Jason Smith

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Mr. Speaker, I include in the Record a New York Times article titled: ``Poverty, Plunging,'' from September 14, 2022. [From the New York Times, Sept. 14, 2022] Poverty, Plunging: Child Poverty in the U.S. Has Fallen by More Than Half Since the Early 1990s (By David Leonhardt) When President Bill Clinton signed a bipartisan bill tightening the rules around welfare eligibility in 1996--and making many benefits conditional on work--critics on the political left predicted terrible effects. A few members of the Clinton administration quit in protest. Senator Daniel Patrick Moynihan warned of devastating increases in child poverty. The New Republic proclaimed, ``Wages will go down, families will fracture and millions of children will be made more miserable than ever.'' A quarter-century later, these predictions look very wrong. As my colleague Jason DeParle wrote this week: ``A comprehensive new analysis shows that child poverty has fallen 59 percent since 1993, with need receding on nearly every front. Child poverty has fallen in every state, and it has fallen by about the same degree among children who are white, Black, Hispanic and Asian, living with one parent or two, and in native or immigrant households'' How did this happen? The 1996 welfare law turned out to be a case study of different political ideologies combining to produce a result that was better than either side would likely have produced on its own. Some conservative critiques of the old welfare contained an important insight, Jason told me. Poor single mothers (the main beneficiaries of welfare) were better able to find and hold jobs than many liberals expected. Over the past few decades, increased employment among single mothers has been one reason for the decline in child poverty, according to the study, which was done by Child Trends, a research group. But the biggest cause was an expansion of government aid. And progressives were the main force behind this expansion. With welfare less generous, Democrats (sometimes in alliance with Republicans) pushed for policies to help low-income workers, such as expansions of the earned-income tax credit and food stamps. Increases in state-level minimum wages also played a role. ``I don't know where I'd be right now if I didn't have that help,'' said Stacy Tallman, a mother of three and a waitress in Marlinton, W. Va., referring to Medicaid, tax credits and food stamps. After welfare reform, the focus of the government's anti- poverty efforts shifted from people who weren't working to people who were--and, thanks partly to the generosity of the new programs, child poverty plummeted. The size of the decline, Dana Thomson, a co-author of the study, said, ``is unequaled in the history of poverty measurement.'' Dolores Acevedo-Garcia of Brandeis University pointed out that 12 million additional children would be poor today if the poverty rate were still as high as it was in the 1990s. The reasons to cheer this development are both immediate and longer term: Children who spend even modest amounts of time in poverty earn less money and are less healthy as adults on average, research has shown. Hiding in plain sight I am guessing that many readers are surprised to hear about the big drop in child poverty since the 1990s. I'll confess that I was and I have been covering economics for much of the past two decades. As Jason told me, ``It is odd that such a big decline in child poverty has gone almost completely unnoticed.'' In part, the lack of attention stems from a theme I've mentioned before in this newsletter: bad-news bias. Journalists and academic experts are often more comfortable reporting negative developments than positive ones. We worry that we come off as blase or Pollyannaish when we report good news. The poverty statistics add to the confusion because there are so many different versions. The measure that the Census Bureau calls ``official'' does not include government aid, which is bizarre, as Dylan Matthews of Vox has noted. And every measure has limitations. The one that Jason used in his story overestimates the impact of the earned-income tax credit and underestimates the impact of the food stamps, for technical reasons. (Neither alters the basic conclusion, as Robert Greenstein, a longtime progressive policy adviser, says.) Still, I understand why many people are reluctant to focus on the poverty decline. The U.S. has not solved poverty. More than 20 million Americans are poor today, and many others above the poverty line also struggle to afford a decent life. As successful as President Biden has been in passing many parts of his agenda, Congress failed to pass several of his anti-poverty proposals. Those measures would have expanded access to child care and increased the child tax credit, among other things. Despite these caveats, the decline in poverty deserves to be a major news story. For one thing, it's legitimately surprising: Even Jason--who has spent more time writing about American poverty than almost any other journalist-- acknowledges that welfare reform did less damage than he expected, in part because of the subsequent expansions of aid. At a time of deep cynicism about government, the drop in poverty is an example of Washington succeeding at something big. ``The decline in child poverty is very, very impressive,'' Greenstein said, ``and it is overwhelmingly due to the increased effectiveness of government programs,''

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the gentleman from Michigan (Mr. James).

