“Congress must quickly extend the Trump tax cuts and protect every single American from a tax hike that would only make life more expensive.” 

WASHINGTON, DC – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) index, showed inflation rose to 2.4 percent, a level above the Federal Reserve’s target: 

“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. Families have been hammered by a 20 percent spike in prices under President Biden that has made the cost of living unaffordable. The American people are ready for the Trump presidency and a return to a strong, prosperous economy that created good-paying jobs. 

“President Trump has a proven agenda to get America’s economy back on track and provide immediate relief to the kitchen tables of millions of American homes. Ways and Means Republicans have spent this year preparing to move as quickly as possible to deliver that exact tax relief to working families. Small businesses, workers, and farmers told us in over 120 listening sessions in 20 states that they need certainty about their taxes to plan for the future, hire new workers, and invest in America. Congress must quickly extend the Trump tax cuts and protect every single American from a tax hike that would only make life more expensive.” 

Key Background:

• Everything Costs More: Prices have increased 20.6 percent since the beginning of the Biden-Harris Administration.
• Americans Making Less: Real wages and benefits have fallen 3 percent since the beginning of the Biden-Harris Administration.
• Inflation Above Fed’s Target: For 45 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 99 Percent Higher: The monthly mortgage payment for a median priced new home has increased $1,128 and is 99 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 six calendar quarters. The number of Americans struggling to pay credit card bills has increased to levels not seen since the great financial crisis. More than 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 2.9 percent lower than the pre-Biden-Harris average and it remains comparatively low at 4.4 percent today.
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.