What Marco Rubio doesn’t understand about tax reform

Not bad for a law that’s been around for all of four months.

But Democrats and the establishment press have been dishonest about the Tax Cuts and Jobs Act since its inception. They are inherently hostile to the idea of Americans keeping more of what they earn. And now Sen. Marco Rubio, R-Fla., has delivered the perfect excuse for Democrats and the media to declare “even Marco Rubio knows the tax cuts are bad” incessantly until November.

Rubio is somehow unaware of the benefits of the tax cuts, as shown by this excerpt from his recent interview with the Economist:

Instantly the entire press corps, Rep. Nancy Pelosi, D-Calif., and every left-wing entity shouted “Rubio!” But Rubio is wrong. He needs to spend more time talking with his Florida constituents to see for himself. Let’s address each of Rubio’s false assertions.

The fact that millions of Americans have received tax-cut bonuses is a pleasant surprise. Nobody expected these bonuses. Ask anyone who helped pass the tax cuts. The employees receiving the bonuses are front-line workers. In almost all cases the bonuses were specifically awarded to nonexecutives.

Tampa-based Spellex gave $1,000 bonuses. North Naples-based Arthrex gave $1,000 bonuses. Miami-based Florida Concrete Unlimited gave extra bonuses and raises. Davenport-based CenterState Bank gave $1,000 bonuses. Miami-based Ryder is awarding $23 million in tax-cut bonuses. Florida employees of Waste Management Inc. received $2,000 bonuses. Florida employees of U-Haul received $1,200 bonuses. Employees at the 18 Florida Apple stores received a bonus of $2,500 in stock. More than 13,300 Florida AT&T employees received $1,000 bonuses.

Across the country, people used the bonus money to buy groceries and gas, pay bills, or save for a family vacation. A grandmother plans to use her leftover bonus money to host a “make your own pizza night” for her children and grandchildren. Upon hearing the bonus news, many employees had tears in their eyes. The bonuses were greatly appreciated and should be unequivocally celebrated by Rubio.

On stock buybacks, Rubio sadly parroted the left-wing line. In reality, buybacks help companies grow and invest. They help companies hire new employees and build new facilities. They strengthen family retirement security for tens of millions of households with a 401(k), IRA, or union pension.

Besides, capital expenditures are on the rise and happening faster than buybacks. As reported by Bloomberg:

Bloomberg also notes what this means for the economy:

Let’s look at a few examples from Rubio’s home state. On top of $3,000 to $4,200 salary increases, Sebastian-based Joseph’s Lite Cookies is buying new computer systems and developing new packaging. West Palm Beach-based Don Ramon Restaurant, in addition to pay raises and bonuses, is purchasing new refrigerators and coffee machines. Renovations to include a customer bar and takeout window will allow for the creation of eight new jobs.

Riverview-based Jones Auto & Towing, which provides 24-hour roadside assistance and wrecker service, purchased two new trucks. “The tax cuts are putting two more tow trucks on the road for my business. This will add two more full time job openings that will help two more families,” says Guy Jones.

Primrose School of South Tampa, in addition to salary increases, is installing new flooring, upgrading playground equipment, and investing in educational hardware and software.

Melbourne-based Harris Corporation, in addition to giving 17,000 nonexecutive employees 10 shares of stock and adding $300 million to the employee pension fund, is investing $20 million in engineering and technological innovations.

Rubio has long fashioned himself a champion of the family. The tax cuts have allowed Walmart and Lowe’s to help employees who wish to adopt a child. Walmart and Lowe’s employees who adopt a child will now have $5,000 of their expenses covered by the company. This is a meaningful pro-family benefit, attributed to the tax cuts.

You probably haven’t heard of the adoption benefit. That’s because the media never mentions it. Rubio should be talking about it every day. Is he even aware of it?

Walmart and Lowe’s also expanded parental leave. This will help families in every corner of Florida: There are 328 Walmart stores in Florida. About 67,500 Florida Walmart employees received benefit and wage changes. Lowe’s employs 21,000 people in the state, between its 123 Florida stores and two distribution facilities. How often does Rubio call up members of the national media and let them know this?

T.J. Maxx has 91 stores in Florida. The company instituted parental leave, made contributions to employee retirement plans, enhanced vacation benefits, increased charitable giving, and paid bonuses.

Tax reform has helped companies expand employee education benefits. There are more than 500 McDonald’s locations in Florida. The tax cuts helped the company accelerate its Archways to Opportunities educational program. Employees who work just 15 hours a week are now eligible for $2,500 (up from $700) in education assistance. As noted by the company, the program provides “an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.”

Apple is expanding its wonderful education program focused on science, technology, engineering, arts, and math.

Thanks to the tax cuts, utility customers around the country have lower bills. Duke Energy Florida announced that “customers will directly benefit from the new federal tax law and avoid a rate increase for power restoration costs associated with the company’s response to last September’s Hurricane Irma. Instead of increasing customer rates, the company plans to apply federal tax reform savings toward those storm costs.”

Yet another pro-family aspect of the law is that it allows families to use 529 education savings accounts to pay for K-12 education. This is the most significant piece of school choice legislation in history.

Thanks to Rubio’s vote for the tax reform bill, all of the benefits described above are a reality: Pro-growth and pro-family.

Sen. Rubio, please get out there and listen to your constituents. Tell their stories. Resist the artificial “strange new respect” from the swamp and the establishment media. You can tout the tax cuts while working for additional pro-family aspects of tax reform. If Democrats take charge, you can kiss the whole thing goodbye. So don’t ruin it for everyone else.

John Kartch (@JohnKartch) is vice president for Communications at Americans for Tax Reform.