March 3, 2016

Hillary Clinton’s Trillion Dollar Tax Hike

Hillary Clinton has made a habit of moving to the left during this Democratic primary campaign. On issues such as trade and Keystone, Clinton has become more liberal to make herself more palatable to an electorate enthralled with Bernie Sanders. Clinton’s tax plan is no different.

Today the Urban-Brookings Tax Policy Center released an analysis of Hillary Clinton’s tax proposals. The analysis shows to no one’s surprise they found she wants to raise taxes by over $1 trillion:

“The Tax Policy Center estimates that the proposals would increase federal revenue by $1.1 trillion over the first decade and an additional $2.1 trillion over the subsequent 10 years”

The report also found that Clinton’s tax plan would have a damaging effect on the economy:

“All of these provisions would discourage saving and investment, although the responsiveness of saving to taxes is a subject of considerable debate among economists. Overall, Clinton’s proposals would reduce saving and investment.”

Finally, the Tax Policy Center found Clinton’s tax proposals would add complexity to the already complex tax code

“However, the proposals would make the tax system more complex—most notably by adding three variants of a minimum tax to the already complex individual alternative minimum tax. And the proposals would raise marginal tax rates on labor and capital, thus reducing incentives to work, save, and invest among high-income households.”

Clinton’s tax plan means higher taxes, lower investment in the economy, and a more complex tax code. Exactly the wrong prescriptions for the still-struggling Obama economy.