“With Americans struggling to afford the basics, Democrats want every family to pay even higher taxes.”

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 September 2024:

“The most important number concerning this latest report is the 20 percent spike in prices under the Biden-Harris Administration’s policies. That’s what families are focused on right now: the constant struggle to make ends meet because high prices have left them falling further and further behind. Vice President Harris was the deciding vote for legislation that sparked the spike in prices that are harming workers and small businesses while the wealthy, well-connected, billion-dollar companies, and China get hundreds of billions in tax subsidies. 

“With Americans struggling to afford the basics, Democrats want every family to pay even higher taxes. Their promise to let the Trump tax cuts expire will mean a Child Tax Credit slashed in half for parents. Small businesses in America will pay a tax rate more than 20 points higher than those in Communist China. Ways and Means Republicans have traveled the country, visiting 19 states and holding over 100 site visits, roundtables, and listening sessions focused on avoiding this fate. What we are hearing is that families and businesses are already stretched by inflation and cannot afford another tax hike. That is why we have to return to the sound policies that produced the best economy in my lifetime under President Trump – with stable prices, low interest rates, and 6 million Americans lifted out of poverty.”

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Key Background:

• Everything Costs More: Prices have increased 20.5 percent since the beginning of the Biden-Harris Administration. 
• Americans Making Less: Real wages and benefits have fallen 3.4 percent since the beginning of the Biden-Harris Administration.
• Inflation Above Fed’s Target: For 43 straight months, inflation has been above the Federal Reserve’s 2 percent target.
• Inflation Higher Than Wages: Inflation outpaced wages for 26 straight months under the Biden-Harris Administration. 
• Historic Interest Rates: Under the Biden-Harris Administration, interest rates hit their highest levels in 23 years.
• Mortgage Costs 80 Percent Higher: The monthly mortgage payment for a median priced new home has increased $909 and is 80 percent higher than when President Biden and Vice President Harris took office in January 2021.
• $1 Trillion+ Credit Card Debt: Credit card interest rates are at their highest levels in more than three decades, while consumer credit debt has exceeded $1 trillion for five calendar quarters. The number of Americans struggling to pay credit card bills has increased to the highest level since March 2012. Nearly 11 percent of credit card balances are more than 90 days past due.
• 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. The average personal savings rate since President Biden and Vice President Harris took office is 2.6 percent lower than the pre-Biden-Harris average and it remains comparatively low at 4.8 percent today.
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.