John Thune

Mr. THUNE

Mr. THUNE. Mr. President, we are getting close to making tax relief for Americans a reality. Last week the House released its tax reform bill, and this week we expect the Senate Finance Committee to release our version. In the coming days, the tax committees in both Houses will review the bills, and then we will debate them on the floor and develop a final version. After years of economic stagnation, Americans are ready for relief. They are ready to keep more of their hard-earned money. They are ready to finally see a real pay increase, and they are ready for access to more economic opportunity. That is what our tax reform bill is going to provide. To start with, our bill is going to put more money in Americans' pockets by lowering their tax rates and doubling their standard deduction. Under our bill, a family making $24,000 a year or less will not be paying any taxes, and families making more than $24,000 a year will be paying significantly less than they are paying today. We are also going to help families by substantially increasing the child tax credit, and we are going to simplify and streamline the Tax Code so that it is easier for Americans to figure out what benefits they qualify for so they don't have to spend a lot of time and money filing their taxes. But that is only the beginning. Americans don't just want to keep more of their hard-earned money. They also want to be making more of it, but Americans have had a hard time doing that lately. Wages have been stagnant for years, and new opportunities have been hard to find. So in addition to reforming the individual side of the Tax Code, we are going to reform the business side so that we can give Americans access to the kinds of jobs, wages, and opportunities that will set them up for a secure future. In order for individual Americans to thrive economically, we need American businesses to thrive. Thriving businesses create jobs, they provide opportunities, and they increase wages and invest in their workers. Right now, though, our Tax Code is not helping businesses thrive. Instead, it is strangling both large and small businesses with high tax rates. Small businesses are incredibly important for new job creation. They play a huge role in the economy in my home State of South Dakota and other States all across the country, but the high tax rates that too many small businesses currently face can make it difficult for them to even survive, much less thrive and expand their operations. So we are going to lower taxes for small businesses so that they can grow and hire new workers. We are also going to allow small businesses to recover their capital invested in things like inventory and machinery more quickly, which will free up capital so they can use that to expand and create jobs. Right now it can take small businesses years, or in some cases even decades, to recover the cost of their investments in equipment and facilities. That can leave them extremely cash poor in the meantime, and, needless to say, cash poor businesses have a hard time expanding, hiring new workers, or increasing wages. Allowing small businesses to recover their investments more quickly will mean more jobs and more opportunities for American workers. In addition to high tax rates on small and large businesses, another thing that is decreasing jobs and opportunities for American workers is our outdated worldwide tax system, which is discouraging American companies from investing their profits here at home in American jobs and American workers. Having a worldwide tax system means that American companies pay U.S. taxes on the profit they make here at home as well as on part of the profit they make abroad once they bring that money back to the United States. The problem with this is that American companies are already paying taxes to foreign governments on the money they make abroad. Then, when they bring that money home, they too often end up having to pay taxes again on part of those profits and, I might add, at the highest tax rate in the industrialized world. It is no surprise that this discourages businesses from bringing their profits back to the United States to invest in their domestic operations, in new jobs, and in increased wages. Between 1982 and 2003, when the U.S. tax rate was much more competitive with those other countries, there were 29 corporate inversions where U.S. companies moved abroad. Between 2003 and 2014, when other countries were dropping their corporate tax rates and shifting to territorial tax systems, there were 47 such inversions. Our tax plan addresses this drag on our economy by moving from our outdated worldwide tax system to a territorial tax system. What does that mean? By shifting to a territorial tax system here in the United States--a move, I might add, that is supported by Members of both political parties--we will eliminate the double taxation that encourages companies to send their investments and operations overseas. Combine that with a reduction in our high corporate tax rate, and we can provide a strong incentive for U.S. companies to invest their profits at home in American jobs and American workers instead of abroad. Business tax reform is essential to reversing the economic stagnation that we have seen in recent years. The White House Council of Economic Advisers estimates that the tax reform framework that Republicans have presented will boost economic growth by between 3 and 5 percent. That is good news for the economy. More specifically, however, it is good news for American workers, who can expect to see their incomes rise as a result. A study from the White House Council of Economic Advisers estimates that reducing the corporate tax rate from 35 percent, where it is today--the highest, as I said, in the industrialized world--down to 20 percent, which is more competitive with our competitors around the world, would increase average household income by $4,000 annually. Think about that. Reducing the tax on businesses in this country would increase average household income for families in America by $4,000. A Boston University professor and public finance expert, Larry Kotlikoff, found that lowering the corporate tax rate to 20 percent would increase household income by $3,500 per year on average. This was most recently confirmed by Martin Feldstein, a Harvard professor and former Chair of the Council of Economic Advisers, who noted in the Wall Street Journal this week that corporate tax reform is likely to boost household income by $3,500 per year. There are lots of analysts, lots of experts who are looking at these proposed changes to the Tax Code and the tax reform that we are attempting to get through the Congress this year and onto the President's desk, and they have concluded that not only will it reduce taxes--the tax burden, the amount of tax that is paid by middle-income families in this country--but the reduction in the rates on businesses will also increase the number of opportunities for better paying jobs and higher wages and it will raise that annual income--that average household income--that is so desperately in need of a boost. It has been a rough few years for the American economy and for American workers. I think all you have to do is to look at the numbers and you know that most Americans haven't seen a pay raise in almost the last decade. But with comprehensive tax reform, the next few years--and the next few decades, for that matter--can look very, very different. Republicans' tax reform legislation is going to provide direct relief to hard-working Americans, and it is going to create the kind of economy that will give workers access to more jobs, to better opportunities, and to higher wages, not just for the near term but for the long term. I look forward to working with my colleagues on the Senate Finance Committee, under the leadership of Chairman Hatch, to put the final touches on our bill and to take it up in the committee next week. Then, I hope we can bring that bill to the floor of the Senate and have an open debate, process amendments, and pass something through the Senate that we can conference with the House of Representatives, put it on the President's desk, and move our economy in a direction that will provide a brighter and more prosperous future for American workers and American families. It is time to give the American people some relief. I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. THUNE. I ask unanimous consent that I be able to speak until such time as my remarks are concluded.

