WASHINGTON — Kamala Harris is approving trillions of dollars in new tax revenue to fund it new policy plansand his campaign is attacking Donald Trump for not explaining how he’s going to pay for the multi-trillion dollar agenda he’s campaigning for.
Harris campaign spokesman James Singer called Trump’s agenda an “inflation and deficit bomb” in a statement to NBC News, prompting a campaign response that Trump blamed for the “Biden-Harris inflation tax.”
According to nonpartisan estimates, Harris proposes to spend about $2 trillion and raise tax revenues by $5 trillion over ten years. Trump is calling for about $5 trillion in tax breaks and spending, while raising less than $3 trillion in revenue through tariffs.
“Hands down, VP Harris has more fiscal discipline than President Trump,” said Mark Zandi, chief economist at Moody’s Analytics.
“This is a clear signal that they plan to be fiscally disciplined, regardless of what the policies are,” he said. “And it’s a bit of a cheat. “Historically, being fiscally disciplined and focusing on budget deficits has been a Republican rallying cry.”
A Harris campaign spokesman said the White House supports $5 trillion in new tax revenue. budget released in March, including a raising the corporate tax rate From 21% to 28%, Trump is ending tax cuts for higher earners next year and a number of taxes on wealthier Americans.
Harris’ plans to lower housing, child care and prescription drug prices would cost about $1.7 trillion. according to A research group calling on the Committee for a Responsible Federal Budget to cut the red ink.
Zandi agreed with that estimate, saying Harris’ new plans would cost $1.5 trillion to $2 trillion before offsets.
“So he needs to reduce the deficit by at least $3 trillion over a 10-year budget horizon,” he said. “I can’t remember a deficit reduction package that even came close to that.”
Harris is trying to flip the script on fiscal responsibility and build an enabling structure for Trump-skeptic moderate Republicans and center-right voters to support his candidacy, especially in key states that could be decisive. He rejected some of the left-wing proposals he endorsed as a 2019 presidential candidate, such as Medicare for All and the Green New Deal.
Marc Goldwein, chief policy director of the Committee for a Responsible Federal Budget, cautioned that the Harris campaign has not earmarked the full $3 trillion for deficit reduction.
“They also mentioned that they would have plans for childcare, long-term care, paid leave,” she said.
And he noted that Trump’s extension of tax cuts for lower earners in 2025 will also affect those who increase his income.
“We haven’t seen the full plan yet,” he said.
Trump claims a “huge increase” will pay for his expensive cops
Meanwhile, Trump and his campaign have called for extending tax cuts in 2017, as well as eliminating Social Security payroll taxes. tax reduction on tips and increasing the child tax credit to $5,000.
Combined, his plans would cost about $5 trillion, Zandi said.
Asked how he would pay for his plans in Las Vegas on Friday, Trump told reporters: “Development. We will get a huge increase. We will get a huge increase.”
Goldwein said it was not a serious offer.
“Great growth sounds like a great idea! I don’t know why we didn’t do this in all previous administrations,” he said. “But no, you’re not going to develop a way out of it.”
Trump’s one big proposal to raise revenue for the government is to impose new taxes on imported goods – a 10% tariff worldwide and a 60% tariff on Chinese imports. Zandi predicted that it would generate up to $2.5 trillion in revenue. Tax Policy Center is estimated Trump’s tariffs will reduce US imports by 15%, bringing in $2.8 trillion.
Goldwein added that Trump’s tariffs and mass deportation policies could dampen growth, although some of his proposed tax breaks are good for economic growth.
“As a starting point, if you look at his entire agenda, the direction is not even clear. It can be a pro-growth or anti-growth development,” he said. “But the scale will certainly not grow to the point where it will involve trillions and trillions and trillions of dollars of additional debt.”
Whoever wins the election is Congress headed for a big tax debate next yearMost of Trump’s 2017 tax cuts will expire at the end of 2025. It is not clear which parts will be extended.
The Harris campaign calls Trump’s plans an “inflation and deficit bomb.”
Singer predicted that higher deficits under Trump’s plans would ultimately be paid for by ordinary Americans.
“Donald Trump will not pay for his agenda, but the middle class will: with higher spending, cuts to Social Security and Medicare, and less economic opportunity,” Singer said in an email. In contrast, Harris will “make billionaires and big corporations pay their fair share while building the middle class,” he said.
In response, Trump campaign spokeswoman Caroline Leavitt accused the Biden-Harris administration of “reckless spending” and said, “America is facing an inflationary spending problem, not an income problem.” He noted that Trump will try to strengthen the United States oil production and exports, even as they arrive all time highs Under the Biden administration.
“President Trump will reduce wasteful government spending and turn America back into a net exporter of energy … helping to balance our nation’s budget and pay down our growing debt,” Leavitt said.
Trump has mulled further tax cuts for individuals and businesses next year, which will boost his estimates of red ink.
Zandi said Trump’s 2017 tax cuts “boosted growth in terms of corporate investment” but “didn’t come close to paying for themselves” and extending them would add more red ink.
“There’s no way he’s going to get that kind of raise,” he said. “Deficit-financed tax cuts simply don’t pay for themselves.”