Cape News

House Ways and Means Committee Chairman Jason Smith has emphasized the urgency for Congress to pass legislation addressing inflation. This comes in response to the January 2025 reading of the Federal Reserve’s Personal Consumption Expenditure (PCE) index, which remains a key measure of inflation.

Smith attributed current economic challenges to the previous administration, stating, "President Trump inherited an economic mess from former President Biden and Vice President Harris." He criticized their policies for contributing to inflation and argued that "President Trump’s policies are necessary to help working-class families recover."

He urged Congress to enact comprehensive legislation: “Congress must pass one, big, beautiful bill to turn President Trump’s mandate into a reality to help families fed up with inflation.” Smith stressed that such action would provide certainty for workers and small businesses regarding taxes.

The permanent extension of the 2017 Trump tax cuts is central to Smith's proposal. He highlighted potential benefits, including the creation of one million new jobs by small businesses and $150 billion in economic growth if certain deductions are made permanent. Additional projected gains include $284 billion from American manufacturers and $50 billion in new investments in Opportunity Zones.

Smith warned against failing to extend these tax cuts, noting significant negative impacts. Without action, six million jobs could be lost, average taxpayers might face a 22 percent tax hike, and many families would see reductions in their Child Tax Credit.

The consequences could also affect small businesses and family-owned farms if key deductions expire. According to Smith, extending these cuts could usher in what he describes as a "new golden age of prosperity."