Among other things, Trump has floated the idea of neglecting the national debt to negotiate for better terms. He argued that he can boost growth by cutting taxes for the wealthy, slashing regulations and reducing the country's dependence on imports. The flip side, according to the Committee for a Responsible Federal Budget, is that Trump's plans would raise the national debt by $5.3 trillion over 10 years. This would be on top of the $9 trillion that the national debt is already projected to rise by the Congressional Budget Office. The increase in debt risks making it more expensive for the United States to borrow.
In many cases, it was Trump’s controversial remarks that led would-be allies to back away from him. His economic policies have also drawn fire and praise. One example of wonkish worrying: the Committee for a Responsible Federal Budget found that federal debt would explode under Trump, to 147% of gross domestic product by 2036.
One criticism of Trump’s plan is that the benefits skew to the wealthy. An analysis by the Tax Foundation, a right leaning think-tank, found middle-class earners — those making roughly $50,000 a year — would keep, on average, an extra $1,000 a year. By contrast, the top 1% of earners — those who make $450,000 and up — would get more than $100,000 on average. Another potential problem is how he would pay for the plan. The Trump campaign argues that the cuts will spur economic growth and eventually pay for themselves, but budget scorers have been far more skeptical. The Committee for a Responsible Federal Budget put the Trump plan’s price tag as high as $6 trillion over 10 years.
The Committee for a Responsible Federal Budget says after 10 years US national debt will hit 105 per cent of GDP under Trump. Under Clinton, it would hit 86 per cent.
And let’s not forget that Trump’s economic policies amount to a massive fiscal stimulus since they would add to the national debt, according to the Committee for a Responsible Federal Budget. This could be a much-needed boost to the economy, as tax cuts and infrastructure spending lift GDP growth.
The Committee for a Responsible Federal Budget estimates that Mr Trump’s plans would add $5.3 trillion to the US national debt.
Adding to the uncertainty for the Fed and calling its further rate path into question is the lack of detail in Trump's economic plans. He has proposed giving states more discretion in spending federal money on health insurance for the poor, but offered little specifics. Trump has also promised cuts in individual and business tax rates, but some economists questioned the assumptions underpinning the plan and a lack of clarity as to how the breaks would be funded.
The Committee for a Responsible Budget said this has made it difficult to evaluate Trump's proposals, but estimated they could add $5.3 trillion to the federal debt over 10 years.
An analysis by the nonpartisan Committee for a Responsible Federal Budget estimated that Mr. Trump’s plans would increase the federal debt by $5.3 trillion over the next decade, and raise the ratio of debt to gross domestic product to 105 percent.
Trump's proposals — which include an unprecedented $1 trillion infrastructure spending plan over 10 years and trillions more in tax cuts — would grow the debt far more than under current law, as this chart from the nonpartisan Committee for a Responsible Federal Budget shows.
Trump has promised to lower taxes by $4.4 trillion over 10 years and vowed to cut regulations on companies. He also said he would create 25 million jobs. Some critics claim Trump's plan would benefit only the wealthy and harm the middle class. The non-partisan Committee for a Responsible Federal Budget put his plan's price tag as high as $6 trillion over 10 years.
The Committee for a Responsible Federal Budget, a Washington, D.C.-based bipartisan policy group that examines fiscal and budget issues, said Trump’s plans as outlined in his campaign platform could double the U.S.’s budget deficit to 5% of GDP per year. This could add $5 trillion to the debt in the next 10 years.
Trump provided no plan to finance his tax cut. The Committee for a Responsible Federal Budget estimates that Trump has proposed no net spending reductions to offset his tax plan’s $7 trillion increase in the debt.
The non-partisan Committee for a Responsible Federal Budget estimates that under Trump’s economic agenda, U.S. government debt held by the public would reach about 150 percent of gross domestic product by 2036, nearly double the current ratio.
Trump has proposed no net spending reductions to offset his tax plan's $7 trillion increase in the debt, according to the Committee for a Responsible Federal Budget's estimates.
During the campaign, Trump’s tax plan stirred concern that it would result in deficits and add as much as $5.3 trillion to the federal debt over the next decade, according to an estimate by the nonpartisan Committee for a Responsible Federal Budget.
Trump, the 70-year-old real estate magnate and president-elect, has made pledges including cutting taxes and spending as much as $500 billion on infrastructure. His proposals would boost the nation’s debt by $5.3 trillion, the non-partisan Committee for a Responsible Federal Budget estimated.
Trump made pledges including cutting taxes and spending as much as $500 billion on infrastructure. His proposals would boost the nation’s debt by $5.3 trillion, the non-partisan Committee for a Responsible Federal Budget estimated. The government’s marketable debt has already more than doubled under Obama, to a record of almost $14 trillion.
