[Congressional Record Volume 164, Number 34 (Monday, February 26, 2018)]
[Senate]
[Pages S1211-S1212]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Tax Reform
Mr. BOOZMAN. Mr. President, I rise to discuss the impact that tax
reform is having in my home State of Arkansas.
Despite what you may have heard from those who opposed the Tax Cuts
and Jobs Act, including House Minority Leader Pelosi's infamous
description of the tax plan's benefits as ``crumbs'' and the passage of
the plan as ``the end of the world, Armageddon,'' the economy is
responding incredibly well to the changes we made to the Tax Code.
I have long believed our economy has struggled under the weight of an
outdated, inefficient, and ineffective tax system. Now, businesses are
beginning to do the math and are realizing that the Tax Cuts and Jobs
Act will mean more savings. As a result, many have announced they are
passing some of these savings on to their employees or will now be
seeking to grow and expand operations.
As of today, more than 350 companies have announced pay raises,
bonuses and/or 401(k) increases, benefiting over 4 million Americans.
According to a recent National Federation of Independent Business
survey, 32 percent of small businesses believe now is a good time to
expand--the highest level ever recorded by this survey.
This is happening across the country and in Arkansas. Here are just a
few examples of the companies headquartered in Arkansas, with a sizable
presence in the State, that are passing along savings to their
employees through wage increases, bonuses, and other benefits, are
giving to charity, and/or making investments to grow their businesses
and better serve customers:
BancorpSouth Bank is giving pay increases and/or one-time bonuses to
nearly all noncommissioned employees. The investment of over $10
million in 2018 will benefit 96 percent of the company's
noncommissioned workforce. Pay increases were effective as of January
1, 2018.
Home Bancshares, Inc., of Conway, AR, is distributing a one-time
bonus of $500 to more than 850 full-time, tenured employees. Home
Bancshares' chairman, John Allison, said ``investing in these
individuals is an important step to help support them, their families
and the communities in which we operate.''
People's Bank of Magnolia, AR, provided a $500 bonus to employees and
contributed $50,000 to its charitable endowment.
Little Rock, Arkansas-based Bank of the Ozarks is giving up to $1,200
annual bonuses. Approximately 2,300 employees will be eligible under
the plan.
Walmart, whose headquarters is located in Bentonville, AR, is a
significant economic force not only in our State but nationwide, is
increasing starting hourly wage rates in the United States to $11 an
hour, expanding maternity and parental leave benefits, and providing
one-time cash bonuses of up to $1,000. It also has created a new
benefit to assist associates with adoption expenses.
Regions Bank is increasing its minimum wage to $15, contributing $40
million to the company's charitable foundation, and increasing the
company's capital expenditures budget by approximately $100 million, or
50 percent over the 2017 level.
Springdale, AR, is home to Tyson Foods' headquarters. The company
recently announced that it is giving bonuses to more than 100,000
employees whose compensation does not include an annual bonus. Eligible
full-time team members will receive a bonus of $1,000, and eligible
part-time team members will receive $500.
In addition, Tyson will use savings resulting from tax reform to
improve training and education opportunities for employees, including
teaching English as a second language and general education development
classes, and it will also be accelerating capital projects.
FedEx, whose freight headquarters is located in Arkansas and which
employs over 3,500 Arkansans, is investing more than $3.2 billion in
growing its business, including raising wages and investing $1.5
billion in pension plans.
Finally, UPS is investing $12 billion to expand the company's Smart
Logistics Network, and it also made a $5 billion tax-qualified
contribution to the company's three UPS-sponsored U.S. pension plans.
This represents about $13,000 per participant. The company has more
than 2,200 active employees in Arkansas in addition to around 390
retirees who reside in the State.
The numbers speak for themselves. Clearly, when Washington helps to
create an environment that makes businesses more globally competitive,
it benefits Arkansas, and it benefits the entire country.
The law is already helping hard-working Arkansans keep more of their
money in their own pockets. By nearly doubling the standard deduction,
lowering rates, eliminating loopholes, and creating a climate that
incentivizes business to boost wages and give employees bonuses as a
result of the reduction in the corporate tax rate, the Tax Cuts and
Jobs Act is providing much needed tax relief to Arkansans.
Additionally, our Governor, Asa Hutchinson, has instructed the
Arkansas Public Service Commission to examine how the new lower tax
rates will benefit utility providers in Arkansas. He is encouraging the
commission to instruct utilities to pass savings down to ratepayers,
which could mean possible lower utility rates for those in the Natural
State.
That is not all. Arkansas-based companies like ArcBest and Murphy USA
are already reaping the benefits of the new tax system with higher
revenues and incomes.
This is only the beginning. I believe we will continue to see
positive trends and reactions to the tax law that will help grow our
economy and spur even more investment in Arkansas and across the
country.
One provision included in the law that I believe can have an enormous
impact on average Arkansans is a new incentive for employers to offer
paid family leave benefits to their employees. Now employers can offer
12 weeks of paid family leave in exchange for a tax credit.
My friend and colleague from Nebraska Senator Fischer fought to get
this idea included in the bill. Thanks to her vision and perseverance,
families in Arkansas and across the country who most need access to
this type of benefit will now have that chance. This is just one more
example of tax reform delivering results that will help the middle
class.
I want to reiterate how well tax reform is working for my State. We
are seeing growth, higher wages, and other positive benefits. Employees
are getting bigger paychecks and businesses are investing in their
workforces and
[[Page S1212]]
expanding their operations. Those are not ``crumbs.'' It is ``not
Armageddon.'' It isn't an attack on working Americans. It is
opportunity, it is upward mobility, and it is what Americans deserve. I
am proud to have cast my vote for tax reform.
Learning about how it is helping our economy and benefiting American
families just confirms what we predicted would happen if we made
American businesses more competitive and let average individuals and
families keep more of what they earn.
Moving forward, I am committed to ensuring that the changes we made
to the Tax Code help increase economic activity and spur growth,
address our national debt, and create jobs. I am confident it will have
lasting, positive effects on our economy.
With that, I yield the floor.
The PRESIDING OFFICER. The Senator from Arkansas.
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