Moody’s estimates Trump’s extended tax proposal would lead to a recession by 2025
CAP estimates Trump’s tariff plan would raise taxes for middle-income households by up to $8,300
Congressional Budget Office estimates Trump’s tax plan would cost $4 trillion over the next decade, add $4.6 trillion to deficit
DNC National Press Secretary Emilia Rowland released the following statement:
“Report cards are in and Trump’s MAGAnomics tax plan received straight F’s. Reports from Moody’s, the Congressional Budget Office, the Committee for a Responsible Federal Budget, and CAP showed that Trump’s MAGAnomics agenda would tank the economy and trigger a recession by 2025, cost $4 trillion over the next decade, add trillions to the deficit, and raise taxes for middle-income households by $5,100 to $8,300 in exchange for another handout to the top 0.1 percent. While Trump is hellbent on rigging the economy for himself and his billionaire donors at the rest of the country’s expense, President Biden and Democrats up and down the ballot are fighting to stop corporate price gouging and continue growing the economy from the bottom up and middle out.”
Today, 16 Nobel Prize-winning economists are worried Trump’s economic plans would reignite inflation and cause lasting economic harm.
Axios: “Sixteen Nobel prize-winning economists are jumping into the presidential campaign with a stark warning: Former President Trump’s plans would reignite inflation and cause lasting harm to the global economy if he wins in November.”
Moody’s recent report demonstrates how Trump’s MAGAnomics agenda will lead to slower growth and higher inflation — triggering a recession by 2025.
USA Today: “‘Biden’s policies are better for the economy,’ says Mark Zandi, chief economist of Moody’s Analytics. ‘They lead to more growth and less inflation.
“According to a Moody’s study, Trump’s plan would trigger a recession by mid-2025 and an economy that grows an average 1.3% annually during his four-year term vs. 2.1% under Biden. (The latter is in line with average growth in the decade before the pandemic.)
“Next year, under a Trump administration, inflation would rise from the current 3.3% to 3.6%, well above the 2.4% forecast under Biden, the Moody’s analysis shows. Compared with Biden, the U.S. would have 3.2 million fewer jobs and a 4.5% unemployment rate, a half percentage point higher, at the end of a Trump tenure.”
The Hill: “Republicans are getting ready to fast-track the extension of the Trump tax cuts through the reconciliation process if they win big in November. Nearly seven years after the GOP used budget reconciliation to pass the Tax Cuts and Jobs Act (TCJA), the party is gearing up to use the same maneuver to renew key provisions set to expire in 2026. While most legislation needs the support of 60 senators to avert a filibuster, budget reconciliation allows lawmakers to pass major tax and spending bills with a simple majority — and without bipartisan backing…
“While changes in business and corporate taxes from the 2017 tax law changed investment flows within the economy, it did not add substantially to economic growth.”
According to the Congressional Budget Office, permanently extending Trump tax cuts would cost taxpayers $4 trillion dollars over the next decade, adding $4.6 trillion to the deficit.
Senate Budget Committee: “According to the latest report by the nonpartisan Congressional Budget Office (CBO), extending the Trump tax cuts for the next 10 years—as Republicans have proposed—would add $4.6 trillion to the deficit.
“The report, written at the urging of Senator Whitehouse (D-RI), Chairman of the Senate Budget Committee, and Senator Wyden (D-OR), Chairman of the Senate Finance Committee, finds that the extension would cost $1.1 trillion more than previously estimated.”
Center for American Progress: “According to new estimates released today by the Congressional Budget Office (CBO), permanently extending the expiring provisions of the Trump tax cuts would cost $4 trillion over the next 10 years, $400 billion per year.* This includes $3.4 trillion from extending the expiring individual and estate tax provisions as well as $551 billion from extending business provisions.
[…]
“An extension would provide, on average, a larger tax cut for extremely rich households than for everyone else. Households with incomes of more than $500,000 per year—roughly the top 2 percent of households by income—would receive a larger tax cut than households making $200,000 per year, not just in dollars terms but also as a percentage of their after-tax income. And the households making $200,000 per year would receive a larger tax cut than those making $50,000 or less per year.”
Tax Policy Center: “CBO’s Latest Budget Estimates May Make Extending The TCJA More Complicated”
Trump’s latest tax scheme would raise taxes on middle-income Americans by up to $8,300 while giving the top 1% another handout.
Center for American Progress: “Trump’s latest idea to replace all income taxes with tariffs is mathematically impossible, but even if it were feasible, it would dramatically increase income inequality and raise taxes for the bottom 90 percent of households. It would raise taxes for middle-income households by $5,100 to $8,300 while cutting taxes for the top 0.1 percent by at least $1.5 million annually.”
President Biden’s administration is protecting consumers from price gouging.
Vox: “His administration has also tackled monopolies like it’s the Roosevelt era, filing a flurry of sweeping lawsuits against major companies, including four Big Tech companies, on the grounds that they are harming competition in their industries and, therefore, American consumers.”
