[Congressional Record Volume 165, Number 62 (Wednesday, April 10, 2019)]
[Senate]
[Pages S2358-S2362]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                               Tax Reform

  Ms. ERNST. Mr. President, as we approach tax day, America's roaring 
economy keeps on speeding ahead as we continue to see the positive 
impact that the Tax Cuts and Jobs Act is having throughout Iowa and the 
rest of our country.
  Last week, yet another outstanding jobs report was released, showing 
that the economy added 196,000 jobs in March--well above expectations.
  Just think, since tax reform was passed, 3.2 million jobs have been 
created. And year-over-year wage growth remains strong at 3.2 percent 
in March.
  After years of stagnant wage growth, we have now had 8 consecutive 
months in which it exceeded 3 percent.
  Under the leadership of Governor Kim Reynolds, Iowa's unemployment 
rate is the lowest in the country and is tied for the lowest rate ever 
recorded in our State. I have seen the effects of tax reform firsthand 
in my home State, and they are paying off big time.
  Thanks to Senate Republican pro-growth tax reform, a business owner 
in Pella, IA, has saved tens of thousands in taxes, allowing her to 
increase the wages of her employees, purchase new semi-trailers, and 
upgrade her facilities.
  A small brewery in central Iowa has been able to hire a new full-time 
employee and purchase an additional fermenter, increasing their 
production by 17 percent.
  In a survey of Iowa businesses last month, 87 percent of folks said 
they plan to make capital expenditures this quarter, and the vast 
majority expects sales to grow over the next year.
  By lowering tax rates and doubling the standard deduction and child 
tax credit, the Tax Cuts and Jobs Act has also helped families 
throughout Iowa keep more of their hard-earned dollars.
  In 2018 alone, Iowans saved an estimated $1.8 billion in Federal 
taxes. A single mother earning $30,000 a year is saving over $1,000 in 
taxes. Iowans earning between $40,000 and $80,000 are receiving an 
average tax cut of $1,128 dollars.
  These savings are certainly not pennies, as some of our Democratic 
colleagues have suggested. These tax cuts are allowing families to get 
ahead and save for their future.
  Iowans are feeling the strong effects of the pro-growth tax cuts that 
Republicans passed. Folks are keeping more of their own money, and at 
the same time, the rising tide of our economy is lifting wages.
  A couple of years ago, we were in the midst of the most sluggish 
economic recovery in our history. Folks, it wasn't much of a recovery. 
Today, thanks to tax reform, Americans are able to keep more of their 
own hard-earned money, our economy is booming, wages are finally 
rising, and unemployment is at a near 50-year low.
  Tax reform has created a more competitive tax system while providing 
much needed relief for hard-working Iowans and job creators of all 
sizes. And folks, this really is only the beginning.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Perdue). The Senator from Missouri.
  Mr. BLUNT. Mr. President, as we said when we began to talk about tax 
reform months ago now, the purpose of tax reform was stronger families 
and expanding opportunities for every American. I think the facts are 
clear that that is exactly what happened.
  Over the past year, most people saw bigger paychecks. Many of those 
people saw bigger paychecks because they had less money taken out of 
their checks. Ninety percent of middle-class Americans received a tax 
cut. Pay increases

[[Page S2359]]

