Hillary Clinton’s proposed tax increases on people with high incomes and on businesses would constrain economic growth, leading to lower wages and about 697,000 fewer jobs, according to a policy group’s analysis.
The Democratic presidential nominee’s tax plan, which includes proposals to raise taxes on multimillionaires and impose a “financial risk fee” on banks, would change economic behavior enough to reduce U.S. gross domestic product by 2.6 percent over the long run, according to a study prepared by the Washington-based Tax Foundation. In that slightly smaller economy, wages would be 2.1 percent lower, the report said.
By itself, “the plan would reduce the after-tax incomes of the top 1 percent of taxpayers by 6.6 percent but increase the after-tax income of all other income groups by at least 0.1 percent,” the analysis said. Still, after accounting for smaller economic growth that would result, “all after-tax incomes would fall by at least 0.1 percent in the long run,” it said.
After accounting for that reduced tax base, Clinton’s plan would increase federal revenue by $663 billion over 10 years, the Tax Foundation determined -- a number that’s less than half of some previous estimates.