Economists told Fox News Digital that the economic proposals put forth by former President Donald Trump and Vice President Kamala Harris would continue to increase the country’s already growing budget deficit, noting that neither candidate would be particularly specific about fiscal responsibility. Not worried about.
Neither Trump nor Harris have released policy plans dedicated to addressing the nation’s deficit. Trump’s 16 point policy plan The word “deficit” is mentioned once on their website.
During this time, Harris’s economic platform The Times mentions the deficit and says Harris is “committed” to fiscal responsibility, but suggests only raising taxes on the rich and corporations as a solution.
“I think neither candidate is really talking about fiscal responsibility, because neither candidate is fiscally responsible,” said Erica York, senior economist at the Tax Foundation. “Both left a lot of details unspecified, so there are still questions about what Harris’s spending policies will be like. Will Trump actually cancel all green energy tax credits? “Will he really impose all the tariffs he promised?”
When asked what message York had for Trump and Harris loss, She told them to “get real.”
Harris calls Trump ‘one of the biggest losers ever’ during economy speech in key battleground state
“We face a number of challenges on the fiscal policy front, from the debt and deficit, to the need to compete with China, to the need to encourage entrepreneurship and work, and none of the tax policy approaches just outlined are really The answers are no closer to those challenges,” York said.
Representative Thomas Massie, a Republican from Kentucky, wears a homemade national debt watch pin on Capitol Hill in Washington, DC, US, on Thursday, January 26, 2023.
Meanwhile, economist Kimberly Clausing of the Peterson Institute for International Economics echoed York’s concerns, saying she doesn’t think “enough attention has been paid to the deficit this campaign season.”
Clausing said, “I don’t know whether to blame the candidates or the American attention-grabbers.” “Candidates have an incentive to cater to what the public wants to hear, but there doesn’t seem to be a big drum beat in favor of it Fiscal responsibility. And that’s a big difference from at least some prior elections in my lifetime, where this issue was much more prominent.”
As of now, the government is running a cumulative deficit of $1.9 trillion in fiscal year 2024, according to Bipartisan Policy Center’s “Deficit Tracker.”
Meanwhile, revenue increased by 11% last month. According to the deficit tracker, the revenue growth is mainly the result of an increase in personal and corporate taxes, higher interest rates and a 20% reduction in personal income tax refunds. Trump’s economic proposals include extending tax cuts, lowering the corporate tax rate, and exempting tips, overtime pay, and Social Security benefits from one’s taxable income. Despite his plan to generate revenue through tariffs and repeal the green energy tax credit, economists say it will not be enough to balance out the revenue lost from Trump’s tax cuts and other economic proposals.
Research from the Tax Foundation, a tax policy nonprofit in the nation’s capital, estimates that the impact of Trump’s deficit would increase by nearly $4 trillion over ten years.
Analysis shows Trump, Harris’ spending plans could take a toll on US economy
However, according to Heritage Foundation economist Richard Stern, it is government spending When it comes to rising deficits, it is the tax cuts themselves, not the tax cuts, that are the real culprit.
Stern said, “Although a tax cut may increase the deficit, it returns money to the people who earned it. More spending, on the other hand, increases the deficit, which means the government is stealing even more and “is suppressing development even more intensely.” “Deficits generated through tax cuts and spending increases are not the same. Tax cuts grow the economy and reduce deficits as a share of the economy, while overspending strangles the economy and stifles growth.”
The Treasury Department is seen near sunset in Washington. (AP Photo/John Elswick, File)
The Biden-Harris administration’s fiscal year 2024 budget proposes the highest sustained level of spending in US history. Republicans on the House Budget Committee. The committee also reported that the administration’s plan to add $82.2 trillion in spending over ten years is 18% more than the historical average over the past half century.
Since becoming the Democratic Party’s official nominee for president, Harris has said that she will provide $25,000 housing subsidy for first-generation home buyers, Enact a $100 billion tax credit for manufacturing and expand the small business tax credit tenfold. He has also suggested support for increased government spending to meet families’ child care needs, as well as expanding the child tax credit, among other proposals.
Overall, the Tax Foundation calculated that Harris would increase the deficit by approximately $1.5 trillion over ten years.
Biden promises to spend $7.3B on ‘clean energy’ with $35T national debt
According to Clausing, harmful downstream effects of the ever-widening deficit include a rise in interest rates and a reduction in creditworthiness for the country, which could be problematic at a time when global tensions are at their peak.
“If a new crisis comes, whether it’s an epidemic Or a national security crisis or a major recession, which are sometimes caused by things beyond our control. You know, it’s really hard to respond to these types of crises without fiscal space,” Clausing said. “If you’re starting from a point where you’re maxing out credit cards, responding to these It’s a little difficult to give an emergency situation.”
Currently, China and Japan are the two largest foreign creditors of the United States.
Former President Trump and Vice President Kamala Harris faced each other on Tuesday night in Philadelphia. (Getty Images)
When contacted by Fox News Digital, the Harris campaign declined to comment.
More than 400 left-leaning economists and former policymakers who worked under Democrats endorsed the vice president this week. Additionally, New York Times financial columnist Andrew Ross Sorkin asserted this week that Harris would get much closer to balancing the national budget than Trump.
Click here to get the Fox News app
When it comes to voters, voters have generally told pollsters that they have more confidence in Trump than Harris when it comes to economy, But reports indicate that Harris has been regaining some of that ground recently. Trump’s lead over Harris on the economy is only five points in the most recent Fox News poll and only two points in the AP/NORC survey.
“Dangerously moderate Kamala Harris’ budget would add $17 trillion to the national debt by 2034 and also include a $4.9 trillion tax increase – the largest in history – that would cost every American family about $40,000 a year , which is in addition to record high inflation,” Trump campaign national press secretary Carolyn Levitt told Fox News Digital. “Thanks to Kamalanomics, families are already struggling to afford gas and groceries, and President Trump will continue to highlight how Harris’ budget will impose these hardships on hardworking Americans.”