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri. Mr. Speaker, I include in the Record an article detailing how Ford is using a loophole in the IRA to partner with CATL, a major Chinese battery company, on a project intended to harvest EV battery tax credits. Chinese companies are lining up to cash in on Democrats' green corporate welfare that we are rescinding in this bill. [From Forbes, Feb. 13, 2023] Ford To Build $3.5 Billion Lithium Iron Phosphate Battery Plant in Michigan Using CATL Technology (By Sam Abuelsamid, Senior Contributor) Ford plans to build a $3.5 billion factory in Marshall, Michigan, which will produce 35 gigawatt-hours of lithium iron phosphate (LFP) cells annually for electric vehicles starting in 2026. The move comes after the automaker said it would use LFP batteries in the Mustang Mach-E from mid-2023 and F-150 Lightning from early 2024. However, those batteries will be sourced from CATL in China, the leading cell manufacturer in the world and one of the leaders in LFP production. Ford will license CATL technology but it will own the new factory and operate it, rather than creating a joint venture. While Ford will start using CATL LFP batteries later this year, shipping them from China won't help the company reach its sustainability goals. Batteries are heavy and bulky and the emissions associated with shipping them halfway around the world will significantly cut into the gains from eliminating the tailpipe from these vehicles. Those vehicles also will not qualify for any clean vehicle tax credits. This is why Ford and other OEMs are moving so aggressively to localize battery production to wherever vehicles are built and sold. Ford previously announced a joint venture with Korea's SK ON for three cell plants in Kentucky and Tennessee that are already well under construction. Those plants will produce nickel manganese cobalt (NMC) cells. Nickel-rich cell chemistries such as NMC (also referred to as NCM), nickel-manganese-cobalt aluminum (NMCA, which GM uses for its Ultium cells), nickel-cobalt-aluminum (NCA, which Tesla uses) have a higher energy density than LFP. However, Nickel and cobalt are much more expensive than iron and phosphorus and also more volatile. When there is an internal short circuit in a nickel-rich cell, it is much more likely to experience thermal runaway. LFP cells are inherently more stable and are nearly impossible to experience thermal runaway or fires. Despite LFP having a lower energy density than nickel-rich cells, much of that can be offset by adopting cell-to-pack or structural battery pack designs rather than the modular designs that are typical today. In addition to lower cost, LFP cells have much longer charge cycle lifetimes. A typical nickel cell can do between 500 and 1,000 charge cycles before it loses enough capacity to be no longer useful in a vehicle. LFP cells can withstand thousands of cycles and some manufacturers, including CATL, have claimed EVs with LFP can go 1 million miles. The added stability of LFP cells means they can better withstand charging to l00% without degrading. Nickel-rich cells typically have to leave unused buffers to prevent overcharging. Thus some of the energy density disadvantages can be safely recovered. The decision to structure the new operation as a wholly owned subsidiary of Ford rather than a joint venture is likely driven in part by the content requirements in the Inflation Reduction Act. Since China is a foreign entity of concern, batteries and materials from that country do not qualify for clean vehicle credits. Thus the Mach-E and Lightning with Chinese-sourced batteries won't be eligible. Limiting the equity stake of CATL in this deal and only licensing some technology along with local sourcing of most materials will probably enable Ford to claim its cells meet the domestic content requirements. ``This is how we look at the recipe to create one of the lowest cost, U.S.-produced batteries when this plant comes online in 2026 and this helps us contribute to Ford's goal of an 8% Model E EBIT in 2026,'' said Lisa Drake, Ford VP of EV industrialization. ``It strengthens our domestic supply chain and helps us ramp production, getting more EVs to more customers sooner.'' As with the Mach-E and Lightning, the new LFP batteries will likely be used mainly in standard range and lower cost EVs and many of the commercial vehicles Ford sells. Most of those commercial vehicles, such as Transit vans used for everything from last-mile deliveries to plumbers and electricians, rarely go outside of a limited geographical area and don't need more than 100 miles of range. With more availability of domestic LFP batteries, future electric versions of vehicles like the compact Maverick pickup and Escape crossover are likely at prices that more consumers can afford.

Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the gentlewoman from New York (Ms. Tenney).