for lots of other Americans set new standards in recent years. I think 
the pay increases of slightly less than 4 percent in the last year are 
higher than at any time in recent memory.
  Under the Tax Cuts and Jobs Act, the child tax credit doubled from 
$1,000 to $2,000 per child. That credit is available to many more 
families than before and obviously is twice as big as before.
  People are able to keep more of what they earn.
  We have an economy right now where people actually believe for the 
first time in a decade that the chance they are going to get a 
promotion is greater than the chance they are going to lose their job. 
They have also stopped worrying about their neighbor losing their job 
or someone else in their family losing their job. At this time, we have 
an economy where people who want to go to work can go to work with 
confidence.
  Unemployment last month was at a 49-year low. Around a year ago, for 
the first time, more jobs were available than people looking for work. 
That had never happened before since keeping these statistics, that 
there were more jobs available than people looking for work. When it 
happened the next month, it was the second month in a row that it had 
ever happened because it had never happened before the first month. I 
think we are now 11 months into that statistic where there are more 
jobs than people looking for work.
  In 2018, we had the strongest economic growth that we had seen since 
before the financial crisis about a decade ago.
  According to the Department of Labor, average hourly earnings have 
increased by 3.4 percent year over year. That is the largest increase 
in a decade. Job openings increased to 7.6 million at the beginning of 
the year. That is the third highest job-opening number in a long time. 
As I said earlier, for the 12th straight month, the number of job 
openings has exceeded the number of jobseekers.
  There is no doubt that the Tax Cuts and Jobs Act has been part of the 
economic turnaround and will continue to be. One of the ways it will do 
that is by promoting new investment in areas where they need it most, 
through what we call in the tax bill opportunity zones.
  In Missouri, there are 161 areas that have been designated as 
opportunity zones, making them eligible for the investment incentives 
under the new Tax Cuts and Jobs Act.
  I want to thank my friend from South Carolina, our colleague from 
South Carolina, Senator Scott, for all of his hard work in making sure 
this provision not only makes sense to people but making sure we fought 
hard to see that it was included in the tax bill.
  The majority of these zones were required to have an average poverty 
rate of at least 20 percent and a median family income of no more than 
80 percent of the statewide median income. So obviously there are areas 
where something needs to happen to improve those areas.
  It is predicted that $100 billion of private capital will go into 
those opportunity zones. These are places where, even unlike the 1031 
exchange, you can take an asset that is no longer working for you or 
you are no longer excited about having and you can get rid of that 
asset and put it in an opportunity zone. It doesn't have to be a like-
kind exchange. There is a difference in focus and focusing where people 
need it.
  Attracting new investments to distressed urban and rural communities 
with high poverty rates and slow job growth is a challenge. This is one 
of the things that the tax cut is beginning to do and that the new tax 
bill is beginning to do, bringing in that investment and creating more 
opportunities for families.
  Just recently, Housing and Urban Development Secretary Ben Carson 
came to St. Louis to highlight opportunity zones. Here is what the 
Secretary of Housing and Urban Development said: ``The Opportunity 
Zones present an incredible opportunity for people to take unrealized 
capital gains that would normally be invested into more traditional 
vehicles and focus them on areas that are traditionally neglected.''
  The opportunity zones are another example of how tax reform is 
working to benefit Missourians and people all over the country. I think 
the goal of a tax plan that would benefit families and benefit 
individuals is clearly being realized as we approach the day that none 
of us are ever excited about--tax day. It is not the most popular day 
in the year, but over the past year, people have been able to keep more 
of the money they earn, and maybe just as important, they have been 
earning more money than they earned before even if they didn't benefit 
directly from the new Tax Code.
  While this is not the most favorite day of the year, it is a day that 
has been better for American families than this day has been for a long 
time, and hopefully it will be even better a year from now.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Indiana.
  Mr. YOUNG. Mr. President, I rise today to speak about our booming 
economy and the stellar jobs report we saw on Friday, thanks in part to 
tax reform.
  With tax day just around the corner, I would like to briefly 
highlight the many benefits American families, workers, and job 
creators have experienced as a result of lower tax rates.
  Since Republicans passed the Tax Cuts and Jobs Act, 3.2 million new 
jobs have been created. Our 3.8 percent unemployment rate is near a 50-
year low. The unemployment rate for women in particular matches the 
lowest rate since 1953. Ninety percent of middle-class workers have 
experienced a tax cut, and jobless claims have recently dropped to the 
lowest level since 1969. Additionally, in 2018, manufacturing job 
creation was the highest it has been in over 20 years.
  As the most manufacturing-intensive State in the Nation, Indiana 
particularly benefits from this tax cut bill.
  Last year, in conjunction with tax day, I spoke on the Senate floor 
about the many stories that have already poured into my office from 
Indiana businesses that are paying their workers more and constituents 
who are earning more. This year, I am proud to say these stories 
continue.
  My guest to last year's State of the Union, Chelsee Hatfield, is a 
prime example. When tax reform was signed into law, Chelsee, a young 
mother of three, was working as a teller at a rural bank, First Farmers 
Bank and Trust Company in Tipton, IN. She received a raise and a bonus 
as a result of tax reform. This additional income helped Chelsee go 
back to school to earn her associate's degree, and it enabled her to 
put money away for her children's future college education. I am proud 
to say that this summer, Chelsee graduated with her degree, and she has 
been promoted to a commercial loan administrative assistant position. 
What a powerful story.
  I recently had the opportunity to visit with a third-generation small 
business owner in Fort Wayne. Dan Parker is the owner of Parker Towing 
& Recovery. He was able to purchase several new trucks thanks in part 
to tax reform. This means more trucks will be available to assist 
Hoosiers who have been in a car accident or have had their cars break 
down. Parker also recently expanded the company's office space and gave 
his staff raises. Parker said: ``As a result, we have less turnover 
now.''
  Another Indiana employer, Cardinal Manufacturing Company in 
Indianapolis, rewarded its team members with bonuses and pay raises.
  Albanese Confectionery, a candy manufacturing company in 
Merrillville, provided bonuses that it says will happen annually as 
long as the tax reform bill stays in effect.
  Lastly, I would note that this new Tax Code incentivizes new 
investment into distressed rural and urban communities to help the 
least among us through the creation of tax-advantaged opportunity zones 
around the State of Indiana.
  The bottom line is that Hoosiers continue to benefit from the Tax 
Cuts and Jobs Act. Workers are taking home more of their hard-earned 
money, and businesses of all sizes are expanding, hiring, and investing 
in their employees.
  I look forward to working with my colleagues to continue supporting 
policies like tax reform that have our economy booming.
  Thank you.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Oklahoma.

