Cape News

Ways and Means Committee Chairman Jason Smith (MO-08) issued a statement following the Federal Open Market Committee's recent decision on interest rates.

"Nearly three years after the Biden-Harris Administration took over the White House and triggered the worst inflation of the last 50 years, the Federal Reserve is finally lowering interest rates even though prices are still 20 percent higher, paychecks are worth less, and more families are taking on credit card debt," said Smith. "Americans aren’t just looking for relief from high interest rates, they’re looking for relief from the same old failed Biden-Harris policies that crushed them to begin with."

Smith criticized President Biden and Vice President Harris for taking credit for economic success amid historically low personal savings rates. He questioned Vice President Harris's proposal of a $7 trillion tax hike, which he argued would burden working families and small businesses.

"It’s bad enough that President Biden and Vice President Harris are taking credit for success at a time when the personal savings rate is at a historic low," Smith continued. "Why on earth is Vice President Harris now threatening a $7 trillion tax hike on 100 percent of Americans, especially on working families and small businesses struggling to make ends meet? Why is she making empty promises that she will provide some relief later when she is in office right now?"

Smith highlighted efforts by Ways and Means Republicans who have conducted over 90 Tax Team events across 17 states. According to Smith, these events revealed that Americans want to build on Trump-era tax cuts which they believe led to more jobs, higher wages, and a stronger economy.

Key statistics provided by Smith include:

- Prices have increased by 20.3 percent since the beginning of the Biden-Harris Administration.

- Real wages and benefits have fallen by 3.4 percent during this period.

- Inflation has been above the Federal Reserve’s 2 percent target for 42 consecutive months.

- Mortgage costs have risen by 86 percent since January 2021.

- Consumer credit debt has exceeded $1 trillion for five calendar quarters.

- The personal savings rate is near historic lows at 2.9 percent.

Smith concluded by emphasizing what he perceives as Washington's spending problem under the current administration compared to federal revenue levels during Trump's presidency.