“One of the really discouraging things is that – at a time when our tax code desperately needs to be reformed – I don’t think we’ve had any real, credible tax reform plans put forward” -- Maya MacGuineas
Trump: He would ask Congress to repeal the Affordable Care Act, including the individual mandate requiring everyone to have health insurance; allow insurance companies to sell health insurance across state lines; and allow people to deduct the cost of their premiums from their taxes...The Center for Health and Economy estimated 18 million more people would be uninsured, while the Committee for a Responsible Federal Budget estimated it at 21 million. But premiums would fall. Trump would allow importation of drugs from foreign countries.
She previously proposed spending $350 billion over 10 years for the plan and has moved that estimate up to $500 billion, in part by cutting tax deductions for high-income Americans. She said the proposal would not add any money to the national debt...The plan does say it will be funded by closing loopholes. The Committee for a Responsible Federal Budget, an independent, nonpartisan nonprofit organization, has found that the plan could be funded this way.
Mr Trump and Mrs Clinton have made expensive promises that mean neither would reverse the growth of the US’s nearly $20tn national debt (including future social security payments), according to the Committee for a Responsible Federal Budget.
The nonpartisan Committee for a Responsible Federal Budget estimates that in 10 years, Trump would enlarge the deficit by $5.3 trillion and Clinton by far less, $200 billion. That translates to a national debt of 105 percent of GDP under Trump and 86 percent under Clinton (which is the level already expected under current law). Now, it’s 77 percent.
Maya MacGuineas is the president of the Committee for a Responsible Federal Budget. The group is non-partisan, meaning it stays away from party politics. MacGuineas says whoever wins the presidency will have a difficult time keeping campaign promises. “Donald Trump, for instance, has promised not to fix entitlement programs -- Medicare and Social Security. Hillary Clinton has promised not to raise taxes on any family making below $250,000. Well that sounds nice, but if you want to spend as much as she wants to, you can’t fix this problem from just taxing the rich alone.”
Similarly, Trump would need Congress to pass his massive tax cuts. Even if a Republican-leaning Senate and House were to approve Trump’s budget – far from given – it would take years for the nation’s precarious finances to scare off investors. These would expand the federal debt by $5.3 trillion, according to the non-partisan Committee for a Responsible Federal Budget.
Trump talks a lot about the evils of budget deficits and debt, but independent analysts have found that his plans would put the United States much deeper in the red than Clinton’s, although neither candidate supports the kind of cuts to Medicare and Social Security that would significantly reduce America's debt. The fiscal hawks at the Committee for a Responsible Federal Budget did find that Clinton’s plans would reduce projected increases in the debt by $500 billion over 20 years, because her high-end tax hikes would pay for her new spending. They found that Trump’s plans would add $16 trillion to those projections, because his tax cuts and military spending are not paid for.
Neither Hillary Clinton nor Donald Trump has articulated a plan that will actually grow the economy. Clinton will jack up taxes and spending on everything, a sure-fire way to keep the economy puttering along. Trump will add $5 trillion-plus dollars to the national debt, which will also dampen growth. According to the Committee for a Responsible Federal Budget, under Clinton's scenario, national debt held by the public will grow from 77 percent of GDP to 86 percent over the next decade. Under Trump's, it will increase to 105 percent. Robust economic growth is unlikely, to say the least, under such plans.
On tax, Trump would slash rates for high earners and businesses and kill the inheritance tax. He argues this would unleash "tremendous" investment and growth to the benefit of all. Not so, says the non-partisan Committee for a Responsible Federal Budget and other sources of reputable economic analysis. The Committee calculates Trump's plan would slash tax revenues but fail to cut government spending. Thus federal debt would increase to US$5.7 trillion by 2026, an increase equal to one-fifth of annual national income.
In contrast, Clinton's plans would increase taxes on high earners and reduce them on middle and lower classes. The committee calculates her new taxes would raise almost as much money as she is committing in new spending, leaving federal debt only $200 billion higher.
Proposals from Democratic nominee Clinton include a $275 billion infrastructure plan that she intends to pay for through corporate tax-law changes. She’s also suggested tax increases for the wealthy. The plans would inflate the debt by $200 billion over a decade, according to analysis from the non-partisan Committee for a Responsible Federal Budget. Trump, the Republican candidate, has made pledges including cutting taxes and spending as much as $500 billion on infrastructure. The proposals would boost the debt by $5.3 trillion, the Committee for a Responsible Federal Budget estimates.
The nonpartisan Committee for a Responsible Federal Budget estimates Clinton’s plan would increase spending by $1.65 trillion over a decade, mostly for college education, paid family leave, infrastructure and health-related expenditures. Her plan would raise the national debt by $200 billion.