The Committee for a Responsible Federal Budget ... shows Hillary Clinton is going to be 2.2 trillion dollars short for policies even though she's looking hike taxes 1.3 trillion dollars.
While it was thin on details, the new version of the Trump tax plan would add only about $3 trillion to the national debt over 10 years, according to the Committee for a Responsible Federal Budget.
But because Trump’s revised plan doesn’t cut taxes as sharply as he originally proposed, the nonpartisan Committee for a Responsible Federal Budget called it an improvement on his earlier plan.
Meanwhile, an analysis by the Committee for a Responsible Federal Budget found that Trump’s plan to repeal and replace Obamacare would cost nearly $550 billion over a decade and cause nearly 21 million people to lose health insurance coverage.
The Committee for a Responsible Federal Budget, a nonpartisan Washington, D.C.-based think tank, said the original proposal would lose $9.25 trillion to $11.6 trillion in tax revenue over a decade.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said Mr. Trump’s plan is better than what he offered during the Republican primary race, but she said the corporate tax cut alone would still leave a $2.5 trillion hole in the budget over 10 years.
"It's encouraging that Donald Trump appears to be modifying his tax plan," said Maya MacGuineas, president of the anti-debt Committee for a Responsible Federal Budget.
Financial Times: Trump pledges ‘tax revolution’ for US business
By Shawn Donnan, Barney Jopson and Sam Fleming in Washington
Donald Trump promised the biggest “tax revolution” since Ronald Reagan on Monday, pledging to cut taxes across the board and sharply reduce the load on businesses to stem a tide of US companies moving headquarters overseas.
In the most detailed account of his economic plans should he become president, the Republican nominee promised no American business would pay more than 15 per cent of their profits in tax, down from the current maximum of 35 per cent. He also pledged to levy a one-off 10 per cent tax on trillions of dollars in US corporate profits now parked overseas in a bid to lure them home.
The cut, he made clear, was aimed at overseas tax competition from countries like Ireland and the UK. The 15 per cent proposal echoed one made by George Osborne, the UK’s former chancellor of the exchequer following Britain’s vote in June to leave the EU.
“We are ready to show the world that America is back — bigger and better and stronger than ever before,” Mr Trump told the Economic Club of Detroit in a speech repeatedly interrupted by protesters.
Mr Trump’s speech, which included several pro-business policy initiatives long embraced by market-oriented Republicans, came after a tumultuous week which saw a number of mainstream party members seek to distance themselves from the nominee.
Party leaders have fretted that Mr Trump’s recent mis-steps, including toying with not endorsing Republican luminaries in re-election bids, have put internecine warfare at the forefront of the campaign and distracted attention from the weaknesses of Democrat Hillary Clinton.
Mr Trump attempted to refocus his firepower on Mrs Clinton by insisting her economic policies would lead to higher taxes and stifling regulations.
“If you were a foreign power looking to weaken America you couldn’t do better than Hillary Clinton’s economic agenda,” he said. “Every policy she has tilts the playing field to other countries at our expense.”
Mrs Clinton, who is due to deliver her own economic address in Michigan on Thursday, has offered an economic plan that would largely continue current policies, though like Mr Trump she has taken a harder line on trade.
Mr Trump’s move to lower business taxes would end the “job-killing corporate inversions and cause trillions in new dollars and wealth to come pouring into our country,” the New York businessman insisted.
The tax proposal came alongside a pledge to “cut regulations massively” on coal and other industries, and to unwind unfair trade deals unless they benefited the US economically. It drew a cautious welcome from a business community that has often been at odds with Mr Trump.
“It clearly is a sweeping proposal that would restore our international competitiveness,” said John Engler, the former Republican governor of Michigan who now heads the Business Roundtable, which represents US CEOs. “It is a growth proposal and we have been short on those in recent years.”
Reducing US corporate taxes, Mr Engler said, would in “one fell swoop” lead to the repatriation of profits now held overseas and end a pattern of so-called inversions. US companies have stirred huge controversy in recent years by using merger deals known as “inversions” to move their tax addresses to lower-tax jurisdictions including Ireland.
Kyle Pomerleau of the Tax Foundation, a right-leaning think-tank, said Mr Trump’s plan mimicked the approach that helped turn Ireland into a haven for multinationals hungry for tax savings.
“The experience of the Irish is that it encourages a lot of companies to locate their activities there, but it also encourages companies to shift profits there. If the US followed this model, companies would be encouraged to shift profits to the US instead out of the US.”
Inversions have drawn criticism from across the political spectrum. While establishment Republicans have blamed the American tax code for driving companies away, Mr Trump has joined Democrats by condemning company leaders for choosing to abandon the US.
With Congress deadlocked, the Obama administration has sought to use its executive powers to deter the deals. In April it succeeded in scuppering Pfizer’s planned $160bn takeover of Allergan, but last week the US Chamber of Commerce filed a lawsuit to block the administration’s moves.
But Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, warned that Mr Trump’s tax-cutting plans could backfire economically by radically driving up government debt. “It is not going to work to promote economic growth,” he warned.
Dorothy Coleman, Vice President of Tax and Domestic Economic Policy at the National Association of Manufacturers, said Mr Trump’s proposal for a 15 per cent corporate tax rate fell within what the association was seeking, but that more detail was needed from the campaign on how Mr Trump would tackle the fact that American companies are taxed on their global income.
“As with so many things in the tax world the devil is in the details,” she said. “We are pleased with a couple of those items that were in Mr Trump’s speech, but we really have to see the whole plan”.
If Donald Trump is elected president and Congress went along with all his proposals, federal debt held by the public would rise from 74 percent of GDP today to 129 percent of GDP in 10 years. Hillary Clinton, for comparison, would increase publicly held debt to 86 percent of GDP.
The nonpartisan Committee for a Responsible Federal Budget made debt projections using campaign proposals from many of the presidential primary contenders.
His current tax and spending proposals would greatly add to -- not subtract from -- the national debt: Federal debt would rise by an estimated $11.5 trillion in the first decade alone, according to an analysis by the Committee for a Responsible Budget.