[Congressional Record Volume 163, Number 204 (Thursday, December 14, 2017)]
[Senate]
[Pages S8031-S8032]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                            Tax Reform Bill

  Mr. President, now, let me just talk a second about taxes. In a few 
days, we are going to vote on a tax system, and that vote will be a 
vote, as much as anything, on people's opinion about the current tax 
system. No reasonable person can look at America's current tax system 
and be impressed. For one thing, it is enormously complicated. It is 10 
million words. You can stand on it and paint this ceiling.
  I don't want to just talk about technicalities here because most 
Americans don't have time to worry about section 106(a) or section 
807(b). They are too busy getting up every day and going to work and 
obeying the law and paying their taxes. They just want to know what the 
bottom line is.
  So let me tell them what the bottom line is. We are going to pass a 
tax bill that is going to cut about $1.4 billion in taxes for the 
American people and the American businesswomen and the American 
businessmen over 10 years.
  Let me talk, first, about the impact on people--ordinary people, Mr. 
President, like you and I. We are going to double the standard 
deduction. Why is that important? Right now, about 70 percent of 
Americans take the standard deduction. After we double it, probably 
about 90 percent will. The President is right. You will be able to file 
your taxes on a postcard if you want to. For Americans who have 
children, we are going to double the children's tax credit. We are 
going to lower every marginal tax rate. I know you have been told we 
are only going to help the wealthy. That is just not true. We are 
lowering every single tax rate. I am very proud of the fact that this 
bill starts--it doesn't end, but it starts with helping our middle 
class.
  In my State, a mom and dad working hard, making $75,000 a year--mom 
makes 30-plus thousand and dad makes 30-plus thousand, and they have 
two children--right now, they pay about $3,500, $3,700 in Federal 
income taxes. Now, of course, that is not all they pay. They pay 
payroll taxes, they pay State taxes, and they pay local taxes. In fact, 
government taxes everything now at all levels. Government now taxes the 
food we eat, the clothes we wear, the cars we drive, the homes we live 
in. Government started thinking it owns all our money. Government taxes 
us when we work. Government taxes us when we play. Government taxes us 
when we die. So when I tell you that a couple making $73,000, $75,000 
in my State is paying $3,750, roughly, in Federal income tax, I don't 
want you to think that is all.
  The point I am trying to make is, after we pass this bill, that 
couple is going to pay about $1,500, $1,700, $1,400 in Federal income 
taxes. That mom and dad who, as I said before, get up every day and go 
to work and obey the law and try to do the right thing by their kids 
and try to save a little money for retirement and try to teach their 
children values is going to have an extra couple thousand dollars in 
their paycheck, and that is a lot of money. It is to me, and I know it 
is to you, and it is going to be a lot of money for that mom and dad.
  This bill is also going to help every businesswoman and businessman 
in America. Yes, it is going to help our large corporations. Right now, 
we tax them at a rate of 35 percent. This bill is going to reduce that 
to 21 percent, but it is not just going to help large businesses, it is 
going to help small businesses as well. I am talking about the 
subchapter S corporations and the LLCs and the LLPs and the sole 
proprietorships. I am talking about the family farms. I am talking 
about the American who decided to take a risk to create some jobs, 
start a small business, went and took a second mortgage on her home, 
maybe employs four or five people. If she fails in her business, 
government is not going to be there to bail her out. She is going to 
lose her home, but she wants to take a risk, to be her own boss, to 
create jobs in America. We are going to cut her taxes too.
  The passthrough rate, the top marginal tax rate, by my calculations 
after this bill is passed, is going to be about 29.6 percent. Right 
now, the top marginal tax rate for that businesswoman would be about 43 
percent. And you say: Well, the small businesses get a 26-percent rate. 
Why do the big corporations get 21 percent?

  Because the big corporations pay taxes twice. Saying they are going 
to pay 21 percent in our bill isn't the only part of it. When they 
declare dividends, they have to pay taxes again. So that is the reason 
for the disparity.
  Let me tell you why this is important. So many of my colleagues--in 
fact, every one of my colleagues in the Senate says that they are for 
jobs. We are all for jobs, but you can't be for jobs if you are against 
business. You can't.
  Businessmen and businesswomen need four things from government. They 
need reasonable regulation--not no regulation, reasonable regulation; 
they need a decent infrastructure; they need a skilled workforce; and 
they need low taxes. That is what government is supposed to provide. 
And then, in a free enterprise system like ours, government needs to 
get out of its way and let the free enterprise system work, which has 
lifted more people out of poverty than all the social programs put 
together.
  Our bill is going to provide lower taxes. We have a lot of 
differences of opinion in this body. Some of my colleagues--most of 
whom happen to be Democrats--believe that it is possible to tax this 
country into prosperity. Once again, I say this with all the respect I 
can muster: They are in good faith in believing that. This is America. 
You can believe what you want. But if they believe that, then they were 
in the quad throwing a frisbee during economics 101. And that is just a 
fact.
  Some of the opponents of this bill have suggested that tax policy has 
absolutely nothing to do with our economy, with economic growth. Once 
again, with all the respect I can muster, I would ask them very 
respectfully: What planet did you just parachute in from? Average 
Americans understand, ordinary Americans understand, people who work 
for a living understand that when you tax something, you get less of 
it, and when you tax it less, you get more of it.
  This is a solid bill. It is not perfect. If I were king for a day--I 
am not, and I don't want to be--I would make some

[[Page S8032]]

changes. But reasonable people disagree sometimes, and I believe this 
body will come together.
  I hope we get some Democratic votes because I think that in their 
hearts, some of our Democratic friends want to vote for this bill. They 
do. We will see whether or not they do, but I believe they do. But we 
are going to pass this legislation, and the American people are going 
to be better off. It is not going to add to the deficit. I would not 
vote for this legislation if I thought it would hurt us long term in 
terms of our deficit.
  Thank you, Mr. President.
  I yield to my colleague from Connecticut.
  The PRESIDING OFFICER. The Senator from Connecticut.