Wednesday, April 13, 2016
Could Mr. Trump's Taxplan take plan get rid of the United State's debt?
The United States is currently $19 trillion in the hole. How would it be possible to decrease the debt?Would it be possibly to get rid of it all in eight years? The answer, like so many others is "its complicated". Mr. Trump arges that one way the United States could decrease its debt would be to sell its assets. The spokesperson for the Trump campaign, Barry Bennett, said that America would be able to accumulate as much as $16 trillion by selling its assets, government buildings and land and energy resources. This statement has been refuted by the US Government Accountablity Office, They state that the United States has only $3.1 trillion dollors in assests, not including natural resources or stewardship lands. This would also mean selling offshore oil at a loss hoping that the price will rise, though it has lost 70% since June of 2014.
Trump also contends that he will change the tax rate of Americans. He has said in the past that the new tax rates will be set from 0% to 25% for individuals and the corporate tax rate should be cut in half from 30% to 15%. According to Ron Haskins, of the Brookings Institute,"With Trump's tax plan there is no way we could get to a balanced budget in eight years," Mr. Trump has put forth that his tax plan will not hike up the debt as the new loss of funds that will go to the government will be more than made up for with the clossing of loopholes. Experts argue that the government will loss as much as $9.5 -12 trillion dollors. Mr Trump has also said that he will not touch Social Security or Medicare, the two most expensive government programs, so where will the money to pay for all that come from? Mr Trump has argued this can be done by cutting $300 billion dollors in prescription drug costs. He also has said that he will lessen the strain on Medicare by creating jobs and getting people off of it. However, most people who are already on Medicare are already in low income occupations. It is unlikly that Mr. Trump's plans will decrease the debt.
http://www.bbc.com/news/business-35974537
https://www.washingtonpost.com/news/post-politics/wp/2016/01/22/former-carson-campaign-manager-barry-bennett-is-quietly-advising-trumps-top-aides/
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Definitely interesting to read, one of Trumps main focuses seems to be on "tax safe havens" and offshore accounts. I think selling US assets is completely irrational of an idea, but he is probably right, it probably would add up to a lot. Most likely not 16 trillion but more than 3, i think one of the main reasons we keep adding up on our debt is because places like China keep buying it. They buy hundreds of billions of dollars in treasury bonds every year from the US and i think we see it as a sign that we can keep working up the deficit. Hopefully this year with the economic trouble in China we can realize this outlook is coming to an end. I think Trumps plan is the best from what I've seen. Giving away everything for free under Bernie Sanders won't be much better.
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