Summary
The economic policies proposed by former President Donald Trump and Vice President Kamala Harris are projected to significantly increase the U.S. federal deficit over the next decade. Analysis from the Committee for a Responsible Federal Budget indicates that Trump’s plans could add approximately $7.5 trillion to the deficit, while Harris’s agenda might contribute around $3.5 trillion.
Both candidates’ proposals primarily hinge on extending existing tax cuts and introducing new spending initiatives that would further strain the federal budget. Trump’s plan includes a full extension of the 2017 tax cuts, which alone would add over $5 trillion to the deficit, alongside additional tax cuts and increased tariffs. In contrast, Harris’s fiscal strategies involve extending tax cuts for lower-income households and expanding social programs, which would also lead to substantial increases in federal debt. Although both candidates have outlined potential revenue-raising measures, such as tax hikes on corporations and high earners, these are not expected to fully offset the projected increases in the deficit.
Key Points of Trump and Harris’s Economic Plans
- Trump’s Proposals:
- Expected to add $7.5 trillion to the deficit.
- Full extension of the 2017 tax cuts contributing $5.35 trillion.
- Additional tax cuts and proposed tariffs expected to add further to the debt.
- Harris’s Proposals:
- Expected to add $3.5 trillion to the deficit.
- Plans to extend tax cuts for households earning less than $400,000, adding $3 trillion.
- Expansion of social programs, including child care and paid leave, contributing to increased spending.
Fiscal Implications
Both candidates face criticism from fiscal conservatives who are concerned about the sustainability of such debt increases. The projections suggest that regardless of who wins the presidency, the next administration will need to address the growing fiscal challenges posed by these proposed policies, as the current debt is already substantial and projected to rise further without significant reforms.
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