Mr. SMITH of Missouri. Mr. Speaker, I include in the Record this JCT analysis from 2022, suggesting that the total costs of the special interest tax credits for the rich in the Inflation Reduction Act would be $271 billion. Mr. Speaker, I also include in the Record yesterday's CBO score, which shows that the cost has more than doubled to $570 billion, and it is growing every day. The wealthy and politically connected corporations will receive hundreds of billions of dollars more than advertised. ESTIMATED BUDGET EFFECTS OF THE REVENUE PROVISIONS OF TITLE I--COMMITTEE ON FINANCE, OF AN AMENDMENT IN THE NATURE OF A SUBSTITUTE TO H.R. 5376, ``AN ACT TO PROVIDE FOR RECONCILIATION PURSUANT

Mr. SMITH of Missouri. Mr. Speaker, I yield 3 minutes to the gentleman from Pennsylvania (Mr. Smucker).

Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the gentleman from Tennessee (Mr. Kustoff).

Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the gentleman from Utah (Mr. Moore).

Mr. SMITH of Missouri. Mr. Speaker, I yield an additional 30 seconds to the gentleman from Pennsylvania.

Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Reschenthaler).

Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Bost), the chairman of the Veterans' Affairs Committee.

Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, today's fiscal crisis threatens all Americans. We are here today to debate legislation that accomplishes so much of what the American people want. Specifically, it begins to get Washington's spending habits under control. It starts to slow the flow of special interest handouts to the wealthy and well-connected, and it throws much-needed water on the fire of inflation burning through the wallets of American families. Unlike the Inflation Reduction Act, the Limit, Save, Grow Act under consideration today actually does what it says it is going to do. It puts real limits on future spending, so that we begin to turn the ship back in a more fiscally sound direction. It saves taxpayer dollars by clawing back unobligated pandemic spending, a sensible solution given the fact that the President himself has declared the pandemic over. It saves taxpayer dollars by ending welfare for the wealthy and loopholes for big corporations in the Inflation Reduction Act. Ninety percent of these special interest green tax breaks go to companies with over 1 billion in sales. Financial institutions alone pocket three times as much as any other industry, and these tax dollars are being funneled to China, enriching the Chinese Communist Party and allowing it to dominate critical mineral supply chains. I know my friends on the other side share in frustration in how that law has ended up so different than what they thought they were voting for. In this bill, we propose proworker, pro-small business policies like work requirements in our welfare programs that will not only support a more vibrant economy, but also help more Americans realize the dignity of work. This plan will also take the target off the backs of low- and middle-income taxpayers under threat from a supercharged army of 87,000 at the IRS. The Biden administration brags about the $400 billion in revenues they plan to bring in by unleashing the new agents. To do that, audit rates will have to go up on low- and middle-income Americans. In fact, under the so-called historical audit rate the administration says it will adhere to, we will see a million--a million new audits with 650,000 of them falling on folks who make $75,000 or less. I find it curious to hear my Democrat colleagues and the President say they will not negotiate on spending when it comes to the debt ceiling, while at the same time complaining there is no plan over which to negotiate. Well, here you go. Republicans have a plan. It is time for the President to negotiate overspending reforms as part of addressing the debt ceiling just as we have done many times before. In fact, just as the President himself has done many times before as a Senator and as Vice President. Eleven of the previous debt ceiling increases going back decades have included fiscal reforms. President Biden voted for such agreements as a Senator, and he negotiated them as a Vice President. The President's current position of refusing to discuss commonsense spending restraints when it comes to the debt ceiling is a reckless abandonment of past precedent and in his own history. Under one-party Democratic rule, we got $10 trillion in new spending. The consequences have been very real. Since President Biden took office, we have seen a spike in prices by 14.9 percent. Real wages have declined by 3.5 percent and interest rates have increased more in the past year than in the prior 15 years combined. The American people are demanding something to be done about all of this. Let's pass this legislation and put the interests of workers, families, farmers, and small businesses first and foremost. Let's do as Congress has done before and address the debt ceiling with policies that also address the Washington spending habits that got us here. Mr. Speaker, I reserve the balance of my time.

