Trump’s Fiscal Policies Contributed $8.4 Trillion to National Debt, Analysis Shows

A recent analysis conducted by the Committee for a Responsible Federal Budget (CRFB) reveals that various fiscal policies implemented during the Trump administration resulted in an increase of $8.4 trillion to the national debt over a 10-year period. Impact of Tax Cuts on Finances

The study sheds light on the significant financial impact of tax cuts, increased spending, and pandemic relief measures introduced during Trump’s presidency. It was found that the breakdown of the $8.4 trillion added to the national debt includes $2.1 trillion from discretionary spending increases between 2018 and 2019, $1.9 trillion from Trump’s Tax Cuts and Jobs Act, and another $1.9 trillion from the bipartisan CARES Act aimed at providing relief during the pandemic. COVID Relief Contributes to Debt

According to the CRFB’s analysis, $3.6 trillion out of the total $8.4 trillion added to the national debt came from COVID relief laws and executive orders, while $2.5 trillion stemmed from tax cut laws, and $2.3 trillion resulted from increases in spending. Other executive orders had costs and savings that roughly balanced each other out. Notably, the report highlights one notable deficit reduction measure implemented during the Trump administration, namely tariffs imposed on imported goods that were projected to generate $445 billion in revenue over a decade. Republican Party’s Debate

The financial implications of Trump’s fiscal policies have become a topic of debate within the Republican Party, particularly during the ongoing primary season. Figures like former U.N. Ambassador Nikki Haley and Florida Governor Ron DeSantis, who recently dropped out of the race, have voiced criticism concerning Trump’s approach to deficit spending. Despite this critique, Trump received strong support in the New Hampshire primary, surpassing Haley by more than 10 percentage points. He remains a frontrunner in the competition for the GOP presidential nomination. Fiscal Policies of the Biden Administration

The analysis also highlights that the Biden administration has enacted several pieces of legislation that have expanded the deficit. For instance, the infrastructure bill has added $256 billion to the deficit, and a bill aimed at promoting domestic semiconductor production has contributed $79 billion. On the other hand, the administration’s Inflation Reduction Act has reduced the deficit by an estimated $200 billion to $300 billion. Current State of the U.S. Deficit and Debt

Due to the impact of the pandemic, the U.S. deficit peaked at over 130 percent of the gross domestic product (GDP). However, it has since decreased to approximately 120 percent.