Cape News

House Ways and Means Committee Chairman Jason Smith has called for an extension of the Trump tax cuts in response to rising inflation. This comes after the Personal Consumption Expenditure (PCE) index indicated a 2.4 percent increase, surpassing the Federal Reserve's target.

Smith stated, "Congress must quickly extend the Trump tax cuts and protect every single American from a tax hike that would only make life more expensive." He criticized the current administration, saying, “The Biden-Harris Administration’s parting gift to the American people is as welcome as a lump of coal at Christmas: higher prices that keep rising."

Smith emphasized the need for economic stability, noting that "Families have been hammered by a 20 percent spike in prices under President Biden that has made the cost of living unaffordable." He praised former President Trump's economic policies, stating they provided "immediate relief to the kitchen tables of millions of American homes."

The chairman highlighted feedback from small businesses, workers, and farmers across 20 states who participated in over 120 listening sessions. They expressed concerns about needing certainty regarding taxes to plan for future investments and hiring.

Several economic indicators were presented to underscore these points:

- Prices have risen by 20.6 percent since President Biden took office.

- Real wages and benefits have decreased by 3 percent.

- Inflation has exceeded the Federal Reserve's target for 45 consecutive months.

- Mortgage costs are now nearly double compared to January 2021.

- Credit card debt has surpassed $1 trillion for six quarters.

Smith concluded with a call to action: "Ways and Means Republicans have spent this year preparing to move as quickly as possible to deliver that exact tax relief to working families."