Plan would lower GDP by 2.6 percent, lower wages, and eliminate 697,000 jobs.
Hillary Clinton’s tax proposals would increase taxes by $1.4 trillion over the next decade and would reduce the growth of the economy by 2.6 percent, according to an analysis from the Tax Foundation.
Since January when the Tax Foundation first scored Clinton’s tax plan, Clinton has introduced a number of new taxes on individuals and businesses. At that time, the Foundation estimated that her plan would raise taxes by $498 billion over the next decade and would reduce gross domestic product by 1 percent.
“The majority of her proposals raise taxes directly on high-income taxpayers,” the Foundation said in a new report. “Her plan would enact a new surtax on taxpayers with incomes above $5 million, a 30 percent minimum tax (the Buffet Rule), a limit on itemized deductions to a tax value of 28 percent, and an estate tax increase to a top rate of 65 percent for estates worth $1 billion or more.”
“She would also enact a number of targeted tax policies that would impact businesses, such as a new ‘financial risk’ fee on large banks, the elimination of tax expenditures related to the fossil fuel industry, and several tax cuts for small businesses,” the analysis said.
One of the most significant changes to Clinton’s proposals since January is the expansion of the Child Tax Credit, which provides an additional $1,000 credit for children under the age of five.
She has also expanded her estate tax proposal by taxing larger estates progressively up to a top rate of 65 percent. Even though Clinton supports imposing an estate tax on others, she has shielded herself from paying these types of taxes by using financial planning strategies.
Clinton’s proposals would increase taxes by $1.4 trillion over the next decade, most of which would come from individual income tax revenue that would account for about $817 billion. The estate tax increases would raise about $310 billion over the next decade, and increased corporate and payroll taxes would total about $300 billion.
According to the analysis, the Democratic nominee’s proposals would reduce the economy’s size by 2.6 percent, lower wages by 2.1 percent, and reduce the number of full-time jobs by 697,000.
Some of Clinton’s proposals were not included in the estimates because they were unclear.
“Throughout the campaign, Secretary Clinton has proposed several tax policies without indicating precisely how they would work,” the Foundation said. “It is unclear exactly how many of these policies would work, and slight differences in our modeling assumptions could significantly alter how these polices would impact taxpayers’ after-tax incomes, federal revenues, and the economy.”
“This report is further evidence of the clear choice for voters in this election,” said Jacob Leibenluft, Hillary for America’s senior policy adviser. “According to an independent analysis, Hillary Clinton’s plan would provide middle-class tax relief and pay for investments in good-paying jobs by requiring the wealthy, Wall Street, and large corporations to pay their fair share.”