Tax Reform Truth Tellers

Floor Speech

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Ms. TENNEY. Mr. Speaker, I appreciate my colleague from California and her hard work on this really important issue.

Taxes are, of course, extremely important in New York State as being one of the highest taxed States in the Nation, along with California, an undistinguished honor that we don't want to have.

But I rise today to actually recognize the thousands of hardworking families across the 22nd District of New York, and throughout upstate, who have felt the real impact of the Tax Cuts and Jobs Act.

Before the Tax Cuts and Jobs Act, our Tax Code was broken. It was riddled with loopholes that penalized success and hurt hardworking families and hardworking taxpayers. Our middle-income families were the ones who suffered as the economy and wages remained stagnant.

As I traveled from Sandy Creek to Vestal, Little Falls to Cortland, I heard real stories from families, small-business owners, single parents, veterans, and seniors detailing the damage of our oppressive Tax Code. It held our small businesses back, crippled our family farms, and left our families feeling hopeless and overwhelmed.

That is why we stepped up to the plate, took our constituents' concerns and stories to Washington, and passed legislation that reflected the values of fairness and hard work. No longer is our economy stagnant. No longer will American businesses and families suffer under an unfair and oppressive Tax Code from Washington.

Here in New York, tax reform has provided once-in-a-generation relief from the failed status quo, a status quo that was created in part and mostly by Albany politicians whose seemingly only intent is to tax and spend, and I dare say, waste our hard-earned money.

Under the Tax Cuts and Jobs Act, the typical middle class family of four in New York's 22nd District, which I represent, will see a tax cut of $2,439. Imagine what kind of money that could do for a family of four.

Now, families will have the opportunity and means to save for college, plan for the future, invest in their retirement, and provide their children with increased educational opportunities.

Families know how to spend their resources much better than the Federal Government. That is why we are putting real money back into the pockets of hardworking families, money they earned, and money they deserve to keep.

Throughout the debate on tax reform, I, along with my fellow colleagues from New York, fought an uphill battle to include provisions facing elimination that are vital to seniors, single parents, struggling families, and overly burdened job creators.

One of the key provisions that we New Yorkers fought tirelessly to include is the State and local tax deduction or, as you heard often, the SALT deduction. I would like to thank Chairman Brady and everyone on the Ways and Means Committee for understanding the importance of this deduction and what it means to my constituents. As a result of our advocacy, nearly all of my constituents in the 22nd District will be able to continue to claim a SALT deduction.

It is also flexible, which means it can be used for property sales or income tax, and not just restricted to local tax.

In the 22nd District, 99 percent of itemizers deduct less than $10,000 in property taxes. This provision will cover the overwhelming number of property owners who own homes of less than $450,000 in value, which is a very nice home in my district, a little different than in the coastal areas and sometimes you will see in the southern tier of New York.

The reason the SALT deduction matters stems from Albany politicians who have no regard for the taxpayers they represent. For example, all eight of the counties that I represent are in the top 36 highest property tax rates compared to home value nationwide per county.

This bill provides relief on the Federal level, while finally taking a step to encourage fiscal responsibility from Albany. I have always put the taxpayers I represent first, and it is long past time for politicians in Albany to do the same, and we are hoping that this bill will incentivize them to do that to help our taxpayers.

The benefits from the Tax Cuts and Jobs Act do not stop there. Earlier this year, I heard from Frank Suits. Frank is the president and CEO of Suit-Kote Corporation, a family owned, multigenerational paving company in Cortland, New York. Frank wrote to me to share the impact tax reform has had on his business and nearly 800 employees.

First, in direct response to the new tax law, Suit-Kote announced plans to match the Federal tax cut and provide its employees with a 2 percent retroactive pay increase and has begun to accelerate 401(k) contributions for 2018 by 4 months to provide employees additional funds in their retirement accounts.

Our goal in passing the Tax Cuts and Jobs Act was to deliver this type of relief to hardworking families like those employed by Suit- Kote, and it was an honor for me to actually go to Suit-Kote and meet with the employees and hear from them, firsthand, just how great their benefits were from the Tax Cuts and Jobs Act.

We also heard that NBT Bank, a local bank in my region, with dozens of locations throughout the 22nd District, has used tax reform to invest in its employees. NBT decided to raise the starting hourly rate of pay from $11 to $15 an hour, without a mandate coming from the government, merely because of the benefits from tax reform. Employees earning $50,000 or less will receive a permanent minimum increase of 5 percent this year.

