Donald Trump’s campaign proposals could cause the US national debt to grow by twice as much as Kamala Harris’s plans, a new study shows.
Both candidates, if their promises were carried out, would add trillions of dollars to the national debt, according to the Committee for a Responsible Federal Budget. The group says Trump’s plans would increase the debt by $7.5 trillion, while Harris’s plans would add $3.5 trillion.
On Monday, the think tank warned that neither side seems ready to deal with the country’s rising $35.6 trillion debt.
Both want to keep tax cuts from Trump’s first term
Trump and Harris both support keeping some of the tax cuts from Trump’s first term. These cuts are a big reason why the national debt could increase even further.
The current tax plan is set to expire in 2025. This could lead to a major tax debate for whoever becomes president next. Trump has promised to keep the entire tax package in place if he is re-elected.
He has also suggested new tax cuts and wants to remove taxes on overtime, social security, and tips. The former President also plans to offer a 15 percent corporate tax rate for US manufacturers.
Trump plans to raise $2.7 trillion by introducing widespread tariffs. These tariffs are taxes on goods brought into the US, according to the Committee for a Responsible Federal Budget (CRFB).
BREAKING: Trump’s Economic Plan Would Add $4 Trillion More to U.S. Debt Than Harris’, Nonpartisan Report Finds
NOTE: A report from the nonpartisan nonprofit Committee for Responsible Federal Budget has concluded that Kamala Harris' and Donald Trump's economic plans would… pic.twitter.com/q0WrnwfCAk
— Simon Ateba (@simonateba) October 7, 2024
In contrast, Harris has promised to undo tax cuts for the wealthy and raise the corporate tax rate from 21 percent to 28 percent. This corporate rate was originally intended to be permanent.
However, Harris plans to keep Trump’s tax cuts for people earning under $400,000. She also supports his idea of removing taxes on tips.
Additionally, Harris has proposed several other tax breaks. These focus on helping families with children and new businesses. She also supports plans to spend hundreds of billions on subsidizing child care and health care, as reported by the BBC.
Approval from Congress required for these proposals
Many of the tax and spending plans from both Trump and Harris would require Congress’s approval. It is uncertain how much either candidate could push through the divided legislative branch, which controls decisions on taxes and spending.
“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,” said Jimmy Lee, the founder and CEO of the investment firm Wealth Consulting Group.
However, Lee also warned that investors may not be focusing enough on the growing risk from rising national debt.