[[Page S2360]]

  

  Mr. LANKFORD. Mr. President, I want to join several of my colleagues 
today who are noting that we are approaching tax day. It is not a day 
Americans look forward to, but it is part of our responsibilities. The 
old joke about the two things that are certain--death and taxes--is 
still certain for all of us.
  This year, it is interesting to approach this tax season in the first 
year of everyone filing under the new tax law. It has been fascinating 
to read some of the stories about what some of the media--the national 
media in particular--is saying about the tax law. They are so desperate 
to find anything to criticize. It is fascinating to me to read the 
headlines versus the stories.
  The headline in this story in particular is ``This is going to wipe 
us out,'' in reference to the new tax law. When you read through the 
story and find out who they say is going to get wiped out, here is 
their illustration of the person: a person moving from a $400,000 house 
this past year to one valued at $1.1 million. He concedes he has a 
first-world problem of his taxes going up, but he says that owing more 
in taxes is ``a little disheartening''--as he moves from a $400,000 
house to a $1.1 million home. I am excited for him and his new home. I 
am sure it is beautiful. But that was their illustration of who is 
going to get hard hit by the tax changes.
  This article from a national source said: ``Is a Tax Refund Ahead in 
Your 2019? Some Taxpayers Received a Tax Bill Instead.'' You go to the 
middle of the story, and they make this one little note: ``Only about 
5% of taxpayers . . . are expected to pay more under the new law.'' In 
other words, 95 percent of Americans--even in this story that is a 
negative story about the taxes, they hide the simple fact that 95 
percent of Americans will pay the same or less. The vast majority of 
those will pay less in their taxes for the next year.
  How about this one. Here is another national story that came out. 
``Small business owners struggling to understand Trump's new tax law.'' 
When you get down to literally the last line of the story, it ends like 
this, with the same small business owner:

       I don't know [yet] if it's going to impact my cash flow, 
     the way I have to put money aside for this year, because I'm 
     not sure. I may even do better [under the tax law], I don't 
     know [yet].

