[Congressional Record Volume 164, Number 73 (Monday, May 7, 2018)]
[House]
[Pages H3773-H3774]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 2030
BENEFITS OF TAX CUTS AND JOBS ACT
The SPEAKER pro tempore. Under the Speaker's announced policy of
January 3, 2017, the gentleman from Kentucky (Mr. Guthrie) is
recognized for 60 minutes as the designee of the majority leader.
General Leave
Mr. GUTHRIE. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days to revise and extend their remarks, and include
extraneous material on the topic of this Special Order.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Kentucky?
There was no objection.
Mr. GUTHRIE. Mr. Speaker, this evening, we will hear from myself and
a colleague from Tennessee, and he is joining me today to talk about
how the Tax Cuts and Jobs Act has benefited our States.
In my congressional district, Kentucky's Second, I have heard from
constituents who have seen more money in their paychecks and from
businesses that have been able to grow and pass along the benefits of
tax reform directly to their employees.
The Tax Cuts and Jobs Act doubled the standard deduction for both
individuals and couples. For the 75 percent of residents in Kentucky's
Second District who take the standard deduction, this is an automatic
tax cut. Additionally, individuals in every tax bracket are paying
lower rates.
When I visited Owensboro in February, I met Cheri and Ray Middletown,
who own On Time Fab, a small business that provides fabrication
services for agricultural, industrial, and commercial productions.
Cheri and Ray shared with me that, during the first week of the
implementation of the Tax Cuts and Jobs Act, each of the 20 employees
of On Time Fab took home more pay as a result of tax reform.
One employee took home as much as $56 a week and more than $200 a
month. A single dad working for On Time Fab is bringing home an extra
$40 each week. Some thought there was a mistake in their paychecks
because they are able to keep so much of their hard-earned money, and
$40 a week is over $160 a month.
By cutting the corporate tax rate to make the U.S. competitive
globally, the Tax Cuts and Jobs Act has given businesses the
opportunity to pass along savings to their customers. For example,
residents of 48 States, plus the District of Columbia, are seeing their
utility bills go down because of tax reform.
In Kentucky, the Public Service Commission has ordered investor-owned
utilities to track their tax savings and to reduce rates for hundreds
of thousands of Kentucky customers. In fact, the Public Service
Commission has already announced that Kentucky Utilities' and
Louisville Gas & Electric's residential electric customers will see
their average monthly bills decreased by 6 percent.
Atmos Energy, which serves western Kentucky, announced in March that
it will be cutting the average residential bill by just over 3 percent.
Other savings from tax reform will fund infrastructure upgrades across
the Commonwealth. Companies in Kentucky have been able to expand their
operation because of the Tax Cuts and Jobs Act.
Owl's Head Alloys in my hometown of Bowling Green recently announced
a $3 million expansion which would create 17 new jobs, bringing their
total employment in the Second District to nearly 100 good-paying jobs.
When I visited their facility in March, Owl's Head owner and president,
David Bradford, told me that the economic outlook resulting from the
Tax Cuts and Jobs Act helped lead to their decision to expand.
This is exactly why we passed the Tax Cuts and Jobs Act: to give
American businesses the confidence to grow and expand right in our
communities, and to help individual taxpayers keep more of their money.
Some might say that an extra $200 a month is just crumbs. For
hardworking Kentucky taxpayers, the extra money can go toward a car
payment or a mortgage. It can help pay for a child's braces or even for
regular expenses like groceries.
The bottom line is that, with more expendable income in their
pockets, Americans across the country have more freedom to choose how
they spend their hard-earned money. A typical family of four earning
$75,000 can expect to pay $2,000 less in taxes this year compared to
last year.
I was proud to support the Tax Cuts and Jobs Act, and I am proud to
report that tax reform is making a real difference in the lives of
Kentuckians.
Mr. Speaker, I am pleased to have a neighbor to the south of me here
today to talk about how the Tax Cuts and Jobs Act is having a big
effect on the lives of not just Kentuckians but all Americans--
particularly Kentucky and Tennessee--so I yield to the gentleman from
Tennessee (Mr. Kustoff), my good friend from suburban Memphis, which is
one of the great cities in our area, to talk about the effects of the
tax cuts in Tennessee.
Mr. KUSTOFF of Tennessee. Mr. Speaker, I want to thank the gentleman
from Kentucky for organizing this evening and talking about how the Tax
Cuts and Jobs Act is helping the hardworking people of Tennessee.
I think we all know that, in December, with President Trump's strong
support, this Congress passed the first major reform of our Tax Code in
31 years. We all knew that bringing these historic changes to the Tax
Code would improve the quality of life for Tennesseans and millions of
Americans. Quite frankly, the Tax Code is simpler and fairer to
everyone.
