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Trump, Harris blasted for ignoring exploding budget deficit, as economists plead with both to 'get real'

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Trump, Harris blasted for ignoring exploding budget deficit, as economists plead with both to 'get real'

Economists told Fox News Digital that the economic proposals former President Donald Trump and Vice President Kamala Harris have put forward would continue to increase the nation’s already ballooning budget deficit, noting that neither candidate seems particularly concerned with fiscal responsibility.

Neither Trump nor Harris has released dedicated policy plans for addressing the nation’s deficit. Trump’s 16-point policy plan on his website mentions the word “deficit” once. 

Meanwhile, Harris’ economic platform does mention the deficit several times and says Harris is “committed” to fiscal responsibility, but only suggests increasing taxes on the wealthy and corporations as a solution.

“I think the reason neither candidate is really talking about fiscal responsibility is because neither candidate is fiscally responsible,” said Tax Foundation senior economist Erica York. “Both have left a lot of details unspecified, so there’s questions still about how Harris’s spending policies would stack up. Would Trump really repeal all of the green energy tax credits? Would he really impose all of the tariffs he’s promised?”

When asked what message York had for Trump and Harris when it comes to the deficit, she told them to “get real.”

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HARRIS CALLS TRUMP ‘ONE OF THE BIGGEST LOSERS EVER’ DURING ECONOMY SPEECH IN KEY BATTLEGROUND

“We face several challenges on the fiscal policy front, from debt and deficits to the need to compete with China, to the need to encourage entrepreneurship and work, and neither of the tax policy visions being outlined right now really come close to providing an answer to those challenges,” York said.

Rep. Thomas Massie, a Republican from Kentucky, wears a homemade national debt clock pin on Capitol Hill on Jan. 26, 2023.

Meanwhile, Kimberly Clausing, an economist with the Peterson Institute for International Economics, echoed York’s concerns, adding that she “does not think there’s been enough attention on the deficit this campaign season.”

“I don’t know whether to blame the candidates or the American attention span,” Clausing said. “Candidates have an incentive to cater to what the population wants to listen to, but there doesn’t seem to be a big drumbeat in favor of fiscal responsibility. And that’s a big contrast from some prior elections in at least my lifetime, where that issue was much more prominent.”

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So far, in fiscal year 2024, the government is running a cumulative deficit of $1.9 trillion, according to the Bipartisan Policy Center’s “Deficit Tracker.” 

Revenues, meanwhile, have increased 11% through last month. The revenue increase, according to the deficit tracker, is largely the result of an increase in individual and corporate taxes, higher interest rates and a 20% decrease in individual income tax refunds. Trump’s economic proposals include extending tax cuts, reducing the corporate tax rate and exempting tips, overtime pay and social security benefits from one’s taxable income. Despite his plan to generate revenue through tariffs and repealing green energy tax credits, economists say it will not be enough to balance out the lost revenues from Trump’s tax cuts and other economic proposals.

Research from the Tax Foundation, a tax policy nonprofit in the nation’s capital, estimated that Trump’s deficit impact would be roughly a $4 trillion increase over ten years.

TRUMP, HARRIS SPENDING PLANS COULD WEIGH ON THE US ECONOMY, ANALYSIS SHOWS

However, according to Heritage Foundation economist Richard Stern, it is government spending and not tax cuts that are the real culprit when it comes to the ballooning deficit.  

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“Though tax cuts can increase the deficit, it returns that money to the people that earned it. Deficit increases from more spending, on the other hand, means that the government is stealing even more and suppressing growth even more intensely,” Stern said. “Deficits created by way of tax cuts and spending increases are not the same. Tax cuts grow the economy and shrink deficits as a share of the economy, whereas more spending strangles the economy and stunts growth.”

The Treasury Department is seen near sunset in Washington. (AP Photo/Jon Elswick, File)

The Biden-Harris administration’s fiscal year 2024 budget proposed the highest sustained levels of spending in U.S. history, according to Republicans on the House Budget Committee. The committee also pointed out that the administration’s plan to add $82.2 trillion in spending over ten years, is 18% more than the historical average of the past half century.  

Since becoming the Democratic Party’s official nominee for president, Harris has said she will provide $25,000 housing subsidies for first-generation home buyers, implement $100 billion in tax credits for the manufacturing sector and increase small business tax credits by tenfold. She has also suggested support for increasing government spending to support families’ child care needs, while also expanding the child tax credit, among other proposals.

