Analysis finds Harris’ economic plans would help working families more than Trump’s
The Penn Wharton Budget Model estimates that former President Donald Trump’s proposals would boost income for the top 0.1% of earners by $376,910 in 2026.
A simulation of former President Donald Trump’s economic plans, conducted by the nonpartisan Penn Wharton Budget Model at the University of Pennsylvania, found that they would add between $4.1 trillion and $5.8 trillion to the national debt over 10 years while benefiting the wealthiest Americans more than working families. Its simulation of Vice President Kamala Harris’ plans shows those would be better for lower- and middle-income families and would increase the debt by less: between $1.2 trillion to $2 trillion over a decade.
Trump is running for president on a promise to make permanent the expiring portions of his 2017 Tax Cuts and Jobs Acts, which slashed tax rates for the wealthiest Americans while providing minimal savings or even tax hikes for everyone else. He has also proposed other tax cuts, including reducing the corporate tax rate even further.
According to the model, his proposals would result in an average increase in after-tax income of $320 in 2026 for those in the lowest 20% of earners, $870 for those in the next-to-lowest 20%, and $1,740 for those in the middle 20%. The top 0.1% would see an increase of $376,910.
Harris has proposed policies aimed at helping those earning under $400,000 annually, including expanded child tax credits, increases to the earned income tax credit, financial support for first-time home buyers, and an increase in the corporate tax rate.
The Penn Wharton Budget Model predicts that Harris’ plans would result in an average increase in after-tax income of $2,355 in 2026 for those in the lowest 20% of earners, $2,260 for those in the next-to-lowest 20%, and $2,165 for those in the middle 20%. The top 0.1% would see their incomes drop by $167,255.
During his 2016 campaign, Trump promised to completely eliminate the national debt and to massively cut taxes for middle-class Americans. Those tax cuts never materialized, and Trump left office in 2021 with about $7.8 trillion added to the national debt, roughly $23,500 for every American.
President Joe Biden and Vice President Harris pledged during their 2020 campaign not to raise taxes for anyone making under $400,000 — a promise they have kept — and have worked to cut taxes for working families and the middle class.
