[Congressional Record Volume 164, Number 11 (Thursday, January 18, 2018)]
[House]
[Pages H489-H490]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          FRUITS OF TAX REFORM

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
California (Mr. McClintock) for 5 minutes.
  Mr. McCLINTOCK. Mr. Speaker, last month we concluded an intense 
debate over tax reform, and I want, again, to

[[Page H490]]

thank Chairman Brady for heeding the concerns of those of us from 
overtaxed States like California.
  By allowing greater flexibility in deducting State and local taxes 
and by lowering all tax rates, the final measure assures that virtually 
every family will be paying lower taxes even though losing much of 
their State and local tax deductions. In fact, in my district, the 
average household will see a tax cut of $1,900 as a result.
  Yet I still receive many calls from constituents who fear their taxes 
will go up and their standard of living will go down. They believe this 
because this is what they have been told by the Democrats and by the 
media.
  Now that the bill is in effect, I think people are about to see their 
paychecks grow, their job prospects brighten, and their family finances 
improve. Indeed, the day that President Trump signed the bill, 
companies across America began announcing bonuses, pay raises, and 
major new investment plans in the American economy, and those 
announcements just keep coming.
  A variety of tax calculators are already available on the internet so 
that every family can see for themselves how they personally benefit 
from the tax cuts. I would recommend a Web site called 
taxplancalculator.com. There, people can input their own tax figures 
and see how much their family will save.
  In February, withholding tables will reflect the newer, lower rates, 
and the take-home pay for the vast majority of Americans will jump even 
before accounting for the surge in wages that always accompanies an 
economic expansion.
  By spring, most economists expect a significant burst of economic 
growth. As tax barriers come down, capital stranded offshore is already 
coming home. This morning, Apple announced it is bringing back most of 
its quarter trillion dollars of capital now stuck offshore.
  Immediate expensing reforms will accelerate equipment purchases, and 
an internationally competitive corporate tax rate will mean new 
investments in making products, once again, in America.
  If The New York Times poll from yesterday is any indication, the 
American people are already beginning to see the truth. That poll 
tracked an 18-point swing from disapproval to approval of the reform in 
just 1 month.
  The scare-mongering by congressional Democrats went further than 
claims that the tax reform would produce only middle class misery and 
economic malaise. They also claimed that millions of Americans would 
lose their health insurance because of it. How so? Because this bill 
removes the stiff tax penalties that are levied against 6\1/2\ million 
American families who choose not to purchase overpriced ObamaCare 
policies. It is a minimum of $2,100 of penalty for a family of four. 
These families will now have that money available to meet their own 
needs, including purchasing inexpensive policies available on the 
private market.
  This begs two questions: If ObamaCare is so wonderful, why do we have 
to force families to buy it? And, if 6\1/2\ million families already 
prefer paying the stiff penalty to buying the insurance, what does that 
say about the signature achievement of the Obama Democrats?
  The Democrats have seized on projections that the reform will add 
$1.5 trillion of new debt over the next 10 years based on their 
assumption it will produce no economic growth. Yet, when Ronald Reagan 
cut the top marginal tax rate by half, income tax revenues doubled. 
Several prominent economists are predicting an additional $2 trillion 
of new tax revenues to all levels of government solely due to economic 
expansion from this law.
  The final line of attack is that the personal income tax cuts will 
expire in 8 years, leaving many Americans worse off. Well, that is 
perhaps the most dangerous argument for the Democrats to make because 
every American understands the answer to that question depends upon who 
controls Congress.
  Democrats have made it clear that, if they are returned to office, 
the tax cuts are over, and Republicans have made it just as clear that 
our unfinished business is make take those cuts permanent. Let the 
people decide.
  Ronald Reagan asked a simple question both in 1980 when he ran 
against the economic malaise of the Carter policies and again in 1984 
after he had implemented the same progrowth policies we now see under 
President Trump: Are you better off today than you were 4 years ago?
  No politician or pundit can spin the answer to that question. Every 
individual American knows that answer precisely in their own lives. And 
I am looking forward to asking that question again as the tax reform 
takes effect.

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