{"id":2331842,"date":"2024-08-27T15:01:02","date_gmt":"2024-08-27T19:01:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-economic-agenda-would-increase-deficit-by-more-than-4-trillion-analysis-washington-examiner\/"},"modified":"2024-08-27T15:06:27","modified_gmt":"2024-08-27T19:06:27","slug":"trump-economic-agenda-would-increase-deficit-by-more-than-4-trillion-analysis-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-economic-agenda-would-increase-deficit-by-more-than-4-trillion-analysis-washington-examiner\/","title":{"rendered":"Trump economic agenda would increase deficit by more than $4 trillion: Analysis &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrump-economic-agenda-would-increase-deficit-by-more-than-4-trillion-analysis-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2331842&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Former President Donald Trump&#8217;s economic proposals, including tax cuts and\u200c spending plans, are projected to \u2063increase the federal deficit \u2063by over $4 trillion over the next decade, according\u2062 to a new analysis from the Penn-Wharton\u200b Budget Model at the University of \u2063Pennsylvania. The analysis indicates that Trump&#8217;s tax cut proposals could reduce government revenue\u2062 by approximately $5.8 trillion. \u200b <\/p>\n<p>Key aspects of Trump&#8217;s agenda include extending individual and business tax cuts from the 2017 Tax Cuts and Jobs\u200d Act (TCJA), \u200celiminating taxes on Social \u2062Security \u2063benefits, and lowering\u2064 the corporate tax rate from 21% to 15%. Collectively, these\u2062 proposals contribute significantly to the anticipated deficit \u200bincrease: extending the TCJA would add $3.4\u200c trillion,\u200c eliminating Social Security taxes would contribute $1.2 trillion, and lowering the corporate tax \u200crate would\u200b account\u2063 for\u200c $595 billion.<\/p>\n<p>While the analysis forecasts GDP growth in the short term, it warns of a potential long-term decline in GDP, with projections indicating a drop of 0.4% \u2063by\u200b 2034 and 2.1% over 30 years. The report notes that while households across various income levels may benefit in the near term from the \u2062proposed\u200c tax \u2064cuts, the debt burden \u2064would \u200dultimately fall on future\u200c generations.<\/p>\n<p>Additionally, not\u200d all elements of Trump&#8217;s economic agenda were fully analyzed; some\u2062 proposals,\u200c such as a 10% tariff on imports\u200d and tax treatment of tips, require\u200b further detail for \u2062a comprehensive assessment. As economic issues dominate the campaign trail for Republicans, the urgency to\u2062 renew\u200d expiring TCJA provisions is emphasized, especially given\u2063 the implication of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/american-households-owed-hundreds-of-billions-more-than-usual-this-tax-season-report-says\/\" title=\"American Households \u2018Owed Hundreds Of Billions More Than Usual\u2019 This Tax Season, Report Says\">potential tax increases<\/a> for middle-class voters if these provisions expire.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Trump economic agenda would increase deficit by more than $4 trillion: Analysis<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1737034\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Former President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\" target=\"_blank\" rel=\"noopener\" title>Donald Trump&rsquo;s<\/a> tax and spending proposals would increase the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/deficit\" target=\"_blank\" rel=\"noopener\" title>deficit<\/a> by more than $4 trillion over the next decade, according to a new analysis.<\/p>\n<div class=\"article-paywall\">\n<p>Trump&rsquo;s plans for <a href=\"https:\/\/www.washingtonexaminer.com\/wp-admin\/post.php?post=3135479&amp;action=edit\" target=\"_blank\" rel=\"noopener\" title>tax<\/a> cuts would see revenues fall by $5.8 trillion over the next decade, according to the estimate from the Penn-Wharton Budget Model, a group housed at the University of Pennsylvania&rsquo;s business school that analyzes the fiscal effects of public policies. Under current law, the government is supposed to take in about $63 trillion in revenues, <a href=\"https:\/\/www.cbo.gov\/publication\/60039\" target=\"_blank\" rel=\"noopener\" title>according to<\/a> congressional projections.<\/p>\n<p>On a dynamic basis, though, meaning an analysis that takes into consideration the added economic growth from the tax cuts, deficits are forecast to increase by $4.1 trillion.<\/p>\n<p>Among the economic proposals that were modeled is Trump&rsquo;s call to extend expiring individual and business portions of his 2017 Tax Cuts and Jobs Act, better known as the Trump tax cuts. He also wants to eliminate taxes on Social Security benefits and has proposed lowering the corporate tax rate from 21% to 15%.<\/p>\n<p>&ldquo;Permanently extending the expiring individual income tax provisions of TCJA would add $3.4 trillion to deficits (before interest costs) over the next ten years,&rdquo; the report says. &ldquo;Restoring the original TCJA regime for taxing business investment adds another $623 billion to increase the total cost of TCJA extension to more than $4 trillion.&rdquo;<\/p>\n<p>Trump recently floated the idea of eliminating taxes on Social Security benefits for seniors. Seniors receiving Social Security income pay taxes on 50% of their income from the program, and in some cases, as high as 85% if their combined income from other sources pushes them above a certain threshold.<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-i-have-the-strongest-first-year-economic-track-record-of-any-recent-president\/\" title=\"Biden: I Have the &#039;Strongest First-Year Economic Track Record&#039; of Any Recent President\">budget model found<\/a> that the additional cost of eliminating taxes on Social Security benefits is $1.2 trillion over the decade and the additional cost of lowering the corporate tax rate to 15% would be $595 billion.<\/p>\n<p>The report found that the Trump economic agenda would increase <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-official-trump-crushes-record-for-largest-gdp-increase-in-us-history-3rd-quarter-gdp-up-33-1\/\" title=\"IT&#039;S OFFICIAL: Trump Crushes Record for Largest GDP Increase in US History -- 3rd Quarter GDP Up 33.1%\">gross domestic product<\/a> growth from the baseline over the coming 10 years, although, in 2034, GDP is forecast to fall by 0.4% and would fall by 2.1% in 30 years.