As the 2024 presidential election looms on the horizon, a recent study by the Committee for a Responsible Federal Budget dives into the economic plans of Vice President Kamala Harris and former President Donald Trump. The findings are eye-opening, suggesting that both candidates’ proposed policies would significantly impact the national debt in the years to come.
Harris’s plan, according to the analysis, is projected to add approximately $3.5 trillion to the national debt over the next decade, amounting to a substantial 9.8% increase. However, the report highlights a wide range of potential outcomes, ranging from deficit-neutral to an addition of over $8 trillion to the debt. Despite these details, a Harris spokesperson refutes the analysis, asserting that their plan would ultimately reduce the deficit.
On the other side of the aisle, Trump’s economic proposals are not without their challenges. The CRFB estimates that under his plan, the national debt could soar by $7.5 trillion, marking a 21% increase by 2035. The variations in fiscal impact are staggering, ranging from $1.45 trillion to over $15 trillion. Notably, Trump’s key agenda of major tax cuts for specific groups could significantly drive up the costs, including eliminating income taxes on tips and Social Security benefits.
In the realm of tax policy, both candidates have their sights set on amendments to the 2017 Tax Cuts and Jobs Act, also known as the Trump tax cuts. With many provisions of the law set to expire in the near future, extending or modifying them remains a pivotal focus for both campaigns. Despite criticisms from Democrats regarding the tax cuts benefiting the wealthy and corporations, analyses have shown that a vast majority of taxpayers across all income brackets received tax reductions.
Looking ahead, one area of divergence between the candidates lies in the approach to tariffs. While Trump advocates for a substantial increase in tariffs, especially towards China, Harris’s stance on this issue differs. The potential revenue from tariffs, estimated at $2.7 trillion under Trump’s proposals, presents a divergence in fiscal strategies between the two candidates.
As the nation grapples with economic uncertainties, the decisions made in the 2024 election will undoubtedly shape the financial landscape for years to come. It is imperative for voters to delve into the intricacies of the candidates’ economic plans, weighing the implications on national debt and deficits as they head to the polls. The future prosperity of the country hinges on informed choices and prudent decision-making in the realm of economic policy.
