WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the release of the July reading of the Personal Consumption Expenditures (PCE) price index, showing core inflation holding at 3.3 percent, and the second estimate of Q2 2026 gross domestic product (GDP), showing GDP grew at 1.5 percent on an annualized basis:

“After a $10 trillion spending spree by President Biden and Congressional Democrats that caused the cost of living to rise over 20 percent, President Trump and Republicans have been laser focused on bringing inflation under control and making life more affordable. Today’s data holds some promise for working Americans. Core inflation continues holding in a tight range, and it’s evident that businesses are responding to the certainty Republicans fought for and delivered with the Working Families Tax Cuts. When Republicans made full expensing for new equipment, factories, and research and development permanent, businesses gained the confidence to build here instead of overseas, and manufacturing output and equipment investment are now at their highest level. As new factories are built across America, workers at these new facilities will keep more from every hour they put in thanks to No Tax on Overtime. More factory output and investment means more business for the mom-and-pop shops, suppliers, and truckers who keep local communities and their economies running. On top of that, families are seeing real relief from No Tax on Tips, No Tax on Social Security, a larger Child Tax Credit, and a bigger standard deduction – policies every Democrat in Congress voted against while offering no alternative besides a massive tax hike that would have stolen more from the paychecks of working families.”