Cruz: Tax Reform Should be Used to Repeal One of 'Most Damaging' Bills 'in Modern Times'
WASHINGTON – Sen. Ted Cruz (R-Texas) said Congress should take advantage of the chance to use tax reform to repeal Dodd-Frank, which he argued has helped large banks expand while hurting small community banks and credit unions.
Cruz hopes tax reform is signed into law by “the end of this year or early next year.”
“When enacting tax reform, we should also use it as an opportunity to repeal Dodd-Frank. Dodd-Frank is one of the most damaging pieces of legislation in modern times. Dodd-Frank has wreaked havoc. Dodd-Frank was sold to the American people to stop ‘too big to fail.’ How has that worked out? The big banks are bigger and the smaller banks, the community financial institutions, have been devastated,” Cruz said last week during a Tax Foundation event on tax reform at Hillsdale College’s Kirby Center.
“Since 1994, the number of community banks has fallen by 40 percent. Their share of assets has fallen by more than half from 41 percent to 18 percent. What’s happened to the big banks? Their share of assets has risen from 18 percent to 46 percent,” he added.
“Dodd-Frank is great if you’re a giant financial institution. It is lousy if you’re a local community bank and if you’re a credit union. And in the four years after Dodd-Frank, community banks lost market share at a rate double what they were losing before then – 12 percent versus 6 percent.”
According to Cruz, more than 80 community banks have “gone under” in Texas while 1,800 have closed across the nation.
“This is not good for the banking institutions but it’s particularly bad for small businesses. If you care about growth, if you care about small businesses, who do you think is lending to small business? Who do you think lends money to that farmer to buy the tractor? Who do you think lends money to that small restaurant owner to open a new restaurant and hire the waiters and waitresses and cooks? It’s the small community banks, the financial institutions hurt by Dodd-Frank,” he said.
Cruz said President Trump should push for a tax reform plan that replaces all existing tax forms with a postcard.
“In 2016, Americans spent nine billion hours on their taxes – nine billion hours is a lot of time. That’s more time than some people have in a single day. Nine billion hours wasted. It doesn’t produce anything – 2.6 billion of those hours on individual income taxes. The average American should be able to fill out their income taxes on a postcard,” he said.
“You want a powerful legacy? Let me say to President Trump, you want a legacy of tax reform? Throw out the long tax forms we file and replace it with a simple postcard. That is something Americans across this country will remember as a lasting legacy,” he added.