[Congressional Record Volume 164, Number 196 (Wednesday, December 12, 2018)]
[Senate]
[Pages S7474-S7475]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            TAX LEGISLATION

  Mr. GRASSLEY. Mr. President, as the 115th Congress winds down, I 
would like to reflect on the enactment of the historic tax legislation, 
which passed last year, and what is ahead for us in the new year.
  In December of 2017, Congress passed, and the President signed into 
law, the most comprehensive reforms to the Nation's tax laws in more 
than three decades.
  For years, both sides of the aisle have talked about the need for tax 
reform that would provide tax simplification, tax fairness, and 
increase America's economic competitiveness. With the enactment of the 
law called the Tax Cuts and Jobs Act, we finally made all three of 
those goals a reality.
  Significant simplification was achieved for individuals by nearly 
doubling the standard deduction. This means people will be able to pay 
less and avoid the tedious task of itemizing their taxes. Overall, 
roughly 90 percent of taxpayers will file their taxes by simply taking 
the standard deduction.
  Moreover, thanks to a significantly higher alternative minimum tax, 
which we refer to as the AMT exemption, millions of middle-class 
taxpayers will no longer be faced with figuring out their tax liability 
two times: one time to calculate their regular tax liability and the 
second time to calculate their tax liability under the alternative 
minimum tax.

[[Page S7475]]

  It also provided tax fairness by reducing taxes across every income 
group. In fact, middle-income families experienced the largest tax cut 
by percentage.
  Additionally, the reforms made the Tax Code more progressive, with 
taxpayers earning more than $1 million shouldering a larger share of 
the tax burden than they did under the previous law. In addition to 
nearly doubling the standard deduction, tax relief was targeted at 
middle-class families by doubling the child tax credit from $1,000 to 
$2,000 per child.
  It also reduced the previous 15 percent tax bracket to 12 percent and 
the 25 percent tax bracket to 22 percent. As a result, a typical family 
of four earning $59,000 a year will see a tax cut of more than $1,600 
in the year 2018.
  A key motivation for tax reform was to boost economic growth and 
increase America's global competitiveness. America's Tax Code should 
favor American jobs, American workers, and American businesses. That 
means leveling the playing field so that we are not put at an economic 
disadvantage with other countries competing with us, so the Tax Cuts 
and Jobs Act brought the corporate and international tax systems into 
the 21st century. You can tell it is already working because other 
countries are looking at lowering their tax rates to compete with us.
  Of course, what we did included lowering the corporate tax rate from 
35 down to 21 percent. In one fell swoop, we went from a tax rate that 
was the highest in the developed world to below the world's average of 
23 percent. How can you be competitive if you are a country at 35 
percent and the average is 23 percent? This means global corporations 
will be more inclined to create jobs here, rather than in other 
countries.
  We also modernized America's international tax system. We were one of 
the very last major countries to tax businesses on a worldwide basis. 
By moving toward a more territorial system, we freed up more than $2 
trillion for investment here at home that American companies were 
holding offshore.
  These changes to the international tax rules don't just help U.S. 
companies that operate globally to compete in the worldwide 
marketplace, but they also help those companies grow their businesses 
here at home with more jobs, better wages, and increased investment.
  Just as important, we worked to ensure that small businesses and 
pass-through entities received more equitable treatment compared to 
what a corporation gets. We have a new 20-percent qualified business 
deduction benefiting pass-through businesses of all sizes, down to the 
smallest family farmer or corner bakery. Enhanced expensing rules were 
included to help all businesses, spurring investments in new equipment 
and machinery.
  Our efforts have contributed to a strong and growing economy. The 
unemployment rate is at a half-century low; wages are rising at the 
fastest rate in nearly a decade; and workers, employers, and small 
business owners are all very optimistic about the future--more 
optimistic than for a long, long time. America is working again.
  As we look forward to a new year in 2019, with a new Congress and a 
new majority in the House, it is my hope that we can work in a 
bipartisan way to build upon this economic success I just described. I 
will be doing my part as the incoming chairman of the Senate Finance 
Committee, and I see plenty--plenty--of opportunity.
  Unfortunately, I hear increasing calls from the incoming House 
majority pledging to erase the progress made with the tax cuts and tax 
reforms I have just outlined.
  The proof of tax reform's success is in today's economy. It is 
obvious to most people that it is in the best shape it has been in for 
a long time. Why would we want to go backward--toward stagnation, 
pessimism, and, obviously, joblessness?
  Of course, no major piece of legislation is perfect. To the extent 
that there are legitimate efforts to perfect the law, then I want 
people to know that I am all ears. But to the extent that these efforts 
would undermine the strength of the American economy for the sake of 
ideology--and that ideology would be hiking taxes and undoing important 
reforms to modernize the tax system and increase America's global 
competitiveness--then they will be met with stiff opposition from this 
Senator.
  Instead of playing politics, we should be focused on examining how 
the law is affecting individuals, families, and businesses in our 
respective States and districts. Where necessary, we should work 
together to take action and ensure the law is fulfilling its full 
potential.
  We should also work toward providing tax certainty for individuals 
and small businesses. This would include making permanent marginal tax 
rate cuts for individuals and families, making permanent the doubling 
of the child tax credit from $1,000 to $2,000, also making permanent 
the innovative 20 percent deduction for small businesses to provide the 
certainty that is needed to make investment and to encourage that 
investment and also to encourage hiring decisions and, lastly, the 
ability of businesses to recover the cost of investment in property and 
equipment faster.
  I hope my colleagues in the House of Representatives join me in these 
efforts. I have yet to hear a good reason why we shouldn't make these 
and other tax relief measures permanent. It is the right thing to do 
for the economy, the right thing to do for job creation, and the right 
thing to do for wage growth.
  I also wish to see us continue working on other important issues we 
started in this Congress. This includes improving retirement savings, 
bringing the IRS into the 21st century, protecting taxpayer rights, 
enhancing the competitiveness of U.S. businesses, and encouraging 
research, development, and innovation.
  I also hope there will be plenty of opportunity to work on a 
bipartisan basis on tax issues involving everything from education to 
renewable and alternative energy, to consumer-directed healthcare 
options. I have heard a lot about the desire of the new House majority 
to engage in oversight of the current administration.
  I will put my record of oversight up against anyone's record. 
However, I want my colleagues to know I do not intend to engage in 
political fishing expeditions. I think a person like me who has had an 
equal opportunity approach to oversight--treating Republican 
administrations the same as Democratic administrations--speaks for 
itself.
  I will not go along with efforts to weaponize the authority of tax-
writing committees to access tax returns for political purposes. Such 
an action would be unprecedented, but if Democrats are interested in 
doing nonpartisan, good government oversight, count me in.
  I hope they will join me in my efforts to hold the IRS accountable to 
the taxpayers; ensure the nonprofit sector is living up to the purposes 
of its tax-exempt status; that they will also help me stand up for tax 
whistleblowers who expose tax cheats; and track down, expose, and 
address tax shelters.
  My hope is, in the new Congress, we will be able to work to address 
important tax matters in a bipartisan fashion. I am proud of my strong 
record of bipartisanship on the Finance and Judiciary Committees. I 
intend to continue my good working relationships with my colleagues 
across the aisle and hope to forge a few new ones, not only in the 
Senate but also with the new majority in the House of Representatives.
  Senator Wyden, who will be the ranking Democrat on the Finance 
Committee, and I have had a good working relationship on so many 
different issues over a long period of time, and I think we will be 
able to work together as well. We have already started communication 
along that line.
  I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The senior assistant legislative clerk proceeded to call the roll.
  Mr. LEAHY. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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