Mr. THUNE

Mr. THUNE. Mr. President, the House and the Senate are moving forward on a final draft of our tax reform bill, and I am excited about the progress we are making. We have one goal in mind with tax reform. It is to provide real relief to ordinary Americans--to the parents who are questioning whether they can afford the car they need to fit their growing family, to the single mom who is wondering how she is going to pay the bills this month, and to the middle-age couple worrying about a secure retirement. Everything in our tax reform framework is centered on providing relief to these Americans. To start with, we are going to provide them with a substantial amount of direct relief by lowering their tax rates and doubling the standard deduction so that they are keeping more of their paycheck every month. We are also going to significantly expand the child tax credit. And we are going to simplify and streamline the Tax Code so that it is easier for Americans to figure out what benefits they qualify for and so they don't have to spend a lot of time and money filing their taxes. All of these reforms mean more money in Americans' pockets. But we are not stopping there. We are also going to focus on reforming the business side of the Tax Code so that we can give Americans access to the kind of jobs, wages, and opportunities that will set them up for a secure future. In order for individual Americans to thrive economically, we need American businesses to thrive. Thriving businesses create jobs. They provide opportunities. They increase wages and invest in their workers, and they invest in new equipment, facilities, and product lines to innovate and expand their businesses. Right now, though, our Tax Code is not helping businesses thrive. Instead, it is strangling both large and small businesses with high tax rates. Our Nation has the highest corporate tax rate in the industrialized world--at least 10 percentage points higher than the majority of our international competitors. That is a problem for American workers because high tax rates leave businesses with less money to invest in their workers, to increase wages, or to create new jobs. This situation is compounded when you are an American business with international competitors that are paying a lot less in taxes than you are. It is no surprise that U.S. businesses struggling to stay competitive in the global economy don't have a lot of resources to devote to creating new jobs and increasing wages. A study from the White House Council of Economic Advisers estimates that reducing the corporate tax rate from 35 percent down to 20 percent would increase average household income by $4,000 annually. A second study shows a similar pay increase. Boston University professor and public finance expert Larry Kotlikoff found that lowering the corporate tax rate to 20 percent would increase household income by $3,500 per year on average. That is a significant pay raise for hard- working Americans. In addition to lowering the corporate tax rate, there is another important thing we can do to increase the availability of jobs here at home; that is, reforming our outdated, worldwide tax system. Under our worldwide tax system, American companies pay U.S. taxes on the profit they make here at home, as well as on part of the profit they make abroad, once they bring that money home to the United States. The problem with this is that most other major world economies have shifted from a worldwide tax system to what is called a territorial tax system. In a territorial tax system, you pay taxes on the money you earn where you make it and only there. You aren't taxed again when you bring money back to your home country. Most American companies' foreign competitors have been operating under a territorial tax system for years. So they are paying a lot less in taxes on the money they make abroad than American companies are, and that leaves American companies at a disadvantage. These foreign companies can underbid American companies for new business simply because they don't have to add as much in taxes into the price of their products or services. When foreign companies beat out American companies for new business, it is not just American companies that suffer. It is American workers. It is the American workers employed by these companies who live and work in literally every State in the Union, and it is the American workers who work for the small and medium-sized companies that form the supply chain here in the United States. For every American company that operates in countries around the world, there are countless companies here at home that supply the raw material for the products that are sold abroad--businesses that handle the packaging and shipping of those product and enterprises that supply support services like accounting, legal, and payroll services. America's global companies rely on a web of supporting businesses that spans the country, and when these global companies struggle, so do these supporting businesses and their workers. By transitioning from a worldwide tax system to a territorial tax system, we will not be just boosting wages, jobs, and opportunities for American workers employed by these global companies, but we will also be increasing wages, jobs, and opportunities for workers at the countless small and medium-sized businesses throughout our country that make up the supply chain for America's global companies. Finally, our tax plan will tackle the other key part of improving the playing field for American workers; that is, lowering the tax rates on small businesses. Small businesses are incredibly important for new job creation, but like big companies, right now small businesses are being strangled by high tax rates. That can make it difficult for small businesses to even survive, much less thrive and expand their operations. Lowering small business tax rates and making it easier for small businesses to recover their invested capital more quickly will free up the money that small business owners need to expand their businesses to add workers or to give employees a raise. Together, these aspects of tax reform are essential to reversing the lackluster economy of the last 8 years. Americans deserve better, and tax reform can be the key to putting this country back on the path to solid, sustainable economic growth. Mr. President, before I close today, I wish to switch gears for a minute and talk about judicial nominations. We have had the chance to confirm some excellent nominees so far this year, many of whom Democrats have ultimately supported. But despite this fact, Democrats have insisted on delaying the process of almost every single nomination to a district or circuit court. That is pretty much the definition of partisanship--when you obstruct nominees based not on any disagreement you have with them but simply because you don't like the person who is doing the nominating. Democrats' delays are ultimately pretty pointless. We are not going to stop confirming nominees just because Democrats are dragging out the process, but these delays are a disservice to the American people. There are a lot of important issues that the Senate needs to be debating, from spending bills to tax reform, and the time that we waste on pointless partisan exercises is time taken from those important issues. While Democrats' partisanship is frustrating, there is a much more serious issue that has come up during these judicial confirmations; that is, the anti-religious sentiment displayed by some of my colleagues on the other side of the aisle during the hearing on judicial nominee Amy Barrett's nomination, which we will be voting on this week. Ms. Barrett's qualifications are well known. The American Bar Association, which rates judicial nominees, has given her its highest rating of ``well qualified.'' As my colleague the minority leader has said, the American Bar Association's evaluation is the ``gold standard by which judicial candidates are judged.'' Despite her judicial qualifications, it became clear in the hearing on her nomination that some of my colleagues think she should be disqualified because she is a practicing Catholic. That is right. Apparently, practicing your religion is now grounds for declaring you unfit to be a judge. Here is what the Constitution has to say about that. This is from article VI: ``No religious Test shall ever be required as a Qualification to any Office or public Trust under the United States.'' Let me repeat that: ``No religious Test shall ever be required as a Qualification to any Office or public Trust under the United States.'' In other words, in the United States, you can't be disqualified from serving as a judge because you are a believing Catholic or a believing member of any faith. The only qualification the Constitution imposes is a commitment to uphold the Constitution. Yet the second-ranking Democrat in the Senate apparently thought it was appropriate to ask Ms. Barrett if she was a practicing member of her religion, with the implication that if she was, it might jeopardize her fitness for being a judge. Democrats' questioning is not going to stop Ms. Barrett's nomination, but it is simply disturbing, nonetheless. It is a scary thing when leaders of a major political party imply that there is no role for religious people in public life. I don't need to tell anybody that that is contrary to everything our Founders stood for. The right to be able to practice religion freely-- yes, in public, too--was so fundamental to the Founders' understanding of liberty that they made it the very first freedom mentioned in the Bill of Rights. People of faith have made incalculable contributions to our country, and faith has driven some of the greatest movements in American history, from the abolitionist movement to the civil rights movement. I hope the Democratic Party doesn't move further down the path of excluding religious people from public life. If they ever succeed in excluding people of faith from government, they will have destroyed one of the freedoms on which our country rests. I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize