The Committee for a Responsible Federal Budget has estimated that Democratic presidential candidate Hillary Clinton’s proposals and Republican presidential candidate Donald Trump’s plan would increase the debt. The nonpartisan group said Clinton’s proposed spending increases are only partly paid for by revenue increases, which would cause a small increase in the debt. Trump’s proposals would significantly increase the debt primarily because of large tax cuts, according to the group.
One consequence of a victory by Donald Trump in the presidential election — were his policies to be basically translated into actions — would be a jump in interest rates. That’s according to an analysis conducted by Nomura’s Lewis Alexander, who looked at the impact on the economy based on proposals from Hillary Clinton and Trump. Drawing on estimates from the Committee for a Responsible Federal Budget, he assumes Clinton would lift spending by $1.6 trillion and increase taxes by $1 trillion over a decade, and Trump would lift spending by $1 trillion and cut taxes by $3 trillion over a decade.
The Navy has 276 ships and says it needs 306. Trump is going considerably farther, calling for an increase to 350, and also wants America to equip itself with at least 1,200 war planes, the number the Air Force says it needs. But, such a build-up is also extremely costly, and Trump needs now to explain how it will be paid for. While he proposed some offsets, Trump's plan would still cost about $150 billion according to the Committee for a Responsible Federal Budget.
In his speech, Trump outlined three major areas he would make savings to pay for his offsets -- cutting unauthorized appropriations, reducing improper payments and underpaid taxes, and shrinking the federal workforce through attrition. Later on Wednesday, the nonpartisan Committee for a Responsible Federal Budget said Trump's defense plan would cost roughly 450 billion dollars over the next 10 years, but his cost offset plans would only cover two-thirds of that sum.
The Sept. 2 Missing Debate essays [Washington Forum] were helpful comparisons of conservative and liberal views on the national debt. Maya MacGuineas’s essay, “The first step: Stop digging,” expressed great concern that the projected growth in the national debt will leave an excessive burden on the next generation. This is a common misunderstanding. In fact, the next generation, and all generations thereafter, will inherit not only the liability of the national debt but also the asset of the Treasury securities issued to the public to finance the debt. Thus, the asset offsets the liability, and the net burden is zero.
“As part of removing the defense sequester, I will ask Congress to fully offset the cost of increased military spending,”Mr. Trump said. “In the process we will make government leaner and more responsive to the public. I will ask that savings will be accomplished through common-sense reforms that eliminate government waste and budget gimmicks, and that protect, absolutely protect, hard-earned benefits for Americans.” The Committee for a Responsible Federal Budget estimated Mr. Trump’s offsets covered about $300 billion of the $450 billion price tag.
Donald Trump says he would restore hundreds of billions in military cuts, but it's unclear how he'd pay for it
Republicans in Congress have supported ending the military portion of the cuts, but have failed to strike a permanent deal with Obama because they do not want to also end other cuts in domestic spending, as Obama has demanded. If Trump wins and keeps a Republican Congress, he could accomplish the goal without restoring other domestic spending cuts. But it would add about $500 billion to the deficit over the next 10 years unless other cuts are made, according to the Committee for a Responsible Federal Budget, a fiscally hawkish think tank
Trump’s reforms would cost the U.S. government an estimated $150 billion over the next 10 years, according to an analysis by the Committee for a Responsible Federal Budget, a nonpartisan budget watchdog. That takes into account all of the offsets that Trump himself identified as means to pay for his policies. And that $150 billion estimate is, the group acknowledged, “generous” to the Republican nominee.
The nonpartisan Committee for a Responsible Federal Budget said that Donald Trump’s newly revealed defense spending plan would cost roughly $450 billion over the next decade, but his cost offset plans would only cover two-thirds of that sum. The CRFB report said Trump “outlines three major areas where he would generate savings to pay for his offsets – cutting unauthorized appropriations, reducing improper payments and underpaid taxes, and shrinking the federal workforce through attrition – though even generous estimates of these policies suggest they would only save about $300 billion over a decade. On net, this defense plan would cost $150 billion if additional offsets were not identified.”
Trump, who cited endorsements from 88 generals and admirals on Tuesday, called for increased defense spending and an end to the automatic series of congressional budget cuts known as "sequestration" in his Wednesday remarks, saying that would permit the financing of more submarines, ships and troops. The GOP candidate did not supply an overall cost estimate for his plans, though he said budget reforms and the collection of unpaid taxes would help finance them. The Committee for a Responsible Federal Budget reported that Trump's plans would cost $150 billion, even if his cost offsets materialize.