[Congressional Record Volume 164, Number 48 (Tuesday, March 20, 2018)]
[Senate]
[Page S1801]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          REPUBLICAN TAX BILL

  Mr. SCHUMER. Mr. President, finally, on the tax bill, I just note 
that, once again, every day the more people learn about this tax bill, 
the more they don't like it. Stock buybacks continue at a hugely rapid 
rate. Aid to workers is much, much smaller, and the American people are 
learning this bill was of, by, and for the wealthiest Americans and the 
most powerful corporations. That is wrong. We welcome the debate on the 
tax bill because the more people learn about it, the more they don't 
like it.
  Since the beginning of the tax debate, Republicans have insisted 
their bill is about cutting taxes for working Americans. Even though 
the bill would direct 83 percent of the benefits to the top 1 percent, 
Republicans said workers were the focus. Even though they made 
corporate tax cuts permanent but let the individual tax cuts expire, 
they said the middle class would be the real winners.
  Democrats warned that if you gave big corporations and the wealthiest 
Americans the lion's share of the tax cuts, those benefits wouldn't 
trickle down to employees and the middle class. We warned that 
corporations would do what they always do when they have profits--
distribute them amongst themselves. Even though big companies like AT&T 
were already paying low effective corporate rates, they had been 
shedding jobs and investment for years even before the tax bill.
  Unfortunately, our warnings proved prescient. Almost every day, we 
hear a new story about a corporation using the savings from the 
Republican tax bill to purchase its own stock, called a stock buyback, 
which boosts the corporation's stock price to provide a reward for 
wealthy executives and shareholders.
  Just this morning, the Kentucky-based chemical company Ashland 
announced a brand-new $500 million share repurchasing program. And last 
night, the total amount of corporate share buybacks surpassed $225 
billion since the Republican tax bill became law.
  Stock buybacks are a big reason why workers no longer see the 
benefits of record corporate profits. Why? Because instead of investing 
corporate profits in things that benefit the long-term health of the 
company and its workers--like higher wages, new equipment, research and 
development, or new hires--corporations spend the money on share 
buybacks.
  In fact, stock buybacks were illegal until 1982, which is about the 
same time that wages stopped increasing with corporate profits.
  Republicans dutifully remind us that companies are also handing out 
bonuses. Yes, a few. But let me highlight the disparity between 
buybacks and investment in workers: According to a recent analysis by 
Just Capital, only 6 percent of the capital allocated by companies from 
the tax bill's savings has gone to employees, while nearly 60 percent 
has gone to shareholders.
  The theory behind the Republican tax bill was to allow corporations 
and the richest Americans to keep more of their already outrageous 
wealth, and maybe the benefits will trickle down to everyone else. As 
we are already seeing, that idea was a folly, and the American middle 
class will eventually pay the price.
  Because of the enormous cost of the Republican tax bill, $1.5 
trillion, the deficit and debt will grow over the next several years 
and Republicans are already targeting Social Security, Medicaid, and 
Medicare for cuts to make up the difference. So on top of a tax cut 
that mostly goes to the folks who need it the least, the Republican tax 
bill is an excuse for Republicans to come after Social Security, 
Medicare, and Medicaid.
  That is why the bill is so unpopular that Republicans have abandoned 
it in last two special elections in Virginia and Pennsylvania.
  The American people are already waking up to the reality that the 
Republican tax bill was not the middle-class miracle the Republicans 
promised, and in November, they will have the chance to move America in 
a dramatically different direction by voting for a party that actually 
wants to focus tax relief on working America, not corporate America.
  I yield the floor.
  I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. SANDERS. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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