Donald Trump’s campaign released a white paper Monday defending his economic vision, describing his proposal as “fiscally conservative” and saying it will not add to the nation’s debt when combined with spending cuts.
Authored by University of California, Irvine economist Peter Navarro and private equity investor Wilbur Ross, the analysis said Mr. Trump offsets the estimated $2.6 trillion in federal revenue lost from his proposed tax cuts by rejiggering trade deals, reducing regulations, expanding energy production and cutting federal spending.
“The Trump economic plan is fiscally conservative,” the analysis says. “When properly scored, it approaches revenue neutrality and, with proposed budget savings, it achieves revenue neutrality.”
Fiscal hawks have warned that some of Mr. Trump’s policy plans would add to annual deficits, and the more than $19 trillion national debt.
The Tax Foundation estimated Mr. Trump’s promise to lower individual marginal tax rates and slice the corporate tax to 15 percent would reduce federal revenues by at least $2.6 trillion over a decade.
But the white paper from the Trump camp said the forecast fails to account for the additional revenues that would come from his push to reduce federal regulations, lift restrictions on energy production and reshape trade deals.
“Any analysis that scores the Trump tax cuts in isolation is incomplete and highly misleading,” the white paper says.
The analysis said the nation will recoup $1.74 trillion from renegotiating trade deals, close to $500 billion from reduced regulations and almost $150 billion from listing energy restrictions.
Mr. Trump also has vowed to bolster the military by lifting the so-called “sequester” caps on defense spending, and said he will not touch Social Security or Medicare, which are the two biggest drivers of federal spending.
The Committee for a Responsible Federal Budget has said Hillary Clinton’s policies would increase the debt by $200 billion over the next decade, and that Mr. Trump’s would increase it by $5.3 trillion.
The white paper said Mr. Trump’s economic plan is dramatically different than the plan put forward by Mrs. Clinton, which, the campaign said, “will inhibit growth.”
“It proposes higher taxes, more regulation, and further restrictions on fossil fuels that will significantly raise energy and electricity costs,” they said of Mrs. Clinton’s plan. “Clinton will also perpetuate trade policies and trade deals she has helped put in place that have led to chronic trade deficits and reduced economic growth.”
• Seth McLaughlin can be reached at smclaughlin@washingtontimes.com.
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