Mr. President, the Senate will soon vote on the conference report for H.R. 1, the Tax Cuts and Jobs Act. I have waited a long time to give this final statement in support of tax reform legislation. (Disturbance in the Visitors' Galleries.)…
Mr. President, the Senate will soon vote on the conference report for H.R. 1, the Tax Cuts and Jobs Act. I have waited a long time to give this final statement in support of tax reform legislation.
(Disturbance in the Visitors' Galleries.)
Mr. President, this fellow has a very interesting way of trying to get his point of view across. It shouldn't be done here in this august body.
Let me just start again.
The Senate will soon vote on the conference report for H.R. 1, the Tax Cuts and Jobs Act. I have waited a long time to be able to give this final statement in support of tax reform legislation.
I have been in the Senate for a little while. I have been party to a number of major legislative achievements, like the passage of the Americans with Disabilities Act, the creation of the CHIP program, the Child Health Insurance Program, and the Religious Freedom Restoration Act, to name just a few. These are landmark bills, and I have had a lot to do with them.
The legislation before us is as important and as far-reaching as anything I have been privileged to work on. It is beyond gratifying to see the Senate reach this point, and I look forward to finally seeing real tax legislation signed into law.
I apologize for this type of intemperate action and mouthing off inside of this august Chamber. People feel very deeply about these things on both sides of the issues.
Passage of this important bill will be historic. It is the combination of years of work by people in both parties, in both Chambers, and on both sides of Pennsylvania Avenue. Many of us in this body have been waiting for years for this opportunity, and millions of Americans outside of this body have been waiting even longer.
It is no secret that our Tax Code is broken. Members of both parties have acknowledged this. If you walked across the country and asked Americans of all backgrounds and ideologies, you wouldn't find many who would be willing to defend the status quo. I don't think you would find anybody.
There is one apt phrase my good friend Senator Wyden uses to describe our Tax Code. He calls it ``a dying carcass.'' Indeed, our Tax Code is dying and rotting. It has hampered job creation, wage growth, investment in the United States, and it has chased American companies to foreign shores. I don't know how it could be more harmful than it has been. It has also given foreign companies a leg up on U.S. businesses in the global marketplace, leading to a record number of foreign takeovers and inversions. The bill before us will address these problems and help us turn the ship around.
Our legislation will reduce the corporate tax rate to 21 percent-- something that is long overdue--the lowest level in the modern history of the United States, placing our country slightly below the average of industrialized countries. These changes will once again give American companies a competitive edge and bring more businesses back home instead of losing them the way we have been.
Hundreds of economists have said that our bill will boost economic growth, and numerous companies have indicated that once our bill becomes law, they will invest heavily in expansion and job creation right here in the United States of America.
In addition, as the Joint Committee on Taxation has made clear, reducing the corporate tax rate has distributional effects that go beyond the companies themselves, their high-ranking officers, or even their richest shareholders. In fact, JCT--the Joint Committee on Taxation--estimates that workers bear 25 percent of the corporate tax rate and other economists have found that this number can reach as high as 75 percent. This means that no matter how you slice it, Americans will see their wages go up when corporate tax rates go down.
Further, over the last few decades, we have seen a massive expansion of pension and retirement assets, much of which are invested in corporate stocks. While many of my colleagues like to decry any business from merely earning a profit, the truth is that the continued rise in corporate profits has significantly expanded the wealth of middle-class workers and taxpayers who have continually set aside funds for the future.
A representative from the Tax Policy Center testified before the Finance Committee in the spring of last year. At that hearing he stated that 37 percent of corporate stock ownership was held in retirement plan accounts--37 percent. That was the largest share of overall stock ownership, and that statistic syncs up with the distribution tables put out by the nonpartisan Joint Committee on Taxation.
For all of these reasons, lowering the corporate tax rate has been a bipartisan goal for over a decade now. I have said it before: Presidents Clinton and Obama, Senators Wyden and Schumer, and most of the other Democrats on the Senate Finance Committee have at some point in the recent past endorsed a significant reduction in the U.S. corporate tax rate.
Our bill will achieve this bipartisan goal and place our country well within the mainstream among our international competitors. This is a good thing--not just for businesses and rich stockholders but for working, middle-class families as well.
