As the chairman of the House Ways and Committee, Missouri Congressman Jason Smith will play a big role in crafting the scope and trajectory of a critical tax bill set to capture Congress鈥� attention throughout 2025.
But during an episode of the Politically Speaking Hour on St. Louis on the Air, Smith acknowledged that getting any legislation to expand or extend 2017 tax cuts will be challenging. That鈥檚 because Republicans will hold a paper-thin majority in the House, especially if some of Smith鈥檚 GOP caucus members are confirmed as members of President-elect Donald Trump鈥檚 administration.
鈥淎 big task of mine is threading the needle to pass this legislation when you're looking at the smallest majority period of any party since pre-World War I,鈥� Smith said. 鈥淎nd so we got a little bit of a challenge before us. But I'm not I'm not afraid of any challenges.鈥�
Back in 2017, Congress enacted individual and corporate tax cuts 鈥� while doubling the child tax credit. Those tax cuts expire in 2025, and Smith said many Americans will see their taxes go up if Congress does nothing.
Smith said he expects that the tax plan will combine extending previous elements of 2017 tax cuts and incorporating new ideas. That could include boosting the size of the child tax credit or enacting a measure removing taxes on tips.
Still, Smith said lawmakers will have to be detail oriented in pursuing some of these ideas. The child tax credit, he said, is expensive 鈥� and boosting it beyond $2,000 per child could end up costing hundreds of billions of dollars. And he said any proposal to remove taxes on tips has to be crafted in a way that it doesn鈥檛 become a tax evasion scheme for high-wage earners like accountants or lawyers.
鈥淚t's going to have to be specific in regards to making sure it prevents people from abusing the system,鈥� Smith said. 鈥淲e're looking at helping the true working-class Americans who are waiting tables, who are cutting your hair, who are taking your luggage up at the hotel. The definitions are going to have to be clear, and we're working on that right now.鈥�
There鈥檚 an internal debate in Washington, D.C., about whether a tax package should be addressed separately 鈥� or combined into a larger bill with immigration and energy overhauls.
The small majority in the House, Smith said, compels him to lean toward a 鈥渃omprehensive bill鈥� with tax, immigration and energy measures.
鈥淵ou need buy-in from everyone in order to move this package,鈥� he said.
Smith bullish on Billy Long
As Ways and Means Committee chairman, Smith oversees the Internal Revenue Service. And he said he鈥檚 happy that Trump nominated former Missouri Rep. Billy Long to lead that agency.
Long is a former auctioneer who spent about 12 years in the U.S. House. He鈥檚 known for his folksy demeanor 鈥� but also garnered some controversy since his nomination for advocating for an employee retention tax credit.
Smith said that Long 鈥渋s a perfect choice,鈥� adding that his former colleague's time as a businessman makes him well versed to deal with the IRS鈥� problems and challenges.
鈥淏illy comes across like he's just a country bumpkin, but he's the smartest person in the room,鈥� Smith said. 鈥淒on't doubt it. He can just tie people up because of his intelligence. And you know, there's not too many people that's paid more taxes than him.鈥�
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