Smith shares concerns on FY22 budget proposal, warns of tax, inflation increases

U.S. Rep. Jason Smith says business owners and farmers would be hit especially hard if the president's $6 trillion budget proposal is approved.

Following the announcement of President Joe Biden's budget proposal, Smith visited 16 counties across Missouri's 8th District to give his thoughts on the proposal and what it could mean for Missourians. He spoke Friday at the Scott City Area Chamber of Commerce's roundtable discussion on the FY22 federal budget proposal.

"The last four and a half months have probably been some of the most difficult that I've ever served in public office in Washington, D.C.," Smith said. "There are a lot of items being discussed that, I feel, are opposite of our way of life, and rural Missouri has been targeted in a lot of different senses."

Smith, who serves as the Republican leader of the House Budget Committee, said negotiations are still underway, but under the $6 trillion proposal, the United States would see the "largest expansion of federal spending ever seen," and "the largest collection of taxes in the history of the United States," at $55 trillion over the next 10 years. He also noted it would add $17 trillion to the country's overall debt and $3.7 trillion to the deficit.

"Out of everywhere we've visited in the past few days, the tax increase is one of the biggest concerns we're hearing about," Smith said. "Within that budget proposal, the small-business tax rate, the corporate tax rate, the individual tax rate and the death tax rate are all going up, and that's a huge concern for folks."

Smith said this would hit business owners, small and large, and farmers in Southeast Missouri especially hard, but affects even low- and middle-income families.

"Under the proposal that's within the budget resolution, any business in Scott County would be better off to close shop, fire all their employees and move to Beijing, China, because their tax rate would be cheaper, and that's just a pure fact of what was in the legislation filed last Friday," Smith said.

Smith said the proposal would also add to an already worsening issue: inflation rates. In fact, Smith said core inflation was the highest last month than it's been since 1982, and "this is just the beginning."

"This is what causes inflation — spending beyond our means," Smith said. "Now, that means everyone's paying more for the food they put on the table, the clothes on their back or the gasoline they put in their car."

Other topics of discussion included homeland security and border patrol, unemployment, passage of the Wayfair internet sales tax proposal and the HR 1 election bill.

While there is still a clear divide between Democrats and Republicans in Congress, Smith said, there seems to be a recurring theme present across conversations as negotiations proceed.

"There's two different Americans fighting in Washington, D.C., and it's whether you want more government control or less government control," Smith said. "It's not about Republican or Democrat — it literally boils down to liberty and freedom, or more forceful hand of the government, and spending is a way to have more command and control over the lives and livelihoods of Americans."