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ICYMI: Sen. Toomey on the Goals of Pro-Growth Tax Reform

November 13, 2017

 

[Click image to watch full speech]

Washington, D.C. -U.S. Senator Pat Toomey (R-Pa.) made the following remarks during the opening session of the Senate Finance Committee's markup of the pro-growth Tax Cuts & Jobs Act:

Excerpts:

• "It is simply an objective matter of fact that this tax reform will result in a substantial middle class tax relief, you don't have to take any of our words for it, it's been documented, joint tax has determined it, it's part of what we solved for, that's just a fact. We're going to lower the burden of taxes on the vast majority of Americans and the overwhelming majority of working class and middle income folks. But that's not all we're doing here, we're also going to make our business tax code finally competitive. And I believe we're fixing exactly what needs to be fixed at this time."

• "Let's remember, the eight years of the Obama Administration coincided with the worst economic recovery in American history. President Obama got the policies he wanted: massive spending bills they called a stimulus, repeated tax hikes, government virtual takeover of health care, huge unprecedented wave of new regulation-they got what they wanted and it resulted in extremely feeble growth, in fact something of the order of 2 percent. We were told, just get used to it, this is the new normal, nothing we can do about it. This is what the American economy does these days. It couldn't be more untrue. There is nothing inevitable about a weak American economy. There is nothing inevitable about a lack of strong growth. We need to fix what's broken and we can restore the kind of growth and prosperity that we've been waiting for."

• "On the business side we're going to lower tax rate rates, and we're going to allow for immediate full deduction of new capitol when it gets put to work: When new plants and equipment are bought, people are going to expense that, be able to expense that immediately. What is that going to do? for one, it's going to allow American workers and business be competitive, to be competitive and to win in a competitive global economy. And when encourage and incentive business to purchase more of the plants and equipment that allows them to grow, we're going to encourage enhancement of productivity. That's how productivity grows-it's when capitol gets put to work. And when productivity gains are restored, that's where wage growth comes from. That's what this bill is going to do."

• "Let me say a word about the deficits, that some of my colleagues suggested a great concern about a deficit-which I don't recall at the time when they were passing big stimulus spending bill-but here's a fact: this bill is going to reduce the size of our deficit. If this is enacted into law, we're going to have a smaller deficit, and here's why: The tax reform bill contemplates a trillion dollars in foregone revenue relative to the current policy that the federal government is pursuing. So how much extra growth will it take to generate the tax revenue to fill in that hole? And keep in mind what a profound restructuring of the tax code this is, well the answer is, according to joint tax: less than four tenths of one percent of economic growth...I think it's entirely possible for us to have economic growth that will exceed, by far, the four tenths of one percent that it will take to completely fill in this hole."

• "I am looking forward to getting this product finished. We are going to lower taxes for middle income taxpayers, we are going to enact the most pro-growth business reforms in over thirty years, and in the process we're going to have smaller deficits. That's going to result in a higher standard of living for the people we represent."