[Congressional Record Volume 163, Number 155 (Wednesday, September 27, 2017)]
[Senate]
[Pages S6179-S6180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Tax Reform
Mr. THUNE. Mr. President, one of the Senate Republicans' most
important priorities for the rest of this year is passing comprehensive
tax reform. Why? Because comprehensive tax reform is perhaps the single
most important thing we can do to get our economy back on the path to
long-term health. Comprehensive tax reform done right will boost jobs.
It will increase wages. It will provide much needed tax relief for
middle-income taxpayers and families. It will help businesses reinvest
in their operations, employees, and new products. And most importantly,
it will help us achieve strong, consistent economic growth.
Over the past few weeks, leaders from the House, Senate, and White
House have been meeting to develop the framework for the tax reform
bill we will take up later this year. This morning, they unveiled that
framework. The framework supports Republicans' five principles for tax
reform: providing tax relief for the middle class; increasing wages,
jobs, and economic growth;
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keeping good-paying jobs here at home; increasing American
competitiveness in the global economy; and simplifying the Tax Code.
The framework released today emphasizes tax relief for the middle
class.
First and foremost, we are going to ensure that working families
receive a much needed increase in take-home pay. Right now, 50 percent
of families are living paycheck to paycheck, while one-third of people
across this country say they are just $400 away from a financial
crisis. That is not acceptable.
Our tax reform plan will ensure that these families are no longer
left behind. Our plan will increase the standard deduction, which will
provide tax relief to those families who need it the most. It will also
enhance the child tax credit, and I don't need to tell anyone that the
important work of raising a family is getting more and more expensive.
It is time for hard-working families to get a break with a larger child
tax credit. Finally, we will be lowering the rates on middle-class
families. By collapsing the seven income tax brackets to three, we will
ensure that working families get to keep more of what they earn.
Second, our tax plan will increase wages, jobs, and economic growth
by lowering taxes and improving cost recovery for American businesses
and job creators. The framework released today lays out a goal of a 20-
percent corporate tax rate. Right now, our corporate tax rate is the
highest in the developed world. Our competitors pay an average rate of
22.5 percent, while U.S. companies face a 35-percent tax rate. That is
a big problem. Our uncompetitive tax rate has driven companies to move
their headquarters and jobs overseas and led to wage stagnation and a
lack of opportunity for American workers. Lowering the corporate rate
will create jobs and increase wages for working families across the
country.
An equally important priority laid out in the framework is lower tax
rates for small businesses, farms, and ranches. Like bigger businesses,
small businesses--from partnerships to S corporations--currently face
high tax rates, at times even exceeding those paid by large
corporations. Lowering tax rates for these businesses and creating a
new maximum passthrough rate will allow a business to reinvest more of
its earnings in successful operations. In short, it will help these job
creators thrive. The Republican tax plan will also allow for
unprecedented expensing. Allowing small businesses to recover their
costs more quickly will free up capital and allow them to grow and to
create jobs.
The framework released today also shows how we are going to meet our
goal of making America more competitive and keeping those good-paying
jobs here at home. A key part of keeping good-paying jobs here at home
is making the United States an attractive place to do business by
reforming our outdated worldwide tax system. Having a worldwide tax
system means that American companies pay U.S. taxes on the profit they
make here at home as well as on some or all of the profit they make
abroad, once they bring that money back to the United States. The
problem with this is that American companies are already paying taxes
to foreign governments on the money they make abroad. Then, when they
bring that money home, they too often end up having to pay taxes again
on part of those profits and at the highest tax rate in the
industrialized world. It is no surprise that this discourages
businesses from bringing their profits back to the United States to
invest in their domestic operations, new jobs, and increased wages.
Between 1983 and 2003, when the U.S. tax rate was much more
competitive with those of other countries, there were 29 corporate
inversions where U.S. companies moved abroad. Between 2003 and 2014,
when other countries were dropping their corporate tax rates and
shifting to territorial tax systems, there were 47 such inversions.
Our tax plan addresses this drag on our economy by moving from our
outdated worldwide tax system to a territorial tax system. By shifting
to a territorial tax system here in the United States--a move, I might
add, that is supported by Members of both parties--we will eliminate
the double taxation that encourages companies to send their investments
and their operations overseas. Combine that with a reduction in our
high corporate tax rate, and we can provide a strong incentive for U.S.
companies to invest their profits at home in American jobs and American
workers instead of abroad.
We will also simplify our Tax Code. Each year, Americans spend 2.6
billion hours filling out complicated individual tax forms. Not only is
this a drag on our economy, it is an annual frustration and burden for
hard-working families. The goal of our tax reform plan is to let
American families complete their taxes on something as simple as a
postcard.
Lower rates, fewer tax brackets, and a generally simplified code will
end the complicated mess that too many families face every tax season.
We will continue to develop the details of this framework in the
coming weeks as we work toward a final draft of our comprehensive tax
reform bill. I look forward to collaborating with my colleagues in the
Senate Finance Committee as we work to put our country on the path
toward long-term economic health and the jobs, increased wages, and
opportunities that come along with it.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The Senator from Oregon.
Mr. INHOFE. Will the Senator yield?
Mr. WYDEN. I will be happy to.
Mr. INHOFE. I ask unanimous consent that at the conclusion of the
remarks from my friend from Oregon, Senator Wyden, that I be recognized
for such time as I shall consume.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Oregon.