Trump's proposals could double the national debt hit

In a detailed examination of the 2024 presidential candidates' fiscal proposals, a notable disparity has emerged between the plans put forth by

Harris versus Trump's Financial Impact

Vice President Kamala Harris and former President Donald Trump have unveiled a plethora of promises, with some offerings veering into the realm of vague pledges, while others are bolstered by detailed policies that come with significant financial implications. However, a recent analysis reveals that Trump's proposed measures would significantly exacerbate the national debt in comparison to those advanced by Harris, leading to an estimated increase of $7.5 trillion through 2035 attributed to the former president's projections. Conversely, Harris's policies are projected to raise the debt by $3.5 trillion, according to the report from the nonpartisan Committee for a Responsible Federal Budget (CRFB), an organization focused on fiscal accountability. The CRFB's report presents a range of estimates due to the lack of specificity in each candidate's proposals. Depending on the particulars, Harris's plans could have a negligible impact on the federal debt or potentially raise it by $8.1 trillion. On the other hand, Trump's proposals could expand the debt by a range of $1.5 trillion on the lower end, with a staggering potential increase of up to $15.2 trillion.

A Fiscal Conundrum for the Next President

The CRFB's report underscores the daunting fiscal landscape that the next president will inherit, regardless of party affiliation. The committee emphasized that both Republican and Democratic candidates have presented campaign plans that could either perpetuate the current financial status or exacerbate the existing debt and deficits. The report serves as a stark reminder of the pressing fiscal challenges that await the next occupant of the Oval Office. The analysis attributes a substantial portion of the cost associated with Trump's proposals to his strategy of extending the tax cuts encapsulated in the 2017 Tax Cuts and Jobs Act. CRFB estimates suggest that this move could add more than $5 trillion over the next decade to the current national debt, which stands at nearly $36 trillion.

Trump's Costly Proposals

Furthermore, Trump's plan to eliminate taxes on overtime, tips, and Social Security benefits is projected to incur an additional cost of $3.6 trillion, as per CRFB's calculations. The proposed mass deportation of undocumented immigrants is estimated to further augment the debt by $350 billion. Trump's assertion that tariffs on U.S. imports would offset the tax cuts has been met with skepticism by the study's findings. Economists have raised concerns that the proposed tariffs on goods from China and other trading partners could have adverse effects on consumers, potentially driving up prices rather than alleviating inflation.

On the other side of the aisle, Vice President Kamala Harris's proposals also carry significant financial implications. Notably, extending tax cuts for individuals earning less than $400,000 per year is projected to add $3 trillion to the national debt, while expanding the Child Tax Credit and Earned Income Tax Credit is estimated to contribute an additional $1.4 trillion. Harris's campaign has contested these cost projections, asserting that the plans would entail a lower financial burden. In a bid to eliminate income taxes on tips, Harris has proposed maintaining payroll tax requirements and imposing restrictions on eligible employees, a move estimated by CRFB to cost $200 billion.