Mr. President, I rise to discuss the impact that tax reform is having in my home State of Arkansas. Despite what you may have heard from those who opposed the Tax Cuts and Jobs Act, including House Minority Leader Pelosi's infamous…
Mr. President, I rise to discuss the impact that tax reform is having in my home State of Arkansas.
Despite what you may have heard from those who opposed the Tax Cuts and Jobs Act, including House Minority Leader Pelosi's infamous description of the tax plan's benefits as ``crumbs'' and the passage of the plan as ``the end of the world, Armageddon,'' the economy is responding incredibly well to the changes we made to the Tax Code.
I have long believed our economy has struggled under the weight of an outdated, inefficient, and ineffective tax system. Now, businesses are beginning to do the math and are realizing that the Tax Cuts and Jobs Act will mean more savings. As a result, many have announced they are passing some of these savings on to their employees or will now be seeking to grow and expand operations.
As of today, more than 350 companies have announced pay raises, bonuses and/or 401(k) increases, benefiting over 4 million Americans. According to a recent National Federation of Independent Business survey, 32 percent of small businesses believe now is a good time to expand--the highest level ever recorded by this survey.
This is happening across the country and in Arkansas. Here are just a few examples of the companies headquartered in Arkansas, with a sizable presence in the State, that are passing along savings to their employees through wage increases, bonuses, and other benefits, are giving to charity, and/or making investments to grow their businesses and better serve customers:
BancorpSouth Bank is giving pay increases and/or one-time bonuses to nearly all noncommissioned employees. The investment of over $10 million in 2018 will benefit 96 percent of the company's noncommissioned workforce. Pay increases were effective as of January 1, 2018.
Home Bancshares, Inc., of Conway, AR, is distributing a one-time bonus of $500 to more than 850 full-time, tenured employees. Home Bancshares' chairman, John Allison, said ``investing in these individuals is an important step to help support them, their families and the communities in which we operate.''
People's Bank of Magnolia, AR, provided a $500 bonus to employees and contributed $50,000 to its charitable endowment.
Little Rock, Arkansas-based Bank of the Ozarks is giving up to $1,200 annual bonuses. Approximately 2,300 employees will be eligible under the plan.
Walmart, whose headquarters is located in Bentonville, AR, is a significant economic force not only in our State but nationwide, is increasing starting hourly wage rates in the United States to $11 an hour, expanding maternity and parental leave benefits, and providing one-time cash bonuses of up to $1,000. It also has created a new benefit to assist associates with adoption expenses.
Regions Bank is increasing its minimum wage to $15, contributing $40 million to the company's charitable foundation, and increasing the company's capital expenditures budget by approximately $100 million, or 50 percent over the 2017 level.
Springdale, AR, is home to Tyson Foods' headquarters. The company recently announced that it is giving bonuses to more than 100,000 employees whose compensation does not include an annual bonus. Eligible full-time team members will receive a bonus of $1,000, and eligible part-time team members will receive $500.
In addition, Tyson will use savings resulting from tax reform to improve training and education opportunities for employees, including teaching English as a second language and general education development classes, and it will also be accelerating capital projects.
FedEx, whose freight headquarters is located in Arkansas and which employs over 3,500 Arkansans, is investing more than $3.2 billion in growing its business, including raising wages and investing $1.5 billion in pension plans.
Finally, UPS is investing $12 billion to expand the company's Smart Logistics Network, and it also made a $5 billion tax-qualified contribution to the company's three UPS-sponsored U.S. pension plans. This represents about $13,000 per participant. The company has more than 2,200 active employees in Arkansas in addition to around 390 retirees who reside in the State.
The numbers speak for themselves. Clearly, when Washington helps to create an environment that makes businesses more globally competitive, it benefits Arkansas, and it benefits the entire country.
The law is already helping hard-working Arkansans keep more of their money in their own pockets. By nearly doubling the standard deduction, lowering rates, eliminating loopholes, and creating a climate that incentivizes business to boost wages and give employees bonuses as a result of the reduction in the corporate tax rate, the Tax Cuts and Jobs Act is providing much needed tax relief to Arkansans.
Additionally, our Governor, Asa Hutchinson, has instructed the Arkansas Public Service Commission to examine how the new lower tax rates will benefit utility providers in Arkansas. He is encouraging the commission to instruct utilities to pass savings down to ratepayers, which could mean possible lower utility rates for those in the Natural State.
That is not all. Arkansas-based companies like ArcBest and Murphy USA are already reaping the benefits of the new tax system with higher revenues and incomes.
This is only the beginning. I believe we will continue to see positive trends and reactions to the tax law that will help grow our economy and spur even more investment in Arkansas and across the country.
One provision included in the law that I believe can have an enormous impact on average Arkansans is a new incentive for employers to offer paid family leave benefits to their employees. Now employers can offer 12 weeks of paid family leave in exchange for a tax credit.
My friend and colleague from Nebraska Senator Fischer fought to get this idea included in the bill. Thanks to her vision and perseverance, families in Arkansas and across the country who most need access to this type of benefit will now have that chance. This is just one more example of tax reform delivering results that will help the middle class.
I want to reiterate how well tax reform is working for my State. We are seeing growth, higher wages, and other positive benefits. Employees are getting bigger paychecks and businesses are investing in their workforces and
expanding their operations. Those are not ``crumbs.'' It is ``not Armageddon.'' It isn't an attack on working Americans. It is opportunity, it is upward mobility, and it is what Americans deserve. I am proud to have cast my vote for tax reform.
Learning about how it is helping our economy and benefiting American families just confirms what we predicted would happen if we made American businesses more competitive and let average individuals and families keep more of what they earn.
Moving forward, I am committed to ensuring that the changes we made to the Tax Code help increase economic activity and spur growth, address our national debt, and create jobs. I am confident it will have lasting, positive effects on our economy.
With that, I yield the floor.