Even Fox News Can't Ignore That GOP Tax Plans Would Add Trillions Of Dollars To The National Debt
Video ››› ››› MEDIA MATTERS STAFF
From the November 5 edition of Fox News' Shepard Smith Reporting:
Loading the player reg...
SHEPARD SMITH (HOST): The Republican presidential candidates have started rolling out their different tax proposals for the economy. And most of them agree, predictably, that it's time for the government to start cutting taxes. But economists say while some of those plans have the potential to create some jobs and grow the economy, some of them could also drive up the country's debt to the tune of trillions of dollars. At the Tax Foundation, which is a non-partisan group, they recently stacked the different GOP tax plans against each other. And Fox Business Network's Peter Barnes has the results of that. Hello, Peter.
PETER BARNES: Well, hey Shep. When it comes to these Republican tax plans, it's the proverbial kitchen sink, from a 10 percent flat tax, to European-style consumption taxes. But all the candidates agree, personal and corporate taxes should be lower to jump-start economic growth. So far, the Tax Foundation has put out detailed analysis of seven plans that it says have provided enough detail for it to analyze, from Bush, Cruz, Jindal, Paul, Rubio, Santorum, and Trump.
KYLE POMERLEAU: This campaign's pretty exciting if you're a tax guy like me. Seven comprehensive proposals so far and perhaps some more as time goes on. I think the campaign is focusing now on the fact that our tax system is broken, needs reform.
BARNES: Here's a sampling of the plans. Jeb Bush reduced the seven current personal income tax brackets to three with the top rate of 28 percent instead of 39.6. He'd cap capital gains taxes at 20 percent and he'd cut the top corporate tax rate from 35 percent to 20 percent. Marco Rubio wants two personal tax brackets with a top tax rate of 35 percent. You'd pay no taxes on capital gains and investment gains with him. His corporate tax rate would be 25 percent. And for Donald Trump, there would be three brackets with a 25 percent top rate. Capital gains would be taxed at 20 percent and he wants a 15 percent top corporate tax rate. Now even assuming higher economic growth for all of these plans, the Tax Foundation estimates they'd add as little as $1.6 trillion more to the national debt in Bush's case, and as much as $10 trillion more to the national debt for Trump. Shep.
SMITH: Wait, Trump's tax plan adds $10 trillion to the national debt?
BARNES: Yeah, and the difference is with how many other deductions you eliminate, and he eliminates a whole lot more of them.