Stunning Revelation: Trump’s Budget Proposals Could Skyrocket Deficits 5 Times More Than Harris’ Plan
Former President Donald Trump’s proposed economic plans would increase federal deficits by $5.8 trillion over the next decade. This amount is significantly higher compared to Vice President Kamala Harris’s proposals, which would add $1.2 trillion to the deficit. This data comes from new studies by the nonpartisan Penn Wharton Budget Model.
Trump’s plan includes permanently extending the 2017 tax cuts, contributing over $4 trillion to the deficit, eliminating taxes on Social Security benefits ($1.2 trillion), and further reducing corporate taxes (nearly $6 billion). In contrast, Harris’s approach involves expanding various tax credits, resulting in a $2.1 trillion increase, and introducing a $25,000 subsidy for first-time homebuyers, adding $140 billion over a decade. To offset these costs, Harris proposes raising the corporate tax rate from 21% to 28%, potentially generating $1.1 trillion, along with raising $5 trillion from initiatives in President Joe Biden’s fiscal year 2025 budget.
However, Harris’s revenue measures would require congressional approval. Trump’s funding solution involves imposing 10% tariffs on all imports and 60% tariffs on Chinese imports, bypassing the need for congressional approval. He claims these tariffs would foster enough domestic growth to offset his economic policies’ short-term costs. Yet, Moody’s Chief Economist Mark Zandi estimates these tariffs would generate only $2.5 trillion. Economists also caution that such tariffs could reignite inflation, which has recently started to cool.
As both campaigns strive to label the other as an economic threat, Harris campaign spokesperson James Singer criticizes Trump’s plan as detrimental to the middle class, while Trump’s spokesperson, Karoline Leavitt, defends Trump’s economic record.
Since President Biden’s withdrawal from the race, Harris’s campaign has rapidly unveiled its economic agenda, a response to the consistent economic challenges faced by the Democratic campaign.
Original Story https://www.cnbc.com/2024/08/27/trump-harris-budget-deficit-economy-election.html
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