Biden or Trump Debt Hikes by $ 5 trillion in 10 Years
Under Mr. Trump or Mr. Biden the proposed spending would push federal debt to 124 percent or 128 percent of gross domestic product respectively.
Americans elected new president but the approach to the debt management will not change that is will continue increasing during the next 10 years.
Mr. Trump would add $4.95 trillion to the federal debt held by the public over the next decade compared to Mr. Biden’s $5.6 tril- lion, according to the study by the nonpartisan Committee for a Responsible Federal Budget.
“These folks are making a lot of promises that would be very expensive if additional pay-fors are not mentioned,” said Marc Goldwein, the group’s senior vice president.
The president would spend roughly $2 trillion on infrastructure, at least $1.3 trillion on tax cuts, and $650 billion on the U.S. military and the Space Force.
President would spend mainly on infrastructure, the US military,
tax cuts and the Space Force
Those expenses would be offset partly by more than $500 billion in savings from ending “endless wars” and $150 billion in savings from cutting prescription drug prices and other health care changes.
Mr. Biden wants to spend $3 trillion on climate change and environmental initiatives, $2.7 trillion on child care and education, including universal pre-K and higher education spending, and $1.9 trillion to expand health insurance coverage, among his big-ticket items.
Mr. Biden would offset that partly by raising taxes by more than $4 trillion and ending wars in the Middle East, generating $550 billion in savings.
He has vowed that people making less than $400,000 per year would not see their taxes increase under his plan.
“Tens of millions of middle-class families are going to get a tax cut when they need it most,” he said during campaign.
Mr. Biden would mostly spend on on climate change and environmental initiatives,
and on childcare and some sectors of the public education.
The Committee for a Responsible Federal Budget did not factor in additional spending on the Wuhan virus pandemic in its analysis.
“Biden supports much more spending, with more taxes,” Mr. Goldwein said. “The politics of saying we are going to increase taxes or cut spending just for the sake of helping our future is sometimes tough, but I do think we [can] at least expect candidates to put forward ways to pay for their own plans.”
Mr. Biden policies would cost about $6 trillion in 10 years
In another new analysis, the James Madison Institute projected that Mr. Biden’s economic policies would cost roughly $6 trillion over 10 years. That translates to an increased tax burden, on average, of at least $1,421 per taxpayer across the battleground states of Florida, Michigan, Ohio, Pennsylvania and Wisconsin, the think tank found.
Mr. Biden wants to increase the corporate tax rate from 21 per cent to 28 per cent and lift the top individual tax rate from 37% to 39.6%.
Under his plan, 97 per cent of the tax increases would fall on the top 1 per cent of earners, according to new projections from the left-leaning Institute on Taxation and Economic Policy.
US Debt to GDP will hike to 142 per cent in 2040
Only 1.9 per cent of taxpayers will see their income taxes or payroll taxes rise under Biden’s plan, and they will certainly not be the Ameri- cans who face eviction, lack health insurance, and wonder when they can go back to work,” said Steve Wamhoff, director of federal tax policy at the institute.
Both Mr. Biden and Democratic vice presidential nominee Sen. Kamala D. Harris have talked generally about reversing the Republican 2017 tax cuts, which if repealed in their entirety would constitute a massive tax increase across the board, including on middle-class families.
CBO projected last month that under current law, federal debt held by the public would increase from 98 per cent in 2020 to 109 per cent by 2030 before spiking to 142 per cent in 2040 and 195 per cent by 2050.