  That was their whole story to say that people are struggling under 
this tax law--it was just the uncertainty.
  What am I finding in Oklahoma? I am finding more jobs and more 
opportunity across the State. This is not some accident of history; 
this is the direct result of a change in the tax law.
  I am quite confident that my liberal colleagues have all been very 
excited to find something to complain about through this process, but 
they overlook the simple fact that this one story buries 95 percent of 
Americans who do the same or better under the tax law and that the vast 
majority of those are doing better under the tax law.
  It was interesting. There was a Vox tweet that came out from a news 
source from one of the reporters who made this one comment this past 
week, saying: ``Nobody likes to give themselves credit for this kind of 
messaging success, but progressive groups did a really good job of 
convincing people that Trump raised their taxes when the facts say a 
clear majority got a tax cut.''
  My favorite: The left-leaning Tax Policy Center had to begrudgingly 
study the tax cut and what is actually happening and say: Middle-class 
taxes actually went down. Families kept almost $1,000 more, which would 
have previously gone into government coffers.
  What happened as a result of that, as a result of people keeping 
their own money and the withholding tables changing this past year so 
that each month, people are actually keeping more of their own money? 
Here is what happened: Our GDP grew at 3 percent a year--a dramatic 
increase from what we have had in the past; inflation-adjusted business 
investment has gone up 7 percent just since the tax cuts; and 215,000 
new jobs have started on average every month since the tax cuts. Those 
are very strong numbers across the country. Unemployment has gone to 
3.9 percent since the enactment of tax reform. Beginning in April of 
last year, the number of job openings in the national economy has 
exceeded the number of unemployed Americans--something that had not 
been recorded prior to April since records have been kept.
  So starting this past year, there are literally more people searching 
to find other opportunities than there are opportunities out there 
because there are so many jobs open. So many companies are still trying 
to hire and are looking for people that people have the opportunity to 
stay at their same job, get better pay, or switch to a new job and get 
opportunities. That is providing more opportunities for more people to 
transition to a new job or make more money at their own job.
  Well, what has happened on wages? As a result of what is happening in 
the economy, wages have gone up 2.9 percent just since the tax cut; 
that is, individual wages have gone up. What happened to income during 
that time period? Let me go back to the Obama time period. When 
President Obama was President, on average, income went up 1.8 percent; 
that is, total take-home. Since the tax reform, income has gone up 4 
percent for each American. That is double the amount during the Obama 
administration. Again, this is not an accident of history; this is the 
result of the tax reform. This is what happens when people are allowed 
to keep more of their own money and spend it. More companies are doing 
better. There is more investment happening, more job opportunities, 
more opportunity to get a different job or to get a raise at your 
current job, and take-home pay has increased.
  What has happened in people's taxes? Well, early on this year, the 
stories, as I referenced before, were all about how tax returns were 
down. They searched to find anyone who had tax returns that were down. 
All those stories disappeared in late February, when the IRS brought 
out the latest numbers, not from January and early February but from 
February and March, and said: Actually, tax returns are up this year 
from what they were in the previous year.
  As of the latest number, April 5, tax returns for individuals almost 
are dead even, exactly as they were last year. So the stories have 
disappeared from headlines that their tax returns changed because the 
IRS continues to report the facts. Actually, the returns are almost 
exactly what they were from the previous time.
  So what has happened to actually help people in their paying of their 
taxes? Well, I started asking some of my team in Oklahoma to just ask 
people. When you are traveling around the State and when you are 
visiting people, just ask them how their taxes have gone and what has 
happened because people are filing now--just find out what is going on.
  One of the dry cleaners in Enid let our team know that he is doing 
better in his small business taxes this year, and he is actually going 
to be able to put a downpayment now on some brand new equipment at his 
dry cleaner in Enid.
  With another one we talked to--he is in his early thirties, married, 
he and his wife both work. They said they saved enough on their taxes 
this year from last year that they are going to start paying off some 
of their student loans and start paying down their car loan faster.
  We spoke to one other gentleman who is also in his late thirties. 
They have one child who was born this past year. They said they have 
saved enough in their taxes from the previous year that they are going 
to be able to take care of some healthcare costs they have, and they 
are going to start setting aside some money to allow his wife to start 
a Roth IRA account. Starting their savings for their retirement in 
their thirties, when you should start saving for your retirement, they 
are able do this year because of the change in the Tax Code.
  With another gentleman we talked to who works in Oklahoma City, he 
reported that with his withholding changes that happened, he is now 
actually in a--he was in a 25-percent tax bracket and has now moved to 
the 22-percent tax bracket, and he is using his savings to take care of 
some of the issues he had in his own personal debt.
  We have a married couple in Davis, OK, down in South-Central 
Oklahoma. Their income actually went up $4,000

[[Page S2361]]

this last year. When they finished all their tax payments, their tax 
actually decreased by $700 from one year to the next, even though their 
income went up.
  Another couple down the street from Davis in Sulphur, OK, own a small 
farm. Their income went up $7,000 last year from the previous year, and 
they were panicked about what would happen with their taxes. Well, 
their taxes actually decreased $1,400 from the year before.
  We have a police officer in Norman, OK, just south of Oklahoma City. 
He actually--he and his family, after they finished filing all their 
taxes, he said this:

       I now bring home more in my check every 2 weeks because of 
     the change in the Tax Code. It is making things so much 
     simpler for us to be able to make ends meet.

