Daily Management Review

MarketWatch: Donald Trump Will Bring the US to Crisis


03/08/2016


MarketWatch’s financial columnist Brett Arends believes that the economic program of presidential candidate of the United States Donald Trump is a path that might lead to debt crisis. Basing on Congressional Budget Office calculations, US Tax Policy Centre and the US Internal Revenue Fund, he in his article tries to explain to the American electorate that Trump would be too expensive even for the largest economy in the world.



getty
getty
The plan for the tax cuts proposed by the Republican Party’s race leader Donald Trump means that the national debt of the country will be approximately $ 22 trillion by end of his first term in the US President’s office.

Today, the figure is $ 14 trillion, that is, it will grow by 57% in four years. This is based on official forecasts of the US Congress Office of the Budget, as well as on a simple mathematical analysis of US Tax Policy Center, and the same we can see in calculations of the US Tax Foundation.

Trump won the primaries - and now it's time to seriously consider his proposals and promises. Congressional Budget Office predicts increase in the national debt from $ 14 trillion to $ 18 trillion by 2021. However, the calculations show that the national debt will grow by $ 4.4 trillion on the background of Trump's proposals for tax cuts.

By the way, while the tax reduction will be applied to all sectors, no more than 1% of taxpayers, or even 0.1% will get the greatest benefits from this. Trump's army of fans, who sincerely believe that he intends to oppose the "elite", will be very surprised by this turn of events.

An average household with an average income can save about $ 2700 a year with Donald Trump. The average taxpayer from the 0.1% will save $ 1.3 million.

Trump said that the tax cuts would be possible by eliminating "embezzlements" and combat "frauds". However, this is not going to happen. Republicans had promised it in 1980 - and we're still waiting for it – it is clear even in Ronald Reagan’s memoirs.

Trump says that he is not going to cut basic benefits, such as, for example, social security allowance, but to sharply increase military spending instead - "so that no one dare to mess with us". He also intends to pay special attention to veterans. Fact: Two-thirds of the entire federal budget goes to defense, health care, social security and interest on the public debt of veterans.

source: marketwatch.com






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