Tom Troxel for the many years of his career that he has dedicated to improving the ecological health of our national forests and for his service to the timber industry, which has strengthened the economic health of local communities. Tom has spent more than 40 years in the forestry industry, and he has mastered the art of promoting environmentally sound forest management practices while strongly supporting the timber industry. Tom has been a trusted source of reliable and accurate information throughout his career. He received his bachelor of science in forestry from the University of Montana in 1973. He worked for the U.S. Forest Service in Idaho, Montana, and California, starting as a summer job in 1970 during college and continuing until 1989. Since 1989, Tom has been the executive director for the Intermountain Forest Association based in Rapid City, SD. During that time, he has worked with forest products companies in Colorado, South Dakota, and Wyoming and has played a critically important role in addressing issues related to national forest timber programs, including forest planning, project analyses, timber sale contracts, and legislative affairs. Tom has served as the executive director of the Black Hills Forest Resource Association, the executive director of the Colorado Timber Industry Association, and a member of the Forest Service's Forest Planning Advisory Committee. He has also served as the executive secretary of the Black Hills Regional Multiple Use Coalition for 25 years and as a member of the board of directors for the Rapid City Chamber of Commerce. Those of us who have had the privilege of working with Tom over the years will miss the knowledge and expertise he has shared with us. Our forest landscapes and communities are better because of his work. I extend my sincere thanks and appreciation to Tom for his work on behalf of our forests, the timber industry, and local communities. As he retires from his very successful career, I wish him continued success and happiness in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. THUNE. Mr. President, I don't need to tell anyone that middle- class Americans have had a rough time in recent years. Stagnant wages and a lack of opportunities have left many American families stretched thin. Sending the kids to college, a secure retirement, putting something away for a rainy day--for too many families, these hallmarks of the American dream have started to seem more and more doubtful. A recent survey found that 50 percent of people in this country consider themselves to be living paycheck to paycheck. And about one- third of people in this country say they are just $400 away from a financial crisis. If anyone wants to know why we are taking up tax reform, this is why. We are taking up tax reform because it is not acceptable that 50 percent of Americans are living paycheck to paycheck and because it is not acceptable that one-third of voters are one unexpected car repair away from a financial crisis. How is tax reform going to help? For starters, our tax reform bill is going to make sure that hard-working Americans are taking home more money from every paycheck. We are going to cut income tax rates. We are going to double the standard deduction--the amount of Americans' income that is not subject to any income tax--and we are going to significantly increase the child tax credit. All these things mean that American families are going to see an increase in their take-home pay. They are going to get to keep more of their hard-earned money. We are also going to simplify and streamline the Tax Code so that it is easier for Americans to figure out what benefits they qualify for, so they don't have to spend a lot of time and money filling out their tax returns. But we are not going to stop with reforming the individual side of the Tax Code. Another key part of improving Americans' financial situation is reforming the business side of the Tax Code so that we can give Americans access to the kinds of jobs, wages, and opportunities that will set them up for a secure future. In order for individual Americans to thrive economically, we need American businesses to thrive. Thriving businesses create jobs. They provide opportunities, and they increase wages and invest in their workers. Right now, though, our Tax Code is not helping businesses thrive. Instead, it is strangling businesses large and small with high tax rates. Our Nation has the highest corporate tax rate in the industrialized world. It is at least 10 percentage points higher than the majority of our international competitors. It doesn't take an economist to realize that high tax rates leave businesses with less money to invest in their workers, with less money to spend on wages, and with less money to create new and better paying jobs. This situation is compounded when you are an American business with international competitors that are paying a lot less in taxes than you are. It is no surprise that American businesses that are struggling to stay competitive in the global economy don't have a lot of resources to devote to creating new jobs and increasing wages. A study from the White House Council of Economic Advisers estimates that reducing the corporate tax rate from 35 percent to 20 percent would increase average household income by $4,000 annually. That is a significant pay raise for hard-working American families. Another study shows a similar pay increase. Boston University professor and well-known public finance expert Larry Kotlikoff recently issued a study that concluded that lowering the corporate tax rate from 35 percent to 20 percent would increase household income by $3,500 per year on average. Specifically, the study concluded that depending on the year considered, the new Republican tax plan raises GDP by between 3 and 5 percent and real wages by between 4 and 7 percent. This translates into roughly $3,500 annually, on average, per American household. On top of our high business tax rates, there is another major problem with our Tax Code that is decreasing American jobs, and that is our outdated worldwide tax system. What does it mean to have a worldwide tax system like we have here in the United States? It means that American companies pay U.S. taxes on the profits they make here at home as well as on part of the profits they make abroad once they bring that money back home to the United States. The problem with this is that most other major world economies have shifted from a worldwide tax system to what is called a territorial tax system. In a territorial tax system, you pay taxes on the money you earn where you make it and only there. You aren't taxed again when you bring money back to your home country, like what happens here in the United States today. Most of American companies' foreign competitors have been operating under a territorial tax system for years. They are paying a lot less in taxes on the money they make abroad than American companies are, and that leaves American companies at a disadvantage. These foreign companies can underbid American companies for new business simply because they don't have to add as much in taxes into the price of the products or services they sell. When foreign companies beat out American companies for new business, it is not just American companies that suffer. It is American workers. That is why a key part of the Republicans' tax plan involves lowering our massive corporate tax rate and transitioning our tax system from a worldwide tax system, like we have in America today, to a territorial tax system, like all of our competitors have. By making American businesses more competitive in the global economy, we can improve the playing field for American workers. So 57 percent of the manufacturers that took part in a recent survey from the National Association of Manufacturers reported that they would be more likely to hire additional workers if comprehensive tax reform becomes law, and 52 percent reported that they would be more likely to increase employee wages and benefits. That would be a tremendous, tremendous boost for American workers. Comprehensive tax reform will allow us to see the same kind of results in other industries. The other part of improving the playing field for American workers is lifting the tax burdens facing small businesses. Small businesses are incredibly important to new job creation. Like larger businesses, right now small businesses are being strangled by high tax rates and, at times, even exceeding those paid by some of the largest corporations in our country. Well, that can make it difficult for small businesses to even survive, much less thrive and grow their businesses. Every dollar that we save small businesses by lowering their tax rates is a dollar a small business owner can use to expand the business, add another worker, or give employees a raise. We can also help small businesses increase wages and create jobs by allowing them to recover their investments in things like inventory and machinery more quickly. Right now, it can take small businesses years, or in some cases even decades, to recover the cost of their investments in equipment and facilities. That can leave them extremely cash poor in the meantime. Cash-poor businesses don't expand, they don't hire new workers, and they don't increase wages. Allowing small businesses to recover their investments more quickly will mean more jobs and more opportunities for American workers. The American people had a rough few years, but economic stress doesn't have to become the status quo for the long term. We can start turning things around right now. Comprehensive tax reform along the lines of what is envisioned by the plan that has been put forward in the Republican framework will put more money in Americans' pockets. It will give Americans access to new jobs and more opportunities, and it will increase American families' wages. I look forward to passing our comprehensive tax reform bill in the near future and to giving the American people the relief they have been waiting for. I yield the floor.

