Tornado Alley (PROG)

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Hillary’s $191 Billion Tax Increase

By JAMES FREEMAN

Hillary Clinton’s proposed tax hikes would increase federal revenue by $498 billion over a decade if one ignores the impact of her plan on economic growth—and $191 billion if the resulting decrease in economic output is taken into account. That’s according to a new study by the Tax Foundation that will be released later this morning.

Foundation economists project that the Clinton tax increases will result in U.S. GDP that is 1% below where it would otherwise be after 10 years. And although the Clinton tax hikes are ostensibly targeting the rich, with proposed changes such as a new surtax on high incomes and a Buffett Rule that sets a minimum tax rate on high earners, the Tax Foundation projects a decline of at least 0.9% in after-tax incomes for all taxpayers due to slower growth. So for everyone dissatisfied with the Obama economy, the Clinton agenda promises to make it just a bit worse.

Today’s other news is also less than uplifting. “This year is likely to be one of financial crises in industries and countries around the world. Whether those turn into a global financial crisis is an open question, and the answer will likely turn on the health of the U.S. financial industry and broader economy,” writes Gerald O’Driscoll, former vice president at the Dallas Fed. “Investors are wise to be worried, but it’s likely that 2016 won’t be a replay of 2008,” he adds.

The federal deficit will surge by more than $100 billion this year and on Monday the Congressional Budget Office said the red ink will keep surging after Barack Obama leaves office. CBO says the deficit will be around 2.9% of GDP each year through 2018 and then rise to 4.9% by the end of its 10-year projection. The big spending drivers will be the “entitlements that Mr. Obama has refused to reform,” notes a Journal editorial. “This is the fiscal time bomb” that the President “will leave his successor.”

Read today's full column »

http://www.wsj.com/articles/hillarys-191-billion-tax-increase-1453811094