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Chairman Smith Committee Remarks: Working Families Tax Cut Act

June 13, 2023

As prepared for delivery.

“Working Americans and their families have been ignored by the Biden Administration and Washington Democrats. Two years of out-of-control inflation, rising interest rates, and economic downturn caused by the Democrats’ radical spending spree has left American families in a worse spot than they can remember.

“This bill, the Tax Cuts for Working Families Act, is a necessary response to the economic nightmare that President Biden and Washington Democrats’ reckless tax and spend agenda has created.

“With this bill, we make a historic investment in the working Americans and families that are the backbone of our great nation, in direct response to the concerns they have shared with this Committee about the spike in cost of living in our hearings across the country.

“Specifically, we build on the success of the doubled Guaranteed Deduction that was included in the Republican 2017 tax reform law, which offered simplification and significant tax cuts to middle-class families. This legislation – a solution recently introduced by Representative Malliotakis – creates a targeted Guaranteed Deduction Bonus of $4,000, to help hardworking families harmed by Biden’s inflation crisis. With this provision in place, an American family of four will not pay a cent in federal taxes on their first $68,000 of income. This allows Americans to keep more of their hard-earned dollars to spend as they see fit to address their individual and family needs.

“What my friends on the other side will try to argue is that the more one works, the higher their income is, the larger their tax benefit will be from this change, but that simply isn’t true.

“This $4,000 deduction bonus is for everybody. And as this chart behind me shows, what it means is that the largest percentage tax cut will go by far to earners below $100,000. Just look at workers making between $15,000 and $30,000 a year – this proposal will slash their taxes by more than 30 percent.

“According to the Joint Committee on Taxation’s own analysis, under this policy, after tax incomes will grow more for middle-class Americans making less than $100,000, than any other income group.

“This bill is good policy – it’s good for working class Americans, and I urge my colleagues on both sides of the aisle to support its passage.”