Douglas Holtz-Eakin, president of the American Action Forum, voiced his concerns about the U.S. spending problem on CNBC’s “Squawk Box” on Tuesday, stating that neither presidential candidate is willing to tackle the issue.
What Happened: Holtz-Eakin discussed Kamala Harris‘ proposal to raise the U.S. corporate tax rate to 28% and the ongoing debate on the economy between Harris and former president Donald Trump.
When asked about Harris’ plans to increase corporate tax for revenue generation, Holtz-Eakin emphasized, “We do have a spending problem. And it is a spending problem that both candidates have said they are unwilling to address.”
He pointed out that Social Security and Medicare programs, which are set to cost $36 trillion over the next decade, are growing at a faster rate than revenue.
“Unless you deal with getting the growth rates in those programs down, you will never solve the problem by just raising revenue,” Holtz-Eakin warned.
See Also: Jobs Data Could Be Off By 1 Million When Labor Department Revises Figures: What It Means For The Fed
Why It Matters: The issue of U.S. spending has been a focal point in the run-up to the presidential elections. Harris, endorsed by President Joe Biden, has been seen as a hope for seniors, with promises to expand Social Security and Medicare programs. However, her proposal to raise corporate taxes has raised concerns about its impact on corporate profits and the stock market.
On the other hand, Trump’s promise to cut taxes on Social Security has been met with mixed reactions. While some experts have called his proposal revolutionary, others have criticized it as “unsound and irresponsible.”
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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