing prison infrastructure with safer, more secure facilities that accommodate the rehabilitation of incarcerated people is essential. It is not a question of if this will happen, but how. Read more. More prison debate: Report: More Data, Tracking Needed on Prison Education Efforts

by Mary Sell, Alabama Daily News

“No Step Too High for a High-Stepper”: Gov. Kay Ivey Says She’s Running for Another Term

For those who wondered whether the oldest sitting governor in the United States would seek four more years in office, Kay Ivey has provided her answer. Ivey announced Wednesday that she will seek a second full term in the 2022 gubernatorial election. In a video announcement, Ivey touted the accomplishments of her administration since 2017, with a handful of her famous homespun expressions thrown in for good measure, including one of her most famous lines, “There’s no step too high for a high-stepper.” In scenes filled with sweeping vistas and familiar Alabama sights that are staples of many a campaign ad, she described Alabama as a place “where a red dirt road can take you anywhere, and the sky is never the limit.” Read more.

by Robert Carter

Lawmakers Considering Federal Covid Relief Money for Prison Fix

As the clock runs down on Gov. Kay Ivey’s plan to lease new prisons, several lawmakers say they want to consider using some of the more than $2 billion in new federal coronavirus relief money on improved prison infrastructure. Earlier this year, Ivey signed lease agreements with Tennessee-based CoreCivic to build two large men’s prisons. Tuesday was the deadline for those agreements to be final, but CoreCivic’s funding has been in jeopardy as support from potential underwriters as fallen away. Meanwhile, lawmakers have signaled to Ivey they want another crack at a state-funded prison plan. Alabama budget makers and leaders are continuing to lay the groundwork for the distribution and spending of Rescue Plan funds. The state this summer will start seeing some of the more than $4 billion allocated to it and local governments in the Biden administration’s American Rescue Plan Act. Separately, there is nearly $2 billion going to K-12 schools in the Rescue Plan. Read more.

by Mary Sell, Alabama Daily News

Report: More Data, Tracking Needed on Prison Education Efforts

While the Legislature and Gov. Kay Ivey this session put more money toward prison education programs and incentivized participation for some with earlier release, the state is not doing enough to track what programs are actually helping offenders find jobs and stay out of prison, a recent report says. Meanwhile, there are still significant barriers to accessing prison education programs, the report from the Alabama Commission on Evaluation of Services said. “The state is not tracking the necessary performance metrics to determine if our educational efforts are working for our population,” Marcus Morgan, ACES director, told Alabama Daily News. “We should know and we can know.” Read more. More from the State House on Alabama prisons: Lawmakers Considering Federal Covid Relief Money for Prison Fix

by Mary Sell, Alabama Daily News