Former president Donald Trump is back with new plans, but they are not good news for America’s finances. According to a study by the nonpartisan Committee for a Responsible Federal Budget (CRFB), Trump’s proposals would add $7.5 trillion to the national debt over the next decade. In comparison, Vice President Kamala Harris’s plans would add about $3.5 trillion. While both would increase the debt, Trump’s plans would cause far more damage.
Trump wants to extend his 2017 tax cuts, which helped the rich and big corporations. These cuts would add more than $5 trillion to the U.S. debt, which is already at $35.7 trillion. That’s a lot of money! These tax cuts may sound good to some, but in reality, they make the national debt much worse. Trump also wants to end taxes on overtime pay, Social Security benefits, and tips. This plan might seem appealing, but it would add another $3.6 trillion to the debt. The U.S. simply cannot afford these extra costs.
CRFB President Maya MacGuineas summed it up perfectly: “Trump’s proposals would make our fiscal situation significantly worse.” If these plans move forward, the U.S. debt will explode, and it will be difficult to recover from it.
Trump’s idea to pay for these tax cuts is through tariffs on imports. Tariffs are extra taxes on goods brought into the U.S. from other countries. Trump wants to raise tariffs up to 20% on all imports, which he claims could bring in $2.7 trillion. But experts say this won’t work as well as he hopes.
Stay up-to-date with the latest news!
Subscribe and start recieving our daily emails.
Stephen Moore, one of Trump’s own advisers,trump and admitted, “A tariff is just a consumption tax.” This means that U.S. consumers would have to pay more for everyday items. In fact, during Trump’s first term, tariffs on goods from China caused prices to rise on things like electronics and clothing. So, while tariffs may bring in some money, they end up hurting American families by making things more expensive.
Vice President Kamala Harris’s proposals would add about $3.5 trillion to the debt, which is still a lot, but much less than Trump’s. Harris’s plan focuses on helping families, especially those who make less than $400,000 a year. She wants to extend the 2017 tax cuts for these workers, which would add $3 trillion to the debt. Harris also wants to expand the child tax credit and earned income tax credit, which help lower-income families. These changes would cost $1.35 trillion, but they aim to provide real support to working Americans.
Unlike Trump, Harris has a plan to raise some money to pay for her programs. She wants to raise the corporate tax rate from 21% to 28%, which would bring in $900 billion. She also wants to make sure the IRS goes after wealthy people who avoid paying taxes, which could bring in another $900 billion. This means Harris’s plan tries to balance spending with ways to recover some of the debt.
The U.S. debt is already very high, and both Trump and Harris’s plans would make it worse. However, Trump’s plans are far more damaging. If nothing changes, the U.S. will struggle to pay for important programs like Social Security and Medicare. By 2035 and 2036, these programs could run out of money, meaning benefits could be cut unless something is done.
As Jason Fichtner, chief economist at the Bipartisan Policy Center, warns, “If we don’t take this seriously, it sort of becomes like bankruptcy… all at once.” The value of the dollar could decline, interest rates might rise, and inflation could spike, making everyday life more expensive for Americans.
Featured image via Political Tribune Gallery
