[Congressional Record Volume 164, Number 5 (Tuesday, January 9, 2018)]
[Senate]
[Pages S84-S85]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX REFORM
Mr. CORNYN. Mr. President, just over 2 weeks ago, President Trump
signed a historic tax reform bill into law. Some, not really knowing
what was in the bill and people who were determined to find fault with
it, were let's just say a little skeptical at first. They wondered what
this whole thing was about and who would actually benefit. But now the
verdict is starting to come in. Many folks are pleasantly surprised,
for the first time in a while, knowing that Congress and Washington,
DC, actually have produced something that will make their lives better.
They are appreciative because they are seeing the immediate
consequences. In response, more than 100 companies have announced they
will give wage increases, they will increase their charitable
contributions, and they will give bonuses to their employees. One
million Americans are receiving money they previously didn't have,
thanks to passage of the Tax Cuts and Jobs Act.
But it is not just about bonuses, of course. We expect that once the
IRS updates its withholding tables, wages will rise, too, take-home pay
will go up, and hopefully people will see that in their paychecks in
February. As my colleague the junior Senator from Ohio wrote last week,
``With this tax reform, the proof will be in your paycheck.'' Families
can spend that extra money any way they wish, of course. That is the
point. They can spend it on projects long delayed. They can spend it on
their kids. They can give it as an allowance or some modest
compensation for chores performed or apply it to their kids' future
education, or people may just figure out they want to save for a rainy
day. The number is pretty shocking as far as how many Americans are
living paycheck to paycheck and cannot sustain a $400 loss in income
and make things work for them. So this will provide them, if they wish,
a little bit of cushion for a rainy day. They can donate it to their
house of worship. They can help a neighbor or a friend who has fallen
on hard times.
In some places, we are learning that families will enjoy lower
utility rates based on what gas and electric companies are doing for
their residential customers in light of their new tax savings. In
places such as Michigan, Montana, Minnesota, Kansas, Kentucky, South
Dakota, and Arizona, the utility regulators in those States are looking
at the tax reduction of those investor-owned utilities and how that
will calculate into the rate of return that they are guaranteed under
the law. But it looks to me as if it will be good news for consumers,
that lower heating bills will be the result during the chilly times of
the year and lower air-conditioning costs and other electricity costs
when spring and summer come around. So it is encouraging to see this
sort of perhaps unexpected consequence of tax reform but one that will
directly benefit consumers.
This is real, it is significant, and it is like priming our economic
pump--a little push here and a pull there because of tax reform, and
all of a sudden, the entire engine of the American economy is chugging
along and will soon be running at full speed.
In Texas, you can hear the economy humming along healthily, and we
should listen. We should listen to the voices of the job creators like
one in New Braunfels, which is between Austin and San Antonio. It is
called Rush Enterprises. Rush Enterprises specializes in commercial
vehicles. It reported last month that it planned to give each of its
6,600 employees a $1,000 bonus after President Trump signed the tax
reform into law--$1,000 each to 6,600 employees. The chief financial
officer of Rush Enterprises talked about the additional savings the
company would incur as a result of the reduction in its tax rate, which
fell from 35 percent to 21 percent. He said:
You've got a choice. We could've kept it and stuffed it in
the company bank account or coffers, or we can share it with
the people. We chose to share it with the people because it's
the right thing to do.
Well, I couldn't be prouder of that demonstration of the great Texas
spirit--employers paying it forward.
This gentleman went on to say that his company believes tax reform
will be beneficial not only for his office and his employees but also
for his community and for overall economic growth. To him, it is about
the bigger picture.
New Braunfels, though, isn't the only place where companies are
paying it forward. A telecom giant, AT&T, headquartered in Dallas, TX,
and two prominent airlines--American Airlines and Southwest Airlines--
have responded in similar fashion, offering large bonuses to hundreds
of thousands of their employees and promising to make significant
capital investments in the future and update their fleet of aircraft--
all with the savings they will incur as a result of this Tax Cuts and
Jobs Act.
Meanwhile, a restaurant company that owns a chain of popular
steakhouses in Texas and elsewhere has announced it will use its
savings from lower rates--about $70 million--to improve customer
service and to provide additional benefits to its employees. The
restaurants will be spending a significant amount of money to make sure
the dining experience is more worthwhile, hopefully providing not only
jobs to the people who prepare the food but those who serve it and the
vendors who sell it. Not only will this legislation have the effect of
improving a waiter's and waitress' salary, but I think this
demonstrates once again how the impact of tax reform is far-reaching,
perhaps in ways we really didn't necessarily think about. But this is
what happens when people get to keep more of the money they earn. They
spend it in a way that improves their quality of life and improves
their economic security.
In Texas, our economy hopefully will continue its steady ascent. In
its annual economic freedom index, an organization called the Fraser
Institute just ranked Texas as No. 2 in the country. I am not too happy
about that. We don't like being No. 2 in anything. But we have been in
the top five of this list for 11 straight years, and it has been
because of our lower taxes, our fiscally conservative approach to
spending, and our commonsense approach to regulation that makes it
easier for investors and entrepreneurs to succeed. When they succeed,
that means more jobs are created and people can do the work that
provides them the means to support their family and improve their
quality of life. We call that the Texas model. Although it is not
particularly unique, you would think it would be common sense. But as
they say, here in Washington, DC, common sense is not all that common.
Nationally, the situation is looking up, too, in part because the
Trump administration shares this Texas approach. The U.S. economy added
2 million jobs in 2017, and unemployment is at a 17-year low. Consumer
confidence is at an alltime high since it was first recorded--I believe
it was about 16 years ago. Over the last two quarters, the economy has
grown by more than 3 percent. That is up from roughly 1.9 percent
during the previous administration. People are excited to see the
economy continue to improve in 2018 thanks to tax cuts and other
regulatory reform and a government that is no longer hostile to private
business and job creation.
I am glad to hear how many positive steps have been taken over the
past few weeks in response to tax reform, but it is early. As I pointed
out, it has only been a couple of weeks. I look forward to hearing many
more such stories in the days ahead.
I intend to spend this next year, when I travel around the State of
Texas, looking for the small businesses and individuals who benefit
from this
[[Page S85]]
important piece of historic legislation. I look forward to coming back
to the floor of the Senate to continue to share the stories of this
success. Letting people keep more of what they earn, having more take-
home pay, improving their standard of living, and making the United
States more competitive in the global economy--rather than seeing
businesses and investment move overseas, let's see that come back home,
which I think we will see in droves, and the American people will be
better off for it.
Mr. President, I yield the floor.
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