“Families are having to stretch to dip into their savings and max out their credit cards because their paycheck doesn’t buy as much as it used to.”

WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) for May 2024:

“This month’s CPI report reemphasizes the harm ‘Bidenomics’ has caused working families and small businesses. Since President Biden took office, prices have risen almost 20 percent. Families are having to stretch to dip into their savings and max out their credit cards because their paycheck doesn’t buy as much as it used to.

“Sadly, rather than change course, President Biden is gearing up to impose a $7 trillion tax increase – the largest in American history – on working families and small businesses. At a time when families are struggling to feed their children or pay the mortgage, President Biden wants more of your paycheck for Democrats’ big government schemes. Ways and Means Republicans are committed to ensuring Biden’s proposed tax hikes never become law and build on the success of the Trump tax cuts. Our Republican Tax Teams are seeking input from Americans as we work to identify legislative solutions that will help families, workers, and small businesses struggling in the Biden economy.”

Read: Averting President Biden’s Tax Hike

Key Background:

• Prices have increased 20.1 percent since President Biden took office.
• Real wages and benefits have fallen 3.9 percent since President Biden took office.
• Weak Economy: The economy continues to be weighed down by ‘Bidenomics,’ with the Bureau of Economic Analysis newly estimating the economy grew a sluggish 1.3 percent in the first quarter of 2024, a full three points lower than forecasted.
•  Inflation Higher Than Wages: Inflation outpaced wages for 26 straight months of Biden’s presidency. 
• Historic Interest Rates: Under President Biden, interest rates hit their highest levels in 23 years.
• Doubled Mortgage Costs: The monthly mortgage payment for a median priced new home has increased by  $1,170 and is 103 percent higher than when President Biden took office in January 2021.
• $1 Trillion+ Credit Card Debt: Credit card interest rates are at the highest level in more than three decades, while consumer credit debt has exceeded $1 trillion for the second calendar quarter and the number of Americans struggling to pay credit card bills has increased to the highest level in 12 years.
• Shrinking Savings: Thanks to higher prices, families have spent the entirety of their pandemic savings by 2024 and they are able to save less of their income. At 3.6 percent, the personal savings rate is near its historic lows. 
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.