Donald Trump’s economic proposals would increase the federal deficit by more than five times that of Kamala Harris, according to experts. Studies conducted by the nonpartisan Penn Wharton Budget Model found that Trump’s plan would push the deficit up by $5.8 trillion, whereas Harris’s would add a much smaller amount of $1.1 trillion.
Trump’s policy proposals include cutting taxes on social security, which the study finds would cost $1.2 trillion. Additionally, his pledge to reduce corporation tax would add $6 billion to that tally. If he reinstates his 2017 tax cuts, it will cost $4 trillion.
On the other hand, Kamala Harris has promised to increase tax credits, including the Child Tax Credit and the Earned Income Tax Credit, which the study found would cost $2.1 trillion over the coming decade. Her plan for a $25,000 subsidy for first-time homebuyers adds $140 billion. Harris’s proposal to raise corporate tax to 28% would offset the cost and bring the total down to $1.1 trillion.
Mr. Trump said he would pay for his tax cuts by implementing additional import tariffs, which he argues will amount to a tax on other countries rather than Americans. Economists warn, however, that import tariffs will increase product prices and drive up inflation, just as it has started to drop under the Biden-Harris administration.
Vice President Harris has also indicated that she supports President Biden’s proposals to reduce the deficit by $3 trillion over the next decade, primarily funded by taxes on the very wealthy.
The analysis did not take account of the “no tax on tips” policy touted by both candidates, and the subsequent report noted that the “10-year budget cost could vary significantly depending on the ability to reclassify current sources of income as tips.”
Polling shows that Kamala Harris is either leading or gaining ground on Donald Trump on economic matters. An August survey placed her one point ahead at 42% to Trump’s 41%. The Vice President was 7% ahead of Joe Biden on that poll. In July, Trump was 11% ahead of Harris, and after the Democratic National Convention, they were further placed neck-and-neck at 40%.
