Trump’s Tax and Spending Plans Compared to Kamala Harris

By David Lawder
WASHINGTON (Reuters) – Republican presidential candidate Donald Trump’s tax and spending plans would lead to more than double the new debt compared to Vice President Kamala Harris’s proposals, according to an estimate from the Committee for a Responsible Federal Budget (CRFB).

Key Findings from CRFB

• Trump’s Plans: Estimated to add $7.5 trillion to deficits over a decade. Low-end estimate: $1.45 trillion, high-end estimate: $15.15 trillion.
• Harris’s Plans: Estimated to add $3.5 trillion to deficits over the same period, with a low-end estimate of zero additional debt and a high-end estimate of $8.1 trillion.

Tax and Spending Promises

Donald Trump:

• Promises tax breaks, including extending the 2017 individual tax cuts and eliminating taxes on tips, Social Security, and overtime pay.
• Proposed revenue-raising measures primarily include increasing tariffs, which could generate $2.7 trillion.

Kamala Harris:

• Plans to increase the Child Tax Credit, add a $6,000 bonus for newborns, boost spending on child and elder care, and provide a $25,000 tax credit for first-time homebuyers.
• Plans to raise taxes on corporations and households earning $400,000 or more. These tax increases could raise $4.25 trillion.

Reactions to Estimates

• Harris’s campaign disagrees with CRFB’s estimates, asserting her plans would not add to deficits.
• Trump’s senior adviser criticized CRFB’s estimates, claiming the organization favored the 2017 tax cuts and supported the Biden administration.

Baseline Considerations

The CRFB’s estimates are based on the current-law baseline measured by the Congressional Budget Office, which anticipates a $22 trillion deficit increase over 10 years, including nearly $2 trillion for the 2024 fiscal year that ended on Sept. 30.