  There was a teacher in an elementary school. She noted, as simple as 
this may sound, that she has received $10 more every single time a 
paycheck came out, and that made a difference for her as a first-year 
teacher just getting started.

  There is a farmer with two kids. He was able to use the new child tax 
credits, and although his income was higher than the year before, his 
tax burden was $3,000.
  There is a pilot married to a nurse in our State. Their income 
actually increased in the past year as well, but he said with the lower 
tax rates and the child tax credits, their tax burden also decreased by 
$1,000 from the year before.
  All these are real-life stories of what is really going on in the 
State. As I hear all the different stories that come out, people lose 
track of the fact of what is really happening. While some of my 
colleagues have been so focused on trying to find some way to be able 
to damage the effect of tax cuts, families in my State know the 
difference.
  One of the families we encountered this past week made a comment that 
they had a child born in 2018. That child was born in 2018 but actually 
very premature. Their medical bills racked up pretty quickly because 
the child was in the ICU. Then they started filing their taxes this 
year as their medical bills were coming in--by the way, their child is 
doing well and healthy. As they started filling out all their forms and 
were thinking about some of their bills, being able to cover their 
deductible, their tax bill came back in, and they saw their taxes are 
lower, and they are using their higher return this year to offset the 
medical costs from the early delivery of their child.
  This is what tax reform looks like. Some of my colleagues try to 
spend all of their time saying tax reform is all about big corporations 
and Wall Street. Interestingly enough, most of the high-income folks in 
my State have said, actually, their taxes went up a little bit this 
year, not down. They are part of that 5 percent of Americans who didn't 
end up with a tax change. For the vast majority of Americans who are 
working and putting ends together and taking care of their family, in 
my State and in other States, they are finding that tax reform is not 
some theory to them. It was a real help to their family in paying off 
debt, starting retirement, taking care of medical costs, taking care of 
their family, getting going on with life, and as the police officer in 
Norman said, ``just making things a little simpler.''
  Tax reform is determined to help our economy, to get us growing, to 
get us going as a nation and provide more opportunities, and I am 
grateful, even in all the complexity of filling out tax forms, it is 
showing a real result in pragmatic ways to Americans.
  This past weekend, I stopped and filled out my tax information--going 
through all the details and gathering all the forms and filling 
everything out. It is still a pain, and it is still not the most 
pleasant experience in all of life filling out your tax forms, but at 
the end of it, I reflected on some of these direct stories and realized 
there are people who really do feel the real effects of what is going 
on. Understanding all the frustration of filling out taxes, which is a 
pain for everybody, there is some real benefit this year versus the 
year before and I hope for the years to come.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. BARRASSO. Mr. President, you have heard the quote: ``In this 
world, nothing can be said to be certain except death and taxes.'' Of 
course, that was from Benjamin Franklin back in 1789.
  Well, just as Franklin predicted, the tax man cometh on Monday. This 
year, tax day follows a very strong March jobs report. Our booming 
economy remains an incredible boon for U.S. workers. Employers added 
196,000 jobs last month. It beat all expectations. U.S. unemployment is 
right now at historic lows. It has remained at or below 4 percent now 
for over a year. Weekly jobless claims have fallen to a 50-year low--50 
years. It has never been lower, and the unemployment rate for women is 
now the lowest since 1953.
  Wages have increased by more than 3 percent, the fastest growth in a 
decade, and it is worth noting that in recent months, the biggest pay 
increases have gone to lower income workers. Bigger paychecks mean a 
higher standard of living. Bigger paychecks mean the median household 
income continues to rise and is, today, at the highest level ever in 
the United States.
  There are currently 7.6 million jobs open. We actually have more open 
jobs in America today than we have people to fill them. Small 
businesses recently set hiring records, and 60 percent of small 
businesses have additional plans to hire more people. You would have to 
go back 20 years--two decades--to find as many new manufacturing jobs 
as we have added last year.
  So this solid jobs news reflects an American economic renaissance 
brought about by Republican tax reform. Republicans reduced tax rates 
across the board. We have done it for individuals and have done it for 
businesses starting in 2018. We lowered tax rates for small businesses, 
as well as for family farms and family ranches, which is certainly a 
big thing for me in Wyoming. We nearly doubled the standard deduction. 
We cut our excessively high corporate tax rate as well so U.S. 
companies are able to compete better globally. We made it easier for 
business owners to recoup the cost of their investments because we want 
them to invest and hire more people in the process.
  As a result of Republican leadership, American workers have abundant 
opportunity. The Washington Post reports that due to the strong labor 
market, economists, they say, now foresee ``almost no risk of an 
imminent recession.'' According to the Post article, ``As long as 
hiring remains strong and wages are climbing, the economy is likely to 
continue growing, experts say, because people typically spend more when 
they are not worried about losing their job.''
  Our economy is strong. Our economy is healthy. Our economy is 
growing. The U.S. GDP has risen 3 percent year over year. Lower tax 
rates have freed job creators, giving companies the confidence to 
invest, to grow, and to hire. Employers have created more than 3 
million jobs since tax reform passed and 5.5 million new jobs since 
President Trump took office. With faster job growth and better profits, 
businesses can invest more in their workers.
  Last year, a number of Wyoming employers boosted pay and benefits due 
to tax reform. Darden Restaurants, with locations nationwide, including 
in Cheyenne and in Casper, invested $20 million in its workforce. 
Kroger grocery stores and convenience stores, with more than 1,400 
employees in Wyoming, well, they invested $500 million to boost worker 
pay. Kroger plans to add, actually, 11,000 more jobs.
  Many companies in Wyoming have made similar investments. I hear about 
them every weekend. Our utility company in Wyoming, Rocky Mountain 
Power, has rewarded our customers as well. It decreased its electricity 
rates last year by 3 percent, and, they say, as of course other 
utilities have across the country, it is a direct result of tax reform.
  Democrats, on the other hand, are threatening to reverse these gains 
and dramatically increase taxes with their extreme socialist agenda. 
Democrats want to take over all of healthcare in this country and 
eliminate insurance from 180 million Americans. That bill was 
introduced today by the Senator from Vermont and cosponsored by, I 
assume, just about every Democrat who is running for President who is a 
Member of the Senate.
  Medicare for All, let's be clear, is government-run healthcare. It 
has an

