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Economist: Clinton’s economic plan will increase complexity; Trump’s? Who knows?

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Economist: Clinton’s economic plan will increase complexity; Trump’s?  Who knows?

Analysis of candidates’ plans doesn’t inspire confidence.

How will the proposed tax and spending policies of presidential candidates Hillary Clinton and Donald Trump affect individuals and corporations? 

"The Clinton approach will mean a major increase in complexity and paperwork, for both individuals and firms.  I am not at all sure what to expect with a President Trump because many positions he has staked out are quite extreme," stated noted economist Dr. Scott Sumner, Professor Emeritus of Economics at Bentley University. Sumner analyzed the candidates' recent public comments and economic policy positions outlined on their websites on behalf of financial services firm RCW Financial. The analysis comes before what is billed as a major speech by Trump on his economic plan to the Detroit Economic Club today.

There's a name for this sort of policy---Greece."

In his analysis, Sumner points out that Trump proposes to significantly increase spending in some areas while cutting the top income tax rate to 25%, and the corporate top rate would be slashed from 35% to 15%. Inheritance taxes would be eliminated.

"In his convention speech [Trump] called for big increases in spending in a wide range of government programs, both military and domestic.  There have been previous examples of candidates who called for much higher government spending (Lyndon Johnson), or much lower taxes (Ronald Reagan).  But as far as I know, no one has ever called for both.  There's a name for this sort of policy---Greece," stated Sumner.

Regarding Clinton, he does "not see any big surprises, with calls for higher taxes on the rich, more spending on social programs and a higher minimum wage rate."  He predicts "these tax changes would hurt investments such as stocks, real estate, and high-end collectables. The Clinton approach will mean a major increase in complexity and paperwork, for both individuals and firms."

Sumner notes: "It's always difficult to evaluate the campaign promises of American presidential candidates, especially given the limited information provided to the public. Tt's normal for candidates to make promises that don't add up."

 

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