Mr. President, yesterday, I mentioned that, already, 1 million Americans and counting will receive raises or special bonuses, thanks to the incentives created by the historic tax reform law that Congress passed and the President signed…
Mr. President, yesterday, I mentioned that, already, 1 million Americans and counting will receive raises or special bonuses, thanks to the incentives created by the historic tax reform law that Congress passed and the President signed just last month.
For example, Darden Restaurants, Inc., which employs 175,000 people, announced it is preparing to invest $20 million in its most important asset--its employees. AT&T announced that 200,000 employees would receive $1,000 bonuses. In Kentucky, Turning Point Brands announced that their workers would also receive $1,000 bonuses. So far, more than 100 companies have announced similar plans.
Across the country and a variety of different industries, workers are receiving significant one-time bonuses, permanent pay raises, more generous retirement contributions, or other benefits. And their employers confirm that it was tax reform that made this possible.
How is all this happening? How is it happening? After all, those who were intent on opposing tax reform painted an apocalyptic picture. Over in the House, the minority leader said tax reform was ``Armageddon.'' Here in the Senate, my friend the Democratic leader said there was ``nothing about this bill that suits the needs of the American worker.''
Fortunately, a majority in the House and a majority in the Senate knew better. We know that the economy is not a zero-sum game. We know it is completely backward to think that American businesses need to lose in order for American workers to win. To the contrary, in the 21st century economy, Americans are all in this together.
When our economy grows stagnant and when taxes and regulations make it harder for companies to compete with foreign ones, that is when wages fall flat and job opportunities dry up. But when Washington gets out of the way, cuts back regulations, and modernizes the Tax Code, when we give businesses more flexibility to invest and expand, then, as we are already seeing, workers reap the benefits.
This is not some partisan talking point. As one economist wrote just before we passed tax reform, ``It's the consensus view of professional economists'' that ``lowering corporate income taxes would increase the wages of workers.''
Tax reform became law less than 1 month ago--1 month ago--and thanks to tax reform, as this chart points out, 1 million American workers and counting are getting a bonus or a raise. That is what is happening, and this is just the beginning.
Raises and bonuses are not the only way tax reform is providing a big help to middle-class families, like the Kentuckians I represent. The law also cuts taxes substantially for individuals and families, so they can keep more of their own money and send less to Washington.
We reduced marginal rates. We doubled the standard deduction, effectively creating a new zero tax bracket
for the first $24,000 a family earns--zero taxes on the first $24,000 a family earns. We significantly increased the child tax credit. We expanded the deduction for medical expenses, and the Tax Cuts and Jobs Act repealed the punitive individual mandate tax penalty at the heart of ObamaCare. That law penalized hard-working Americans twice--first by failing to create health insurance options that met the needs of working families and then by imposing a heavy fine on the families who didn't want or couldn't afford the coverage. By zeroing out that unfair penalty, we have repealed a core piece of ObamaCare and restored families' flexibility to choose the health insurance that works for them.
The result of all this is significant savings for middle-class American families. A typical family of four earning a median family income will keep more than $2,000 this year that they would have otherwise sent to the government. Workers will begin to see the difference in their paychecks as soon as February. Less of their money will be deducted and sent to the IRS. More will be deposited into their own bank accounts.
So the early impact of this historic tax reform legislation is quite clear. Job creators and entrepreneurs are more optimistic, more than 1 million Americans are already getting raises and bonuses, and the groundwork is being laid for a more powerful and more competitive U.S. economy that attracts more investment and creates more homegrown jobs.
It is no surprise that, historically, tax cuts have enjoyed bipartisan support. This time, unfortunately, none of our Democratic colleagues chose to vote for this once-in-a-generation tax relief--not a one in the House or in the Senate. But I am proud that the majorities in Congress were able to pass this bill so that the President could sign it into law. One million Americans, and soon to be many more, will be grateful.
I suggest the absence of a quorum.