WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Bureau of Labor Statistics released the jobs report, showing the economy again beat expectations and created 177,000 new jobs last month:

“The Trump job market is off to a strong start in his first 100 days. Job creation is being driven by private sector businesses and investment, and wages are rising faster than prices, putting more money in workers’ pockets. It’s a welcome change from the Biden economy that wasted taxpayer dollars hiring more government bureaucrats. In the last two years of the Biden Administration, three-quarters of new jobs were in government or government-adjacent industries. Today, President Trump is aggressively using trade, tax, and deregulation policy to grow the economy on Main Street and in America’s manufacturing sector to create good jobs that support families.”

“That’s why the Ways and Means Committee is focused on delivering pro-growth, pro-worker tax policies that will further fulfill President Trump’s promises to Americans. If Congress fails to extend the Trump tax cuts, the average family will face a 22 percent tax increase. Small businesses and manufacturers, both of which cut jobs in 2024 under Biden, would face the loss of the small business tax deduction. Thankfully, we are days, not months away, from providing tax relief for workers, small businesses, and farmers to further grow jobs and investment in America’s economy.”

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

• Boost the level of short-run real gross domestic product (GDP) by 3.8 percent and long-run real GDP by 3.2 percent.
• Raise annual real wages by $2,100 to $3,300 per worker.
• Increase real annual take-home pay for a median-income household with two children by roughly $4,000 to $5,000.
• 1 million new jobs created annually and $750 billion to $1.5 trillion in economic growth from permanent extension of the 20 percent small business deduction. 
• $284 billion of new economic growth from American manufacturers.
• $100 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.