Let's be clear. This bill's chief focus is about helping the middle class. I know there is a tendency among some in this Chamber to act and speak as though all money in this country inherently belongs to the government. I won't speak for everyone, but those of us who have worked on this bill tend to think differently.
Aside from business reforms that will grow our economy, increase wages, and create jobs, our bill will lower individual tax rates across the board, allowing hard-working Americans to keep more of their money. In our bill, we also nearly double the standard deduction for individuals and married couples. This feature will significantly reduce the burden of tax filing for millions of middle-class families and decrease even further the overall tax liability of millions more. For the first time in more than 30 years, nearly every American will get more money back by just filing out an EZ form. This, without a doubt, fulfills our goal of simplifying the Tax Code.
For individuals who are concerned about being able to itemize--again, we believe the number of people with this concern will decrease dramatically under our bill--we retain a number of key provisions that benefit many in the middle class. For example, this historic legislation will allow individuals and families to continue to claim deductions for State and local taxes, up to $10,000 a year. It will keep in place, with relatively minor adjustments, the deduction for mortgage interest. And Americans who itemize and want to deduct their charitable deductions will be free to do so. This has made America great, and it has helped us at the same time to be more charitable. We are also expanding the child tax credit with this bill, doubling it from $1,000 to $2,000 per child and making the credit far more refundable than ever before. The adoption credit will stay in place. The deduction for medical expenses will still be available. Credits and assistance for students and their families will be untouched. We have made all of these changes and, when necessary, preserved current law, with an eye toward helping the middle class.
I know a number of my colleagues like to argue that this bill will have different results. Let's look at the numbers.
Under this bill, a typical family of four, earning the median family income of $73,000, will see their taxes go down by more than half-- about 58 percent. That number means something more than just a simple percentage; it means that an average American family will be able to keep $2,058 more of their own earnings next year. That is a mortgage payment, a downpayment for a car, or several months' worth of groceries.
What about a single parent? Under our plan, a single parent with one child, making $41,000, will see their taxes slashed by nearly 73 percent. That is almost a three-quarter reduction in tax liability. That means a savings of more than $1,300 over the course of a year. That could be a month of daycare expenses, multiple car payments, or a family vacation.
These are things that matter to American families, and they well should. But our friends on the other side have been so caught up in partisan politics that they decided to ignore the Americans who will benefit from this legislation. I think it started with the election of President Trump and the retention of Senate control by Republicans. Their base protested, occupied, and disrupted the transfer of power from President Obama to President Trump. Here on the Hill, the ``resistance'' was in full effect right off the bat, with a coordinated effort to stall nominations in committee, which included unprecedented boycotts and refusals to meet with nominees. It has only gone downhill from there.
While we heard words from our friends on the other side about participating in tax reform, their actions showed otherwise. I don't know how they can stand here and make some of the arguments they do. Unprecedented process demands were made. Resistance was the plan, and that plan was carried out. Now we hear about massive tax cuts for the very rich and huge breaks for corporations, but these claims fall apart when you look at the facts.
Again, this isn't unchartered territory for my friends on the other side. Accusing Republicans of hating the poor and loving the rich is one of their go-to moves. I have seen it for over 40 years. Every time you turn around, there is one of their go-to moves, and it has nothing to do with reality. I do think they are getting more desperate and vicious in their attacks because they regret their own decisions to sit out of this endeavor. That is precisely how it happened. Our colleagues were apparently so preoccupied with denying President Trump and congressional Republicans any success, they chose not to engage and instead to sit in the peanut gallery throwing out baseless attacks.
As I have said literally dozens of times over the past few years, I wish the Democrats had joined us in this process, put aside their ultimatums and preconditions, and helped to advance policies that they have claimed to support for years now. But we are where we are, and while the bill before us includes a number of ideas and proposals Democrats have supported, we are prepared to pass it without their
votes, if that is what it takes. There have been some Democrats who have worked with us, but they have been few and far between.
Once again, this is a historic bill. I am proud of the work we have done in the Finance Committee, here on the floor, and in conference to get us to this point. I again invite our friends on the other side to also support the bill. I am proud of our colleagues who have put in so much effort to get us here. I am proud of the staff on Capitol Hill who have labored day and night to assist in this endeavor.
As I said, this legislation has been years in the making. I urge all of my colleagues to support the conference report and help us send it to the President's desk. You will not regret it. Those who support this will not regret it.
