Harris’ Economic Plans Benefit Working Families More Than Trump’s

Article Summary –

A simulation by the nonpartisan Penn Wharton Budget Model found that Donald Trump’s 2024 economic plans would add $4.1 to $5.8 trillion to the national debt over ten years, benefiting the wealthiest Americans significantly more than working families, whereas Kamala Harris’ plans would increase the debt by $1.2 to $2 trillion while benefiting lower- and middle-income families. Trump’s proposals include making permanent the 2017 Tax Cuts and further reducing corporate tax rates, resulting in minimal gains for low-income earners but substantial increases for the top 0.1%. Conversely, Harris’ policies, which include expanded child tax credits and increased corporate tax rates, would result in significant after-tax income increases for the lowest earners and a decrease for the top 0.1%.

A simulation by the nonpartisan Penn Wharton Budget Model at the University of Pennsylvania found that former President Donald Trump’s economic plans would increase the national debt by $4.1 trillion to $5.8 trillion over 10 years, primarily benefiting the wealthiest Americans. Vice President Kamala Harris’ plans would be more favorable for lower- and middle-income families, increasing the debt by $1.2 trillion to $2 trillion over the same period.

Trump’s campaign promises include making permanent the expiring portions of his 2017 Tax Cuts and Jobs Act, which reduced tax rates for the wealthiest while offering minimal savings or even tax hikes for lower-income families. He has also proposed additional tax cuts, including further lowering the corporate tax rate.

The model indicates that Trump’s proposals would result in an average after-tax income increase of $320 in 2026 for the lowest 20% of earners, $870 for the next-to-lowest 20%, and $1,740 for the middle 20%. The top 0.1% would see an increase of $376,910.

Harris has proposed policies targeting those earning under $400,000 annually, such as expanded child tax credits, increased earned income tax credits, financial support for first-time home buyers, and a higher corporate tax rate.

The Penn Wharton Budget Model projects that Harris’ plans would result in an average after-tax income increase of $2,355 in 2026 for the lowest 20% of earners, $2,260 for the next-to-lowest 20%, and $2,165 for the middle 20%. The top 0.1% would see their incomes decrease by $167,255.

During his 2016 campaign, Trump promised to eliminate the national debt and to cut taxes dramatically for middle-class Americans. However, his tax cuts did not materialize fully, and he left office in 2021 with an added $7.8 trillion to the national debt, about $23,500 per American.

President Joe Biden and Vice President Harris pledged in their 2020 campaign not to raise taxes on those earning under $400,000 — a promise they have kept — while working to reduce taxes for working families and the middle class.