[[Page S2362]]

estimated 10-year price tag of over $32 trillion, meaning massive tax 
hikes for American families.

  Democrats also want to control our energy sector. It is called the 
Green New Deal. Its estimated 10-year price tag is $93 trillion. This 
unaffordable, unworkable plan would destroy our economy and 
dramatically increase taxes.
  Far-left Democrats are touting tax-the-rich plans that would punish 
success. These include raising the top marginal tax rate to 70 percent, 
imposing a 2-percent annual ``wealth tax,'' and raising the top estate 
tax rate to 77 percent on farmers, ranchers, and business owners.
  Republicans dramatically reduced the estate tax or the ``death tax'' 
as a result of tax reform. This tax is double-taxation. It taxes money 
that has previously been taxed already. It hurts family-owned 
businesses, and it hurts ranchers and farmers and should be fully 
repealed.
  Clearly, Democrats have taken a sharp left turn. Their policies will 
send our strong, healthy, and growing economy careening over the 
liberal cliff.
  Republicans' pro-growth tax relief has produced a booming economy 
with millions of new jobs and larger paychecks. We freed job creators 
to hire again. We put Americans back to work. We raised the standard of 
living. Thanks to Republican tax reform, America is back in business.
  So I say, we must come together. We must do it now. We must embrace 
commonsense policies that will continue our progress. Republicans have 
provided successful solutions. Democrats are now promoting the failure 
and the horrors of socialism.
  Thank you, Mr. President.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Delaware.