Interview: Rep. Jason Smith on why Congress should pass “one big, beautiful bill,” the future of Trump’s tax cuts, and holding higher education accountable
The Ways and Means Chairman laid out an ambitious agenda in his latest interview with the Washington Reporter.
Rep. Jason Smith (R., Mo.), the chairman of the House Ways and Means Committee, predicted that the GOP would win a trifecta in 2024. But “people thought I was crazy,” he told the Washington Reporter in an interview.
Prediction in mind, the congressman and his colleagues traveled to “more than 20 different states, hearing directly from real small business owners, real family farmers, real working families, about the issues that they're facing in today's economy, and we are ready to craft the policy that addresses their needs.” He is now fully aligned with President Donald Trump in wanting “one big, beautiful [congressional reconciliation] bill.”
“It is our opportunity to deliver, to ensure we get as much possible of President Trump's agenda enacted into law as soon as possible,” he said — and he wants the Senate Republicans to get on board. “I would tell my colleagues on the other side of the building that we have the House, we have the Senate, and we have the White House because of President Trump. We have a mandate from 77 million Americans because of President Trump, and he is wasting no time delivering for the American people, and Congress should not either.”
Smith also laid out his priorities about the debt ceiling, making Trump’s tax cuts permanent, and holding colleges accountable for coddling campus anti-Semites.
Smith wants “to get the debt ceiling off of the president's plate,” he said. “This is something that he does not want hanging over his head, whether it is in the reconciliation bill or whether it is tied to some other piece of legislation, I'm supportive of getting this off of the president's plate. The issue that House leadership has to look at, to be frank, is can they get a commitment from every Republican that they would be willing to vote for a debt ceiling increase when there's some people who I serve with who have never voted for a debt ceiling increase in their lifetime.”
Smith also wants “to make all of [the Trump tax cuts] permanent. The more we can get permanent, the better. We need to create certainty for 26 million small business owners who are trying to make the decisions today for what their tax rates will be next year.”
The congressman also has a warning to colleges that failed to protect Jewish students after October 7: “We've seen universities that have not fulfilled their public purpose according to the tax code by allowing anti-Semitism on college campuses and not protecting and defending all students, especially Jewish students,” he said. “We're going to continue to expose how universities have tax benefits and those universities who abuse those tax benefits, you’ll see consequences.”
Below is a transcript of our interview with Rep. Jason Smith, lightly edited for clarity.
Washington Reporter:
What's your message to some Senators about the importance of one big, beautiful bill, versus doing two reconciliation packages?
Rep. Jason Smith:
I would tell my colleagues on the other side of the building that we have the House, we have the Senate, and we have the White House because of President Trump. We have a mandate from 77 million Americans because of President Trump, and he is wasting no time delivering for the American people, and Congress should not either. That's why we need one big, beautiful bill. It is our opportunity to deliver, to ensure we get as much possible of President Trump's agenda enacted into law as soon as possible.
Washington Reporter:
One of the things that Trump has been talking about since even before he was sworn in is the debt ceiling. Do you want to include a debt ceiling raise in reconciliation?
Rep. Jason Smith:
I want to get the debt ceiling off of the president's plate. This is something that he does not want hanging over his head, whether it is in the reconciliation bill or whether it is tied to some other piece of legislation, I'm supportive of getting this off of the president's plate. The issue that House leadership has to look at, to be frank, is can they get a commitment from every Republican that they would be willing to vote for a debt ceiling increase when there's some people who I serve with who have never voted for a debt ceiling increase in their lifetime.
Washington Reporter:
How do you look at things like budget scoring in this context?
Rep. Jason Smith:
Let me just tell you my disappointment in the CBO and joint tax scoring. You just look at the original 2017 Tax Cuts and Jobs Act that was passed. They scored at that time that it would create a $1.5 trillion deficit and deficit spending. But if you look at the exact numbers from their own projections, more than $1.6 trillion has come in above their projections. So when you're off by $3 trillion in tax policy, that's a problem.
Washington Reporter:
One of the discussions within the GOP is not whether to make the Trump tax cuts permanent, but what percentage to make permanent. Where do you fall on that discussion?
Rep. Jason Smith:
I will want to make all of it permanent. The more we can get permanent, the better. We need to create certainty for 26 million small business owners who are trying to make the decisions today for what their tax rates will be next year. They could have a 43.4 percent tax rate instead of a 23 percent tax rate if Congress does not deliver on it; and these small businesses are making the decisions of how they will grow, how many they will hire, what they will do for their employees, all their investment decisions and they need the certainty. Congress should not kick the can down the road. The president wants to deliver for the American people quickly. Congress should deliver for the American people quickly. It's very simple. President Trump campaigned on making permanent his tax cuts. He campaigned on no tax on tips. He campaigned on tax relief for seniors. He campaigned on overtime pay. These are items that he campaigned on. We can deliver on them. And I would encourage my colleagues on the other side of building to understand that there's not much to decide. We know what President Trump wants. We know what the American people wants. Let's deliver it.
Washington Reporter:
Do you think that any Democratic votes are possible on this, especially if you do end up tackling SALT?
