    [Congressional Record Volume 164, Number 6 (Wednesday, January 10, 2018)]
    [Senate]
    [Pages S128-S130]
    From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                                   Tax Reform

      Mr. President, let me mention something else that I think is very
    significant because I heard today a lot of people criticizing and not
    really understanding what happened with the tax plan that was passed.
    We are already getting the results of it. It is kind of exciting. I
    don't recall anything in my career where we got the results as quickly
    as we got and we are getting right now. We heard Minority Leader
    Schumer call the tax plan ``a punch in the gut to the middle class.''
    In an op-ed piece in the New York Times, Senator Elizabeth Warren and
    Senator Bernie Sanders said: ``The Republican agenda on health care and
    taxes is . . . widely disliked by the American people'' and a ``tax
    giveaway to the wealthy.''
      I think it is important that people understand that not only is
    middle-class America going to benefit from this, but they already have.
    One million Americans are counting on receiving raises and bonuses from
    this tax reform. In my State of Oklahoma, thousands of employees will
    be receiving and have already received large compensation increases,
    bonuses--Express Employment Professionals in Oklahoma City, American
    Airlines, Southwest Airlines, and AT&T. In fact, Senator Roy Blunt was
    coming back on a plane, the same one I was on, and the flight attendant
    was talking about how she had already received a $1,000 bonus. Then,
    the rest of them chimed in and said: We have too.
      That is already happening. Right now we have a list of 123 major
    corporations that have already given an average of $1,000 for every
    employee they have, predicated on the assumption that the tax plan is
    going to increase the economy, and that is exactly what is going to
    happen.
      I am confident that this is actually happening today. I have to say
    this, though, because more people still try to say: Well, we can't give
    tax reductions to people and still increase revenue to do all of these
    things we need to do with our national defense and with our
    infrastructure programs.
      That is not true.
      I am going to repeat one that I have done before on this, but people
    seem to not understand. It is easy to say: Well, if you reduce taxes,
    you are going to reduce revenue.

    [[Page S129]]

      That is not the way it works. I remember very well what happened. I
    was not in this position, of course, but in 1991, when Ronald Reagan
    was President, at that time he had the most far-reaching reduction in
    taxes. Remember, the top rate was reduced from 70 percent to 30
    percent, and the other brackets came down proportionately. Yet at the
    time he did that, in 1981, the total amount of revenue coming into the
    United States was $469 billion. As a result of that, it increased
    revenue to $750 billion. That is huge, and it shows that it really
    happens. The reason it happens is that for each 1-percent increase in
    the economy, it produces increased revenue of some $3 trillion. That is
    what happened then, and that is what is going to happen now. People are
    rejoicing today.

      I ask unanimous consent that a sheet that outlines all of these
    companies that are giving large bonuses as a result of the tax bill be
    printed in the Record.
      There being no objection, the material was ordered to be printed in
    the Record, as follows:

                   companies increasing compensation, so far

           1. AAON
           2. AT&T
           3. AccuWeather
           4. Advance Financial
           5. Aflac
           6. Alaska Air Group
           7. American Airlines
           8. American Bank
           9. American Savings Bank
           10. Americollect
           11. Aquesta Financial Holdings
           12. Associated Bank
           13. Atlas Air Worldwide
           14. Ball Ventures
           15. Bancorp South
           16. Bank of America
           17. Bank of Colorado
           18. Bank of Hawaii
           19. Bank of the James
           20. Bank of the Ozarks
           21. Berkshire Hills Bancorp
           22. BB&T
           23. Carl Black Automotive Group
           24. Central Bancompany, Inc.
           25. Central Pacific Bank
           26. Charlie Bravo Aviation
           27. Charlotte Pipe and Foundry
           28. Citizens Financial Group
           29. Colling Pest Solutions
           30. Comcast
           31. Comerica Bank
           32. Commerce Bank
           33. Community Trust Bancorp
           34. Copperleaf Assisted Living
           35. Cornerstone Holdings
           36. Dayton T. Brown Inc.
           37. Delaware Supermarkets Inc.
           38. DePatco, Inc.
           39. Dime Community Bancshares
           40. Eagle Ridge Ranch
           41. EastIdahoNews.com
           42. Elite Roofing Systems (Idaho)
           43. Elite Clinical Trials, Inc.
           44. Emkay, Inc.
           45. Ennis, Inc.
           46. Express Employment Prof.
           47. Fifth Third Bancorp
           48. FirstCapital Bank of Texas
           49. First Farmers Bank & Trust
           50. First Financial Northwest, Inc.
           51. First Hawaiian Bank
           52. First Horizon National Corp.
           53. Flemington Car & Truck
           54. Fort Ranch
           55. Gardner Company
           56. Gate City Bank
           57. GetFoundFirst.com
           58. Great Southern Bancorp
           59. HarborOne Bank
           60. Hartford Financial Services
           61. Hawaii National Bank
           62. IAT Insurance Group
           63. INB Bank
           64. InUnison Inc.
           65. JetBlue
           66. Jordan Winery
           67. Kansas City Southern
           68. Kauai Cattle
           69. Melaleuca
           70. Mid-AM Metal Forming
           71. Move It Or Lose It Moving
           72. National Bank Holdings Corp.
           73. Nationwide Insurance
           74. National Guardian
           75. Navient
           76. Nelnet
           77. Nephron Pharmaceuticals
           78. Northpoint Apartments
           79. OceanFirst Financial
           80. Ohnward Bancshares
           81. Old Dominion Freight Line
           82. Pinnacle Bank
           83. Pioneer Credit Recovery
           84. PNC Financial Services
           85. Regions Financial
           86. Renasant Bank
           87. Resident Construction
           88. Riverbend Communications
           89. Riverbend Management, Inc.
           90. Riverbend Ranch
           91. Riverbend Services
           92. Rush Enterprises
           93. Sheffer Corporation
           94. Sinclair Broadcast Group
           95. Smith Chevrolet
           96. Smith Honda
           97. Smith RV
           98. South Point Casino
           99. Southwest Airlines
           100. Steel Design
           101. Stifel Financial Corp.
           102. Summit State Bank
           103. SunTrust Banks, Inc.
           104. TCF Financial Corp.
           105. The Flood Insurance Agency
           106. The Travelers Companies
           107. Territorial Savings Bank
           108. Texas Capital Bank
           109. Tokio Marine HCC
           110. Total System Services
           111. Turning Point Brands
           112. Unity Bank
           113. U.S. Bancorp
           114. Visa
           115. Washington Federal
           116. Webster Financial
           117. Wells Fargo
           118. Western Alliance Bancorp
           119. Western & Southern Financial
           120. Willow Creek Woodworks
           121. Windsor Federal Savings
           122. Yancey Bros.
           123. Zions Bancorp

