“Congress must quickly pass one, big beautiful bill to extend the Trump tax cuts and deliver on President Trump’s priorities of no taxes on tips, overtime pay, and Social Security, and further boost domestic manufacturing.”

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

“In President Trump’s first 100 days, he is delivering on a key campaign promise to end sky-high inflation. Inflation fell yet again, showing President Trump’s pro-growth policies are stabilizing prices paid by everyday families while his broader economic agenda is helping reset America’s unfair trading relationships and promote American workers and manufacturers. 

“Families and workers would face a 22 percent tax increase if Congress fails to permanently extend the Trump tax cuts, and an estimated 6 million jobs would be destroyed. Failure is not an option, and Congress must quickly pass one, big beautiful bill to extend the Trump tax cuts and deliver on President Trump’s priorities of no taxes on tips, overtime pay, and Social Security, and further boost domestic manufacturing. Working families, small businesses, and farmers hurt by Bidenflation need additional tax relief and certainty.” 

Extending the Trump Tax Cuts
Long-term 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. 
• $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.