Tax Reform Already Providing Special Bonuses and Permanent Pay Raises for Americans
‘It’s been three weeks. Three weeks. Lower utility bills, a million special tax reform bonuses and pay raises, and this is only the beginning. A Republican majority in the House, a Republican majority in the Senate, and President Trump listened to the facts instead of the political spin. I’m proud that we passed this historic bill and gave families across America the tax relief they’ve waited decades to receive.’
WASHINGTON, D.C. – U.S. Senate Majority Leader Mitch McConnell (R-KY) delivered the following remarks on the Senate floor regarding the benefits Americans are seeing across the country thanks to the Tax Cuts and Jobs Act:
“We’ve been talking all week about the ways our historic tax reform law is immediately helping middle-class families. It’s been less than a month since Congress passed, and the president signed, the Tax Cuts and Jobs Act. But already, more than one million Americans are on track to receive special bonuses, permanent raises, and other benefits. And their employers are attributing these changes directly to tax reform.
“100,000 employees of American Airlines are each receiving a $1,000 tax reform bonus. U.S. Bank is raising its minimum wage to $15 and is also giving thousand-dollar bonuses to 60,000 employees. 29,000 employees of Nationwide Insurance are also receiving bonuses – and 33,000 are getting an increase in their retirement match. Those are just a few of the 100-plus companies that have already announced new benefits for American workers as a direct result of tax reform. And these are only the immediate benefits.
“Mainstream economists agree that in the months and years to come, the permanent changes we made to the way we tax businesses will make our economy more vibrant and more competitive. That means greater investment and higher wages for American workers.
“Of course, all this is in addition to the direct effects the tax cuts themselves will soon have on family budgets. The Tax Cuts and Jobs Act reduced income tax rates and significantly expanded key deductions. We took money out of Washington D.C. and put it right back in the pockets of middle-class Americans. Starting as early as February, the IRS will withhold less from paychecks, and workers will get to deposit more of their hard-earned money right into their bank accounts. In 2018 alone, for a typical family of four earning just over $70,000, the Tax Cuts and Jobs Act could mean a tax savings of more than $2,000.
“Nearly every day, reports come out of a new way this historic tax reform bill is helping Americans. Here’s a subject that is particularly relevant around many kitchen tables this winter: Utility bills. All around the country, utility companies that will benefit from our new tax cuts are already discussing plans to pass their savings on to consumers.
“Major power companies in Illinois, Maryland, and Massachusetts are already proposing plans to give their customers tens of millions of dollars in relief by lowering the rates they charge for energy. And get this – according to CNBC, a South Carolina electric and gas utility is planning to give a cash payment directly to its customers — averaging $1,000 per household.
“More are following suit. In Montana, Louisiana, and Indiana, regulators are already working with utilities to determine how households will benefit from the tax savings. In my own state of Kentucky, the Public Service Commission directed a number of electric, gas, and water companies to track their savings and make plans to cut rates for customers. As any mother or father who has to balance a checkbook and pay bills every month can attest, this is welcome news for middle-class families.
“And these reductions will be especially helpful to the most vulnerable in our society. According to data from the Department of Health and Human Services, energy costs eat up a significantly higher percentage of household income for poor families than for other families. In other words, for a software engineer in Silicon Valley, a lower heating or air conditioning bill might go unnoticed. But for the workers who clean that office overnight, this relief will make a real difference. A drop in utility bills effectively amounts to progressive tax relief.
“This is just another example of how the Tax Cuts and Jobs Act is rapidly proving to be a serious asset to poor and middle-class families – precisely the people whom my Democratic friends in the House and the Senate loudly claimed would get nothing at all from this bill. It’s been three weeks. Three weeks. Lower utility bills, a million special tax reform bonuses and pay raises, and this is only the beginning. A Republican majority in the House, a Republican majority in the Senate, and President Trump listened to the facts instead of the political spin. I’m proud that we passed this historic bill and gave families across America the tax relief they’ve waited decades to receive.”
Related Issues: Middle Class, Taxes, Economy, Tax Reform