                        tax relief pays american workers

           Almost immediately after Congress passed the Tax Cuts and
         Jobs Act, American workers at dozens of firms began to see
         the effects in the form of bonuses and raises. For supporters
         of tax relief this was good news, though not altogether a
         surprise. During debate over the law, economists cited
         research that workers bear most of the burden of the
         corporate income tax via reduced wages. The remainder is
         borne by consumers and investors. A significant cut in the
         corporate rate would provide real benefits to workers.
           One study by scholars at the American Enterprise Institute
         concluded that a 1 percent increase in the corporate tax rate
         is associated with a 0.5 percent decrease in real wages. A
         2007 Treasury Department survey of economic studies found
         that workers ``bear a substantial burden'' of the corporate
         income tax. The Congressional Budget Office concluded in 2006
         that workers pay more than 70 percent of the cost of
         corporate taxes.
           Opponents of tax relief countered that a corporate rate cut
         would help only the wealthy--a claim being knocked down more
         each day. Minority Leader Chuck Schumer said that ``history
         shows tax cuts like these benefit the wealthy and the
         powerful to the exclusion of the middle class.'' As a wave of
         companies across the country began announcing bonuses and
         giving raises to workers, it became clear that tax relief is
         putting more money in the pockets of the hard-working
         Americans who Republicans said would win because of the law.
           The same day the House and Senate passed the bill, December
         20, AT&T Inc. issued a press release saying: ``Once tax
         reform is signed into law, AT&T plans to invest an additional
         $1 billion in the United States in 2018 and pay a special
         $1,000 bonus to more than 200,000 AT&T U.S. employees--all
         union-represented, non-management and front-line managers. If
         the President signs the bill before Christmas, employees will
         receive the bonus over the holidays.''
           So far, at least 123 companies have announced they are
         giving employees bonuses or otherwise increasing compensation
         due to the tax cut legislation. Notable examples include:
           American Airlines, Southwest Airlines, and JetBlue
         announced $1,000 bonuses for their employees (a total of more
         than 200,000 people). American's bonuses will exclude
         officers; Southwest's and JetBlue's include all employees.
         American said it would pay bonuses ``in light of this new tax
         structure.'' JetBlue said that ``our Crewmembers should be
         the first to benefit.'' Southwest said it would put the
         savings from tax relief ``to work . . . to reward our hard-
         working Employees.''
           AT&T announced $1,000 bonuses to its 200,000 employees. It
         also said that it will increase capital expenditures by $1
         billion in 2018.
           Comcast announced a $1,000 bonus for more than 100,000
         employees. In addition, it plans to invest $50 billion in its
         infrastructure in the next five years. Comcast said the
         bonuses are ``[b]ased on the passage of tax reform and the
         FCC's action on broadband.''
           Nationwide Insurance announced a $1,000 bonus for 29,000
         employees and increased 401(k) matching. The company told its
         employees: ``The combination of the new tax legislation,
         including a reduced corporate tax rate, and our associates'
         ongoing commitment to our members, community and On Your Side
         promise are the reasons we're making this investment that
         further enhances the already robust benefits we offer to
         attract and retain the best talent.''
           PNC Financial Services announced $1,000 bonuses for 47,500
         employees as well as $1,500 to be added to existing pension
         accounts. The company also will raise its base pay rate to
         $15 per hour. PNC's CEO said: ``The tax reform law creates an
         opportunity to reward our employees who are working hard each
         day to serve our customers, build strong relationships in our
         communities and create long-term value for our
         shareholders.''
           U.S. Bank announced a $1,000 bonus for nearly 60,000
         employees and enhanced health care offerings in the 2019
         enrollment period. It will also raise base pay rate to $15
         per hour. The bank said that these decisions were ``a result
         of the tax reform package.''

      Mr. INHOFE. Mr. President, I yield the floor.
      I suggest the absence of a quorum.
      The PRESIDING OFFICER. The clerk will call the roll.

    [[Page S130]]

      The legislative clerk proceeded to call the roll.
      Ms. HIRONO. Mr. President, I ask unanimous consent that the order for
    the quorum call be rescinded.
      The PRESIDING OFFICER. Without objection, it is so ordered.