Prepared Statement of Senator Chuck Grassley
Senior Member and Former Chairman, U.S. Senate Finance Committee
Early Impressions of the New Tax Law
Tuesday, April 24, 2018
Positive economic news continues to mount in the months since the passage of the Tax Cuts and Jobs Act. More than 500 employers and counting throughout the country have announced they are reinvesting their tax cut savings into employees through increased wages, benefits and bonuses.
In addition to lower tax rates and increased wages in paychecks every month for the vast majority of Americans, millions of American workers are benefiting from the recent tax cuts. Many of them are in my home state of Iowa.
Media reports have detailed stories of Iowa-based companies investing resources back in their businesses and employees after the passage of the Tax Cuts and Jobs Act. Dyersville Die Cast, which dedicated a total of $150,000 in bonuses for its employees is one such company, as is Anfinson Farm Store in Cushing, which gave $1,000 bonuses and raised wages by five percent for all of its full-time employees. Ohnward Bancshares in Maquoketa gave $1,000 bonuses for all of its 260 employees and Pattison Sand Company in Clayton gave its employees $600 cash bonuses and raised their base pays.
Several Iowa utility companies are delivering millions of dollars in customer savings as well. Alliant Energy estimated its customer savings to be between $18.6 million to $19.6 million for electric and $500,000 to $3.7 million for gas. MidAmerican Energy estimated between $90.8 million and $112.3 million in customer savings and Iowa American Water Co. estimates customer savings of between $1.5 and $1.8 million.
From big cities to small towns, workers are receiving higher wages and better benefits, and families are once again able to save and invest in their futures.
The Tax Cuts and Jobs Act has spurred economic growth and optimism in Iowa and throughout the country. I’m encouraged by the progress made, and I’m confident that the benefits of this commonsense law will continue to grow and improve the lives of Iowans and all Americans.
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