“Only one, big, beautiful bill can fulfill President Trump’s mandate to lower prices, cut taxes, secure the southern border, and fuel more American-made energy.”

WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the release of the January 2025 reading of the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) price index:

“Through the last day of Joe Biden’s presidency, inflation remained above the Federal Reserve’s target. President Trump inherited high prices, high interest rates, and job growth propped up by government hiring thanks to Democrats’ enduring legacy of reckless spending. President Trump’s full agenda will restore prosperity to the country and increase paychecks for working families. Only one, big, beautiful bill can fulfill President Trump’s mandate to lower prices, cut taxes, secure the southern border, and fuel more American-made energy. 

“Workers, farmers, and small businesses need certainty sooner rather than later that they will not face the largest tax hike in U.S. history in a few months. The House took a good first step in passing a budget resolution for the complete Trump agenda. The Ways and Means Committee is ready to advance tax legislation that extends the 2017 Trump tax cuts and delivers on the President’s tax priorities for the American worker and family.”

Extending the Trump Tax Cuts
Long-term extension of the 2017 Trump tax cuts will fuel significant economic growth and prosperity. 

• 1 million new jobs created by small businesses if the 20 percent small business deduction is made permanent. 
• $150 billion in economic growth from permanent extension of the 20 percent small business deduction. 
• $284 billion of new economic growth from American manufacturers. 
• $50 billion in new investment in Opportunity Zones, which represent the poorest neighborhoods and communities in the country. 

Key Policies from the Trump Tax Cuts Set to Expire if Congress Fails to Act:

• 6 million jobs will be lost if the tax cuts are not extended.
• The average taxpayer would see a 22 percent tax hike if the Trump tax cuts expire.
• A family of four making $80,610, the median income in the United States, would see a $1,695 tax increase if the Trump tax cuts expire.
  • This is worth about 9 weeks of groceries to a typical family of four across the country.
• 40 million families would see their household’s Child Tax Credit cut in half.
• 91 percent of all taxpayers would see their guaranteed deduction slashed in half. 
• 26 million small businesses would be hit with a 43.4 percent top tax rate if the Section 199A Small Business Deduction expires.
• 7 million taxpayers would be impacted by the return of the Alternative Minimum Tax.
• 2 million family-owned farms would have their Death Tax Exemption slashed in half next year.