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Chairman Smith: Tax Relief for American Families and Workers Act Helps Families & Small Businesses Reeling from High Prices and Interest Rates

January 26, 2024 — Blog    — Press Releases    — Select Revenue Measures   

“The House must come together to pass this pro-growth, pro-jobs, and pro-America package that gives hard-working families relief from high prices.”

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 inflation remaining above its publicly-stated target of 2 percent:

“For the last three years, American families, farmers, workers, and small businesses have borne the brunt of inflation as they watched their paychecks shrink and their purchasing power diminish. Today’s report is yet another sign that prices are still too high and now Congress must take action where President Biden has failed. Under the Tax Relief for American Families and Workers Act, small businesses will benefit from pro-growth policies that will help them expand, build new facilities, and hire new employees at higher wages, just like after the Tax Cuts and Jobs Act when companies increased their capital investment by 17 percent, but slashed their debt by 35 percent. After the Federal Reserve raised interest rates to the highest levels in 23 years, restored interest deductibility will be a welcome relief for small businesses struggling to make ends meet. Families will benefit from a Child Tax Credit that keeps work requirements at the heart of the program while guarding against the effects of inflation. The House must come together to pass this pro-growth, pro-jobs, and pro-America package that gives hard-working families relief from high prices.”

READWith Bipartisan Vote, Ways and Means Committee Approves Pro-Growth Tax Relief Package to Help Small Businesses, Promote American Competitiveness, and Support Working Families

Key Background

  • Prices have increased 17.3 percent since President Biden took office.
  • Real wages and benefits have fallen 3.7 percent since President Biden took office.
  • Inflation has become so deeply ingrained in the economy that core inflation (3.9 percent) is even higher than headline inflation.
  • Inflation outpaced wages for 26 straight months of Biden’s presidency.
  • Mortgage rates reached a 23 year high of 7.8 percent in October. The average monthly mortgage payment has increased by $1,087 and is 96 percent higher than when President Biden took office in January 2021.
  • Credit card interest rates are at the highest level in nearly three decades, while consumer credit debt has reached an all-time high of just over $1 trillion and the number of Americans struggling to pay credit card bills has increased sharply.