Madam Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include any extraneous material in the Record. Madam Speaker, we have heard a lot in this debate today. One thing is…
Madam Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include any extraneous material in the Record.
Madam Speaker, we have heard a lot in this debate today. One thing is abundantly clear. Virtually every hardworking citizen in this country recognizes our genuine need for tax reform.
Let me summarize some of the facts that have been presented today.
The burdensome 70,000-page U.S. Tax Code has grown to be unreasonably complex, increasingly unfair, and filled with special interest loopholes. American companies are taxed at the highest rate in the industrialized world, and the government takes even more from our small-business owners and our entrepreneurs. As a result, our economic growth is stagnant, companies have gradually shifted their manufacturing and operations overseas, and families are struggling just to keep up.
Today, the hurdles in our system seem almost insurmountable for hardworking people as they are afforded fewer and fewer opportunities for economic mobility.
For previous generations, it was a different deal. We had the American Dream. The American Dream was defined by a simple promise: if you were willing to work hard and sacrifice and play by the rules, you could make a better life for yourself and your family. But today, our outdated Tax Code has pushed that dream beyond the grasp of more and more people.
The good news is we can fix this problem, and we are going to do that in this Chamber tomorrow. For the first time in over 30 years, Congress has a historic opportunity to pass landmark tax reform that will be a turboboost to this economy, and it is going to lead us to a fairer system, as we said so many times, with more jobs and bigger paychecks for everyone.
Our Tax Cuts and Jobs Act, H.R. 1, will deliver significant tax reductions for low- and middle-income earners, and it will help Americans in every level of our economy. The bill, which draws from 6 years of intensive work and expert analysis from more than 40 different congressional hearings, lowers individual income taxes by consolidating the existing seven brackets into four and doubling the standard deduction for everyone.
It also establishes a new family tax credit. It provides higher education benefits. It repeals the death tax. It preserves deductions for mortgage interest and charitable donations and property taxes, and it incentivizes saving for retirement.
Tax returns will become incredibly simple for the first time in my lifetime because 9 out of 10 Americans will be able to complete their annual filing on a form the size of a postcard.
The bill's business tax reforms are equally seismic because we are going to slash our draconian corporate tax from 35 percent, the highest in the world, to 20 percent, and we are going to institute the lowest rates for small business job creators since World War II. U.S. companies will finally be allowed to compete again on a level playing field and bring their jobs and operations back home from overseas.
The independent Tax Foundation estimated that our plan will result in the creation of approximately 975,000 full-time American jobs and an increase in family incomes of 4.4 percent, on average. In Louisiana, for example, that would mean 13,293 new jobs and $1,857 of additional after-tax income for our average middle class families.
The American people have long deserved a simpler, fairer, and effective system that rewards hard work and allows taxpayers to keep and invest more of what they earn. Our plan will finally provide that relief and spark the dramatic economic growth our Nation has so desperately needed.
The Tax Cuts and Jobs Act is about more than just smart legislation. It is about a revival of that American Dream I referenced. That has one agenda that should unite every single one of us, and we hope all of our colleagues will support this historic landmark piece of legislation tomorrow.
Madam Speaker, I yield to the gentleman from North Carolina (Mr. Budd), a great American small-business owner himself.
Madam Speaker, I yield to the gentleman from Texas (Mr. Arrington).
Madam Speaker, I thank the gentleman from Texas, who is always eloquent.
Madam Speaker, I yield to the gentleman from Kentucky (Mr. Comer).
Madam Speaker, there is a trend here tonight. Those who are addressing the House this evening have had their own experience with this burdensome Tax Code. They have been small- business owners, entrepreneurs, job creators, and farmers, like my friend from Kentucky. I appreciate their zeal for this issue.
Madam Speaker, I yield to the gentleman from Virginia (Mr. Garrett), a former prosecutor, an Army veteran, and always a good voice to reason.