I think we ought to get rid of this hatred for Donald Trump that currently exists in this country and in this body. I think we should give the man a chance. He hasn't even been President for a year yet. Give him a chance. Even though he hasn't been President for a year yet, we have had some amazing changes in this country for the better, and I think we could have many more.
What really interests me is that Donald Trump, 6 or 7 years ago, was working with Democrats as well as Republicans. He offered to work with the Democrats on these matters, and they have not taken up the offer. Instead, it is as though they are still bitter because he beat their candidate for President.
I would like to have us get over that type of petty politics and see what we can do to work together. Heaven knows, on the Finance Committee, I believe we have good Democrats on that committee, as well as good Republicans, and I think we can work together. I have to say, I don't think we have as well as we should, but I think we can, and I am hopeful that we will.
This is an important bill. It is a bill that really does need to pass. It is a bill that will help this country. It is a bill that will help the middle class. In fact, it is going to help everybody, but it will certainly help the middle class most of all.
I hope our colleagues put aside their petty politics on both sides and come together to support this bill, which literally can help save this country an awful lot of pain over the next number of years and give the government the kinds of resources that it needs to be able to do what the Federal Government needs to do for its people. I think we can.
People in this body know that I have spent years here. I am the most senior Republican. I have been here longer than any other Republican that I know of, and I have the legislative record to back it up--a record that has included working with Democrats almost every step of the way. I am offering to make sure we work together, but I haven't seen it on the other side. Can they get over the bitterness they have?
We heard this loudmouth in the Gallery who has no good sense and a total lack of etiquette and a total lack of respect for this government and this Senate. If I were on his side, I would be humiliated because he was just a big loudmouth who didn't mean a doggone thing. Unfortunately, I think there are more people like that who are so bitter that they will raise these types of issues without really trying to work together.
I am one who has a reputation for working together. I am chairman of the Finance Committee. I have enjoyed my work with the distinguished Democratic leader on the Finance Committee, Senator Wyden. I care for him. I care for the other Democrats on the committee, as well as all of our Republicans. We work pretty well together. It is getting harder and harder to work together when all we see are screaming and shouting because they can't get their way because they are no longer in the majority. I hope they get over that, and I hope they start working with us. If they will, we can do an awful lot of good things for this country, and we can bring people together across this whole country-- people who right now are divided because they don't know what to do. They see us screaming and shouting around here and a total lack of willingness to get together. I would like to change it. I am open to changing it.
This bill that we have is a very, very important bill, and we need to pass it. My friends on the other side need to realize that, and I hope we will get some of them to vote for it. They know it is right. Deep down, they know it is right. It might not be everything they like themselves. It is not everything I myself would like. But it is a doggone good bill, and it is something that could really help this country pull out of the mess that it is in.
Mr. President, I yield the floor.
Mr. President, I have listened to the comments of my friends on the other side for several hours. Frankly, it has tried my patience.
If you boil down the inaccurate assertions, you come up with two basic points. One, that the bill before us cuts taxes for wealthy taxpayers proportionately more than it does for middle-income taxpayers. Two, this bill raises taxes on middle-income taxpayers.
Nothing like some old-fashioned nonpartisan light to cut through the partisan fog created by my friends on the other side.
I refer to a set of tables developed by the nonpartisan official congressional tax scorekeeper, the Joint Committee on Taxation, which I will ask consent to have printed in the Record.
The tables show significant tax cut for middle-income taxpayers.
Let's take a look at taxpayers in which the median U.S. income reside. I am talking about taxpayers at income levels between $50,000 and $75,000. In 2019, two-thirds of taxpayers receive a tax cut of greater than $500. In 2021, 61.7 percent receive a tax cut of greater than $500. In 2023, 54.8 percent of taxpayers will receive a tax cut of greater than $500. In 2021, 53 percent of taxpayers receive a tax cut of greater than $500. The individual income tax cuts sunset in 2026.
Let's take a look at another middle-income group, those in the $75,000 to $100,000 cohort. In 2019, 77.8 percent of those taxpayers receive a tax cut of greater than $500. In 2021, that figure is 72.2 percent. In 2023, that figure is 63.1 percent. In 2025, that figure is 61.4 percent. The individual tax cuts expire in 2026.
I ask my friends on the other side to shut down their rhetorical fog machine. Stop the phony characterization of this bill as a tax cut for the wealthy. Recognize it for what it is, a tax cut for Americans that is focused on middle-income families.