Jobs are being created, and paychecks are bigger. We are all enjoying
a robust economy that is the best it has been in a long time. Just last
week, in my district in west Tennessee, in the Eighth Congressional
District of Tennessee, two major announcements were made in my
district. In Lake County, Excel Boat Company announced they will be
opening a manufacturing plant that will bring 200 good-paying jobs and
a total economic development investment of $9 million.
Additionally, in my district, a South Korean manufacturer announced a
$13 million investment in Martin, Tennessee, and 220 job opportunities
at the company's first United States-based location.
Prior to that, just 1 month after the passage of the Tax Cuts and
Jobs Act, FedEx announced an investment of more than $200 million to
raise wages for their employees. Then 2 months later, FedEx continued
their post-tax reform action and committed over $1 billion to expand
their express hub in Memphis.
Another company in the Eighth Congressional District, Dot Foods,
which has a location in Dyersburg, Tennessee, announced $500 in bonuses
for each of their 4,800 full-time employees nationwide.
I am also proud of First Horizon Corporation, also known as First
Tennessee Bank, which is based in Tennessee, with branches all across
the
[[Page H3774]]
Volunteer State. They invested tax reform savings in their workforce.
Not only did the bank give eligible employees a bonus, they also
increased their minimum wage to $15 an hour. This was because of tax
reform.
Now, a way to raise the minimum wage is to increase economic
opportunities, economic possibilities, just, frankly, making the
economic environment better.
Then there was the announcement by Tyson Foods, who gave a bonus to
their frontline workers, or, as they call them, the backbone of their
business. I have got a chart here of Tennessee, and you can see that,
in Tennessee, the typical family of four is going to see a tax cut of
over $2,000. That is real money.
I think about an employer that I visited with in my district who
said--he may have 8 or 10 employees--he said he noticed when he was
doing his employees' payroll--and they get paid each and every week--he
noticed they were getting an additional $15 to $20 per week. So, if
somebody is getting an additional $20 per week per pay period, that is
$1,000 a year.
The typical family of four in Tennessee is getting a tax cut of
$2,023. Think of it this way: across the Nation, across our country,
more than 4 million workers and counting have received a bonus, a pay
raise, or increased retirement benefits.
Mr. Speaker, it is becoming increasingly clear that tax reform is
working and the America economic engine is off and running again. The
most recent Federal jobs report shows the fastest wage growth since the
2008 recession, and the unemployment rate has dropped to a 17-year low.
Mr. Speaker, I want to thank Speaker Ryan. I want to thank Chairman
Brady and especially President Donald Trump on their leadership in
passing this landmark legislation. And, again, I want to thank the
gentleman from Kentucky for all of his help in organizing tonight to
remind the people of this country the hard work that the President has
done, the hard work that this Congress has done--the House of
Representatives, and the Senate--so that we can improve our economy and
we can return hard-earned money to the people, because they best know
how to spend their money, not the bureaucrats in Washington.
Mr. GUTHRIE. Mr. Speaker, I thank my friend from Tennessee for
yielding back. As he said, Tennessee has seen the benefits from tax
reform. Kentucky is seeing the benefits of tax reform and the
opportunity for people to move into prosperity as they expand
opportunity.
According to the Bureau of Labor Statistics, in April, unemployment
was at 3.9 percent across the country. The Bureau of Labor Statistics
also reported that 164,000 jobs were added across the country in April,
raising the total since our tax reform bill was signed into law to
nearly 800,000 people.
Businesses are confident in our economy because of tax reform. Most
businesses are telling me that they are looking for workers, looking
for people to have the opportunity to move forward. One of the great
reasons that we are trying to do some of the policies that were talked
about during the last hour is that we want to see people have the
opportunity to work, to go from poverty to prosperity, from dependence
to independence.
We want people to have the opportunity to move forward, and a growing
economy will allow them to do so because these people are needed in the
workforce. They are wanted. They are needed, and I will guarantee you,
when we have people in the workforce, they are going to be better off
than if they are not. So we are looking forward to moving forward with
some of the issues that were talked about earlier.
But tonight we have heard stories about Kentuckians; we have heard
stories about Tennesseans who have benefited from tax reform.
Hardworking taxpayers are seeing more money in their paychecks.
Companies are expanding and creating jobs. Businesses are passing along
the benefits of tax cuts to their customers and to their employees,
handing out bonuses and raises. We are seeing these stories in our own
States and across the country.
This is exactly what we expected when we passed the Tax Cuts and Jobs
Act, and I am glad to see many of our communities benefiting from this
bill. I want to thank my friend from Tennessee for sharing his stories
from Tennessee, as I was sharing my stories from Kentucky, and I thank
him for joining me tonight to discuss the importance of tax reform.
Mr. Speaker, I yield back the balance of my time.
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