03.13.18

Good News About Tax Reform Keeps Pouring In

‘[W]ith every favorable story, my Democratic friends tie themselves in knots trying to convince everyone that new investments, new jobs, new raises and bonuses, and companies repatriating money back home are somehow not good news after all. Even as billions of dollars are put towards raises, bonuses, and new worker benefits, they say it’s nothing more than “crumbs.” Even as billions more are invested in U.S. manufacturing and new jobs, they stick by their predictions of “Armageddon.”’

WASHINGTON, D.C.  U.S. Senate Majority Leader Mitch McConnell (R-KY) delivered the following remarks today on the Senate floor regarding the benefits Americans across the country continue to see from tax reform:

“It’s been less than three months since historic tax reform became law. Less than three months since we cut taxes significantly for middle-class families by lowering rates and increasing the standard deduction. Since we created new deductions to help small businesses keep more of what they earn and purchase new equipment more easily. Since we leveled the playing field for American producers by making our corporate tax rates more competitive -- a measure that mainstream economists agree will boost future wages for workers.

“There’s a common theme here. Each part of this bill was built on the simple idea that American workers, job creators, and middle-class families know best what to do with their own hard-earned money. And they ought to be able to keep more of it. It’s a defining philosophy on our side of the aisle.

“But Democrats don’t seem to share it. The Democratic Leader in the House called these historic tax cuts, quote, ‘probably one of the worst bills in the history of the United States of America.’ Here in the Senate, my Democratic colleagues’ predictions were equally dire. My friend the Democratic Leader offered this assessment: Quote, ‘There is nothing about this bill that suits the needs of the American worker.’

“Tax reform used to be a shared, bipartisan priority. Not anymore. Now our Democratic friends seem fully committed to the notion there’s no problem Washington D.C. can’t solve by raising taxes and imposing more regulations.

“Just last week, my friend the Democratic Leader made this clear. He announced he wants to claw back tax reform and have Americans send more money to the IRS. Here’s his rationale. Quote: ‘There are much better uses for the money.’ The unspoken assumption here is unmistakable: Democratic Senators know how to spend that money better than citizens and employers. Government knows best.

“Of course, just a few months in, we’re getting a clear picture of which philosophy really works. The good news about tax reform keeps pouring in. And with every favorable story, my Democratic friends tie themselves in knots trying to convince everyone that new investments, new jobs, new raises and bonuses, and companies repatriating money back home are somehow not good news after all.

“Even as billions of dollars are put towards raises, bonuses, and new worker benefits, they say it’s nothing more than ‘crumbs.’ Even as billions more are invested in U.S. manufacturing and new jobs, they stick by their predictions of ‘Armageddon.’ All this, even as tax reform is achieving specific goals they’ve spent years claiming to support.

“Consider the issue of the minimum wage. Because of tax reform, Hormel Foods has raised starting pay to $13. Wells-Fargo has established a $15 minimum wage. And Wal-Mart has raised the starting wage for its associates. That’s great, but apparently Senate Democrats have better uses for the money going toward your raise.

“Or take the subject of family leave. Because of tax reform, including the family-leave incentive championed by Senator Fischer, huge national employers such as Starbucks and CVS are expanding paid family leave programs or creating new ones.

“These new family leave programs are great -- but I guess Senate Democrats have other designs on the private dollars financing these programs. They have better uses in mind for the tax savings that are flowing to charities and nonprofits around the country, like the women’s shelter in Washington state that’s getting a million dollars toward a brand-new building

“Republicans don’t see it that way. Rather than trying to regulate our way into prosperity through high taxes and heavy-handed mandates, we believe in simply taking Washington’s foot off the brake. And because we did, American free enterprise is creating the very pay raises and benefits that our Democratic colleagues insisted only government could provide.

“My friends across the aisle may want to repeal the tax cuts that have generated these raises, bonuses, new jobs, new investments, minimum wage increases, and paid family leave expansions. They may want to raise taxes so badly that they’d be willing to shrink workers’ paychecks and send jobs and investment back overseas. Fortunately, Republicans in Congress will not let that happen. We’re standing with the American people.”

Related Issues: Economy, Taxes