Mr. Speaker, we have heard some compelling arguments here on the floor in the last few hours and some important facts have been shared.
I appreciate so much the eloquent words of my colleagues from Texas and Kentucky and Virginia and Pennsylvania and Florida and all over this great land of ours who have shared with us the importance of this landmark bill and this historic vote that we will take in this Chamber tomorrow.
I just thought there were a few more facts that were important to summarize here at the end of our debate this evening.
I wanted to quote the U.S. Chamber of Commerce because they looked at this bill and they gave an exhaustive review of this, as so many have. This is their summary: ``The Tax Cuts and Jobs Act is a growth bill, achieving faster economic growth, encouraging job creation, and getting more money in Americans' pockets each year.''
I think that is a pretty good summary of what the bill will do and what it will accomplish.
We brought just a couple of graphics here to illustrate the national impact of this landmark reform. When we pass this bill and we get this to the President's desk, the Tax Cuts and Jobs Act will lead to the creation of an additional 975,000 new full-time jobs across this country.
It will raise after-tax income for middle class families by $2,598 each. That is an increase of 4.4 percent. That is real money to families who are struggling to make ends meet around this country.
It will generate economic growth sufficient to increase Federal tax receipts by $1 trillion. That is real money. That is a real boost to the American economy.
I brought another graphic here to show what this will mean in my district, by way of example, in Louisiana. The Tax Cuts and Jobs Act will mean a whole lot for my State.
It will lead to the creation of an additional 13,293 jobs in my State of Louisiana alone. Those are good-paying, full-time jobs. It will raise after-tax income for middle class families in Louisiana by $1,857. That is real money. That will mean a lot to the families in my State.
More specifically, let me talk about the Fourth Congressional District in northwest and west Louisiana, 15 parishes, about one-third of our State by land area; good, hardworking, God-fearing Americans. Let me tell you what it will mean to the people of Louisiana's Fourth Congressional District.
Here are just four highlights. It will be a larger child tax credit. In my district, there are 53,918 taxpayers who claim the child tax credit every year. The Tax Cuts and Jobs Act will increase the child tax credit from $1,000 per child to $1,600 per child for each of those families.
Let me give you another one: the tax relief for small businesses. This is a big thing in my district. 49,929 taxpayers in the Fourth Congressional District of Louisiana have small business income, and that is a business that a taxpayer operates. The Tax Cuts and Jobs Act reduces taxes for small-business owners.
First, the bill implements a new, lower 9 percent tax rate on the first $75,000 of net business income for active small-business owners earning less than $150,000 through their businesses. That is a whole lot of people, a whole lot of LLCs and small companies in my district.
Second, the bill lowers taxes on small business investment by creating a new 25 percent small business tax rate. That is capped at 25 percent. That is a big deal to people who are struggling to make ends meet.
Number three, a third feature, the elimination of the alternative minimum tax, the AMT. 4,049 taxpayers in the Fourth Congressional District of Louisiana are impacted directly by the AMT. The Tax Cuts and Jobs Act eliminates that factor.
Another one is simpler taxes. Listen to this number: 67,543 taxpayers in the Fourth Congressional District, in my district back home in Louisiana, itemize their taxes.
As a result of the near doubling of the standard deduction and other simplifications, many taxpayers will have much simpler returns. It is estimated, as we have said so many times tonight, that nine out of ten Americans will be able to file their taxes on a form the size of a postcard. That is a big change and a great simplification for the people of my district. We owe this to them.
I wanted to share a few other facts that I think are important to highlight tonight, Mr. Speaker.
The Tax Cuts and Jobs Act is more than just a win for our American economy. It is a win for our American values. Let me give you a couple examples of that.
First, it is a win for free speech. The bill incorporates the language of our Free Speech and Fairness Act, which we filed as a standalone piece of legislation earlier this year in February. That will stop the IRS from policing the speech of churches and charitable organizations. That is a huge relief for men and women of faith, in particular, who watched the IRS breathe down the necks of nonprofits and religious entities, threatening to take away their tax-exempt status if they dare talk
about the moral and social and political issues of the day. That is a big win for free speech and a big win for them.