Mr. THUNE

Mr. THUNE. Madam President, today I wish to honor and pay tribute to the late Army SGT Philip J. Iyotte, a hero from South Dakota who, after 66 years, has returned home. At a young age, Philip Iyotte, a member of the Rosebud Sioux Tribe, was given his Lakota name of Soldier Who Stands Alone. In 1950, Philip enlisted in the U.S. Army and was assigned to the Army's 21st Infantry Regiment of the 24th Infantry Division. Shortly after, he was deployed to the Korean conflict. On September 2, 1950, Sergeant Iyotte was seriously injured from fragments from an enemy missile. Nineteen days later, he bravely returned to the battlefield. On February 9, 1951, 21-year-old Sergeant Iyotte was declared Missing in Action after being captured by Chinese forces during Operation Thunderbolt. When the war ended, several returning prisoners of war reported that Sergeant Iyotte passed away around September 10, 1951, and was buried at the main prisoner of war camp in Korea. Sixty-six years after being captured and killed, his remains have finally been returned to his family in White River, SD. For his bravery and service, Sergeant Iyotte was awarded the Purple Heart, the Combat Infantryman's Badge, the Prisoner of War Medal, the Korean Service Medal, the United Nations Service Medal, the National Defense Service Medal, and the Korean War Service Medal. I consider it an honor to pay tribute to SGT Philip J. Iyotte. May his family and his Oyate find comfort in knowing that his remains have now been laid to rest and the legacy of his service and sacrifice to our Nation lives on.

