Republican Donald Trump’s economic proposals would allegedly increase federal deficits by almost five times more over the next decade than those of Democratic nominee Vice President Kamala Harris
Former President Donald Trump's economic proposals would increase federal deficits by $5.8 trillion over the next decade, nearly five times more than Vice President Kamala Harris's plans, which would add $1.2 trillion, according to two new studies from the nonpartisan Penn Wharton Budget Model.
The analysis of Trump’s plan shows that extending the 2017 tax cuts permanently would add more than $4 trillion to the deficit over the next 10 years. His proposal to eliminate taxes on Social Security benefits would cost $1.2 trillion, while his pledge to further reduce corporate taxes would add nearly $6 billion.
In contrast, the Harris study indicates that her plan to expand the child tax credit, earned income tax credit, and other tax incentives would increase the deficit by $2.1 trillion over the next decade. Her proposal to create a $25,000 subsidy for first-time homebuyers would add $140 billion.
However, Harris’s plan to raise the corporate tax rate from 21% to 28% could help offset these costs by generating $1.1 trillion. She also supports revenue-raising measures in President Joe Biden’s fiscal year 2025 budget proposal, amounting to $5 trillion.
Harris’s revenue-generating measures, though, would require congressional approval. Trump, by contrast, has proposed a 10% tariff on all imports and a 60% tariff on Chinese imports, which would not require congressional approval. He argues that these tariffs would generate enough domestic economic growth to counterbalance the initial costs of his plan.
Moody’s Chief Economist Mark Zandi estimated that Trump’s tariffs could generate about $2.5 trillion in revenue. However, many economists warn that such aggressive tariff policies could reignite inflation, which has recently begun to cool.
Both the Trump and Harris campaigns are working to portray the other as an economic risk, aiming to win over voters frustrated by rising living costs.