Study: Clinton's proposals would not significantly increase national debt

Study: Clinton's proposals would not significantly increase national debt

Campaign proposals from Democratic presidential candidate Hillary ClintonHillary Diane Rodham ClintonO’Malley tells Dems not to fear Trump FBI informant gathered years of evidence on Russian push for US nuclear fuel deals, including Uranium One, memos show Pelosi blasts California Republicans for supporting tax bill MORE would not significantly increase the debt levels projected under current law, the Committee for a Responsible Federal Budget (CRFB) said in a report Monday.

The former secretary of State’s proposals would cost $1.8 trillion over 10 years with interest and would be almost completely paid for by $1.6 trillion of offsets. The $200 billion gap may be more than fully covered by a corporate tax reform plan whose specifics have yet to be released, the CRFB said.

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Clinton’s spending proposals include her plans for debt-free college, expanding ObamaCare and increasing infrastructure spending. Her spending initiatives would largely be offset by tax increases on the wealthy.

The group was encouraged by the fact Clinton proposed specific offsets for her spending proposals.

“Paying for new initiatives is an important and necessary step to ensuring the nation’s fiscal health does not further deteriorate,” it said.

While Clinton would not substantially increase the debt over 10 years, she also would “keep debt at post-war record-high and rapidly growing levels,” the group noted.

The Congressional Budget Office estimates that publicly held debt will increase from 74 percent of gross domestic product (GDP) last year to 86 percent of GDP by 2026, and the CRFB said that would remain the case if Clinton’s proposals were enacted.

If Clinton were to provide full sequester relief for discretionary programs without offsets, debt would increase to 90 percent of GDP, the group said.

The candidate would have to propose additional tax increases and/or spending cuts to pay for rolling back sequestration and reducing the debt, which could be difficult given her pledge to not raise taxes on those making less than $250,000, the CRFB said.

“Even so, given that her proposals are largely paid for, it remains possible for Secretary Clinton to offer a viable deficit reduction plan, and we encourage her to do so,” the group said.

Unlike Clinton’s proposals, the proposals of fellow Democratic candidate Bernie SandersBernard (Bernie) SandersDe Blasio headed to Iowa to speak at political fundraiser Yes, spills happen — but pipelines are still the safest way to move oil Why sexual harassment discussions include lawmakers talking about Bill Clinton’s past MORE and Republican presidential candidates Donald TrumpDonald John TrumpO’Malley tells Dems not to fear Trump Right way and wrong way Five things to know about the elephant trophies controversy MORE and Ted CruzRafael (Ted) Edward CruzTexas Republicans slam White House over disaster relief request Dem rep: Trump disaster aid request is 'how you let America down again' Moore endorsements disappear from campaign website MORE would add trillions of dollars to the debt, the CRFB has found.

Over a decade, Sanders’s plans would increase the debt by $2 trillion to $15 trillion, Trump’s plans would raise the debt by $12 trillion to $15 trillion and Cruz’s plans would raise the debt by $12.5 trillion, the group estimates.