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Mr. Speaker, I thank the gentleman from Nebraska for yielding. House Republicans made a promise to the American people to fight for working-class families. And we made a promise that our first order of business under a new Republican majority would be to repeal the $80 billion Democrats gave the IRS to hire 87,000 new agents to target American working-class families. We are delivering on that promise today. This bill rescinds the IRS funds in the Inflation Reduction Act--a law that does nothing to combat inflation but everything to empower an agency that has targeted Americans. They have leaked taxpayer information, and under the Biden administration, they threatened to snoop into the bank accounts of millions of middle-class families. We know this because President Biden wrote such a proposal into his first budget as part of his agenda to expand the power of the IRS and shovel billions more to this troubled agency. At that time, we asked the Joint Committee on Taxation how many Americans might be subject to such a scheme to spy into their bank accounts. The JCT said that up to 134 million taxpayers could be targeted. So much for just going after the millionaires and the billionaires that our Democrat colleagues like to talk about. While the Biden administration--including Treasury Secretary Yellen-- has tried to dismiss concerns over how middle-class Americans would be targeted by the IRS, under the Democrats' $80 billion infusion of cash, the Congressional Budget Office has affirmed undoubtedly families making less than $400,000 per year would be subjected to increased enforcement and, yes, audits by the IRS. But of course this would be the case when you realize that more than half of the $80 billion Democrats gave the IRS is earmarked for enforcement. The IRS does not need a raise. It needs a reckoning. And what starts today with rescinding this $80 billion continues through rigorous IRS oversight that Democrats ignored under their one-party rule. Taxpayers deserve true oversight for an agency that leaked the tax returns of thousands of American taxpayers at the same time the White House was calling for tax increases on those individuals. We are talking about an agency with a history of targeting conservatives with woefully underperforming customer service and whose own commissioner under Obama called this $80 billion more than three times the amount of money the agency actually needed. House Republicans are ready to provide oversight and accountability, and that starts today with ending this $80 billion pay raise.

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Madam Speaker, we are 12 days, 12 days until the Democrat majority does not exist. In 13 days, the Republican majority will be in charge. Americans are facing the highest spike in prices in 40 years because of the one-party Democrat rule in Washington, because of their reckless spending. The Ways and Means Committee is the committee that affects the economy more than any committee in all of Congress. What do the House Democrats feel like their last 12 days, their biggest priority is not solving issues affecting working-class Americans, but issues targeting their main political opponents. This legislation is only cover for what they have been campaigning on for years, and that is, to get Trump's tax returns. Let me tell you, if you don't believe me now, this is called the mandatory audit program. It is about auditing all current and former Presidents to make sure their tax returns are audited. But the chairman of this committee only requested how the mandatory audit program has worked for one President, one, and it was a Republican President. His name was Donald Trump. I asked, on Tuesday, did you request a mandatory audit review process on Joe Biden? No. Did you request one on Obama? No. Clinton? No. Bush? No. Carter? No. But yes, only Trump. This is a cover for their political objective, and that is to target their political opponents. We have heard over and over that no one is above the law; that includes everyone in this Chamber. On Tuesday, when we sat in this markup, I raised the point, how can you release the full tax returns, with all of the private personal information of the private citizens, their Social Security number, children's Social Security numbers? And I said, we need an amendment to redact that information. I was told, we are not going to vote on amendments. But everyone says that no one is above the law. We were told good faith, good faith, would redact the full transcripts, and it would be decided by the majority staff. Has the minority staff been able to participate in it? No. We don't even know what the final documents of the tax returns that are going to be released, what they are going to look at. This was another example where you had to pass something before you know what is in it. That is what Pelosi has done this entire Congress. That is exactly what the Ways and Means Democrats did. They have charted a new territory for the Ways and Means Committee. It is the oldest committee in Congress. It is supposed to be the most bipartisan committee in Congress. But they ignited a new political tool, that future Congresses will now utilize. I have traveled all over the country, 42 States just this year alone, and one thing that constantly kept coming up to me is, Congressman, look into President Biden's family and how they have been enriched by his position. In fact, banks have flagged over 150 red flags to Treasury. These are suspicious activity reports. Usually, it is because they believe there is fraud or money laundering, and this is the Biden family bank accounts. What about the fact that foreign governments are paying to have their principals in the same room as Joe Biden? Or the sale of U.S. natural gas to China, of which the Bidens held a 10 percent equity stake, or business plans to sell one of the largest sources of cobalt for electric vehicles to China, and $11 million made from Hunter Biden's ``work'' with a Ukraine firm and a Chinese businessman. Like I said, over 150 red flags or suspicious activity reports filed by banks.

