A new analysis of Hillary Clinton’s tax plan offers no positive news for the Democratic presidential front-runner, projecting a 1 percent reduction in economic growth, fewer jobs and lower wages.
According to a study by the Tax Foundation released Tuesday, Clinton’s plans to hike taxes on high earners and on companies would likely reduce the number of full-time jobs by 311,000 over 10 years and reduce wages by 0.8 percent. Even though the proposal targets the wealthy, the decrease in growth will prompt after-tax income for all taxpayers to go down by 0.9 percent, the foundation study adds.
“Hillary Clinton’s plan would raise tax revenue by $498 billion over the next decade on a static basis,” the analysis says. “However, the plan would end up collecting $191 billion over the next decade when accounting for decreased economic output in the long run.”
The tax revenue gains come from increased individual income taxes, an increase in estate taxes and increased taxes on corporations. A capital gains tax increase is projected to actually lose revenue. (The Clinton plan estimates the nearly $500 billion revenue hike without taking into account the economic impact of the tax plan.)
“The slightly smaller economy would reduce wages, which would narrow the revenue gain from the individual income tax changes to about $173 billion and reduce payroll tax revenue by about $80 billion over the next decade,” the study further explains.
Part of Clinton’s plan would enact a 30 percent cap on itemized deductions — also known as the Buffet Rule — that allows investment income to go largely untaxed. Further, the plan includes a 4 percent surtax on those earning more than $5 million.
The Clinton campaign did not immediately respond to TheBlaze for comment on this story. But Clinton’s campaign website says the candidate wants to “reform our tax code so the wealthiest pay their fair share.”
“Hillary supports ending the ‘carried interest’ loophole, enacting the ‘Buffett Rule’ that ensures no millionaire pays a lower effective tax rate than their secretary, and closing tax loopholes and expenditures that benefit the wealthiest taxpayers to pay for her plan to make college affordable and refinance student debt,” the campaign website says.