Tax Foundation report finds Clinton’s tax hike plan also reduces GDP by 2.6 percent and wages by 2.1 percent
Hillary Clinton’s tax hike plan will lead to 697,000 fewer jobs according to a new analysis by the Tax Foundation released today. The Clinton plan will also reduce GDP by 2.6 percent and wages by 2.1 percent.
The Tax Foundation report states:
The plan would increase marginal tax rates on individuals and businesses, which would lead to a 2.6 percent lower level of GDP. The smaller long-run economy would also lead to lower levels of wages and full-time equivalent jobs.
The report notes the Clinton plan will cause “reduced incentives to work, save, and invest”:
These projections are what we estimate would happen at the end of a ten-year period and are compared to the underlying baseline of what would occur absent any policy change. For example, the U.S. real GDP will grow by 19.2% from 2016-2025, according to the Congressional Budget Office (CBO), if policy remains unchanged. We predict that the reduced incentives to work, save, and invest would reduce the end-of-period GDP by 2.6 percent below the level it would have been without the policy change.
The report, authored by Director of Federal Projects Kyle Pomerleau, also found that Clinton’s proposal for a crushing 65% Death Tax will “greatly reduce the incentive to save and invest.”
In contrast, the Trump tax cut plan creates between 1.8 and 2.2 million new jobs, increases GDP by between 6.9 percent and 8.2 percent, and increases wages by between 5.4 percent and 6.3 percent.
Clinton offers no income tax rate reduction for any individual or business. None. She also has refused to support serious structural reform of the U.S. tax code.