The Obama administration is proposing to lower tax rates on millionaires and billionaires, raising $7 trillion over the next decade.
But that $7 billion could still go to interest payments on a $4.7 trillion debt that will remain largely untaxed for decades.
According to a new analysis, the tax plan would leave $2 trillion in the country’s debt in 2027.
That would leave a shortfall of nearly $8,000 for every single person in the United States.
The Trump administration’s plan would reduce the corporate tax rate to 15 percent, but only by $1.5 billion, leaving the top tax rate at 39.6 percent.
Trump’s plan, meanwhile, would eliminate tax deductions for mortgage interest, charitable contributions and other deductions.
The bill would also eliminate all income tax brackets.
This analysis, from the Tax Policy Center, said the plan would add about $2.3 trillion to the national debt over the 10-year period.
Even the most generous assumptions in the Tax Foundation’s analysis, however, put the debt at $18.5 Trillion, more than $8.4 trillion higher than the $7,500 debt level Trump is proposing.
This would mean the United State would still have about $8 trillion in outstanding debt, according to the analysis.
The Tax Policy Institute’s Tax Policy Advisor, Roberton Williams, told CNNMoney that while the administration’s tax proposals are likely to increase the national deficit, they would also help to lower it.
He added that the plan is a “hugely positive step.”
But he warned that even with the plan, the debt could still grow by nearly $10,000 every year, adding that it’s possible the debt will double in 10 years.