Executive Calendar
Floor Speech
BREAK IN TRANSCRIPT
Mr. CORNYN. Mr. President, I thought it would be appropriate to come to the floor to celebrate the second anniversary of the Tax Cuts and Jobs Act.
For years I heard from Texans who thought that the Tax Code was simply too complex, too burdensome, and that the Federal Government simply took too much of the fruits of their labor.
They were absolutely correct. Our Tax Code hadn't been reformed in more than three decades, and Republican and Democratic Presidents have long pointed out how America was at a competitive disadvantage relative to other countries because of our Tax Code.
Then, of course, there is the drag of high tax rates on our domestic economy--especially following the great recession during the Obama administration--which made jump-starting the economy a top priority last Congress.
The good news is that we delivered. The Tax Cuts and Jobs Act lowered the individual tax rates across the board for every bracket. It increased the standard deduction, doubled the child tax credit, and made tax rates for businesses more competitive. Our goal was to make our Tax Code work for the American people, not the other way around.
I know there are a lot of naysayers who said it wouldn't work. Some of them are still saying that. But I think the results speak for themselves.
First, we saw waves of positive headlines announcing that companies big and small were using their tax savings to provide pay raises, pay bonuses, 401(k) match increases, and other benefits to their employees.
I made a point of asking my constituents in Texas about their experience under the new Tax Code, and here is some of what I heard:
Tejas Office Products is a Hispanic-owned and operated family business in Houston. They were able to hire more workers in Southeast Texas and expand their business as a result of their tax savings from the Tax Cuts and Jobs Act.
There is American Bank in Corpus Christi. They projected that they could lend an additional $120 million over the next 5 years in the Coastal Bend, which was absolutely critical, especially following the natural disaster known as Hurricane Harvey.
Then there is Happy State Bank, my favorite name for a bank--Happy State Bank--in Amarillo, which increased wages for more than 600 of its 700 employees. It upped their starting minimum wage and increased their dollar-for-dollar retirement plan match from 6 percent to 7 percent, all of which was good news.
Well, it didn't take long for that good news in these anecdotal cases, for example, to translate into a much improved economy across the board, which helps everybody.
We have seen rapid and consistent job growth with more than 4.3 million new jobs since tax reform became law--4.3 million new jobs.
In September, the national unemployment rate fell to a 50-year low, and Texas unemployment remains below the national average at only 3.4 percent.
The thing I hear the most from employers and job creators in Texas is that they can't find enough qualified workers to fill the good jobs that exist. We have one of the tightest labor markets in decades.
Wages are going up as a result of competition for workers. The poverty rate has hit its lowest level since the turn of the century. American families are seeing more of their hard-earned dollars in each paycheck.
Despite evidence to the contrary, we are still hearing from some of the same old critics who say that tax reform was a flop. The Atlantic, for example, published a story last week with the title ``The GOP Tax Cuts Didn't Work.'' The author claims that tax reform didn't live up to the hype and that because our economy didn't grow as much as some of the estimates believed it would, consecutive, positive growth is absolutely worthless.
Well, that doesn't make any sense at all--not to mention the fact that economic growth has outpaced even the forecast of the Congressional Budget Office prior to tax reform.
This author also mentions that the Institute for Supply Management-- or ISM--manufacturing index dipped in September. But the ISM manufacturing index is a survey of purchasing managers who may be swayed by sentiment as much as actual activity. We have seen this index at a similar level before, and the economy continued to grow.
In addition, the critic in this article points to declining exports as a factor in this, despite the fact that our trade deficit fell 4.7 percent in September.
The critics still refuse to admit the connection between increased consumer spending and Americans bringing home more in each paycheck. In other words, they are trying to cherry-pick the evidence and ignore any evidence that the American people have benefited from the Tax Cuts and Jobs Act.
In fact, the critics--who I think are more concerned about an agenda than they are the economy or the welfare of the working American family--continue to try to paint a picture of doom and gloom of our Nation's economy to further that political agenda.
It was not that long ago when some were even highlighting that tax refunds were reduced because of tax reform. It is a bogus measurement of tax relief. We know that at the end of the day, the data showed the average refund check was not that different from the previous year. Wouldn't you want your tax refund to be lower because you were simply paying less withholding each month? That is an interest-free loan to the Federal Government.
Well, while we seem to have moved beyond that argument, we are now on to the next one. Our Democratic colleagues point out that some companies are using their savings for stock buybacks and try to portray this as a corporate blood thirst, claiming it hurts workers in the economy. But by repurchasing their own shares, companies are reinvesting in themselves and their shareholders. Many times, this is teachers or police officers or other first responders. Interfering with stock buybacks, as some of our friends across the aisle have recommended, would not only hurt our economy, but would do serious damage to the pension and retirement accounts of many working Texans and other Americans.
The message of these partisan critics is: The government can spend your money better and more wisely than you can. But Washington cannot even manage its own books and uses ``smoke-and-mirrors'' accounting measures that would make even Bernie Madoff blush. But that is only the start of the concerning proposals that we have heard from the folks on the left. Our colleague from Massachusetts said if she wins the Presidency, she will soak the American taxpayer even more in an attempt to fund her completely unworkable healthcare proposal.
The differences are pretty stark in the approach: pro-growth, job- creating, economy-growing policies or Big Government, even socialist policies. Those seem to be the two most obvious choices. I know what camp I am in, and I know what camp that Texans are in on this topic.
This constant effort to belittle the progress we have made because of tax reform reminds me of when Nancy Pelosi compared the savings of the American people under tax reform to ``crumbs.'' She called them ``crumbs.''
One Texan named Mark told me that his take-home pay increased $302 a month. That may be crumbs to Nancy Pelosi, but Mark said it would cover his cable, his internet, and his auto insurance bills. He doesn't consider that crumbs.
Another gentleman named Gilbert told me that he and his wife are retired and living on pensions. When they saw a decrease in their Federal tax deduction that allows them to bring home an additional $400 a month, they said at first they thought it was a mistake, until they learned it was true and, good news, $400 a month more.
A retired Air Force colonel from Brownsville named David told me that the benefit seems like more than ``crumbs'' to him.
But I have no doubt that here in this hyper-politicized environment of Washington, DC, that pundits and folks on the left will continue to try to criticize tax reform and belittle the progress that we have made, but those Texans who are reaping the benefits of this law every day are proof positive that they are wrong and that the law is working as we intended.
Despite what I hear from folks on the left, this is an incredible time for our economy. We have made taxes simpler, fairer, and lower for hard-working American families. And we will keep working to remove the regulatory burdens that will help unleash the power of the free market. For more than 150 years, we have been the world's largest economy, and because of pro-growth policies like tax reform, that will only continue to get better.
BREAK IN TRANSCRIPT
Source