Mr. THUNE

Mr. THUNE. Mr. President, it is probably not surprising but, unfortunately, so far Democrats have shown little disposition to work with Republicans on tax reform legislation, despite the fact that parts of our plan, like lowering corporate tax rates and switching to a territorial tax system, have been supported by Democrats as well as Republicans. One particular aspect of the Republican plan that Democrats have been taking aim at lately is our plan to repeal the death tax. They complain that it is not something to really worry about, since, they claim, relatively few estates actually have to pay the tax. One of my Democratic colleagues released a report detailing some of the ways people try to avoid the death tax. From the tone of the press release and report, one would think that anyone trying to avoid the estate tax was a multibillionaire and a tax cheat--and greedy, to boot. But I can tell you, the actual situation is very different. Of course there are wealthy individuals who try to reduce or eliminate their death tax liability. After all, who wants to be taxed a second or third time on money they have earned during their lifetime that they could be passing down to their children or grandchildren? There are also a lot of small business owners and owners of family farms and ranches who have to spend tens of thousands of dollars a year trying to avoid the death tax in order to preserve their family business for another generation. Many of the farmers and ranchers in my State know that without careful and costly planning, the Federal Government will come around after their death demanding a staggering 40 percent of their estate and that their children won't have the money to pay without risking the farm or ranch. How does that work? Well, farming and ranching is a cash-poor business. Farmers and ranchers may own valuable land, but they are only earning cash on the crops they grow or the livestock they raise on that land. Thus, while their overall farm or ranch may have a substantial value, the amount of money they have coming in is relatively small and subject to the swings in the market from year to year. Frequently, when farmers and ranchers die, the vast portion of their estate is made up of their land, while actual cash or liquid assets are a very small part of it. If they don't take measures to avoid having their family hit by the death tax, the family will have no choice but to sell off the land to pay the government, which means losing income- generating property or the family's farm or ranch overall. Family-owned businesses across the country face the same situation, where the value of the estate is tied up in the business. The threat of the death tax is a constant burden hanging over the heads of farmers and ranchers in my State who want nothing more than to be able to pass on the family farm or ranch to the next generation. That brings me to a larger point--the need to simplify our current Tax Code, which is one of the five principles guiding Republicans' tax reform efforts. Our Tax Code is long, and it is complicated. It is almost twice as long as it was in 1985 and nearly six times as long as it was in 1955. The instructions for the basic 1040 form alone are more than 100 pages long, and it is no surprise. The Tax Code is full of deductions, exemptions, and special rules, all of which amount to unnecessary complication and, too often, confusion. Take education tax benefits, an area of concern for middle-class families. Currently, there are more than a dozen separate tax provisions relating to education, from the American opportunity tax credit to 529 savings accounts. Of course, these provisions come with approximately 100 pages of IRS instructions, special forms, and schedules, not to mention the professional tax preparer whom too many families have to hire to figure it all out. Then there are small businesses, which have to navigate a bewildering mass of tax provisions and regulations but often don't have the money to hire the professional help they need. I think it is fair to say that a big reason some small businesses fail to get off the ground is because they lack the resources that would enable them to deal with the Tax Code, Then, of course, as I mentioned before, there is that other bane of small businesses and family farms and ranches; that is, again, the death tax. The death tax forces farmers and ranchers to invest a significant amount of time and money in complex estate plans, insurance, and expensive tax professionals so they can preserve their farm or ranch for their children. According to a recent survey by Family Enterprise USA, of those indicating that they undertook estate-planning efforts, the average planning cost in 2016 was more than $170,000, and that doesn't include the average cost of insurance to pay for the death tax, which was $75,000 a year. Those are simply wasted resources that could be used to reinvest back into the business, create new jobs, and increase wages-- all of which would help us achieve the kind of economic growth we have been lacking for the past 8 years. Republicans don't think farmers and ranchers should have to spend tens of thousands of dollars a year to preserve their farm or ranch for their children. We don't think families should have to hire a tax preparer to file a basic income tax form. We don't think it should cost small businesses between $15 billion and $16 billion each year to comply with the Tax Code. We don't think you should have to be an accountant to figure out what tax deductions, exemptions, or credits you qualify for. We don't think the Tax Code should prevent Americans from starting a small business or expanding an existing business to provide more jobs or higher wages for their employees. So the comprehensive tax reform bill we are currently drafting will simplify the Tax Code. It will eliminate loopholes and special rules and dedicate those savings to easing the tax burden on hard-working families and small businesses. It will drastically ease the tax return process, with the hope of making it as easy for Americans to file their taxes as it is to fill out a postcard. It will eliminate the death tax so that family-owned businesses, farms, and ranches in my home State of South Dakota and around the country can focus their dollars on growing their businesses, not paying for tax professionals to preserve it. Our bill will simplify and streamline tax benefits so that you don't need to hire a tax professional to figure out which education or home ownership or other tax benefits you qualify for. So it is disappointing that our Democratic colleagues are so hostile to the idea of working with Republicans that they are passing on the chance to join us to provide the American people with unprecedented relief from our antiquated and overgrown Tax Code. The single most important thing we can do for Americans struggling with stagnant wages and a dearth of opportunities is to pass comprehensive tax reform. By reforming our Tax Code, we can provide the American people with more and better paying jobs, fairer taxes, and bigger paychecks. Most importantly, we can do this for the long term. I hope Democrats will rethink their opposition and join us as we work to provide the American people with the relief that they have been waiting for and that they deserve. Mr. President, I yield the floor. I suggest the absence of a quorum.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Dan Knutson, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota. Dan is a graduate of Lincoln High School in Sioux Falls, SD, and a recent graduate of Augustana University, having earned a degree in psychology. He is a dedicated worker who has been committed to getting the most out of his experience. I extend my sincere thanks and appreciation to Dan Knutson for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Chance Brown, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota. Chance is a graduate of Douglas High School in Box Elder, SD, and a recent graduate of Colorado State University in Fort Collins, CO, having earned degrees in sociology, political science, and business administration. He is a dedicated worker who has been committed to getting the most out of his experience. I extend my sincere thanks and appreciation to Chance Brown for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. THUNE

