"Trump Budget Deficit Five Times Harris's... Securing Tax Revenue Is Key"

Bipartisan Research Group 'Penwatten Budget Model' Report
Trump $5.8 Trillion, Harris $1.2 Trillion

Former President Donald Trump's proposed budget is projected to cause a fiscal deficit five times larger than that of Vice President Kamala Harris's budget, according to an analysis.

According to a report released on the 26th (local time) by the Penn Wharton Budget Model (PWBM), a bipartisan research group at the Wharton School of the University of Pennsylvania, Trump's budget is expected to expand the federal fiscal deficit to $5.8 trillion over the next 10 years. This is approximately five times the size of the deficit caused by Vice President Harris's budget during the same period, which is $1.2 trillion.

[Image source=AP Yonhap News]

In Trump's budget, the "permanent tax cut" card he proposed was identified as the main culprit for the fiscal deficit. The fiscal deficit resulting from the permanent extension of Trump's 2017 corporate and income tax cuts was estimated at $4 trillion. Additionally, his pledges to exempt Social Security benefits from taxation and further reduce corporate taxes were estimated to increase the deficit by $1.2 trillion and $6 billion, respectively.

For Vice President Harris, the expansion of the child tax credit and earned income tax credit is expected to result in a $2.1 trillion deficit. Furthermore, her pledge to provide a $25,000 subsidy to new homebuyers is projected to add an additional $140 billion to the deficit. However, if the corporate tax rate is raised from the current 21% to 28% as Harris proposes, it is calculated that about $1.1 trillion of the deficit would be offset.

However, there are variables. Harris's proposed corporate tax increase requires congressional approval. In contrast, the tariff hikes that would increase revenue under the Trump administration can be implemented under the president's authority without congressional approval. Former President Trump has announced a 10% tariff on all imports and a 60% "bomb tariff" on Chinese imports. Mark Zandi, chief economist at Moody's, estimated that revenue generated from these tariffs could reach $2.5 trillion.

Former President Trump and Vice President Harris, both running in the upcoming November U.S. presidential election, are unveiling various tax cut proposals to attract middle-class voters while vigorously criticizing each other's economic policies. James Singer, a spokesperson for the Harris campaign, stated in a statement sent to CNBC, "Donald Trump's Project 2025 economic agenda is an inflation and deficit bomb that makes the middle class pay more and the wealthy pay less."

Trump campaign spokesperson Caroline Libby responded, "Trump is a businessman who built the greatest economy in American history, so he has no need to take economic lessons from the radical left pushing communist-style price controls."

CNBC noted, "Both the Trump and Harris camps are trying to attract voters tired of high living costs by portraying the opposing side as economically dangerous. In particular, the Harris camp is moving at a tremendous pace to advance its economic agenda, which is because voters feel a rosy nostalgia for the economic boom under the Trump administration before the pandemic."

Meanwhile, former President Trump announced that he has agreed to the first TV debate with Vice President Harris scheduled for the 10th of next month. ABC News will broadcast it live, and the debate rules will be similar to the CNN debate previously held with President Joe Biden, where candidates stand and are not allowed to carry pre-written scripts or notes.

This content was produced with the assistance of AI translation services.