Chairman Smith: “To add insult to injury, Vice President Harris’s next move is to let the Trump tax cuts expire and raise taxes by $7 trillion. Trillion with a capital T.”
WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) for August 2024:
“Americans already pay 20 percent more to cover the cost of basic necessities because of the Biden-Harris Administration, and those costs went up again last month according to the latest inflation report. The core rate of inflation is more than double what it was when President Biden and Vice President Harris took the oath of office. After more than three years of their economic policies, the record is one of sticker stock, no matter if it’s gas, groceries, or a home. President Biden and Vice President Harris have continued to hide from the press hoping to somehow deceive the American people about the truth of their economic record. And to add insult to injury, Vice President Harris’s next move is to let the Trump tax cuts expire and raise taxes on all Americans by $7 trillion. Trillion with a capital T.
“Under that plan, small businesses would have to pay a tax rate more than 20 percent higher than Communist China. Families would see their taxes go up and their Child Tax Credit slashed in half. It’s unacceptable, and it’s why Ways and Means Republicans are hard at work to protect Americans from the Biden-Harris tax hike. Our Tax Teams have already held over 65 stakeholder roundtables, listening sessions, field events, and site visits and have traveled to 16 states to hear from the American people about their ideas to build on the successful Trump tax cuts and help working Americans provide for their families and get ahead.”
Key Background:
• Everything Costs More: Prices have increased 20.3 percent since the beginning of the Biden-Harris Administration.
• Americans Making Less: Real wages and benefits have fallen 3.4 percent since the beginning of the Biden-Harris Administration.
• Inflation Above Fed’s Target: For 42 straight months, inflation has been above the Federal Reserve’s 2 percent target.
• Inflation Higher Than Wages: Inflation outpaced wages for 26 straight months under the Biden-Harris Administration.
• Historic Interest Rates: Under the Biden-Harris Administration, interest rates hit their highest levels in 23 years.
• Mortgage Costs 89 Percent Higher: The monthly mortgage payment for a median-priced new home has increased $1,005 and is 89 percent higher than when President Biden and Vice President Harris took office in January 2021.
• $1 Trillion+ Credit Card Debt: Credit card interest rates are at their highest levels in more than three decades, while consumer credit debt has exceeded $1 trillion for five calendar quarters. The number of Americans struggling to pay credit card bills has increased to the highest level since March 2012. Nearly 11 percent of credit card balances are more than 90 days past due.
• Shrinking Savings: Thanks to higher prices, families have spent the entirety of their pandemic savings by 2024, and they are able to save less of their income. At 3.3 percent, the personal savings rate is near its historic lows.
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.
• Washington Has A Spending Problem: After the Trump tax cuts, federal revenue as a share of GDP averaged 17.2 percent, near the average since FY2000. Since the start of the Biden-Harris Administration, federal spending as a share of GDP has exploded to 26.5 percent, more than 6 percentage points higher than the average from FY2000 to the pandemic.
Reprinted with permission from US House Committee on Ways and Means – By Jason Smith
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.