“Congress must act quickly to pass one, big beautiful bill to avoid a massive tax increase on working families and small businesses, provide additional relief, secure the border, and unleash American energy dominance.”

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

“Reckless spending by Washington Democrats did real damage to our economy, including sending inflation skyrocketing well above the Fed’s two percent target. Under President Trump, more Americans now believe the country is on the right track toward a brighter, more prosperous, stronger future. But Congress must act quickly to pass one, big beautiful bill to avoid a massive tax increase on working families and small businesses, provide additional relief, secure the border, and unleash American energy dominance. Small businesses need the certainty that their taxes won’t increase up to 43.4 percent in just a few months. Families can’t afford a tax increase equivalent to nine weeks worth of groceries. Congress can kickstart the second Trump economic boom with policies that will boost paychecks, cut taxes for wage earners, and bring investment to all corners of the country. As I have said, failure is not an option.”

Extending the Trump Tax Cuts
Restoring and extending 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.