Toomey Statement on Senate Tax Reform Plan
Washington, D.C. - The following is a transcript of comments delivered during a reporter call today by U.S. Senator Pat Toomey (R-Pa.) on the Tax Cuts & Jobs Act, the pro-growth tax reform draft is expected to be released by the Senate Finance Committee this evening:
"Big day today, I am very excited about the product we have. This tax reform package is going to directly lower the tax bill, and therefore, be a pay raise for the overwhelming, vast majority of Pennsylvanians who are getting up every day and going to work and supporting their families. And that's very good news.
"But it doesn't end there. It is also going to be very helpful to all of my constituents because I'm convinced were making exactly the kind of changes we need in our tax code to encourage a really strong period of economic growth. Let me explain a little bit why briefly. It's an objective fact that the Obama recovery was the weakest economic recovery in American history. It's an objective fact that we saw a collapse in productivity growth, which I think was caused by a collapse in the growth of the capital stock and was accompanied by a related collapse in new business startups. Those were combined with the fact that while we did nothing over the last 30 years the rest of the industrialized world was improving their tax code, making it more competitive, lowering the rates on business, [and] moving to territorial systems. So the combination, I think, easily explains a really weak recovery, and it's time that came to an end.
"So our reforms are going to correct both of those huge flaws. We're going to lower the cost of capital that is going to allow more investment in capital. Investment in capital means workers become more productive. More productive workers get higher wages and higher wages mean a better standard of living for the people I represent.
"By moving away from this terrible international system we have today, which creates perverse incentives for companies to leave the United States, to invert, to be acquired by foreign companies, all of those incentives go away when we adopt a territorial system, which our bill also does.
"So I am really, really excited about this. I am optimistic. The presentation to my colleagues today went very well, the package was very well received, and so next week the plan is to mark this up in the Senate Finance Committee and continue to move it through the process with the goal of getting it signed into law hopefully by the end of this year. I think that is achievable and I will be working very hard in an effort to make that happen."