Cape News

House Ways and Means Committee Chairman Jason Smith issued a statement addressing the recent rise in year-over-year core inflation, as indicated by the Federal Reserve’s Personal Consumption Expenditure (PCE) index. The data showed an increase in prices, which Smith attributes to the policies of the Biden-Harris Administration.

“Out-of-touch Democrats are still claiming a ‘soft landing’ for America’s economy is on the horizon while communities across this country are experiencing the economic turbulence caused by the Biden-Harris Administration’s failed policies,” said Smith. He highlighted that prices have risen more than 20 percent for working families, with paychecks losing value. Families are increasingly relying on credit cards and savings to cover expenses.

Smith pointed out that Vice President Harris cast two tie-breaking votes that led to significant government spending, contributing to what he describes as "the worst inflation crisis in a generation." He criticized Harris for her stance on tax policy, claiming it would lead to higher taxes for all Americans, reduce the Child Tax Credit, and impose higher tax rates on small businesses compared to those in China.

“Vice President Harris has not been consistent about her policy beliefs, except for one thing: ending the Trump tax cuts and raising taxes on every American worker and business,” Smith stated. He added that Republicans aim to build on Trump-era tax cuts which he believes boosted worker pay, helped small businesses grow, and spurred investment across America.

The statement also provided several key statistics:

- 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 exceeded the Federal Reserve's 2 percent target for 42 consecutive months.

- Inflation has outpaced wage growth for 26 straight months under this administration.

- Interest rates have reached their highest levels in 23 years.

- Monthly mortgage payments have increased by $900 since January 2021.

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

- The personal savings rate fell to 4.8 percent last month.

- Over one-third of families paid a late fee in the past year.

Smith concluded by noting that federal spending as a share of GDP has significantly increased since the start of the Biden-Harris Administration.