Business Insider: “The Biden administration has launched investigations and antitrust lawsuits against several mega corporations, many in the tech sector, that it accuses of behaving like monopolies — and it’s setting him apart from his predecessors.”
U.S. Department of Health and Human Services: “Biden-Harris Administration to Make First Offer for Drug Price Negotiation Program, Launches New Resource Hub to Help People Access Lower-Cost Drugs”
President Biden’s economic plan lowered costs on everyday grocery items and increased food assistance programs including SNAP for families across America.
Biden-Harris Lowering Costs Agenda: “Providing the typical low-income family of four about $2,000 more for groceries each year by improving SNAP—lifting about 3 million people out of poverty, including 400,000 Black children, 350,000 Hispanic children, and 18,000 Asian American children—and launching Summer EBT for nearly 21 million children.”
White House ICYMI: “President Biden’s top economic priority is lowering costs for American families—including calling on grocery chains making record profits to lower prices. The President and his team have been meeting with CEOs and business leaders, including Target CEO Brian Cornell, to discuss the elevated costs that families face. Target, Walmart, and other grocery chains have begun to answer the President’s call to lower prices for household goods.”
Washington Post: “This week, Target announced it would lower prices on roughly 5,000 items, including staples such as milk, produce, bread and coffee, as well as diapers and pet food. The reductions will ‘collectively save consumers millions of dollars this summer,’ the company said in a news release. The White House — which has been pressing retailers to lower prices — took credit for the rollbacks, posting on X: ‘President Biden called on grocery chains making record profits to lower prices for consumers — and they’re answering the call.’”
President Biden is fighting to make housing more affordable for people of all ages.
White House Fact Sheet: “The President’s budget… Increases the Supply of Affordable Housing Financed by Existing HUD programs.”
“In addition, the Budget provides $931 million to support housing for older adults and $257 million to support housing for persons with disabilities.”
White House Fact Sheet: “President Biden is calling on Congress to pass a mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. This is the equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home, and will help more than 3.5 million middle-class families purchase their first home over the next two years.”
Biden-Harris Lowering Costs Agenda: “Their Administration is cutting mortgage insurance premiums and expanding rental assistance, and they are calling on Congress to help build more homes and lower costs for homebuyers and renters. Their plan will give more Americans a chance at the American Dream. Congressional Republicans voted to raise housing prices by cutting programs that increase affordable housing and provide assistance to renters.”
HuffPost: “Biden is eager to get credit for lowering housing costs, proposing a $10,000 mortgage relief tax credit for families making less than $250,000 a year during his State of the Union address.”
President Biden is delivering on student loan debt forgiveness and making child care more affordable.
Forbes: “The burden of student loan debt has reached crisis levels, disproportionately affecting students of color and amplifying the racial wealth gap. Now, President Biden’s latest step will help 125,000 borrowers by erasing $9 billion in debt through existing programs. This debt load is not distributed evenly across populations, it falls disproportionately on students of color and their families who are actively trying to close the racial wealth gap.”
Biden-Harris Lowering Costs Agenda: “Lowering child care costs for more than 100,000 lower-income families by capping costs at no more than 7% of their income, saving an average of $2,400 a year… Saved families $1,250 per child on child care by helping more than 225,000 child care providers that serve as many as 10 million children stay open during the pandemic.”
CNN: “About 4 million people have seen their federal student debt canceled under Biden, totaling about $144 billion.”
The Guardian: “Biden launches ‘most affordable ever’ student loan repayment plan”
Washington Post: “Biden administration cancels $1.2B in student loans with new repayment plan”
President Biden is cracking down on junk fees, making life-saving medications more affordable, and creating more good-paying jobs.
CNN: “More Americans can now get insulin for $35”
“Congress, the White House and new players in the market have increased pressure on insulin manufacturers to lower their prices. Eli Lilly and Sanofi announced that they would institute $35 caps shortly after President Joe Biden called on drugmakers to do so in his State of the Union address last year.
“Medicare enrollees now pay no more than $35 a month for each of their insulin prescriptions, thanks to the Inflation Reduction Act, which Democratic lawmakers pushed through Congress in 2022.”
U.S. Department of Health and Human Services: “As a result of negotiations, people with Medicare will have access to innovative, life-saving treatments at lower costs to Medicare and taxpayers.”
The Hill: “A surge in manufacturing construction across the country is grabbing the attention of economists and workers on the ground as legislative efforts to reinvigorate the U.S. industrial base are bearing fruit.”
Washington Post: “U.S. caps credit card late charges in new Biden crackdown on junk fees”
“The rules arrived as part of a suite of fresh federal efforts to promote competition and crack down on unfair or illegal pricing across the economy, which President Biden has blasted as one of the primary sources of rising costs facing American families over the past year.”
Yahoo News: “Under President Biden, however, a manufacturing boom finally seems to be getting started. Since the beginning of 2022, construction spending on new factories has more than doubled, from an annualized rate of $91 billion in January 2022 to $189 billion in April 2023, the latest data available. That’s the biggest jump, by far, in data going back to 2002.”
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