Donald Trump’s tax and spending proposals are estimated to leave the US with a deficit of $7,500 billion, double that of Ms. Kamala Harris.
On October 7, the US Federal Budget Committee (CRFB) – a non-profit organization – announced estimates of the impact of the policy plans of the two US presidential candidates. Accordingly, US Vice President Kamala Harris’s tax and spending plan could increase the country’s budget deficit by $3,500 billion in the next 10 years. This number compared to Donald Trump’s plan is 7,500 billion USD.
This is CRFB’s “average estimate”, based on proposals put forward by both US Presidential candidates during the election campaign.
To date, Trump has committed to introducing many tax reduction policies, including extending the personal income tax reduction (applied from 2017 and expiring next year). Commissions, social security benefits and overtime are also not taxed. In return, the budget is offset by an increase in import taxes, which could bring the US government $2,700 billion, according to CRFB estimates.
Republican presidential candidate Donald Trump (left) and Vice President Kamala Harris. Image: AFP
Meanwhile, Ms. Harris pledged to increase support for children and newborns, increase spending on elderly care, as well as reduce taxes for first-time home buyers. However, she wants to increase taxes on businesses and households with income of $400,000 a year or more. This policy helps the US budget have an additional 4,250 billion USD, according to CRFB estimates.
However, CRFB’s announcement made both US presidential candidates unhappy. A spokeswoman for Ms. Harris said that if elected, she would reduce, not increase, the budget deficit. Brian Hughes – Mr. Trump’s senior advisor also affirmed that their plan “helps reduce wasteful expenses, lower inflation and interest burden, thereby reviving economic growth and increasing budget revenue.” .
Both Mr. Trump and Ms. Harris are accelerating their election campaign, when the US Presidential election will take place on November 5. The economy has always been the dominant issue in previous elections. Recent poll results show that the American public trusts Mr. Trump more than Ms. Harris in economic management.