Kamala Harris’s economic program would increase the US national debt by $1.7 trillion

Harris did not disclose how they would finance the plan – the most likely option is tax increases, as reported by Fox News.

An organization focusing on the American budget states that a key part of Vice President Kamala Harris and Democratic presidential nominee’s newly released economic program would increase America’s growing national debt by $1.7 trillion – according to Fox News.

The program titled “Plan to Reduce American Family Costs” was made public on Friday when Harris introduced it during her presidential campaign. The program includes expansions of child tax credits, earned income tax credits, and health insurance premium subsidies under the Affordable Care Act set to expire at the end of next year. In addition, it would introduce a new $25,000 tax credit for first-time homebuyers, expand tax credits for affordable housing construction, establish a $40 billion housing innovation fund, and aim to reduce prescription drug prices through negotiations and increased transparency.

According to a quick analysis by the Committee for a Responsible Federal Budget (CRFB), these proposals would increase the federal budget deficit by $1.7 trillion over the next decade. This number would rise to $2 trillion if the temporary housing policy proposed by the vice president is eventually made permanent.

The think tank noted that although some details are missing from the brief released by the Harris campaign, “many of them are similar to proposals in the most recent budget of the Biden-Harris administration.”

Based on the data released by the Harris campaign, the CRFB’s analysis indicates that the total cost of the new tax credits and expenditures would be around $1.95 trillion in the financial years between 2026 and 2035 – which would increase to $2.25 trillion if the housing policy becomes permanent.

This amount would partly be offset by savings of approximately $250 billion from lower prescription drug costs, resulting in a $1.7 trillion increase in the deficit during this period. The most expensive element of the plan is the Child Tax Credit.

The Harris campaign did not disclose how they would finance the plan, with tax increases being the most likely option.