Trump's Proposed Tax Cuts Seen Raising US Debt
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 Brookings-Urban Institute Tax Policy Center.
While federal taxes would be lower for households across all income levels, the highest earners - the top 1 per cent and particularly the top 0.1 of 1 per cent - 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 US national debt would jump by as much as 80 per cent 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 Mr 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, Mr Trump proposed making the US tax code simpler and a one-time levy on the overseas earnings of US companies. He promised he would cut the top tax rate for all businesses to 15 per cent from the present 35 per cent.
"The policy speaks for itself and many experts including [economist and media commentator] Larry Kudlow have praised the plan since its release in September," Mr 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.
Mr 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 December 18. His next-closest rival, Senator Ted Cruz, has support from 17 per cent of the party.