Mr. President, I agree.
The Senator is correct. The conference report language for the bill does not change or modify the intended scope of the statement he cites. The Treasury Department and the Internal Revenue Service should interpret the stock attribution rules consistent with this explanation, as released by the Senate Budget Committee. I would also note that the reason his amendment No. 1666 was not adopted is because it was not needed to reflect the intent of the Senate Finance Committee or the conferees for the Tax Cuts and Jobs Act.
I thank my friend from Georgia for his leadership on this issue to ensure that the stock attribution rules operate consistent with our intent and do not result in unintended consequences. I look forward to continuing to work with him on this important issue.
Mr. President, I, personally, congratulate the distinguished Senator from Ohio. He is one of the most intelligent people in this body. He has had all kinds of experience outside of the Senate. He is a person whom everybody should listen to. He makes a lot of sense. He is one of the most valued members of a very strong committee, with all kinds of valued members on it, but he is one of those valued members on the Senate Finance Committee, and I have nothing but respect for him.
Everything he has said here this evening is true. It is mind-boggling to me that we even have arguments from the other side. We are talking about pulling this country out of the mess it is in, and it is going to take this.
I just want to compliment the distinguished Senator from Ohio. He is a terrific human being, with a tremendous ability, who has had a lot of experience outside of the U.S. Senate, and who has been successful everywhere he has gone. He is one of the most distinguished members of the Senate Finance Committee. He is not talking politically; he is talking factually. I just wish everybody in this body were on the floor to listen to him. I have tremendous respect for him. That is one reason I am getting up here right now.
We can turn this mess around, but if we don't do it soon, it may be impossible to turn it around. We have been spending this government into bankruptcy. That is where we are. We keep making excuses so we can go back and beat our breasts and claim we are doing so much for the people when we are just spending them right into bankruptcy. It is making it more difficult for the committees to do their work. I just wish we could get both sides together once in a while instead of having all of this inner conflict on everything that comes up.
It is almost like, if a Republican says something, it has to be contradicted, and I might add, if a Democrat says something, he has to be contradicted. I don't mind good arguments. I don't mind people having different points of view. That is what makes this place a great place. That is what helps the United States of America to be a great country and a great government, but we don't even listen to each other anymore.
Where is this bipartisanship that this country really, drastically needs?
We happen to be in the majority right now. It seems to me that a decent minority would want to find ways to work with the, hopefully, decent majority. I think we can be very decent on our side, and I believe my colleagues on the other side can be very decent. Let's get rid of the politics, and let's do what is best for America. Let's get this country out of the mess it is in. The distinguished Senator from Ohio has shown us some ways here.
Our tax policy is for the birds. We know what we need to do, but every time you raise a solution, you have somebody saying: Well, that is not the answer. Then we have the conflicts between the two Houses. That is good because that is what helps us to refine some of this legislation.
All I can say is, I just wish all of us would put the country first, put politics second, be politically astute but at least be open to rational reasoning, whether it comes from the other side or our side. I am just amazed at how we can sit and belabor these things day in and day out and never really get together. We are hurting the country because we are unwilling to get together. We are hurting the Congress of the United States because we are unwilling to get together.
I could go on and on as to our unwillingness to get together. I think it is time for us to wake up and start saying: Look, let's find common ground. Let's find ways of getting together instead of constantly fighting each other on every stinking issue that comes up. There are reasons for differences in politics and reasons for differences in tax policy, but we ought to be able to at least discuss these differences without there being total partisanship, which is what we are, unfortunately, suffering from. I believe we can turn this mess around. If we do, it will be a banner for everybody to march behind, and it seems to me it will be an example for the whole world. I would like to see us do it.
I know there are people on the other side who cannot stand the President. Yes, he won an election they didn't think he should have won, but he did win. He has thrown his hands open to the other side and, I believe, would do more. It was only 7 or 8 years ago when he was much more moderate than he is now. I think all they need to do is to reach out and grab his hands and say: Look, we will find some common ground here in the best interests of our country and in the best interests of everybody.
It is not bad to fight things out. I don't have any problem with that.
That is part of this body, part of what we do. But we actually have to come to some conclusions that will push the country forward, and we are not doing that, except on a limited basis that really doesn't amount to all that much.