Overall, the Tax Foundation calculated that Harris would grow the deficit by roughly $1.5 trillion over ten years. 

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BIDEN PLEDGES $7.3B IN ‘CLEAN ENERGY’ SPENDING WITH NATIONAL DEBT AT $35T

Among the deleterious downstream effects of an ever-growing deficit, according to Clausing, are increased interest rates and reduced creditworthiness for the country, which can be problematic at a time when global tensions are on edge. 

“If a new crisis comes along, whether it’s a pandemic or a national security crisis or a big recession, which are sometimes caused by things beyond our control. You know, those kinds of crises are really difficult to respond to without fiscal space,” Clausing said. “If you’re starting from a point where you’re kind of maxing out the credit card, it’s a little harder to respond to these emergencies.” 

Currently, China and Japan are the United States’ two largest foreign creditors.

Former President Trump and Vice President Kamala Harris (Getty Images)

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When reached by Fox News Digital, the Harris campaign declined to comment. 

The vice president was endorsed this week by more than 400 left-leaning economists and former policymakers who served under Democrats. Additionally, Andrew Ross Sorkin, a financial columnist with the New York Times, insisted this week that Harris will be able to get much closer to balancing the national budget than Trump. 

When it comes to the electorate, voters have usually told pollsters they have more confidence in Trump than Harris when it comes to the economy, but reports have indicated Harris is gaining some of that ground back more recently. Trump’s advantage over Harris on the economy stands at only five points in a recent Fox News poll, and just two points in an AP/NORC survey.

“Dangerously Liberal Kamala Harris’ budget would add $17 trillion to the national debt by 2034 and also includes a $4.9 trillion tax hike — the largest in history — which would cost every American family nearly $40,000 per year, on top of the costs of record-high inflation,” Trump Campaign National Press Secretary Karoline Leavitt told Fox News Digital. “Thanks to Kamalanomics, families are already struggling to afford gas and groceries, and President Trump will continue to highlight how Harris’ budget will compound these difficulties on hardworking Americans.” 

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Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

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Graham pushes back on Tillis’ criticism of Noem, Miller for labeling man killed by Border Patrol a ‘terrorist’

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Graham pushes back on Tillis’ criticism of Noem, Miller for labeling man killed by Border Patrol a ‘terrorist’

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Sen. Lindsey Graham, R-S.C., on Tuesday defended Homeland Security Secretary Kristi Noem and Homeland Security Advisor Stephen Miller after Sen. Thom Tillis, R-N.C., criticized the pair for labeling the U.S. citizen killed by Border Patrol agents in Minneapolis as a “domestic terrorist.”

Tillis was the first Senate Republican to call for Noem to be fired after the killing of Alex Pretti, 37, who was shot by federal agents as he was recording immigration enforcement operations in Minneapolis over the weekend.

“What she’s done in Minnesota should be disqualifying. She should be out of a job,” Tillis told reporters earlier on Tuesday. “It’s just amateur-ish. It’s terrible. It’s making the president look bad on policy that he won on. [President Donald Trump] won on a strong message on immigration. Now, nobody’s talking about that. … They’re talking about the incompetence of the leader of Homeland Security.”

Noem and Miller “told the president before they even had an incident report whatsoever that the person who died was a terrorist. That is amateur hour at its worst,” Tillis added.

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SENATE GOP CRITICS SAY NOEM ‘NEEDS TO GO’ AMID FALLOUT FROM MINNEAPOLIS SHOOTINGS

Sen. Lindsey Graham defended Homeland Security Secretary Kristi Noem and Homeland Security Advisor Stephen Miller on Tuesday. (AP Photo/Susan Walsh)

Responding to Tillis, Graham said someone “must have a very high opinion of themselves” if they believe they can get President Donald Trump to distance himself from Miller.

“I’ve known Stephen Miller for a very long time. We have our differences, but we have more in common. When the clock strikes midnight for President Trump, there will be very few by his side. One will be Stephen Miller. If you don’t get that, you’ve missed a lot. No one has helped Trump more than Stephen Miller,” Graham told Fox News’ Chad Pergram.

