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Study Reveals Trump Administration Contributed $8.4 Trillion to National Debt

A recent study by the Committee for a Responsible Federal Budget (CRFB) has unveiled that the tax cuts and pandemic relief measures implemented during the Trump administration have resulted in a staggering $8.4 trillion increase in the national debt over a 10-year budget horizon.

The findings shed light on the fiscal impact of the policies enacted during that era.

Breakdown Of Debt Accumulation

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The CRFB study dissected the sources of the national debt increase, revealing that discretionary spending hikes from 2018 and 2019 contributed $2.1 trillion, President Trump’s signature Tax Cuts and Jobs Act added another $1.9 trillion, and the bipartisan 2020 CARES Act, aimed at pandemic relief, accounted for an additional $1.9 trillion.

Covid Relief, Tax Cuts, And Spending Increases

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Of the $8.4 trillion increase in debt attributed to the Trump administration, $3.6 trillion stemmed from COVID relief laws and executive orders, $2.5 trillion from tax cut laws, and $2.3 trillion from spending increases. The study noted that certain executive orders had costs and savings that largely offset each other.

Deficit Reduction Through Tariffs

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One notable aspect of the report highlighted that the Trump administration managed some deficit reduction through tariffs imposed on various imported goods.

These tariffs were estimated to generate $445 billion in revenue over a span of 10 years.

Debate Over Fiscal Policies

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The budgetary consequences of President Trump’s fiscal policies have become a focal point in the ongoing Republican primary.

Both former U.N. Ambassador Nikki Haley and former Florida Governor Ron DeSantis, who recently withdrew from the race, criticized Trump’s willingness to contribute to the deficit.

Trump Positioned To Secure His Third Gop Presidential Nomination

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While Haley remains in contention, Trump secured a significant lead over her in the New Hampshire primary and is positioned to secure his third GOP presidential nomination.

Biden Administration’s Fiscal Measures

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The Biden administration has also enacted legislation that expanded the deficit, including an infrastructure bill that added $256 billion to the deficit and a bill aimed at boosting domestic semiconductor production, which added $79 billion.

Impact Of Inflation Reduction Act

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On the other hand, the administration’s environmental and healthcare package, known as the Inflation Reduction Act, reduced the deficit by an estimated $200 billion to $300 billion.

Current State Of The U.S. Deficit

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Following the onset of the pandemic, the U.S. deficit surged to over 130 percent of the gross domestic product (GDP).

It has since subsided to approximately 120 percent, although this level remains significantly higher than the pre-pandemic range of around 100 percent of GDP observed from 2012 to 2020.

Focus On National Debt

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The U.S. national debt, which stands at approximately $34 trillion, has become a key concern for Republicans.

Since taking control of the House in January 2023, they have advocated for substantial spending cuts.

Partisan Disputes

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The nation experienced partisan disputes over the debt and spending reductions, almost resulting in a default on outstanding U.S. debt last summer, until an agreement was reached to raise the debt ceiling.

Threats of government shutdowns over deficit-related issues have also become more frequent in the divided Congress.

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