[Congressional Record Volume 164, Number 122 (Thursday, July 19, 2018)]
[House]
[Pages H6585-H6586]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 WHAT TAX REFORM MEANS TO PENNSYLVANIA

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 3, 2017, the Chair recognizes the gentleman from Pennsylvania 
(Mr. Rothfus) for 30 minutes.
  Mr. ROTHFUS. Mr. Speaker, I would like to take a few minutes this 
afternoon during this Special Order just to go over some highlights of 
the Tax Cuts and Jobs Act as we continue to see very robust economic 
growth happening across the country, including in my district back in 
western Pennsylvania.
  The Tax Cuts and Jobs Act is the culmination of years spent listening 
to the stories of families back home who had nothing left over at the 
end of the month, of families who were struggling to save for 
retirement, pay off loans, and simply make ends meet. These stories are 
not just unique to my district, but they are coming in from all across 
America to the House of Representatives.
  For too long, hardworking Americans toiled under a broken Tax Code 
filled with loopholes and special interest carve-outs. For most of the 
last decade, we had sluggish growth, stagnant wages, and limited 
opportunity across the country, including parts of Pennsylvania. When 
an economy is stagnant and not healthy, fewer job opportunities exist 
and workers' hard-earned wages often do not keep up with expenses.
  Since being elected in 2012, I told my constituents that it did not 
have to be that way, that we could do better, that we deserve better. 
That is why 6 months ago, my colleagues and I passed the Tax Cuts and 
Jobs Act, and the President signed it into law.
  The Tax Cuts and Jobs Act puts hardworking Americans first by 
allowing them to keep more of their paychecks, bringing businesses home 
from overseas, and creating that healthier economy.
  To help workers keep more of their wages, the Tax Cuts and Jobs Act 
nearly doubles the standard deduction from $6,350 per individual to 
$12,000, and from $12,700 to $24,000 for married couples, essentially 
doubling the amount of income that will not be subject to Federal 
income taxes.
  It also expands the child tax credit to $2,000 to help parents with 
the cost of raising kids, and adds a new credit to help provide care 
for elderly family members and adults with disabilities.
  With these changes, the zero tax bracket increases significantly. 
Consequently, more Americans will be fully exempt from Federal income 
taxes, and they can keep more of their hard-earned wages.
  Additionally, before the Tax Cuts and Jobs Act, the United States had 
the highest business tax rates in the industrialized world. 
Pennsylvania's combined Federal and State corporate tax rate stood at 
nearly 45 percent.
  The Tax Cuts and Jobs Act is removing a choke hold on our economy, 
decreasing for American corporations the tax rate from 35 percent to 21 
percent. Consequently, the Pennsylvania combined rate now stands at 31 
percent. This puts American companies in a better place, from a 
competitive standpoint, than their Chinese and Mexican counterparts.
  Think about that. Prior to the Tax Cuts and Jobs Act, China was 
treating its companies better, Mexico was treating its companies 
better, with lower tax rates, and you saw investments going into those 
countries. Now, with the United States having lower tax rates, it is 
turning around.
  This improvement, as well as other provisions such as the immediate 
expensing of new equipment, is causing companies to bring cash back 
from overseas and invest in America and hire workers and raise pay.
  Under the new system, small business employers, known as pass-through 
enterprise--your partnerships, your LLCs--will be able to deduct 20 
percent of their qualified business income, and the remaining income 
will be taxed at new and lower rates.
  This translates into a significant tax cut for Main Street 
businesses, freeing up resources that will allow them to innovate and 
invest in their communities, hire workers, and increase wages.
  The Tax Cuts and Jobs Act also established a program that will ensure 
that the benefits of our booming economy reach areas that have been 
historically overlooked: the opportunity zone programs.
  States are identifying areas that have struggled with high poverty 
and sluggish economic growth. The Tax Cuts and Jobs Act provides tax 
incentives to direct private investment into and reinvigorate these 
communities. These communities have been starved of robust capital 
investment for decades. That is about to change.
  In my district in western Pennsylvania, Governor Wolf from 
Pennsylvania has designated zones across the State. In western 
Pennsylvania, in my district, we have tracts that have been designated 
in Beaver Falls, Midland, Johnstown, and Aliquippa. These are strong 
communities, Mr. Speaker, that once again can thrive thanks to the 
attractive incentives offered in the opportunity zone investment.
  This is how it is going to work.
  People may have an asset they have been holding for a long time and 
have a capital gain there. There is $6 trillion locked up in capital 
gains across this country. If somebody wants to make an investment in a 
community where there has not been an investment, they can sell that 
asset, defer their capital gain, and invest in that fund. If they hold 
that in the fund for 10 years, they can defer the tax for that 10 
years, get a step up in basis, and here is where it is great: they will 
not pay taxes on the appreciation of that investment in the opportunity 
zone.
  Think about that capital that can flow into those communities and 
stay there and grow a business. That is private capital coming in, 
which is different from a government grant that might go in.
  You have individuals who are looking to make investments. They want 
that investment to grow. They want that investment to do well. They 
want that investment to prosper in these communities. This is good news 
for those communities and good news for people who live there and can 
get jobs as a result of the investments in these opportunity zones.

