[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.