“To convince yourself that you can get Trump to distance himself from Stephen Miller, you must have a very high opinion of themselves,” he continued.

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The South Carolina lawmaker added: “To my Republican colleagues, you need to understand that the President’s confidence in Stephen Miller has been rock solid and unshakable. And Miller is part of that group.”

Sen. Thom Tillis was the first Senate Republican to call for DHS Secretary Kristi Noem to be fired after the killing of Alex Pretti. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

Alex Pretti, 37, was shot and killed on Saturday by Border Patrol agents while recording federal immigration operations in Minneapolis. An ICU nurse, Pretti appeared to be attempting to attend to a woman agents knocked down when he was sprayed with an irritant, pushed to the ground and beaten. An agent was seen pulling Pretti’s lawfully owned gun from his waistband before other agents fired several shots and killed him.

Noem was quick to label Pretti a “domestic terrorist,” and Miller characterized him as things such as a “would-be assassin,” both of which are unsubstantiated claims that sparked bipartisan pushback.

The White House has sought to distance itself from the comments by Noem and Miller, with White House press secretary Karoline Leavitt saying she has “not heard the president characterize” Pretti that way.

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But despite calls from Democrat and Republican lawmakers to oust Noem over her response to Pretti’s killing, Trump expressed confidence in the secretary to continue leading DHS.

NY POST, WSJ, NY TIMES AND WASHINGTON POST ALIGN AGAINST TRUMP ADMIN OVER ICE OPERATION IN MINNEAPOLIS

President Donald Trump expressed confidence in DHS Secretary Kristi Noem to continue leading the department. (Demetrius Freeman/The Washington Post via Getty Images)

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“I think she’s doing a very good job. The border is totally secure. You know, you forget we had a border that I inherited where millions of people were coming through. Now we have a border where no one is coming through. They come into our country only legally,” Trump told reporters on Tuesday.

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Asked if he agreed with Noem and Miller labeling Pretti as a “domestic terrorist” and an “assassin,” the president said he had not heard those remarks.

“Well, I haven’t heard that. He shouldn’t have been carrying a gun,” Trump said.

Trump also said the shooting was a “very sad situation” and he wants a “very honorable and honest investigation” that he wants to see for himself.

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Charter Reform Commission, L.A. City Council look to impose transparency rules

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Charter Reform Commission, L.A. City Council look to impose transparency rules

The Los Angeles City Council voted Tuesday to approve a law aimed at boosting transparency at the Charter Reform Commission, by requiring that members of that panel disclose any private talks they have with the city’s elected officials.

The vote comes about two months before the commission, which began its work in July, is scheduled to finish its deliberations and deliver a list of recommendations to the council.

Councilmember Monica Rodriguez, who proposed the ordinance, said she has been trying since August to pass a measure requiring the disclosure of such private conversations, known as “ex parte” communications. That effort was greeted with “nearly six months of stonewalling,” she said.

“While this is an important victory for oversight and transparency, government accountability shouldn’t be this hard to secure,” she said.

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The ordinance, which also applies to communications between commissioners and elected officials’ staff, is expected to go into effect in about a month. Meanwhile, the 13-member Charter Reform Commission approved its own policy a week ago requiring the disclosure of private conversations between its members and city elected officials.

Some government watchdogs say the disclosures are needed to prevent council members and other city elected officials from seeking to dictate the details of the recommendations that are ultimately issued by the commission. The volunteer citizens panel is currently looking at such ideas as increasing the size of the council and potentially changing the duties of citywide elected officials.

“If the public is going to trust the outcomes of our charter reform process, it has to be transparent and credible,” Commissioner Carla Fuentes, who pushed for the new disclosure policy at its Jan. 21 meeting.

The commission has not yet voted on a proposal to also require disclosure of communications with elected officials’ staff.

It is also looking at the idea of adopting ranked choice voting, where voters list all of the candidates in order of preference, and switching the city to a multi-year budget process.

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Councilmember Bob Blumenfield raised warnings about the council’s vote on Tuesday, saying charter reform is substantively different from the 2021 redistricting process. Council members should be engaging in conversations with its volunteer commissioners, to help them better understand how the city is run, Blumenfield said.

Those communications will ensure the commissioners make an informed decision what to recommend for the ballot later this year.

