Chairman Smith at Sec. Bessent Hearing: Historic Investment Boom Means More Opportunity for Working-Class Americans

WASHINGTON, D.C. - Ways and Means Committee Chairman Jason Smith (MO-08) delivered the following opening statement at a hearing with Treasury Secretary Scott Bessent:

As prepared for delivery.

"Welcome back Secretary Bessent to the Ways and Means Committee.

"Since you last came before this Committee, the average American has more money in their pocket from the Working Families Tax Cuts.

• This filing season, refunds were up more than 11 percent and tax refunds totaled nearly $325 billion;
• A family of four with two children making $73,000 owed no federal income tax;
• 62 million Americans claimed at least one of President Trump's tax relief priorities: No Tax on Tips, No Tax on Overtime, No Tax on Social Security, and No Tax on Auto Loan Interest. Your department just revealed the majority of Americans who benefited from these policies earn under $100,000;
• Nearly 6 million kids now have Trump Accounts to save for their future;
• Nearly 40 million families claimed the Child Tax Credit that was increased to $2,200 and permanently indexed for inflation so the credit never loses value.
  

"Americans across the country are experiencing what tax relief means for them. At a hearing, a waiter from Arizona told us how he is using his tax savings from No Tax on Tips to start law school. A Texas steelworker said he can now afford to start a family from No Tax on Overtime. A couple in Texas adopted a second child with the help of the Adoption Tax Credit. In every community, working-class Americans have their own version of this story because President Trump and Republicans in Congress delivered real tax relief.

"Democrats voted against tax relief, hiding behind the false claim that these tax cuts only helped billionaires. But we all know the truth. There aren't any billionaires who work for tips or earn overtime. There aren't any billionaires who rely on Social Security. There aren't any billionaires that need an auto loan to afford to buy a car. Republicans targeted tax relief to the Americans whose paychecks were stretched thin by Democrat inflation and needed help.

"The Working Families Tax Cuts provided bigger refunds and bigger paychecks, and permanent pro-growth tax policy will make it easier to build, invest, produce, and hire in America.

"Our economy is in the middle of a historic investment boom that means new jobs and opportunities for working-class Americans.

• Factory activity grew every month this year and reached its highest level since May of 2022.
• Equipment investment rose 17 percent and investment in intellectual property rose 11 percent in the first quarter of this year.
• In the same period, economic growth was driven by two things: investment and exports.

"Republican policies are making investing in America a solid bet for companies after decades of America's manufacturing power declining.

"The President's tax and trade policies work hand in glove to fuel the economic investment that creates good-paying jobs. Reciprocal trade agreements have secured $10 trillion in investment commitments in leading industries, opened new markets formerly hostile to U.S. exports, and made our trading relationships fairer for American workers, farmers, and producers. American producers exported a record $3.4 trillion last year and in the first three months of this year, U.S. exports were over $300 billion each month. That's the highest in 250 years of American history.

"America is becoming less dependent on China, a goal long promised by Washington politicians but with no actual progress until President Trump. Our trade deficit with China fell 32 percent last year to the lowest level since 2004. The Chinese recently agreed to purchase at least $17 billion annually in U.S. agricultural products through 2028, alongside more Boeing airplanes. President Trump and Republicans in Congress repealed the de minimis privilege that mostly benefited Chinese companies shipping products undercutting American producers and workers.

"Our economic security is a cornerstone of our national security and therefore must not be abused by bad actors. Yet, this committee's investigation into U.S.-based non-profits revealed many are funded or operate under the influence of foreign countries like China and sow division and chaos in our communities that weakens America and strengthens foreign adversaries.

"Tax-exempt status is a privilege not a right. We have called on the IRS to investigate, and, if necessary, revoke the tax-exempt status of 11 different organizations who are the focus of our investigation. It is critical that the IRS take close look at tax-exempt organizations with documented histories of activity that destabilizes our society.

"Looking ahead, our tax policies must continue to make our economy the most competitive for innovative sectors of the future, including digital assets and the over 60 million Americans who own cryptocurrency. America needs clear, modern tax rules to ensure we remain the crypto capital of the world. Next week, we will be holding a legislative hearing on policies that offer solutions to pressing issues surrounding digital asset taxation.

"Mr. Secretary, I know you are a strong advocate for ensuring Main Street shares in the prosperity of our economy. I look forward to hearing how Treasury is implementing the Working Families Tax Cuts so the Americans who power our economy, workers, small businesses, farmers, manufacturers, producers, and innovators, have a brighter future."