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Madam Speaker, I rise today to honor Mary Hostetter of Kimmswick, Missouri, founder of the Blue Owl Restaurant & Bakery, who is retiring after 40 years. Mary started the business in her home and then opened The Blue Owl in August of 1985. Since then, she has established The Blue Owl as a place for a hearty meal, a warm welcome, and a delicious dessert. No visit to Jefferson County is complete without a trip to The Blue Owl. Through her TV appearances and articles in magazines and newspapers, the world has learned of Mary, and she has surely become an Ambassador of Good Eating. Her Mile High Levee Pie pays tribute to Kimmswick's triumph in the 1993 flood and is evidence of her strong commitment to her community and her customers. It's just one of the dishes for which she is famous. Mary is indeed a treasure whose passion for food and service lives on in her daughter, Kim Byerly, who, with her husband Dan will continue Mary's legacy of excellence at The Blue Owl. As she trades her blue apron for a wonderful retirement, it is my great pleasure to honor Mary Hostetter today before the United States House of Representatives.

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Madam Speaker, I rise today to honor Mineral Area College of Park Hills, Missouri as it celebrates 100 years since its founding to offer advanced education after high school. It began as Flat River Junior College, the third public junior college in Missouri with classes for 38 students on September 5, 1922. In 1965, voters in six public school districts approved the founding of Mineral Area College as successor to Flat River Junior College and in 1970, the campus was established where it is today just off U.S. Highway 67. Since its founding, the college has educated more than 18,000 students, offering 2-year degrees in a variety of areas including nursing, business, technology and the arts. Welding training and an HVAC program are the most recent additions with an Industry and Technology Center set to house career and technical programs beginning next fall. The college has been competitive in athletics, impressive in the arts and always evolving to offer its students an education that prepares them for a bright future. It is my great pleasure to celebrate the founding of Flat River Junior College 100 years ago and to acknowledge the continued treasure it is as Mineral Area College today before the U.S. House of Representatives.

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Madam Speaker, I rise today to honor Chief Danny Whiteley who will soon retire after proudly serving as Poplar Bluff's Police Chief for 22 years. Chief Whiteley is the proud husband to Gale Whiteley of 53 years and father to Jason Whiteley and Erika Boucher. Chief Whiteley also has 3 wonderful grandchildren. He has served the community as Mayor Pro Tem and as a member of the Poplar Bluff City Council. Additionally, he has served on the Poplar Bluff School Board, the Public Water District Board, and the Poplar Bluff Municipal Airport Board. Chief Whiteley is currently serving as project director for the Southeast Missouri Drug Task Force and is on the Board of Directors for the Missouri Police Chiefs' Association. Prior to his career serving the community, he was a professional rodeo athlete and toured the country competing in many events, including bull riding and steer wrestling. As the longest-serving police chief in Poplar Bluff history, it is obvious to the Poplar Bluff community that Chief Whiteley loved and took great pride in his job. He has never wavered in his commitment to serving and protecting the town in which he grew up and has always been there for the community during challenging times. He did not limit himself to only working with local law enforcement, but reached out to other law enforcement agencies at the state and federal level to share his knowledge and offer his assistance to help make a positive difference in communities far beyond Poplar Bluff. Thanks to his innovative approach and strong leadership, he transformed the Poplar Bluff Police Department into a 21st century law enforcement agency, an achievement that will benefit the city for years to come. Chief Whiteley is retiring after successfully moving the police department into their new facility. The residents of Poplar Bluff are sad to see Chief Whiteley go, but also hope he enjoys his well-deserved retirement. We thank him for over two decades of outstanding service and for selflessly protecting Missouri. I thank Chief Whiteley.

Mr. SMITH of Missouri

Mr. SMITH of Missouri. Mr. Speaker, I would like to point out to the gentleman from Nevada that since Joe Biden has taken the oath of office, his reckless spending has led to an inflation crisis that has cost his families in Nevada $9,700 per family. Mr. Speaker, I yield 1 minute to the great gentleman from Ohio (Mr. Carey).