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New Year, New Laws: Taxes, Bumps Stocks and the Minimum Wage

Much ink has been spilled over the motivations for new legislation.

Often, the law is forced to play catch up with emerging technology and populist sentiments. But, without fail, each year a bevy of new laws take effect for one reason or another as the calendar flips to January. They have broad consequences and bring criticism, praise and pontification.

As we begin a new year, new laws impacting everything from a new federal tax code, to settlement restrictions, gun control and many, many more will begin impacting the lives of Americans from every corner of the country. Some impact a relative few; one law reported by WBTV deals with what homeowner’s associations must provide in writing to members of the community. Others make wholesale changes to tax law.

Here are a few laws we think will keep the legal field occupied until we make another trip around the sun:

Bump Stock Regs Take Effect Despite Congressional Inaction

According to information from the American Bar Association, a federal ban on bump stocks, which makes it easier to fire semi-automatic rifles quickly, was issued in the wake of last year’s Las Vegas shooting massacre. The full effect of the law kicks in March.

President Donald Trump issued a statement regarding the new order: “Although the Obama Administration repeatedly concluded that particular bump stock type devices were lawful to purchase and possess, I sought further clarification of the law restricting fully automatic machineguns. Accordingly, following established legal protocols, the Department of Justice started the process of promulgating a Federal regulation interpreting the definition of ‘machinegun’ under Federal law to clarify whether certain bump stock type devices should be illegal.” 

The National Rifle Association also took aim at former President Barack Obama, and issued a statement indicating it is amicable to a review of the controversial devices.

“In Las Vegas, reports indicate that certain devices were used to modify the firearms involved. Despite the fact that the Obama administration approved the sale of bump fire stocks on at least two occasions, the National Rifle Association is calling on the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE) to immediately review whether these devices comply with federal law. The NRA believes that devices designed to allow semi-automatic rifles to function like fully-automatic rifles should be subject to additional regulations.”

Other gun control laws noted by the ABA taking effect this year include; California’s lifetime ownership ban for people involuntarily admitted to mental health facilities; and new rules from Washington, Florida, the District of Columbia, Hawaii, California, Illinois and Vermont that raised the minimum age to buy a long gun to 21 from 18.

Economic Changes Hit Everyone

In 2017, Congress passed the Tax Cuts and Jobs Act. According to information from the ABA, some of its provisions kicked in this year.

  • Deductions for employer-paid transportation benefits were eliminated;
  • The deduction for businesses’ entertainment expenses was nixed;
  • There will no longer be a business expense deduction with respect to nondisclosures associated with settling sexual harassment claims; and
  • Alimony is not deductible and is no longer considered taxable income for those receiving it.

Additionally, the minimum wage will rise to $10.60 an hour for federal government contractors, to $7.40 an hour for cash and tipped contractors, and 18 states separately increased their respective minimum wages.

California Makes Some Social Changes

The Huffington Post reported California outright banned nondisclosure clauses in sexual assault, harassment and discrimination settlements.

Further, employers in the state will no longer be allowed to force workers to sign “nondisparagement agreements as a condition of employment or in exchange for a raise or bonus.”

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