New York – Republican presidential hopeful Donald Trump’s tax proposal would cut taxes for households and businesses but would significantly raise the national debt, according to an analysis by the centrist Brookings-Urban Institute Tax Policy Center.
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While federal taxes would be lower for households across all income levels, the highest earners – the top 1 percent and particularly the top 0.1 of 1 percent – would reap the largest rewards, according to the analysis, which was released on Tuesday.
The plan would reduce federal revenues by $9.5 trillion in its first decade and the U.S. national debt would jump by as much as 80 percent of the country’s gross domestic product by 2036, which could drag on growth, the analysis found.
“It’s just gaping holes in the budget,” Roberton Williams, a senior fellow at the Tax Policy Center, said of Trump’s plan. “You can’t really cut revenues as much as the plan would do and still have a functioning government that still looks anything like the government we have right now.”
In September Trump proposed making the U.S. tax code simpler and a one-time levy on the overseas earnings of U.S. companies. He promised he would cut the top tax rate for all businesses to 15 percent from the present 35 percent.
“The policy speaks for itself and many experts including [economist and media commentator] Larry Kudlow have praised the plan since its release in September,” Trump spokeswoman Hope Hicks said in an email.
Republican presidential candidates have laid out a variety of tax proposals, particularly touting the various ways they can lower tax rates for households and businesses.
Trump, a billionaire real estate developer and reality television star, remains the front runner for the Republican nomination for the November 2016 presidential election. He has emphasized his business acumen as among his top credentials for the White House, pointing to his success in making money as a sign that he can boost the world’s biggest economy.
He currently has support from 31 percent of his party in a five-day rolling poll from Reuters/Ipsos dated Dec. 18. His next-closest rival, Senator Ted Cruz, has support from 17 percent of the party.
For more on the 2016 presidential race, see the Reuters blog, “Tales from the Trail”
The thing their assuming is that the Government would stay the same
Trump is a businessman, if he is what he is all trumped up to be, he would get rid of most of the waste ….and walla your problem is solved
Wow, the entire establishment is so afraid of Trump. The media, the dems, the repubs, yet the people want him.
That’s if you don’t take in to account cuts.
Any republican will cut
If ObamaCare was appealed the deficit would probably turn into a surplus.
The total federal debt now tallies almost $19 trillion.
Just seven years ago when President Obama took office, total debt stood at $10.6 trillion, which means it now has increased by more than $8 trillion—roughly 80 percent—during his tenure as president.
Thanks O
The media portrays the trump plan as a disaster because it goes on the assumption that we aren’t going to cut funding to this bloated government. Reducing taxes and increasing fiscal responsibilities is a recipe that we will all enjoy.
The more the media tries to ‘scare’ Americans from Trump, the more we love him. We don’t trust the media (anymore). The same media (Washington Post, etc., etc.) who is so “caring and sensitive” publishes a cartoon with Cruz’s children as monkeys…. (This is the same media that gave Hussein O’ a complete pass on the national debt.) >>>GO TRUMP! ….and Hillary for Prison-2016 (if not sooner)!
Watch people pull their businesses out of this country!!
If you wish to read nonsense, read any Democratic or Republican politician’s commentaries on anything Trump says. The establishment–Republican or Democrat–really hate outsiders. Buddha, Muhammad, Christ or anyone “outside” the established order frightens those who are profiting from the status quo. Look at what Trump says, not what they say he says. And no, I am not saying he is Buddha, Muhammad, Christ or anyone but Trump.
We can only hope and pray that when he is elected he will completely eliminate ALL food stamps, WIC, medicaid and section 8 housing subsidies. It would be a quick and efficient way for him to balance the budget at the expense of parasites who don’t work!