Both Vice President Kamala Harris and former President Donald Trump have proposed various initiatives in their campaigns, ranging from affordable housing and healthcare to tax relief for Americans. However, a new analysis by the Committee for a Responsible Federal Budget has found that both candidates’ plans come with hefty price tags, with Harris’ plan projected to increase the debt by $3.5 trillion over the next decade, and Trump’s plan by $7.5 trillion. This would contribute to a further increase in the national debt, compounding existing fiscal issues.
The Committee’s analysis highlights the lack of detailed proposals from both candidates and the uncertainty in estimating the impact on the debt. Harris’ measures could have little effect or increase the debt by $8.1 trillion, while Trump’s proposals could raise it by $1.5 trillion to $15.2 trillion. The potential behavior changes by individuals and corporations under these policies are also challenging to predict. Both candidates have not addressed the issue of reducing the nation’s heavy debt load, despite calls from both Republicans and Democrats to address the increasing debt, currently at $35.7 trillion.
Harris’ platform includes costly items such as extending tax provisions for those making less than $400,000 a year, expanding tax credits, and enhancing ACA subsidies, totaling $2.3 trillion. She plans to offset some of the costs by increasing corporate and capital gains taxes and raising taxes on wealthier Americans and corporations. Trump, on the other hand, aims to extend the 2017 tax cuts, eliminate the state and local tax deduction cap, and reduce corporate taxes. Additional measures such as tariffs and ending taxes on tips, overtime pay, and Social Security benefits are also included in Trump’s plan.
The potential revenue from Trump’s proposed tariffs is estimated to fall short of covering the costs of his agenda, with economists warning of increased prices for American consumers due to the impact of tariffs on imported goods. The overall impact of tariffs could lead to retaliatory measures from other countries, potentially sparking a trade war that could dampen economic growth. Trump has also pledged to expand energy production, eliminate the Department of Education, and address waste, fraud, and abuse, which could raise or save nearly $1.1 trillion, according to the committee’s analysis.
In conclusion, both Harris and Trump’s proposals have significant financial implications, with the national debt projected to rise significantly regardless of the election outcome. The lack of concrete plans and uncertainty in estimating the impact on the debt pose challenges for policymakers. Addressing the nation’s escalating debt levels and ensuring fiscal sustainability remain critical issues that need to be addressed by the next administration.