Another great little business in my community, fairly new, started by a young guy, A&P Masters Images, LLC, in Utica, a small printing business, has hired another full-time graphic designer and is now weighing the options of putting on an addition to its building in the city of Utica.

Howard Potter, CEO of A&P Masters, said with everyone's increase in pay he can already see a morale boost coming from his employees. He said the end-of-the-year tax relief for businesses will help them afford to be more aggressive with investing in their growth, to build or buy, or hire more staff, and buy more equipment.

While these companies are based in the 22nd District, there are dozens of other companies with branches in my district that are reaping the benefits of tax reform. For example, CVS is increasing its wages for hourly employees from $9 to $11 an hour.

Home Depot, with a location right next to my New Hartford office, is giving employees a bonus of up to $1,000, with the chairman and CEO of the company stating it was directly made possible by the tax reform bill.

Lowe's and Walmart are also giving back to their employees as a direct result of the Tax Cuts and Jobs Act. All three of these corporations have numerous locations across my district and employ hundreds of hardworking citizens throughout NY's 22nd.

Critics of the Tax Cuts and Jobs Act have called this law and its benefits crumbs, or Armageddon, as you famously heard. They have also called this law a handout to the 1 percent. Time and again, they have been proven wrong.

Just this past weekend, our very own New York Post declared, and I am paraphrasing: GOP's tax cut isn't actually a gift to the rich. They come to that conclusion from an analysis done by the nonpartisan Tax Policy Center, who found that the top 20 percent of wage earners will pay 87 percent of all Federal income taxes in 2018, up from 84 percent last year. Additionally, the analysis found that most families earning under $50,000 a year will pay almost no Federal income taxes at all, and many will see a refund.

Mr. Speaker, this does not sound like middle class Armageddon to me. These benefits certainly do not sound like crumbs. This is money that can be used to get ahead on car payments, to pay rent, to pay mortgages, so much more that everyday Americans struggle with in a tough economy.

Businesses like the ones I mentioned are proof that providing desperately needed relief from the Federal side for the failed tax-and- spend status quo that we see in New York is the most effective way to improve the lives of Americans.

Mr. Speaker, I thank the gentlewoman from California for her advocacy on this and for asking us to join.

One added note I would like to say is we found also from the nonpartisan Tax Policy Center that New York is going to be one of the gainers. We are actually going to see a growth in our economy and a growth in jobs, in spite of what Albany may or may not do; but we are really grateful for that, and I just want to say it is an honor to support the Tax Cuts and Jobs Act and to advocate for the things in that bill that helped our district.

Mrs. MIMI WALTERS of California.

Mr. COLLINS of New York. Mr. Speaker, I rise today to highlight the impact of the Tax Cuts and Jobs Act and the impact that is having in New York's 27th Congressional District.

When Republicans in Congress and President Donald Trump started working on tax reform, Democrats immediately began attacking the bill before it was even written. They deliberately spread lies to the American people, which caused chaos and confusion, in an effort to derail our progress.

The working families in western New York now know the truth because they have seen an increase in their paychecks. The Tax Cuts and Jobs Act is making our economy stronger and benefiting American families and businesses, both big and small.

The business community is responding and taking action by giving raises, bonuses, and other employee benefits as a direct result of tax reform. In western New York, thousands of workers are reaping the benefits.

M&T Bank, in Buffalo, increased the base wages for hourly employees, gave all employees 40 hours a year in paid time off to volunteer in their community, and significantly increased contributions to the M&T Foundation.

Pioneer Credit Recovery in Arcade, New York, gave a $1,000 bonus to each of their 800 employees.

Evans Bank in Hamburg also gave $1,000 bonuses to non-senior level employees and increased charitable donations.

Everett J. Prescott, Incorporated, gave $1,000 bonuses to employees with more than a year of service and $250 bonuses to employees with less than a year of service.

Financial Institutions of Warsaw gave employees a bonus of $500.

LiDestri Food and Drink in Rochester gave all of their 1,200 employees in their five U.S. facilities an extra full paycheck.

Environmental Construction Group in Albion, New York, gave each of their 50 employees a $500 bonus.

National chains that employ many of my constituents have also given bonuses: T.J.Maxx, Walmart, AT&T, Home Depot, Chipotle, Lowe's, Starbucks, U-Haul, FedEx, Apple, and the list goes on and on.

The liberal left calls these pay increases and bonuses crumbs, but my constituents know tax reform is a significant win.

Because Republicans have reformed our complicated and outdated Tax Code, our children and grandchildren will be able to participate in a growing economy. The truth is tax reform is a positive step in making America great again.

Mrs. MIMI WALTERS of California.

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