An analysis of Democratic frontrunner Hillary Clinton's proposed tax plan has revealed that it will raise taxes by $498 billion in the next ten years, and furthermore will reduce America's economy by a full 1%.
The plan will see marginal tax rates on income, labor and capital ramped up, and as a result the GDP will sink, wages will dive and jobs will be eliminated, according to an analysis by the top independent tax policy research organization Tax Foundation, as cited by Washington Free Beacon on Tuesday.
All taxpayers will see an after-tax income that is 0.9% lower, according to the analysis of the plan, and it will likewise eliminate 311,000 full-time jobs, in addition to shrinking capital stock by 2.8%.
A majority of the half-a-trillion tax rise in the next decade according to her plan will be taken from individual income taxes, the estate tax, and taxes paid by corporations.
The Tax Foundation reports the plan will raise marginal rates for those earning over $5 million, set a 30% minimum tax on earners over $1 million, cap itemized deductions to 28%, and change the long-term capital gains schedule.
Even without Clinton's plan, reports have shown the GDP is projected to grow at a much lower rate, but with her plan that rate will sink even further and be reduced by 1% in the long term.
In a speech last July, Clinton stated, "we must drive steady income growth that lifts up families, and lifts up our economy. Wages need to rise to keep up with costs, paychecks need to grow. We must raise incomes for hard-working Americans, so they can afford a middle-class life."
However, the report reveals that "the slightly smaller economy would reduce wages, which would narrow the revenue gain from the individual income tax changes to about $173 billion and reduce payroll tax revenue by about $80 billion over the next decade."
Responding to the report, Republican National Committee (RNC) Chariman Reince Priebus said Clinton's tax plan is "an absolute disaster."
"Hillary Clinton’s tax hike plan is an absolute disaster. Not only do Clinton’s tax increases fail to pay for her $1.2 trillion spending spree, they will slow economic growth, drive down wages, and kill the equivalent of hundreds of thousands of full-time jobs," said Priebus.
“This study shows Hillary Clinton’s plan to double down on the failed Obama economic agenda will only keep the American Dream out of reach of more Americans and bury the country in even more debt. The need for new Republican leadership in the White House couldn’t be clearer.”
Clinton's campaign has been struggling against openly socialist Senator Bernie Sanders (I-VT), with polls showing her roughly tied with the 74-year-old in Iowa a week ahead of the caucus vote.
She has also been plagued by an ongoing investigation into her illegal use of an insecure private email server during her stint at secretary of state under US President Barack Obama, who she lost to in the 2008 Democratic primaries.
Last week it was revealed that some of her emails contained content beyond "top secret," requiring senior lawmakers to sign additional non-disclosure agreements to be able to view them, even though they had already signed off on the highest levels of clearance.