Mr. THUNE. Mr. President, a recent survey reported that 50 percent of people in this country consider themselves living paycheck to paycheck, and one third of these people say they are just $400 away from financial crisis. That is not acceptable. Unfortunately, after 8 years of economic stagnation under the Obama administration, living paycheck to paycheck is starting to feel like the new normal for most Americans. But it doesn't have to be. We have the resources to be the strongest economy in the world. American workers and job creators are as dynamic and creative as ever, and they can get our economy thriving again. In order to get them to do that, we need to clear some obstacles in their path. That starts with reforming our complicated and outdated Tax Code, which has increasingly been strangling our economy. This month, Republicans in the House and Senate are making comprehensive tax reform one of our top priorities. After weeks of work, last week leaders from the Senate, the House, and the White House unveiled the framework that will guide our final tax reform legislation. The framework is built around Republicans' five principles for tax reform: first, providing tax relief for the middle class; second, increasing wages, jobs, and economic growth; third, keeping good-paying jobs here at home in America; fourth, increasing American competitiveness in the global economy; and, finally, fifth, simplifying the Tax Code. The framework outlines our plans to provide relief for middle-class families. First, we will lower rates for hard-working Americans. By collapsing the seven income tax brackets to three, we will ensure that working families get to keep more of what they earn. Our plan will also expand the child tax credit and make it available to more families, and our plan doubles the standard deduction, which will provide significant relief for those who need it the most. Under our plan, a family making $24,000 a year will no longer owe any Federal income taxes. All of these measures will provide direct relief to working families. Just as important for families, however, is the other half of our tax reform plan, which involves creating the kind of economic environment where hard-working Americans can thrive--the kind of environment where Americans have access to good jobs, higher wages, and more opportunities. Over the past few weeks, I have come to the floor to talk about Republicans' tax reform principles and have highlighted some of the ways our tax reform plan will improve the economic outlook for American families. Last week, I talked about our third principle, reforming our Tax Code to keep those good-paying jobs here at home. This week I would like to spend a few minutes talking about our fourth principle, which is keeping American businesses competitive in the global economy. In order for individual Americans to thrive economically, we need our businesses to thrive. Thriving businesses create jobs, provide opportunities, and they increase wages and invest in workers. Right now, though, our Tax Code is not helping businesses thrive, and it is making it more difficult for American businesses with an international footprint to compete in the global economy. Our Nation has the highest corporate tax rate in the industrialized world--at least 10 percentage points higher than the majority of our international competitors. It doesn't take an economist to realize that high tax rates leave businesses with less money to invest, less money to spend on wages, less money to create new jobs, less money to devote to research and development of new products and services, and less money to put back into new property or equipment for those businesses. This situation is compounded when an American business has international competitors that are paying a lot less in taxes than you are. It is no surprise that U.S. businesses struggling to stay competitive in the global economy don't have a lot of resources to devote to creating new jobs and increasing wages. On top of our high business tax rates, there is another major problem with our Tax Code that puts American businesses at a competitive disadvantage globally--our outdated worldwide tax system. What does it mean to have a worldwide tax system? It means that American companies pay U.S. taxes on the profit they make here at home, as well as on part of the profits they make abroad once they bring that money back home to the United States. The problem with this is that most other major world economies have shifted from a worldwide tax system to a territorial tax system. In a territorial tax system, taxes are paid on the money earned where it is made and only there. You are not taxed again when you bring money back to your home country. Most American companies' foreign competitors have been operating under a territorial tax system for years. So they pay a lot less taxes on the money they make abroad than American companies pay. That leaves American companies at a disadvantage. Foreign companies can underbid American companies for new business simply because they don't have to add as much in taxes into the price of their products or services. When foreign companies beat out American companies for new business, it is not just American companies that suffer. It is American workers. That is why a key part of the tax framework that Republicans unveiled last week involves lowering our massive corporate tax rate and transitioning our tax system from a worldwide tax system into a territorial tax system. By making American businesses more competitive in the global economy, we can improve the playing field for American workers. There are a lot of other things we are going to do to help hard- working families and American workers, from improving the tax situation for small businesses to helping family business owners, farmers, and ranchers like those in my home State of South Dakota by repealing the death tax. Our colleagues on the other side of the aisle like to complain about our plans to repeal the death tax. They complain that it is not something to really worry about since they claim relatively few estates are expected to actually have to pay the tax. Well, I would like them to come and talk to some of the farmers and ranchers in my State of South Dakota. Some of these farmers and ranchers are paying tens of thousands of dollars a year in an effort to avoid having their families hit by the estate tax when they die. Why? Because they know that without careful and costly planning, if the Federal Government comes around after their death demanding a staggering 40 percent of their estate, their children won't have the money to pay the government without risking the farm or the ranch. Farming and ranching is a land-rich but cash-poor business. Farmers and ranchers own valuable land, but they are only earning cash on the crops they grow or the livestock they raise on that land. So while their overall farm or ranch may have a substantial value, the amount of money they have coming in is relatively small and subject to the swings in the market from year to year. Too often, when farmers and ranchers die, the vast portion of their estate is made up of their land, while actual disposable income is a very small part of it. If they don't take measures to avoid having their family hit by the death tax, the family will have no choice but to sell off some or all of their land to pay the government, which means, in many cases, losing the family's farm or ranch. And the same situation faces other types of family-owned businesses across the country where the value of the estate is tied up in that business. Removing the threat of the death tax for family-owned businesses, farms, and ranches would free up resources that these business owners could invest in their businesses and in our economy instead of on complex estate plans, insurance, and expensive tax professionals. Before I move on, let me just remind everybody that when we talk about the death tax, we are talking about double and sometimes triple taxation. The money the government is taxing has already been taxed at least once. It boggles the mind that some think that a person's death is justification for taxing his or her income a second or a third time. Death should not be a taxable event. When someone dies, they shouldn't have to see the undertaker and the IRS at the same time. Our Tax Code is increasingly strangling our economy and placing heavy burdens on hard-working American families. If we want to improve the economic situation of American families, comprehensive tax reform is essential. Republicans in the House and the Senate are continuing to work on the final draft of the bill that we will take up later this fall. I look forward to passing comprehensive tax reform that will help American families thrive, that will create greater economic growth, better paying jobs, higher wages, and bigger paychecks for American workers. Mr. President, I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize one of radio broadcasting's longest running shows, ``I Love Life.'' Created by South Dakota native, Jerry Dahmen, the show has hosted several of country music's biggest stars and been featured on a number of local and national television programs. Since the program began airing on KXRB Radio in Sioux Falls, the show has featured more than 1,600 guests who have shared inspirational stories of what it takes to turn adversity into victory. ``I Love Life'' has also given back to the community by providing donations from book and CD sales. I offer my congratulations to Jerry Dahmen and wish the show continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, I rise to voice my strong support for the nomination of Ajit Pai to a second 5-year term as a Commissioner at the Federal Communications Commission. Mr. Pai has served as a Commissioner at the FCC since 2012, when he was first confirmed by a voice vote in the Senate. He was designated as Chairman earlier this year. A native of Kansas, Chairman Pai has focused on the expansion of rural broadband and the acceleration of next-generation infrastructure deployment. In recent weeks, he has worked tirelessly to help ensure that communications services are restored to the communities that have been affected by Hurricanes Harvey, Irma, and Maria. In just his 9 months since becoming Chairman, Mr. Pai has also made much needed reforms to improve transparency at the FCC and to improve the agency's processes. I am particularly heartened by Chairman Pai's efforts to treat his fellow Commissioners fairly by instituting the process of sharing documents with other Commissioners before discussing them publicly. Additionally, under Chairman Pai's leadership, the public is now able to view the text of all agenda items in advance of Commission hearings. With respect to the thorny issue of internet regulations, I am pleased Chairman Pai has sought to hit the reset button on the 2015 title II order because, as I had previously said, the FCC should do what is necessary to rebalance its regulatory posture under current law. At the same time, I continue to believe the best way to provide long-term protections for the internet is for Congress to pass bipartisan legislation. Rather than prolonging the back-and-forth debate on this issue, I, once again, invite my colleagues to work with me to find a lasting legislative solution that will resolve the dispute over net neutrality once and for all. As for the nomination before us, I can think of no better pick to lead the FCC as it works to address a host of issues at the heart of our interconnected economy. As I noted at the outset, Chairman Pai has already made much needed reforms to improve the processes at the FCC that empower fellow Commissioners. He has already shown a commitment to ensuring transparency and openness at the Commission. That gives me great confidence in the direction he will lead the agency. Chairman Pai's approach, I believe, will lead to more long-lasting and positive results at the FCC. That is why I believe the elevation of Ajit Pai to be the Chairman of the Commission is a much needed breath of fresh air and why I believe he should be confirmed promptly and without further delay. I urge my colleagues to support his nomination. Mr. President, I ask for the yeas and nays.