This bill is also a big win for American families. Let me give you a few examples of important features of how this helps the family in this country. The adoption tax credit has been restored. This is section 1102 of the bill. Now, this is a critically important thing to advance the policy, to advance and encourage and incentivize adoption in this country. This is something that all of us should agree on.
Over 60 percent of adopted children are adopted by middle- and low- income taxpayers in this country. Almost half of the children adopted from foster care live in families with household incomes at or below 200 percent of the Federal poverty level.
Listen to this statistic: a study reported by the Federal Children's Bureau showed that the government saves between $65,000 and $127,000 for each child who is adopted rather than placed in long-term foster care.
Studies comparing children who remain in foster care to children who are adopted show that adopted children are 54 percent less likely to be delinquent or arrested, 19 percent less likely to become teen parents, and 76 percent more likely to be employed.
Can we all agree that the adoption tax credit being restored is an important part of this bill?
I think we can.
Here is another way it helps families, Mr. Speaker: the family tax credits. This is something that everybody back home should pay attention to. The child tax credit, section 1202 of the bill, this increases the child tax credit, as I mentioned a moment ago, from $1,000 per child to $1,600 per child. It provides a credit of $300 for each parent and nonchild dependent to help all families with their everyday expenses.
The child dependent care tax credit helps families care for their children and other dependents, such as a disabled grandparent who may need additional support.
Here is another feature: unborn children are recognized in the 529 education savings account provisions of the Tax Code. Our tax reform bill allows a 529 education savings account to be opened, for the first time, for an unborn child or a child in utero. We recognize the humanity and the sanctity of life of the unborn child.
Here is another feature: the marriage penalties are finally removed. For too long, we have effectively penalized married couples in this country simply for being married. Our Tax Cuts and Jobs Act changes that. In most cases, married couples will no longer be penalized just for their choice to be married.
Mr. Speaker, I will close with just a few more remarks. A lot has been said here tonight, more will be said in the morning preceding our vote, but this is a big day for Congress and a big day for the country.
It has been over 30 years since we last updated our tax system. For reference, I was in the eighth grade the last time tax reform was accomplished in this Chamber. Many of those entering the workforce weren't even born yet the last time Congress fulfilled this responsibility.
Today, Americans are struggling to make ends meet, to find decent- paying jobs, and to prepare for retirement.
We must do right by our children and our grandchildren and give them a better future than our own. Fortunately, my Republican colleagues and I have put forth a framework to do just that.
We have discussed for the last few hours in this Chamber as we have been talking that our plan will create more jobs, fairer taxes, and bigger paychecks for working class Americans and small businesses.
When businessowners are able to keep more of their profits, they will invest that money in their companies and in their employees, and that will spur economic growth, because they will expand their facilities, they will create and expand new product lines, they will add more jobs, and that is good for all of us.
Passing meaningful tax reform isn't about sticker shock talking points that we have heard so much about. It is about real everyday Americans who want to grow their businesses, offer better wages to their employees, provide for their families, but who have struggled to do so because of our oppressive and outdated tax policy.
Our plan puts Americans first and it offers real relief to those who need it most.
The Federal Tax Code today is more than 70,000 pages long. For context, that is more than 60 times longer than the King James Bible, and it contains none of the Good News.
It is time to simplify this Code and it is time to unleash the free market in our American economy again. We have that chance. This will be the biggest Christmas gift to the American people in over 3 decades. It is truly historic and it is long overdue.
Mr. Speaker, we urge our colleagues on both sides of the aisle to vote for the Tax Cuts and Jobs Act on this floor tomorrow. Let's make history together. Let's do right by the American people.
Mr. Speaker, I yield back the balance of my time.