Trump’s Tax Plan Would Add $5.3 Trillion to Debt: Analysis
While Donald Trump has stated his tax plan will help the economy, The Committee for a Responsible Federal Budget believes his plan will actually add trillions of dollars to the national debt.
The Hill reports:
Republican presidential nominee Donald Trump’s tax proposals would add $5.3 trillion to the country’s debt over the next decade, according to a new analysis by a nonpartisan group.
The Committee for a Responsible Federal Budget said, however, that it is unsure of the size of Trump’s tax plan because the GOP nominee’s campaign hasn’t yet said how it will handle certain businesses’ tax liabilities, according to The Associated Press.
Trump plans to reduce the top individual tax rate from 39.6 percent to 33 percent and the corporate rate from 35 percent to 15 percent.
The nominee’s tax plan does not specify what the tax rate would be for income from “pass-through” businesses — businesses where the owner pays all of the taxes on business profits on personal income tax forms.
Trump said his tax cuts would be paid for, in part, by increasing economic growth. But the committee said the steps he has vowed to take would not produce growth, according to the AP.
Clinton’s tax plan would reportedly add just $200 billion in debt over the next debate.
A report by the conservative-leaning Tax Foundation released earlier this week said the GOP nominee’s latest tax plan would cost the government trillions in tax revenue. But the foundation said it is unclear exactly how much the plan would reduce tax coffers because Trump didn’t specify how certain business income would be taxed under his proposal.
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