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Analysis Shows Trump’s Fiscal Policies Added $8.4 Trillion To National Debt

A recent analysis by the Committee for a Responsible Federal Budget (CRFB) has found that various fiscal policies enacted during the Trump administration resulted in the addition of $8.4 trillion to the national debt over a 10-year budget window.

Financial Impact Of Tax Cuts

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The study sheds light on the significant financial impact of tax cuts, spending increases, and pandemic relief measures during the Trump presidency.

Tax Cuts And Pandemic Relief Contribute To Debt

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The CRFB’s study revealed that the breakdown of the $8.4 trillion added to the national debt includes discretionary spending increases between 2018 and 2019 accounting for $2.1 trillion., Trump’s Tax Cuts and Jobs Act adding $1.9 trillion and the bipartisan CARES Act for pandemic relief contributing another $1.9 trillion.

$3.6 Trillion Came From Covid Relief Laws

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The CRFB’s budget experts noted that of the $8.4 trillion, $3.6 trillion came from COVID relief laws and executive orders, $2.5 trillion from tax cut laws, and $2.3 trillion from spending increases. The remaining executive orders had costs and savings that roughly balanced each other out.

Tariffs As A Deficit Reduction Measure

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Interestingly, the report highlighted one significant deficit reduction measure during the Trump administration: tariffs imposed on various imported goods. These tariffs were estimated to generate $445 billion in revenue over a 10-year period.

Debate Within The Republican Party

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The financial impact of Trump’s fiscal policies has become a topic of debate within the Republican Party, particularly during the ongoing primary season.

Nikki Haley And Ron Desantis Criticism

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Figures like former U.N. Ambassador Nikki Haley and Florida Gov. Ron DeSantis, who recently withdrew from the race, have criticized Trump’s approach to deficit spending.

Trump Continues To Outperform Rivals

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Despite such criticism, Trump demonstrated strong support in the New Hampshire primary, outperforming Haley by over 10 percentage points. He remains a front-runner in the race for the GOP presidential nomination.

Biden Administration’s Fiscal Policies

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The analysis also pointed out that the Biden administration has enacted several pieces of legislation that expanded the deficit.

$256 Bn Semiconductor Policy

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These include an infrastructure bill adding $256 billion to the deficit and a bill aimed at boosting domestic semiconductor production, which added $79 billion.

Inflation Reduction Act Reduced Deficit

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However, the administration’s Inflation Reduction Act reduced the deficit by an estimated $200 billion to $300 billion.

Current State Of The U.S. Deficit And Debt

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The U.S. deficit swelled to over 130 percent of gross domestic product (GDP) in the wake of the pandemic but has since decreased to approximately 120 percent.

Higher Than Pre Pandemic

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This level remains significantly higher than the pre-pandemic range of 100 percent of GDP observed from 2012 to 2020.

Excessive Debt

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The national debt currently stands at around $34 trillion, and Republicans have emphasized the importance of addressing this issue by advocating for substantial spending cuts.

Partisan Disagreements

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Tensions and partisan disagreements over the debt and spending cuts have nearly led to a default on U.S. debt and government shutdowns in recent times.

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