“Extending the Trump tax cuts will bring much needed relief to the working families, small businesses, and manufacturers harmed by Biden’s inflation crisis, and it will fuel growth and investment in our economy.”

WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Federal Open Market Committee announced its decision to hold its benchmark rate flat: 

“The Federal Reserve’s decision to raise interest rates to combat Bidenflation compounded the pain felt by families, small business, and farmers under the last administration’s failed economic policies. It made buying a home unaffordable for middle-class families and raised the cost of doing business for Main Street job creators and manufacturers. Extending the Trump tax cuts will bring much needed relief to the working families, small businesses, and manufacturers harmed by Biden’s inflation crisis, and it will fuel growth and investment in our economy.

“After paying the 21 percent Biden inflation tax and seeing the cost of borrowing and doing business rise along with it, the last thing Americans need is to pay 22 percent more in taxes. Delivering on President Trump’s economic agenda is critical to helping Americans turn the page on four years of sticker shock. That’s why the Ways and Means Committee is working overtime to extend and build on the successful 2017 Trump tax cuts.”

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.