We are coming to the end of a very difficult year. The Democrats thought they were going to win the Presidency, and they didn't. They especially feel badly about losing to somebody like Donald Trump, who, I think, has held out his hands and his arms to them and would do so if they would just embrace a little bit more of what he is trying to do. I would like to see us do this. I believe he would throw his arms out to whomever in this body would work with him, and by working with him, we may be able to get some of our ideas on both sides actually put into law that may help this country.
I really particularly enjoyed and appreciated the comments from the distinguished Senator from Ohio. I think he is one of the most distinguished people in this body. Earlier, I heard the distinguished Senator from Pennsylvania. He is a brilliant guy who works his butt off to try to get us into good places. We ought to listen more to these folks. There are folks on the other side who are brilliant, too, who, I think, make a real difference.
I particularly enjoy my counterpart on the Senate Finance Committee, Senator Wyden from Oregon. We are different. We have different philosophies, but I have never seen a day when he wasn't willing to sit down and work out our problems, and that to me is pretty important.
Our leaders are good people. I have watched Chuck Schumer for all the years he has been in the Senate and before, and he is a better leader than what we are getting here lately. I have watched Mitch McConnell. Mitch is one of the shrewdest people I have seen in this body since I have been a Member, and he is open. I would like to see our leaders get together a little bit more. I would like to see a little less fighting and a little more constructive work together. I don't expect miracles because I have been here only 41 years, but I do expect that we can do much better than what we are doing, and it is going to take both sides getting together to do it.
We happen to be in the majority right now, and the Democrats should give us an edge. We should give them the edge when they are in the majority. I think that I, for one, have done that.
I hope we can put aside our differences and start working together in the best interest of the country. I believe in this country. It is the greatest country in the world. People all over the world are praying that the United States will get it together. They know that we can lead. They know that we have leadership in the Congress of the United States. We can get it together if we will.
I appreciate my colleagues on both sides of the aisle. I appreciate that we have differences. I appreciate that sometimes those differences put us into pitched battles. That is not all bad, either. But it is bad if we don't work things out and if we don't look for the good on the other side in both ways.
I yield the floor.
Mr. President, I have been listening to this debate for a long time, and I have to admit it has been interesting, but it has been prolonged way beyond where it should have been.
My friends on the other side make much about this process, demeaning the Members and staff who really put it together.
This bill was marked up in the Finance Committee. It is the first reconciliation bill to be processed in committee in the Senate in over 12 years. During that period, Democrats held power for 8 of those years; Republicans, 4 of those years.
The reconciliation bill that made up part of the Affordable Care Act never went through the Finance Committee. That reconciliation bill never went through any real Senate process. To be fair, the Affordable Care Act repeal bill that my side proposed didn't go
through the Finance Committee either. As difficult as it was, as chairman, I put out a chairman's mark, modified it, permitted debate and amendments, and put it to a vote, all in conformity with committee rules. We had a full Senate debate, amendments, and votes. So I don't want to hear tonight or at any time that the process deteriorated. It didn't deteriorate.
No, not just yet. I am going to finish these remarks.
I am going to insert in the Record an analysis of winners and losers. The analysis is dated today. It was produced by the nonpartisan Joint Committee on Taxation.
Mr. President, I ask unanimous consent to have it printed in the Record.
I have the floor.
Mr. President, then I will withhold the unanimous consent request.
Mr. President, I have just withdrawn the request. I will insert it later when it is more expeditious to do it.
The announcements I have been talking about is dated today, and it was produced by the nonpartisan Joint Committee on Taxation. I would like to put it in the Record. We will do that, if we can. I hope my colleague will allow me to do that, and I will ask consent that it be put in the Record.
That analysis shows that middle-income taxpayers are winners. That nonpartisan data shows--sorry, my writing is not too good here--well, it shows that they are winners, and that is the clear impact of this bill. That data cuts through the rhetorical fog generated by my friends on the other side.
My friends on the other side focus on the year 2027--10 years from now--when, guess what, that is the year past the sunset of tax cuts on the individual side. Focus on the years the cuts are in effect, and you will see the middle class are really winners. There is no question about it if you focus on it.
I ask unanimous consent that this report, ``A Distribution of Returns by the Size of the Tax Change for the Conference Agreement for H.R. 1, the `Tax Cuts and Jobs Act,' '' by the Joint Committee on Taxation be printed in the Record.
Mr. President, I yield the floor.