[Congressional Record Volume 163, Number 187 (Wednesday, November 15, 2017)]
[Senate]
[Pages S7226-S7227]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                               Tax Reform

  Mr. President, on Sunday, Politico offered this headline: ``Middle 
class biggest winners in Senate tax plan, study says.''
  The article goes on to say: ``Moderate-income people would 
consistently see the largest percentage declines in their tax bills, 
according to an analysis released late Saturday by the official, 
nonpartisan Joint Committee on Taxation.''
  It goes on to say: ``In 2019, people in the middle spectrum, earning 
between $50,000 and $70,000, would see their taxes fall by 7.1 percent. 
Those earning between $20,000 and $30,000 would see a 10.4 percent 
decline.''
  This is what we set out to achieve with the Senate tax bill that we 
released last week--real relief for American families, and that is what 
our bill delivers.
  I don't need to tell anyone that the American people have had a rough 
few years. Stagnant wages and a lack of opportunities have left many 
American families stretched thin. A recent survey found that 50 
percent--50 percent--of people out there consider themselves to be 
living paycheck to paycheck. About one-third of those same people say 
that they are literally just $400 away from a financial crisis. Well, 
real help is on the way.
  Last night, Chairman Hatch released a revised bill that provides even 
more relief for middle-class families. I applaud Chairman Hatch for his 
work on this revised bill that includes Republican and Democratic 
amendments and reflects feedback we have received from the whole 
Republican conference.
  Our bill provides immediate, direct relief to hard-working Americans. 
Our bill doubles the standard deduction. That means, beginning in 
January, a family making $24,000 a year or less per year will not be 
paying any taxes, and families making more than $24,000 per year will 
be paying significantly less than what they are paying today.
  Our bill also doubles the child tax credit from $1,000 to $2,000 per 
child. We all know that raising children is expensive, and this 
provision provides a significant tax cut for families across the 
country.

[[Page S7227]]

  I wish to thank Senators Scott, Heller, Rubio, and Lee for their 
leadership on this issue. Their advocacy for expanding the child tax 
credit will result in substantial tax relief for working families, but 
that is just the beginning of what this tax bill is going to do for 
American families.
  We are not just going to ensure that Americans can keep more of their 
hard-earned money; we are also going to ensure that they can make more 
of it. Our bill is not just going to cut Americans' taxes, as important 
as that priority is to all of us; it is also going to give Americans 
access to the kinds of jobs, wages, and opportunities that will set 
them up for a secure future.
  So how does that work? Well, in order for individual Americans to 
thrive economically, we need American businesses to thrive. Thriving 
businesses create jobs. They provide opportunities, and they increase 
wages and invest in their workers. But our current Tax Code is not 
helping businesses thrive. It is doing the opposite. It is strangling 
both large and small businesses with high tax rates.
  Small businesses are incredibly important for new job creation, 
especially in places like my State of South Dakota. But right now the 
high tax rates that small businesses face can make it difficult for 
these businesses to even survive, much less thrive and expand their 
operations. Our bill will fix this.
  To start with, our bill implements a new deduction for businesses 
that will allow them to keep more of their money, which will allow them 
to reinvest in their operations, increase wages, and hire new workers. 
Our bill also reforms a number of current provisions in the Tax Code 
that frequently leave small businesses with very little cash on hand. 
Under our legislation, small businesses will be able to recover the 
capital that they have invested in things like inventory and machinery 
much more quickly--and in certain cases, immediately--which will free 
up capital they can use to expand and create jobs. Our legislation also 
includes provisions I helped develop that will simplify accounting 
rules for small businesses, which will also help reduce their tax 
burden, leaving more of their earnings to reinvest in their businesses 
and in their workers.
  In addition to cutting rates for small businesses, our bill also 
reduces our corporate tax rate. Our Nation's corporate tax rate is 
currently the highest in the industrialized world, which puts U.S. 
businesses at a major disadvantage next to their international 
competitors. By reducing the corporate tax rate, our bill will enable 
U.S. businesses to compete on a more level playing field with their 
competitors, which will in turn free up money that U.S. businesses 
could use to create jobs and increase wages.
  The White House Counsel of Economic Advisers estimates that reducing 
the corporate tax rate to 20 percent will increase average household 
income by $4,000 annually.
  Our bill also ends the outdated tax framework that is driving 
American companies to keep jobs and profits overseas. Our Nation 
currently operates under a so-called worldwide tax system, which means 
that American companies pay U.S. taxes on the profit they make here at 
home, as well as on part 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 back home, 
they can end up having to pay taxes again on part of those profits--and 
at the highest tax rate in the industrialized world. So it is no 
surprise that this discourages businesses from bringing their profits 
back to the United States to invest in their domestic operations, in 
new jobs, and in 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. 
Well, our bill 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--a move I should note that 
has been supported by Members of both parties--we eliminate the double 
taxation that encourages companies to send their investments and their 
operations overseas. Combine that with the reduction in our high 
corporate tax rate, and our bill provides a strong incentive for U.S. 
companies to invest their profits at home in American jobs and in 
American workers instead of abroad. All in all, the Tax Foundation 
estimates that in addition to increasing wages, our bill will create 
nearly 1 million new jobs for American workers.
  The legislation we unveiled last week is the product of years of work 
here in the Senate--work, frankly, by Members of both political 
parties. I hope, in the end, my Democratic colleagues will advance this 
bill, which is partly the result of their labors.
  This is the kind of chance we all dreamed of when we came to 
Washington--a once-in-a-generation opportunity to make a real 
difference in the lives of ordinary Americans, to substantially improve 
their lives today and give them access to a brighter, more secure, and 
more prosperous future.
  I look forward to debating this bill over the next few weeks. We are 
going to a markup today, tomorrow, and Friday in the Senate Finance 
Committee, where amendments will be offered. They will be debated, they 
will be voted on, and then, of course, the bill will come to the floor 
of the U.S. Senate where there will be an open amendment process, where 
individual Senators will have opportunities to offer amendments, to 
debate those amendments, and to vote on those amendments. But when all 
of that is said and done, I hope we can send a bill to the President's 
desk that will bring much needed relief to those Americans who are 
living paycheck to paycheck--to those Americans who are struggling to 
make ends meet, to raise their children, and to provide for a more 
secure retirement--by allowing them to keep more of their hard-earned 
dollars in their pockets, by making their paychecks bigger, and by 
creating access to better jobs, higher paying jobs, and higher wages. 
That improves all Americans' standard of living, all Americans' quality 
of life. That is what this bill will do.
  We need to get it across the finish line. There is a lot of work 
ahead of us, but I am looking forward to the day when we can get this 
signed into law and give the American people access to a brighter and a 
more prosperous future for them and their families.
  I yield the floor.
  I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SCHUMER. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Cotton). Without objection, it is so 
ordered.