Mr. THUNE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. THUNE. Mr. President, I ask unanimous consent that I be able to complete my remarks prior to the vote.

Mr. THUNE

Mr. THUNE. Mr. President, I ask unanimous consent to be able to complete my remarks.

Mr. THUNE. Mr. President, I rise to voice my strong support for the nomination of Ajit Pai to a second 5-year term as Commissioner of the Federal Communications Commission. Mr. Pai has served as a Commissioner of the FCC since 2012, when he was first confirmed by a voice vote in the Senate. Mr. Pai was designated by President Trump to be the 34th Chairman of the FCC in January of this year and was renominated to a second term to the FCC in March. In July, the Senate Commerce, Science, and Transportation Committee, which I am privileged to chair, held a hearing on the nomination of Mr. Pai, and the committee reported out his nomination favorably on August 2. Prior to becoming a Commissioner, Chairman Pai worked on telecommunications policy in both the public and private sectors, notably serving in the Senate as a staffer on the Judiciary Committee as well as in the general counsel's office at the FCC. It is my belief that Mr. Pai's stellar career and communications policy, his integrity, and his tireless work ethic all serve him well as he continues to serve the FCC and guide the agency back to being a more collaborative and productive institution. In just 9 months since becoming Chairman, Mr. Pai has made much needed reforms to improve transparency at the FCC and to improve the agency's processes. I am particularly heartened by Chairman Pai's efforts to treat his fellow Commissioners fairly by instituting the process of sharing documents with other Commissioners before discussing them publicly. Additionally, under Chairman Pai's leadership, the public is now able to view the text of all agenda items in advance of Commission meetings. Also, to better reflect the realities of today's competitive landscape, Chairman Pai has announced the creation of an Office of Economics and Data to provide cost-benefit analyses to better inform the FCC's work. These measures are a significant step forward from the last Chairman's leadership style, which I frequently criticized as being hyperpartisan and warned would lead to counterproductive outcomes over the long term. That is why, a little over a year ago, I felt compelled to stand in this same spot and to strongly criticize the previous Chairman of the FCC for leading the Commission with unprecedented partisan zeal. At that time, I noted that the voting record for open meetings at the Commission showed a long history of consensus-building with the previous five permanent FCC Chairmen combining for only 14 party-line votes at open meetings during their tenures. However, this all changed under Chairman Wheeler as he pursued a highly partisan agenda, driven by ideological beliefs more than by a sober reading of the law. Chairman Wheeler forced 3-to-2 votes on a party-line basis a total of 31 times. To put it another way, in 3 years under Chairman Wheeler, the FCC saw over twice as many partisan votes than in the previous 20 years combined. While partisan differences are sometimes inevitable, what were once very rare events have become standard operating procedure at the Commission. This extreme partisanship was used to do the following things: a complete upending of how the internet is regulated, creating years of uncertainty for everyone; stripping important consumer protection responsibilities from the Federal Trade Commission; a failed attempt to override States' rights on municipal broadband and a power grab that was overturned by the courts; increasing the size of the Universal Service Fund by billions of dollars by simultaneously undermining bipartisan efforts to improve the program's accountability; the unnecessary and possibly unlawful disclosure of trade secrets and a plan to have the FCC and its Media Bureau design and dictate the future of television ads. I was not alone in noticing Chairman Wheeler's overreach. On several occasions other Federal agencies refused to support his actions. The Copyright Office strongly criticized a proposal for set-top boxes. The staff at the Federal Trade Commission called the FCC's privacy rules ``not optimal,'' which is bureaucrat speak for really bad. The Obama administration's Department of Justice refused to defend the FCC's unlawful action on municipal broadband. With respect to internet regulations, I am pleased that Chairman Pai has sought to hit the reset button on the 2015 title II order because, as I have previously said, the FCC should do what is necessary to rebalance the agency's regulatory posture under current law. I continue to believe, however, that the best way to provide long-term protections for the internet is for Congress to pass bipartisan legislation. Two and a half years ago, I put forward legislative principles and a draft bill to begin the conversation, and I continue to stand ready and willing today to work toward finding a lasting legislative solution that will resolve the dispute over net neutrality once and for all. Thankfully, the net neutrality debate has not distracted the FCC from important work in other areas. For instance, the FCC's proposed rulemaking on robocalls is a positive step in the right direction. The government must do everything we can to protect consumers from those who are truly bad actors, but we also must be sure that the government's rules are not unfairly punishing legitimate callers who are not acting maliciously. The FCC's notice of inquiry will give that conversation a much needed jump-start. Furthermore, Chairman Pai's focus on the expansion of rural broadband and acceleration of next-generation infrastructure deployment will help close the digital divide--a goal that we all share. He has also worked tirelessly to help ensure communications services are restored to the communities affected by Hurricanes Harvey, Irma, and Maria. Given the FCC's importance to the future of our economy and our society, it is important for the Commission to seek opportunities for common ground. In the past, people used to say that communications policy was not particularly partisan and that both sides of the aisle could often find common ground to work together. Well, times have changed, and the debate on this nomination is another example of that. I know that agreement is not always possible. Nevertheless, as a corrective to the Commission's recent history, I urged Chairman Pai at his confirmation hearing to treat all Commissioners fairly, to respect the law, to be willing to ask Congress for guidance, and to seek consensus whenever and wherever possible. I believe doing so will improve the agency's credibility and will result in actions that are more likely to endure, and I believe that Chairman Pai will do these things. As I noted at the outset, Chairman Pai has already made much needed reforms to improve the processes at the FCC and to empower his fellow Commissioners. He has already shown a commitment to ensuring transparency and openness at the Commission, which gives me great confidence in the direction that he will lead the agency. Chairman Pai's new approach, I believe, will lead to more long-lasting and positive results at the FCC. That is why I believe the elevation of Ajit Pai to be the Chairman of the Commission is a much needed breath of fresh air, and why I believe he should be confirmed promptly and without further delay. So I urge my colleagues to support this nomination. I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, I ask unanimous consent that the Senate resume consideration of the Erickson nomination.

