Trump’s Plans Would Increase US Debt Significantly More than Harris’s, Study Finds

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A recent analysis by the Committee for a Responsible Federal Budget, a non-partisan think tank, has found that both Donald Trump and Kamala Harris would significantly increase the U.S. national debt if their campaign proposals were fully enacted. However, the study highlights a stark contrast between the two candidates' plans, with Trump’s proposals estimated to increase the debt by more than twice as much as Harris's.

 

According to the group’s findings, Trump’s proposals would add approximately $7.5 trillion to the national debt, while Harris’s would contribute $3.5 trillion. Both figures are staggering, given the current state of U.S. finances, with the national debt already standing at $35.6 trillion. The think tank warned that neither candidate appears focused on curbing the rapidly rising debt.

A significant portion of the hypothetical debt increase stems from tax policies that both candidates have supported. These policies include the extension of major tax cuts that were enacted during Trump’s first term. Those tax cuts are due to expire in 2025, leading to what could be a fierce debate on taxes after the upcoming election. Trump has vowed to maintain all elements of the tax package, and in addition, he has proposed new cuts. These cuts include the elimination of taxes on overtime, Social Security, and tips income. He also aims to offer domestic manufacturers a 15% corporate tax rate, much lower than the current rate.

 

Trump has suggested that the revenue lost from these tax reductions would be offset by imposing widespread tariffs on imported goods, a move the Committee for a Responsible Federal Budget estimates could raise $2.7 trillion. 

 

In contrast, Harris’s approach involves a partial reversal of Trump’s tax cuts, specifically targeting the wealthy and corporations. She plans to increase the corporate tax rate from 21% to 28%, though she would maintain the tax cuts for individuals earning less than $400,000. Additionally, she supports eliminating taxes on tips, similar to Trump.

 

Harris has also introduced several proposals aimed at providing tax relief to families with children and startups. Her economic plan includes significant new spending, particularly in the areas of child care and health care, with billions allocated to subsidize these services.

 

While both candidates' plans would have to pass through Congress, where any proposal could face significant obstacles, the overall impact on the national debt remains a major concern for some financial experts. Jimmy Lee, CEO of Wealth Consulting Group, observed, "Both candidates are wanting to get elected so, you know, tax cuts sound better than higher taxes so I think that's what you're hearing. Whether or not all of that gets through we'll see." However, Lee added that he believes investors may not be paying enough attention to the risks posed by the mounting national debt.

 

The U.S. has long benefited from strong demand for its debt among private investors, allowing it to borrow at relatively low interest rates. But as debt levels continue to climb, some analysts warn that borrowing costs could increase in the future, posing further challenges for the U.S. economy. Currently, the country’s debt-to-GDP ratio is around 120%, one of the highest among major global economies, according to the International Monetary Fund. For comparison, Italy’s debt-to-GDP ratio is 144%, Spain’s 110%, the UK’s 101%, Canada’s 106%, China’s 77%, Germany’s 67%, and Australia’s 56%.

 

Based on a report from BBC News 2024-10-09

 

 

 

[Tug]

That’s our Donnie run up the debt and guess who gets to pay more for everything……here’s a clue it ain’t him or his rich pals!let’s turn the page ditch this albatross and let the republicans rebuild their party we need them for balance.

[neeray]

Trump doesn't care one iota about the future of the  USA or its citizens. Give him 4 more years and he'll inflate the national debt to 50 trillion (or more) with a good portion of the increase going directly or indirectly to the already obscene rich. The MAGA cult followers will be cast aside presto if by some weird chance he were elected. He has no use for poor people beyond sucking them in to elect him.

[spidermike007]

His spectacularly ignorant tariffs are the equivalent of a major tax hike on the American public, they're not paid by China, they are paid by companies, and they're passed on to consumers.

 

It is a tax hike, people. 

[mdr224]

4 minutes ago, spidermike007 said:

His spectacularly ignorant tariffs are the equivalent of a major tax hike on the American public, they're not paid by China, they are paid by companies, and they're passed on to consumers.

 

It is a tax hike, people. 

If his tariffs were such a bad idea, why did biden keep them?

[thaipo7]

2 hours ago, Tug said:

That’s our Donnie run up the debt and guess who gets to pay more for everything……here’s a clue it ain’t him or his rich pals!let’s turn the page ditch this albatross and let the republicans rebuild their party we need them for balance.

Well, we can guess who this person wants to win the election.