Cape News

House Ways and Means Committee Chairman Jason Smith has voiced concerns over the recent Consumer Price Index (CPI) report from the Bureau of Labor Statistics, indicating a year-over-year inflation rate of 2.6 percent for October 2024. This figure represents an increase from the previous month.

Chairman Smith stated, "Americans are being robbed by 20 percent inflation. Paychecks don’t pay the bills, and families are emptying bank accounts and maxing out credit cards to make ends meet." He expressed apprehension that if Democrats proceed with their plans, it could lead to increased taxes on Americans, exacerbating what he describes as a cost-of-living crisis. According to Smith, this would mean higher taxes equivalent to nine weeks of groceries for an average family of four and reduced Child Tax Credit benefits.

Smith emphasized that Congress has been given a mandate by the American people to address these economic challenges. He remarked that Republicans on the Ways and Means Committee are prepared to collaborate with President Trump to strengthen the economy in favor of working individuals and expand upon the tax cuts implemented in 2017. The committee's Tax Teams have reportedly engaged in extensive preparation throughout this year, including over 120 listening sessions across 20 states.

The backdrop provided by Chairman Smith includes data highlighting significant economic shifts since President Biden and Vice President Harris took office. It is noted that prices have risen by 20.7 percent during their administration, while real wages have declined by 3.1 percent. Inflation has surpassed wage growth for consecutive months under their leadership.

Interest rates have reached historic highs not seen in over two decades, leading to substantial increases in mortgage payments for median-priced homes compared to early 2021 levels. Credit card debt has also climbed beyond $1 trillion for five quarters consecutively.

Families' financial health appears strained as savings dwindle due to rising costs; many households reportedly spent their pandemic savings by 2024 and continue saving less than before Biden's presidency began.

Chairman Smith's statement comes amid ongoing discussions regarding potential tax policy changes ahead of what he terms "the 2025 Super Bowl of Tax," positioning pro-growth policies against proposed tax hikes affecting all Americans.