Exclusive — Rep. Jason Smith: Republican Debt Ceiling Bill Would Have ‘Huge’ Impact on Inflation

He continued, “Inflation was 1.4 percent in Joe Biden’s first month of office, and then they went on a $10 trillion spending spree which has led to inflation increasing the 14.9% since Joe Biden has taken the oath of office. The Limit, Save, Grow Act will cut spending by $4.8 trillion over the next 10 years with the spending caps; they will also rescind unobligated COVID dollars and also put work requirements to help with the labor shortage. All of these things will help decrease inflation.”

The initial Congressional Budget Office (CBO) analysis of the Limit, Save, Grow Act found it would reduce the deficit by $4.8 trillion over the next ten years. The CBO found the bill would create the following savings:

• The bill’s cap on discretionary funding would result in savings of $3,194.5 trillion over ten years
• Scrapping energy tax credits would save $569.5 billion
• Reducing funding for the IRS would save $119.7 billion
• Implementing work requirements [for] Medicaid, Temporary Assistance for Needy Families (TANF), and the Supplemental Nutrition Assistance Program (SNAP) would save $120 billion
• Rescinding funding for unspent coronavirus aid would save $29.5 billion
• Requiring the Department of the Interior (DOI) to conduct oil and gas leases would save $3.4 billion

A recent Associated Press-NORC poll found that a majority of Americans want the debt ceiling to be raised “only if lawmakers include terms on reducing the federal budget deficit.”

Biden, during these debt limit negotiations, has continued to push for higher taxes. However, Smith has contended that the federal government has raised a record level of revenue, meaning that America’s deficit problem is a spending problem, not a revenue problem.