Republican presidential candidate Donald Trump's economic plans could significantly swell federal deficits by $5.8 trillion over the next decade, a figure nearly five times higher than the $1.2 trillion increase projected under Vice President Kamala Harris's proposals.
The estimates come from new analyses by the nonpartisan Penn Wharton Budget Model.
According to the analysis, Trump's plan to permanently extend the 2017 tax cuts would add more than $4 trillion to the deficit over 10 years.
His proposal to eliminate taxes on Social Security benefits carries a $1.2 trillion cost, while his pledge to further reduce corporate taxes would contribute nearly $6 billion.
On the other hand, Harris's plan, which includes expanding the Child Tax Credit, Earned Income Tax Credit, and other tax benefits, is expected to increase deficits by $2.1 trillion over the next decade, CNBC reported.
Her proposal for a $25,000 subsidy for qualifying first-time homebuyers would add $140 billion.
However, raising the corporate tax rate from 21% to 28%, as Harris has suggested, could offset these costs by generating $1.1 trillion in revenue.
Harris has also expressed support for the $5 trillion in revenue-generating measures outlined in President Joe Biden's 2025 fiscal year budget, though these initiatives would require congressional approval.
In contrast, Trump has proposed imposing a 10% tariff on all imports and a 60% tariff on Chinese imports, policies he claims would boost long-term domestic growth without needing congressional approval.
Moody's Chief Economist Mark Zandi estimates that Trump's tariffs would likely generate only $2.5 trillion, far short of covering the costs of his economic agenda. Economists also warn that such aggressive tariff policies could reignite inflation just as it begins to cool.
As the 2024 campaign heats up, both the Trump and Harris camps are vying to portray the other's economic policies as a threat, seeking to win over voters burdened by the high cost of living.
"Donald Trump's Project 2025 economic agenda is an inflation and deficit bomb that makes the middle class pay more and the rich pay less," Harris campaign spokesperson James Singer said.
Trump campaign spokesperson Karoline Leavitt defended the former president.
She said: "President Trump is a businessman who built the greatest economy in American history, and certainly doesn't need economics lessons from the radical San Francisco liberal pushing Communist price controls."