“I don’t want this message to be that it’s somehow bad for council members and the mayor and elected officials to be engaging in this process,” he said. “To the contrary, I think we need to double down our engagement. We need to speak to those commissioners. They need to learn a lot more about how this city really works for this thing to be effective.”

The commission is scheduled to take up the motion to disclose staffer conversations at its next meeting on Feb. 7.

Rob Quan, an organizer with the group Unrig LA, said he doesn’t want to see a repeat of 2021, when members of the citizens commission on redistricting were regularly contacted by council members’ aides. Those ex parte communications were not disclosed, he said.

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“If it didn’t apply to staff, we would simply be reinforcing the power of the staff, which have from Day One been the most problematic aspect of this commission,” said Quan, whose group focuses on government oversight.

He and a group of other transparency activists have proposed a total ban on ex parte communication, which hasn’t been considered by the current commission.

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Democrats demand Kristi Noem be fired or warn impeachment will follow

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Democrats demand Kristi Noem be fired or warn impeachment will follow

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House Democrats ramped up pressure on Department of Homeland Security (DHS) Secretary Kristi Noem on Tuesday, calling for her firing and warning that impeachment proceedings would follow if she remains in office, citing deadly actions by federal agents in Minnesota.

The calls came from both House Democratic leadership and Judiciary Committee Democrats, marking a coordinated escalation from public condemnation to formal impeachment threats.

In a joint statement, House Democratic Leader Hakeem Jeffries, Democratic Whip Katherine Clark and Democratic Caucus Chair Pete Aguilar accused the Trump administration of using federal law enforcement to carry out deadly violence.

“Taxpayer dollars are being weaponized by the Trump administration to kill American citizens, brutalize communities and violently target law-abiding immigrant families,” the leaders said. “The country is disgusted by what the Department of Homeland Security has done.”

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NOEM SAYS SHE GRIEVES FOR FAMILY AFTER CBP-RELATED SHOOTING IN MINNEAPOLIS, VOWS THOROUGH INVESTIGATION

House Democrats ramped up pressure on DHS Secretary Kristi Noem on Tuesday. ( Al Drago/Getty Images)

The leaders warned that unless Noem is removed, impeachment proceedings would follow.

“Kristi Noem should be fired immediately, or we will commence impeachment proceedings in the House of Representatives,” the statement said.

“We can do this the easy way or the hard way.”

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The demands come as Noem faces widespread criticism after federal agents killed two U.S. citizens in Minnesota this month.

Separately, Rep. Jamie Raskin of Maryland, the ranking Democrat on the House Judiciary Committee, called on Judiciary Committee Chairman Jim Jordan, R-Ohio, to immediately begin impeachment proceedings if Noem is not fired or forced to resign.

“Unless Secretary Noem resigns or is fired, the Judiciary Committee’s Chairman, Jim Jordan, should immediately commence House Judiciary Committee impeachment proceedings to remove her from office,” Raskin said.

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Federal agents try to clear demonstrators near a hotel, using tear gas during a noise demonstration protest in response to federal immigration enforcement operations in Minneapolis. (Adam Gray/AP Photo)

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Raskin accused Noem of overseeing what he described as unlawful killings and a subsequent cover-up.

“Far from condemning these unlawful and savage killings in cold blood, Secretary Noem immediately labeled Renée Good and Alex Pretti ‘domestic terrorists,’ blatantly lied about the circumstances of the shootings that took their lives, and attempted to cover up and blockade any legitimate investigation into their deaths,” he said.

Separately, Sen. John Fetterman, D-Pa., called on Trump to fire Noem directly on Tuesday.

In a post on X, the senator accused Noem of “betraying” the department’s central mission.

In a joint statement with other Democratic leaders, Hakeem Jeffries, D-N.Y., accused the Trump administration of using federal law enforcement to carry out deadly violence. (Roberto Schmidt/Getty Images)

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However, President Donald Trump confirmed on Tuesday that he has no plans to ask Noem to step down from her role.

Trump was asked about Noem’s status during a gaggle with reporters outside the White House. He told the press that he still thinks Noem is doing a “great job.”

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“Is Kristi Noem going to step down?” a reporter asked.

“No,” Trump responded bluntly.

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He later said he believes she is doing a “very good job,” citing her role in closing down the border.

Fox News’ Anders Hagstrom contributed to this report.

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