[Congressional Record Volume 164, Number 6 (Wednesday, January 10, 2018)]
[Senate]
[Pages S113-S114]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Tax Reform
Mr. McCONNELL. Mr. President, we have been talking all week about the
ways our historic tax reform law is immediately helping middle-class
families. It has been less than a month since Congress passed and the
President signed the Tax Cuts and Jobs Act, but already more than 1
million Americans are on track to receive special bonuses, permanent
raises, and other benefits, and their employers are attributing these
changes directly to tax reform.
In fact, 100,000 employees of American Airlines are each receiving a
$1,000 tax reform bonus; U.S. Bank is raising its minimum wage to $15
and is also giving $1,000 bonuses to 60,000 employees; 29,000 employees
of Nationwide Insurance are also receiving bonuses, and 33,000 are
getting an increase in their retirement match. These are just a few of
the 100-plus companies that have already announced new benefits for
American workers as a direct result of tax reform. These are only the
immediate benefits.
Mainstream economists agree that in the months and years to come, the
permanent changes we made in the way we tax businesses will make our
economy more vibrant and more competitive. That means greater
investment and higher wages for American workers. Of course, all this
is in addition to the direct effects the tax cuts themselves will soon
have on family budgets.
The Tax Cuts and Jobs Act will reduce income tax rates and
significantly expand key deductions. We took money out of Washington
and put it right back in the pockets of middle-class Americans.
Starting as early as February, the IRS will withhold less from
paychecks, and workers will get to deposit more of their hard-earned
money right into their own bank accounts. In 2018 alone, for a typical
family of four earning just over 70,000, the Tax Cuts and Jobs Act
could mean a tax savings of more than $2,000.
Nearly every day, reports come out about a new way this historic tax
reform bill is helping Americans. Here is a subject that is
particularly relevant around many kitchen tables this winter: utility
bills. All around the country, utility companies that will benefit from
our new tax cuts are already discussing plans to pass their savings on
to customers.
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Major power companies in Illinois, Maryland, and Massachusetts are
already proposing plans to give their customers tens of millions of
dollars in relief by lowering the rates they charge for energy. And get
this: According to CNBC, a South Carolina electric and gas utility is
planning to give a cash payment directly to its customers, averaging
$1,000 per household. More are following suit. In Montana, Louisiana,
and Indiana, regulators are already working with utilities to determine
how households will benefit from the tax savings. In my own State of
Kentucky, the Public Service Commission directed a number of the
electric, gas, and water companies to track their savings and make
plans to cut rates for consumers.
As any mother or father who has to balance a checkbook and pay bills
every month can attest, this is welcome news for middle-class families.
These reductions will be especially helpful to the most vulnerable in
our society.
According to data from the Department of Health and Human Services,
energy costs eat up a significantly higher percentage of household
income for poor families than for other families. In other words, for a
software engineer in Silicon Valley, a lower heating or air
conditioning bill may go unnoticed, but for workers who clean that
office overnight, this relief will make a real difference.
A drop in utility bills effectively amounts to progressive tax
relief. This is just another example of how the Tax Cuts and Jobs Act
is rapidly proving to be a serious asset to poor and middle-class
families--precisely the people whom my Democratic friends in the House
and Senate loudly claimed would get nothing at all from this bill.
It has been 3 weeks--3 weeks--lower utility bills, 1 million special
tax reform bonuses and pay raises, and this is only the beginning.
A Republican majority in the House and a Republican majority in the
Senate and President Trump listened to the facts instead of the
political spin. I am proud that we passed this historic bill and gave
families across America the tax relief they have waited decades to
receive.
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.