“Congress must pass one, big, beautiful bill to turn President Trump’s mandate into a reality to help families fed up with inflation.” 

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

“President Trump inherited an economic mess from former President Biden and Vice President Harris, who spent four years stoking the fire of inflation with trillions in new spending that went to line the pockets of the wealthy, well-connected, and China. Prices spiked 21 percent and sticker shock at the grocery store and the gas pump is an enduring legacy of the last administration. At their peak, interest rates were at the highest in a generation, hurting families buying a home and small businesses looking to expand. President Trump’s policies are necessary to help working-class families recover and undo the four years of inflationary damage Washington Democrats have caused to the economy. There is no time to waste. Congress must pass one, big, beautiful bill to turn President Trump’s mandate into a reality to help families fed up with inflation. Workers need certainty now that their taxes won’t go up after four years of struggling to provide for their families. Small businesses need certainty that their tax rates will not climb to 43 percent so they can instead invest capital and hire new workers. Permanently extending the Trump tax cuts will usher in a new golden age of prosperity – 1 million new jobs each year from small businesses, $284 billion from more factories making things in America, and $50 billion in new investments that will revitalize our poorest neighborhoods, and the list goes on.”

Extending the Trump Tax Cuts
Permanent extension of 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.