<\/p>\n<p>&ldquo;Low, middle, and high-income households in 2026 and 2034 all fare better under the campaign proposals on a conventional basis,&rdquo; the report says. &ldquo;These conventional gains and losses do not include the additional debt burden on future generations who must finance almost the entirety of the tax decreases.&rdquo;<\/p>\n<p>But not all of Trump&rsquo;s economic agenda was examined by the Penn-Wharton model. The forecast didn&rsquo;t include the idea of imposing 10% across-the-board tariff on all imports or Trump&rsquo;s push to not tax tips earned by servers and bartenders. That is because a significant number of additional details about the plans would be needed to sufficiently model their long-run economic footprint.<\/p>\n<p>The economy has been the biggest matter on the campaign trail. Republicans are pushing to win Congress and the White House in order to renew expiring provisions of the Trump tax cuts. A large chunk of middle-class voters would experience tax increases if the 2017 law is allowed to completely expire.<\/p>\n<p>Budget hawks have raised concerns about the policy proposals of both Republicans and Democrats and have warned that further increasing the national debt and deficits could put the United States on a precarious fiscal footing.<\/p>\n<p>Last month, the total national debt <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3102882\/national-debt-35-trillion-us-fiscal-reckoning\/\" target=\"_blank\" rel=\"noopener\" title>hit the milestone<\/a> of $35 trillion.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>Debt held by the public, which is separate from the national debt in that it excludes intragovernmental holdings of federal debt, is predicted to rise from 99% of gross domestic product this year to 122% of GDP by 2034, according to the Congressional Budget Office.<\/p>\n<p>The Medicare trust fund&nbsp;<a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/2993177\/social-security-trust-fund-exhausted-2035-medicare-2036-trustees-project\/\" target=\"_blank\" rel=\"noreferrer noopener\">is forecast to be exhausted<\/a>&nbsp;in 2036, and the combined Social Security trust fund will become exhausted in 2035, the program&rsquo;s trustees projected in May.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1737034\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1737034\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a recent analysis, former President Donald Trump&#8217;s tax and spending proposals are projected to raise the deficit by over $4 trillion in the next ten years. The Penn-Wharton Budget Model estimates that his tax cut plans would result in a revenue decrease of $5.8 trillion during this period. Current congressional projections indicate that the government is expected to generate approximately $63 trillion in revenues under existing laws. However, when accounting for potential economic growth from these tax cuts, deficits are anticipated to rise by about $4.1 trillion.<\/p>\n<p>Among the proposals analyzed is Trump&#8217;s suggestion to extend certain individual and business provisions from his 2017 Tax Cuts and Jobs Act (commonly referred to as the Trump tax cuts). He also aims to eliminate taxes on Social Security benefits and reduce the corporate tax rate from 21% to 15%. The report states that permanently extending expiring individual income tax provisions would add around $3.4 trillion to deficits (excluding interest costs) over ten years, while reverting business investment taxation back to its original TCJA structure would contribute an additional $623 billion, bringing the total cost of extending TCJA provisions above $4 trillion.<\/p>\n<p>Trump has recently proposed removing taxes on Social Security benefits for seniors, who currently pay taxes on up to 85% of their income from this program based on their overall earnings. The budget model estimates that eliminating these taxes would cost an additional $1.2 trillion over a decade, while lowering the corporate tax rate could add another $595 billion.<\/p>\n<p>The report indicates that Trump&#8217;s economic agenda may boost GDP growth compared with current projections over the next ten years; however, it predicts a decline in GDP by 0.4% in 2034 and by 2.1% after thirty years. It notes that households across all income levels could benefit under these campaign proposals based on conventional analyses but does not account for future debt burdens resulting from financing significant tax reductions.<\/p>\n<p>Notably, not all aspects of Trump\u2019s economic plan were evaluated by Penn-Wharton; key elements like imposing a universal tariff or exempting tips earned by service workers were excluded due to insufficient details needed for long-term modeling.<\/p>\n<p>Economic issues have been central during campaigning as Republicans aim for control of Congress and the White House with hopes of renewing expiring parts of Trump\u2019s tax cuts\u2014failure which could lead many middle-class voters facing higher taxes if those laws lapse entirely.<\/p>\n<p>Concerns have been raised regarding both Republican and Democratic policy proposals potentially exacerbating national debt issues; last month marked a significant milestone with total national debt reaching $35 trillion. Publicly held debt is expected to increase from 99% of GDP this year up to 122% by 2034 according to Congressional Budget Office forecasts, while Medicare&#8217;s trust fund is projected deplete by 2036 and Social Security&#8217;s combined trust fund may run out as early as 2035 according its trustees&#8217; May report<\/p>\n","protected":false},"author":3360,"featured_media":2331843,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/trump-deficit.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[39433,35559,3634],"class_list":["post-2331842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-deficit-increase","tag-economic-agenda","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/trump-deficit.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2331842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2331842"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2331842\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2331843"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2331842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2331842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2331842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}