Mr. Speaker, you see, tax reform is about giving hardworking Americans--of all walks of life--the confidence they need to make their dreams a reality. So the question that needs to be asked is whether or not the current tax code--and all…
Mr. Speaker, you see, tax reform is about giving hardworking Americans--of all walks of life--the confidence they need to make their dreams a reality.
So the question that needs to be asked is whether or not the current tax code--and all of its targeted credits--really increases people's paychecks. . . . Does it treat people fairly? Does it put American workers first? What about fostering economic growth, does it help to create more good-paying jobs?
Michigan is a great case study.
You see, I'm from the Motor City, where we're known for our blue collar work ethic. Our families come from humble beginnings. They get up every morning and go to work to make ends meet, and to build a better future for their kids. And we've persevered through some of the most serious economic death spirals. Take 2008, for example.
At that time, I was Senate Majority Leader in Michigan under the last administration, overseeing the only Republican branch of government. I saw firsthand how that administration pursued one targeted tax credits after another that favored one industry over the other. It was the classic example of the government picking winners and losers--and, as expected, it failed miserably.
As we see at the federal level today, in Michigan many of these targeted tax benefits were paid for by everyone else: in the form of tax increases. And not only did it fail to attract growth in emerging sectors as they hoped, but it caused our economy to tailspin.
Michigan quickly became the only state in the country experiencing zero economic growth. Per capita income went from one of the highest, to one of the lowest in a matter of just a few years.
By 2009, unemployment hit nearly 15 percent. (Neighboring states with more hospitable environments for job growth attracted our family and neighbors).
More than 800,000 people left our state. Just think about that. . . . We were the only state to lose population--and we would have lost even more had people been able to sell their homes.
But as the Senate Majority Leader of the only Republican branch of government, we didn't just say ``no'' to the government's failed policies, we offered solutions and loaded up the pipeline with legislation to help the newly-elected Republican legislature and Governor Rick Snyder get to work on day one.
What did we do? Exactly what we're doing here today: tax reform.
While balancing budgets, we found ways to lower rates on individuals. Reduced baseline rates for job creators, and eliminated the credits that favored certain industries over others. We created an environment that would grow the economy, and help families get ahead.
And sure enough, just two months after these reforms, job growth turned positive again in Michigan.
In 2017, Michigan is now a top 10 pro-business state, ranked 12th among all states for overall business tax climate. Unemployment in Livingston County, in my district, is at 3.3 percent as of this September. And the comeback continues.
Detroit is re-emerging again as an economic powerhouse. The streets are alive with entrepreneurs and young people, who live downtown. The future looks great for the Comeback City.
You see, the moral of the story is that tax policy matters.
Getting tax reform done right means delivering real relief. I've seen it work in Michigan, and I know we can do it at a national level. It's not hard. It's about allowing people to keep more of what is rightfully theirs. It's about freeing up more capital to create more jobs, increase wages, and compete at a global level. This is how you grow an economy from the ground up.
Let's vote for our constituents today--do it for that middle-income family of four, or the single mother of three--and pass this bill today. All of us have an obligation to simplify the tax code for every American--with lower rates--so it's easier for hardworking people to file their taxes and have the peace of mind they deserve.
It's been 31 years, and the relief can't come soon enough.