  The Tax Cuts and Jobs Act is not just about simplifying our Tax Code. 
It is saving people money. It is about empowering people in 
Pennsylvania and throughout our Nation with hope and opportunity to 
better their lives for themselves, their families, and their 
communities.
  These reforms within the Tax Cuts and Jobs Act are resulting in real 
benefits that are being experienced across the Nation. Already, 90 
percent of American workers are receiving higher take-home pay under 
the new withholding tables. Four million workers have received bonuses, 
raises, or expanded benefits, and over 1 million new jobs have been 
created, including 160,000 manufacturing jobs.
  For the first time in many years, there are more job openings than 
job seekers. Last month, the unemployment rate was 4 percent, nearly 
the lowest in decades, and the unemployment rates for African Americans 
and Hispanics were at historic lows. Fifty-eight percent of small 
business owners are confident about hiring new employees, and more 
Americans are optimistic about their future.
  The Tax Cuts and Jobs Act is bringing workers who were pushed to the 
sidelines during the previous years back into the labor force and 
restoring hope to everyday Americans. In June, 600,000 people entered 
the labor force, and 213,000 new jobs were added.
  Businesses in my district are reinvesting in their employees, 
communities, and operations through bonuses,

[[Page H6586]]

higher wages and salaries, and increased charitable giving.
  In western Pennsylvania, PNC Bank and BNY Mellon have raised their 
employees' minimum wages. Major companies, including UPS, FedEx, and 
Home Depot, that employ thousands of western Pennsylvanians, are 
providing bonuses and contributing more to their employees' retirement 
plans.
  In fact, the Hampton Township Home Depot plans to create its own 
Success Sharing Program, in which hourly employees will be able to 
divide an estimated $30,000 to $40,000 among themselves semiannually, 
twice a year.
  The Ellwood Group, a steel manufacturer, is planning a $60 million 
addition to its New Castle plant and adding 25 new employees once it is 
fully operational.
  Some who opposed the Tax Cuts and Jobs Acts have touted these 
meaningful benefits to U.S. workers as ``crumbs.'' They have said that 
this law only helps the wealthy.
  Let me ask this: Is the Pennsylvania Utilities Commission requiring 
17 of its utility companies to give a monthly credit to their 
customers, saving $320 million a year, crumbs?
  Mr. Speaker, these aren't crumbs. These are seeds that are taking 
root and growing opportunities, creating jobs and the economy for all 
Americans to prosper.
  Don't just take it from me. Take it from John in New Kensington, who 
is seeing more money in his paycheck and received a $2,500 bonus.
  Take it from Brian in Windber, who is receiving $500 more a month; 
Michael in Aliquippa, who is bringing home an extra 4.5 percent in each 
paycheck; Edward in Westmoreland County, who is receiving $128 more per 
paycheck. That is more than $3,000 per year.
  Take it from Flory in Westmoreland County, who said that, thanks to 
the Tax Cuts and Jobs Act, her family will have more money to use 
towards their son's postgraduate education; and Heidi from Allegheny 
County, who wrote to tell me that ``every penny we aren't taxed can go 
towards our other bills such as food, utilities, school loans, a 
mortgage, and clothing for our children. We were barely scraping by 
during the previous administration.''

                              {time}  1315

  The Tax Cuts and Jobs Act is about empowering everyone, from the 
single mom in Ambridge, Pennsylvania, looking to buy her first home to 
the entrepreneur in Beaver Falls, working to achieve his or her 
American Dream.
  When our people can fully develop their God-given skills and talents 
in a competitive economy without the government's excessive taxes and 
regulations, not only will our citizens' lives improve, but our country 
will grow stronger.
  Mr. Speaker, I yield back the balance of my time.

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