The Fruits of Tax Reform
April 10, 2018
Congressman Tom McClintock delivered the following remarks on the House Floor April 10, 2018 during special orders debate:
It’s important to ask ourselves how the tax reform is doing, and I thank my colleague for organizing this time tonight.
In my district, the average family is paying $1,900 LESS federal income tax this year – which means $1,900 MORE they can spend to meet their needs.
I urge everyone to visit a website called taxplancalculator.com. You can put in your own tax numbers and calculate how your family fares under the new tax law. Everyone I have directed to taxplancalculator.com has come back happily surprised.
But the real importance of the tax reform is on expanding our overall economy.
One provision allowed companies to write off the full cost of equipment purchases when they make the purchase. What does that mean?
Ken Steers is President of Freight Solution Providers, a local shipping company that provides worldwide transportation logistics for businesses large and small. He tells me that since the tax reform took effect, his shipping orders for manufacturing equipment have gone through the roof and haven’t let up.
Before the tax reform, our corporate tax rate was 35 percent – the highest in the industrialized world. We reduced it to 21 percent.
Aslam Malik is CEO of AMPAC Fine Chemicals in Sacramento and El Dorado Counties. They produce the active ingredient in several cancer and epilepsy drugs. He said they could outcompete European competitors in terms of quality, technology and service, but many customers told him that even if their product was free, the American tax made AMPAC non-competitive.
I checked back with Mr. Malik this week. They have already added $2 million to their budget for expansion because a whole new world of opportunities has literally opened up for them.
The Left says this is just tax relief for the rich. They don’t understand that this is precisely what produces higher pay, better jobs, greater opportunities and stronger financial security for every American.
I attended the Oakhurst Rotary Club last week. They have a tradition of donating dollars to the club as they report good news in their own lives. One Rotarian had been out of work for nearly two years and was on the verge of despair. With tears in his eyes, he announced that he had just landed his dream job with Pfizer Pharmaceuticals – and that he would now be able to keep his home and stay in the town he loved. Relief was written all over his face.
To be sure, our economy still faces many threats: trade wars, bad monetary policy, run-away federal spending. But clearly, the tax reform is working. From what people are telling me, if it isn’t yet morning again in America, it is at least a new dawn.