Mr. THUNE

Mr. THUNE. Mr. President, one of the Senate Republicans' most important priorities for the rest of this year is passing comprehensive tax reform. Why? Because comprehensive tax reform is perhaps the single most important thing we can do to get our economy back on the path to long-term health. Comprehensive tax reform done right will boost jobs. It will increase wages. It will provide much needed tax relief for middle-income taxpayers and families. It will help businesses reinvest in their operations, employees, and new products. And most importantly, it will help us achieve strong, consistent economic growth. Over the past few weeks, leaders from the House, Senate, and White House have been meeting to develop the framework for the tax reform bill we will take up later this year. This morning, they unveiled that framework. The framework supports Republicans' five principles for tax reform: providing tax relief for the middle class; increasing wages, jobs, and economic growth; keeping good-paying jobs here at home; increasing American competitiveness in the global economy; and simplifying the Tax Code. The framework released today emphasizes tax relief for the middle class. First and foremost, we are going to ensure that working families receive a much needed increase in take-home pay. Right now, 50 percent of families are living paycheck to paycheck, while one-third of people across this country say they are just $400 away from a financial crisis. That is not acceptable. Our tax reform plan will ensure that these families are no longer left behind. Our plan will increase the standard deduction, which will provide tax relief to those families who need it the most. It will also enhance the child tax credit, and I don't need to tell anyone that the important work of raising a family is getting more and more expensive. It is time for hard-working families to get a break with a larger child tax credit. Finally, we will be lowering the rates on middle-class families. By collapsing the seven income tax brackets to three, we will ensure that working families get to keep more of what they earn. Second, our tax plan will increase wages, jobs, and economic growth by lowering taxes and improving cost recovery for American businesses and job creators. The framework released today lays out a goal of a 20- percent corporate tax rate. Right now, our corporate tax rate is the highest in the developed world. Our competitors pay an average rate of 22.5 percent, while U.S. companies face a 35-percent tax rate. That is a big problem. Our uncompetitive tax rate has driven companies to move their headquarters and jobs overseas and led to wage stagnation and a lack of opportunity for American workers. Lowering the corporate rate will create jobs and increase wages for working families across the country. An equally important priority laid out in the framework is lower tax rates for small businesses, farms, and ranches. Like bigger businesses, small businesses--from partnerships to S corporations--currently face high tax rates, at times even exceeding those paid by large corporations. Lowering tax rates for these businesses and creating a new maximum passthrough rate will allow a business to reinvest more of its earnings in successful operations. In short, it will help these job creators thrive. The Republican tax plan will also allow for unprecedented expensing. Allowing small businesses to recover their costs more quickly will free up capital and allow them to grow and to create jobs. The framework released today also shows how we are going to meet our goal of making America more competitive and keeping those good-paying jobs here at home. A key part of keeping good-paying jobs here at home is making the United States an attractive place to do business by reforming our outdated worldwide tax system. Having a worldwide tax system means that American companies pay U.S. taxes on the profit they make here at home as well as on some or all of the profit they make abroad, once they bring that money back to the United States. The problem with this is that American companies are already paying taxes to foreign governments on the money they make abroad. Then, when they bring that money home, they too often end up having to pay taxes again on part of those profits and at the highest tax rate in the industrialized world. It is no surprise that this discourages businesses from bringing their profits back to the United States to invest in their domestic operations, new jobs, and increased wages. Between 1983 and 2003, when the U.S. tax rate was much more competitive with those of other countries, there were 29 corporate inversions where U.S. companies moved abroad. Between 2003 and 2014, when other countries were dropping their corporate tax rates and shifting to territorial tax systems, there were 47 such inversions. Our tax plan addresses this drag on our economy by moving from our outdated worldwide tax system to a territorial tax system. By shifting to a territorial tax system here in the United States--a move, I might add, that is supported by Members of both parties--we will eliminate the double taxation that encourages companies to send their investments and their operations overseas. Combine that with a reduction in our high corporate tax rate, and we can provide a strong incentive for U.S. companies to invest their profits at home in American jobs and American workers instead of abroad. We will also simplify our Tax Code. Each year, Americans spend 2.6 billion hours filling out complicated individual tax forms. Not only is this a drag on our economy, it is an annual frustration and burden for hard-working families. The goal of our tax reform plan is to let American families complete their taxes on something as simple as a postcard. Lower rates, fewer tax brackets, and a generally simplified code will end the complicated mess that too many families face every tax season. We will continue to develop the details of this framework in the coming weeks as we work toward a final draft of our comprehensive tax reform bill. I look forward to collaborating with my colleagues in the Senate Finance Committee as we work to put our country on the path toward long-term economic health and the jobs, increased wages, and opportunities that come along with it. Mr. President, I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize the hard work of my Commerce, Science, and Transportation committee intern Alison Cheperdak. Alison hails from Hopkinton, MA, and is in her third year at George Washington University Law School. While interning on the Commerce Committee, Alison assisted the Consumer Protection, Product Safety, Insurance, and Data Security. She is a dedicated worker who was committed to getting the most out of her internship. I extend my sincere thanks and appreciation to Alison for all of the fine work she did for the committee and wish her continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. THUNE. Mr. President, last week I came down to the Senate floor to talk about the need for tax reform. One of the most important things we can do to help our economy and American families recover from years of economic stagnation under the previous administration is to reform our Tax Code. The Tax Code affects every aspect of our economy. It affects how much money you have left over to save or invest. It affects whether a new business can get off the ground. It affects whether an existing business might have the money to raise wages or to hire new employees. It is often the determining factor in whether American jobs go overseas. Right now our Tax Code isn't doing much to help anybody. It is increasingly strangling our economy, depressing job and wage growth and new business creation, pushing American jobs overseas, and is placing a heavy burden on working families who see far too much of their paychecks going to Washington, DC. That is why Republicans are making tax reform a priority this fall, and we are hoping the Democrats will join us. Last week I mentioned the five principles that will guide any Republican tax reform legislation. Any bill we pass will have to do these things: No. 1, result in increasing wage and economic growth; No. 2, provide tax relief for the middle class; No. 3, keep good-paying jobs here at home; No. 4, increase American competitiveness in the global economy; and, finally, it has to simplify the Tax Code. Last week I spent some time discussing the first principle, which is increasing wages, jobs, and economic growth. This week I would like to take a few minutes to focus on the second; that is, providing tax relief for the middle class. Hard-working Americans have had a hard time of it in recent years. Wage growth was almost nonexistent during the Obama administration. A recent survey found that 50 percent of people in this country consider themselves to be living paycheck to paycheck. Families who once looked forward to a secure future have found themselves wondering where the next mortgage or rent payment is coming from or if they will be able to afford to put anything toward their kids' college savings or toward their retirement. Fortunately, there are a lot of tax relief measures we can take that will help middle-income families, and any plan for relief has to start with lowering tax rates for the middle class. The Federal Government is simply taking too much money each month from working families. We need to fix that. American families can do a much better job spending their money than Washington bureaucrats. Any new tax bill needs to leave more money in Americans' wallets--money they can put toward their family's needs in paying for a child's braces or saving for college. Relief for American families starts with lowering the tax rate, but it doesn't end there. There are other things we can do to help hard- working families. Closing loopholes and ending a variety of special interest tax breaks will boost our efforts to significantly lower rates. Also, simplifying family-focused provisions of the Tax Code will make them easier for families to access. We need to look at provisions like the earned-income tax credit and the child tax credit to make sure they are delivering the tax relief Congress intended and to look for ways to make them more efficient and effective. Education tax benefits are another example of an area in which tax reform can deliver for middle-income families. Currently, there are more than a dozen separate tax provisions relating to education, from the American opportunity tax credit to 529 savings accounts, and, of course, these provisions come with approximately 100 pages of IRS instructions, special forms, and schedules, not to mention the professional tax preparer whom too many families have to hire to figure it all out. We can certainly do a better job than that. Simplifying and possibly consolidating the education provisions of the Tax Code could allow more families to take advantage of these provisions, and it could significantly reduce the time families have to spend in trying to obtain these benefits. Another thing we can do is make sure the Tax Code encourages savings and investment. We will be taking a look at the tax treatment of retirement savings to ensure that it maximizes the ability of individuals to achieve secure retirements. Another thing we need to do is to finally do away with the alternative minimum tax. This tax, which was originally designed to hit the very wealthiest Americans, eventually ballooned to ensnare huge numbers of the middle class. While Congress has partially fixed this problem, too many families still have to waste time in calculating their taxes twice--once for their regular returns and once to see if they have to pay the alternative minimum tax. Imagine the frustration of having to do this extra calculation, only to find out that you do not owe the alternative minimum tax. But if you do not spend the time or hire a professional to figure it out and decide to take your chances, you will certainly hear about it from the IRS if you guess wrong, usually with penalties and interest. While Congress has acted to protect a lot of middle-income taxpayers, there are still middle-lass families who find themselves having to pay the alternative minimum tax. It is time to eliminate this tax, which has long outlived its original purpose. There are a lot of other things we can do to make the Tax Code better for middle-lass families, and throughout this process, Republicans are going to make sure that hard-working Americans are at the forefront of our efforts. We know that American families do the best job of spending their own money, and any tax reform bill we pass will allow them to keep more of their hard-earned dollars. Mr. President, before I close, I would like to spend a couple of minutes talking about the National Defense Authorization Act, which we are considering here this week. Our military often got the short end of the stick during the Obama administration, and we have a lot of work to do in order to bring our military back up to full readiness and to modernize our resources. Recent events, from the increased aggression of the North Korean regime to the anniversary of September 11, remind us of the importance of making sure our military is ready to meet any threat. A key element of keeping the peace is in making sure we have the military strength to deter aggressors. Take North Korea. Our main focus needs to be on a diplomatic solution to the growing tensions in the region, but, as the President has made clear, the full strength of the U.S. military is and has to be at the ready to protect American interests and those of our allies. The Air Force has conducted show-of- force exercises, which have featured B-1 bombers from South Dakota, to deter North Korean aggression. While we continue with our diplomatic efforts, we need to make sure we project the kind of overwhelming strength that would make North Korea think twice before trying to engage the United States. Needless to say, we also need to maintain robust capabilities on the defensive side. That is why I have submitted an amendment to the National Defense Authorization Act to require that we test our ground-based midcourse defense anti-ballistic missile system twice a year. Yes, tests may fail, but an increased test pace will lead to improvements and will ultimately ensure the reliability of our missile interception defenses. In addition to North Korea, we are still dealing with continued threats and instability in the Middle East. U.S.-led efforts against ISIS have had significant success on the ground, especially in Iraq, but ISIS's recruitment networks remain active and ever more dangerous, as evidenced by attacks in Europe. There are also still complex security challenges on the ground in Syria and Afghanistan, and we are continuing to deal with an Iran that has grown more defiant in the wake of President Obama's nuclear deal. On top of all of this, Russia and China continue to take advantage of regional instability to project power and challenge the United States and its allies. Russia continues to occupy Ukraine and challenge NATO, and it has propped up the Assad regime in Syria. Meanwhile, China is only halfheartedly working to keep North Korea in check, all the while expanding its presence in the Pacific by militarizing reefs in disputed waters and building up its forces. All of these threats underscore the importance of restoring our military readiness and modernizing our capabilities, and this year's National Defense Authorization Act takes significant steps toward achieving those goals. This bill sets policy and authorizes significant resources that will work to strengthen our military readiness. It includes critical funds for combat aircraft and munitions, new ships, and advanced technology development and next-generation capabilities to ensure that our military is the strongest fighting force in the world. It also includes critical funding to boost the end strength of the Army and the Marine Corps. This bill also authorizes a 2.1-percent across-the-board pay raise for the dedicated men and women of our military, and the bill contains a number of measures to improve the quality of life for soldiers and their families and Department of Defense civilian employees. This legislation also ends troubled and redundant programs and reduces unnecessary expenditures to ensure that taxpayer dollars are not being wasted and to free up funding for military priorities. I have introduced two other amendments to this bill to help further boost readiness. The first of these amendments seeks to optimize special use airspaces for our military pilots. My amendment would require a report on the management of special use airspaces and their use for training, with the goal of improving the coordination and utilization of these airspaces in order to meet current and future training needs. Additionally, so as to better position the United States to meet ever-changing cyber threats, I have introduced an amendment to establish a pilot program for a cyber ROTC. With the President's elevating CYBERCOM to a combatant command, it is essential that the Department of Defense establish additional pipelines to train more men and women in uniform in order to counter the mounting cyber attacks we are facing. I am grateful to Senator McCain and other Senators on the Armed Services Committee for their work on this bill. This bill is an important step forward in making sure our Nation is secure and capable of meeting and deterring threats. I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Dustin Wahl, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota. Dustin is a graduate of Sioux Falls Christian High School in Sioux Falls, SD. Currently, he is attending Liberty University in Lynchburg, VA, where he is majoring in politics and policy. Dustin is a dedicated worker who has been committed to getting the most out of his experience. I extend my sincere thanks and appreciation to Dustin Wahl for all of the fine work he has done and wish him continued success in the years to come.