ICYMI: Toomey Speaks on Tax Cuts and Jobs Act
“I'm confident we're going to get this done. And when we do, our constituents are going to live a better life as a result.”
[Click image to watch full speech]
Washington, D.C. -U.S. Senator Pat Toomey (R-Pa.) made the following remarks on the Senate floor regarding the Senate Finance Committee's comprehensive pro-growth tax reform plan--the Tax Cuts & Jobs Act:
• "We've just lived through the weakest recovery in American history: feeble growth, stagnant wages, and a widening gap between the wealthy and poor. That's what has been happening for years. Some people say, ‘that's the way it is, you have to get used to it, that's the new normal, that's what America is about now'...that's complete nonsense. There is nothing inevitable about the American economy being weak and denying opportunity for the people we represent."
• "There's no mystery about why our economy was weak for so many years. We imposed conditions that made it impossible to have the kind of growth that's normal. Meanwhile, what was happening in the rest of the world? The rest of the world was systematically making their tax codes more competitive. Our competitors were lowering their rates to what they applied to business income, simplifying their codes, and moving to international systems that made it more conducive for them to generate investment into their country, while we did nothing except let our tax code just ossify."
• "This bill goes exactly to what the problem is. How do we do that? One of the things that we do, a hallmark of this bill, is we're going to lower the cost of investing in the new plants and equipment. That will allow American workers to become more productive. More productive workers get paid more in wages - that's just a fact - that's what's going to happen as a result of this bill."
• "Another thing that we do in this bill is we get away from the terrible policy that's resulting in foreign companies buying up American companies. The way we treat income earned overseas is a disaster, and we're the only country in the world that does it. I think you could make a case that today the United States has what might very well be the least attractive tax regime in the modern world, in the industrialized world. And what's exciting is we're going to move from this system to what just what might be the best tax system in the industrialized world. Think about what that result will have. The result is going to be, I think, breathtaking."
• "What happens when we create the incentives for businesses to grow? To invest? New businesses to launch? People to invest in America? What happens when that occurs in an environment where the unemployment rate is very low? It sets up a bidding war for workers. There's no other choice. These businesses, as they grow, they need new employees to get this job done, they have to pay ever more because they are competing with another business down the road that wants to grow, also wants to invest in new plants and equipment. What we are going to do is create a bidding war for workers. That means wages are going up, and when wages go up, families have more take-home pay, and when they have more take home pay, they will have a higher standard of living. This is exactly how people have a chance to live the American dream."