WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) index, showed year-over-year core inflation rising: 

“Out-of-touch Democrats are still claiming a ‘soft landing’ for America’s economy is on the horizon while communities across this country are experiencing the economic turbulence caused by the Biden-Harris Administration’s failed policies. Prices have risen more than 20 percent for working families, paychecks are worth less, families are turning to credit cards and draining savings accounts to make ends meet. This month’s report even showed the yearly increase in prices of things most influenced by Washington policy was actually higher in August than the previous month. The responsibility lies with Vice President Harris who cast not one, but two, tie-breaking votes that unleashed trillions of dollars in new government spending and sparked the worst inflation crisis in a generation.

“Vice President Harris has not been consistent about her policy beliefs, except for one thing: ending the Trump tax cuts and raising taxes on every American worker and business. Under the Harris plan, every American – who today is struggling to afford basic necessities – would face a higher tax burden, parents would see their Child Tax Credit slashed in half, and small businesses would pay a tax rate more than 20 points higher than Communist China. Ways and Means Tax Teams are not letting grass grow under our feet. We have already done 105 events with stakeholders, businesses, workers, farmers, and families across 18 states – speaking with Americans directly affected by the looming Harris tax hike. Republicans will build on the Trump tax cuts that delivered the best economy of my lifetime and raised worker pay, helped small businesses grow and hire, and brought new investment and life into communities in every corner of America.” 

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Key Background: 

• Everything Costs More: Prices have increased 20.3 percent since the beginning of the Biden-Harris Administration. 
• Americans Making Less: Real wages and benefits have fallen 3.4 percent since the beginning of the Biden-Harris Administration.
• Inflation Above Fed’s Target: For 42 straight months, inflation has been above the Federal Reserve’s 2 percent target.
• Inflation Higher Than Wages: Inflation outpaced wages for 26 straight months under the Biden-Harris Administration.  
• Historic Interest Rates: Under the Biden-Harris Administration, interest rates hit their highest levels in 23 years.
• Mortgage Costs Nearly 80 Percent Higher: The monthly mortgage payment for a median priced new home has increased $900 and is 79 percent higher than when President Biden and Vice President Harris took office in January 2021.
• $1 Trillion+ Credit Card Debt: Credit card interest rates are at their highest levels in more than three decades, while consumer credit debt has exceeded $1 trillion for five calendar quarters. The number of Americans struggling to pay credit card bills has increased to the highest level since March 2012. Nearly 11 percent of credit card balances are more than 90 days past due.
• Shrinking Savings: Thanks to higher prices, families have spent the entirety of their pandemic savings by 2024, and they are able to save less of their income. At 4.8 percent, the personal savings rate fell last month.
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.
• Washington Has A Spending Problem: After the Trump tax cuts, federal revenue as a share of GDP averaged 17.2 percent, near the average since FY2000. Since the start of the Biden-Harris Administration, federal spending as a share of GDP has exploded to 26.5 percent, more than 6 percentage points higher than the average from FY2000 to the pandemic.