Rep. Jason Smith:
Well, if you just pay attention to what the Democrats campaigned on, they said that they would not increase taxes on people making less than $400,000 a year. That's what we're going to do. We're going to make sure that taxes don't increase for people making less than $400,000 a year. 70 percent of all the expiring provisions of Trump's tax cuts are on the individual side. And of that 70 percent, two-thirds are on people making less than $400,000 a year. That's the biggest chunk. Almost half of the total tax bill would be tax increases on people making less than $400,000 a year. The Child Tax Credit, which gets slashed in half from $2,000 to $1,000, the guaranteed deduction, which 91 percent of Americans used to file their taxes, gets slashed in half. These are policies that drastically affect people making less than $400,000 a year, so I would hope my Democrat colleagues would vote for it, because if they didn't, that would be a vote to raise taxes on people making less than $400,000 a year.
Washington Reporter:
In one of our previous interviews, we talked about the nationwide field hearing tour that you were doing, talking with small business owners to hear about their concerns as you work on this reconciliation package. What do you feel like your colleagues or voters in your district don't necessarily understand about the time you've put in working on this reconciliation package?
Rep. Jason Smith:
For over the last two years, we've been preparing for this moment. People thought I was crazy to say that President Trump would win, and we'd win the White House, the House and the Senate, and have all three branches of government. In the last few years, we've been to more than 20 different states, hearing directly from real small business owners, real family farmers, real working families, about the issues that they're facing in today's economy, and we are ready to craft the policy that addresses their needs. They've seen inflation go up almost 21 percent over the last four years under the economic policies of Joe Biden. We're now under the policies of Donald Trump. He has already started the process. He's not allowing grass to grow underneath his feet, neither should Congress. Congress needs to deliver the president's economic priorities.
Washington Reporter:
How do you want to work with Trump on his trade agenda, while also ensuring that American farmers, like those in your own family, are in a better position?
Rep. Jason Smith:
President Trump has wasted no time in demanding better treatment for American workers, farmers, manufacturers, and businesses, as the American people clearly voted for him to do. He didn't shy away from that. President Trump is right to review whether our current trade agreements are working as intended and how new agreements could improve opportunities for American farmers and ranchers. For far too long, other countries have felt free to impose unfair tariffs, taxes, and non-tariff barriers against American exports and businesses. We see our agriculture trade deficit right now $3 billion under Joe Biden and when Donald Trump was there, we had a $5 billion agriculture trade surplus. You look at Thailand, for example; Thailand has a 50 percent tariff on U.S. beef, but has a 0 percent tariff on Australian beef. Is that fair? We need an administration that will punch back and make sure our farmers, ranchers, manufacturers, and workers are treated fairly, and that's exactly what President Trump is doing. I praise his actions, and it's going to help make our country wealthier.
Washington Reporter:
One of the first things you did after Trump was sworn in was push back against the global minimum tax that we've seen as an emerging priority for the left. Why was that such a priority for you to roll out quickly?
Rep. Jason Smith:
As the Ways and Means Chairman, I have spent the last two years fighting against President Biden's unconstitutional surrender of Congress's tax authority, and that's including traveling directly to meet with the OECD and foreign government officials to warn them that Congress, a tax writing entity, will reject any plans that undermine our tax sovereignty. And so President Trump has always worked to America First, and I'm thankful he rejected the Biden administration's global tax surrender on day one, that makes me very happy. It is truly a new day in America where we have a president who’s willing to defend our country on the world stage.
Washington Reporter:
Biden had a flurry of last minute actions before he left office. One of them included pardoning his whole family, except for Jill Biden. What was your response to that, given the work that you spent investigating the Biden family?
Rep. Jason Smith:
Let me just give you one example. He pardoned his brother, James Biden. Nine months ago, Jamie Comer, Jim Jordan, and I sent a letter to the Justice Department saying that they need to prosecute James Biden for lying under oath to Congress, which is a felony. That right there is a crime alone. The evidence on its face proved that he lied to Congress. But guess what? His big brother took care of the Biden family, and that's what the Biden family has always done. They've taken care of their family. They've allowed their pockets to get deeper with cash from foreign governments, foreign businesses, and it has been at the cost of Americans.
Washington Reporter:
With Republicans fully in charge of the government, with Linda McMahon in the Education Department, what's your message now to colleges that have harbored terror-supporting groups? What does this Congress look like when it comes to holding higher education accountable?
Rep. Jason Smith:
Higher education is tax exempt, and it falls underneath the tax writing committee, and it also has obligations it must live up to and to fulfill. We've seen universities that have not fulfilled their public purpose according to the tax code by allowing anti-Semitism on college campuses and not protecting and defending all students, especially Jewish students. And so we're going to continue to expose how universities have tax benefits and those universities who abuse those tax benefits, you’ll see consequences.
Washington Reporter:
Do you want to haul any of those presidents in front of your committee this Congress?
Rep. Jason Smith:
I'll be meeting with a college president today. This is something that I am doing all the time. I think it's extremely important to hold them accountable when it comes to educating the future leaders of this country. They need to be treated fairly and appropriately and not with severe bias.
Washington Reporter:
Thank you so much for chatting today, Congressman Smith.