It would eliminate 825,000 jobs during the first ten years and lead to a 0.7 percent decrease in America’s gross domestic product.

White House Says Dem. Sen. Totally Snubbed Them on Kavanaugh Call

(Joshua Paladino, Liberty Headlines) Sen. Kamala Harris, D-California, released a new tax credit proposal that would cost the federal government, or save taxpayers, $2.7 trillion over 10 years, with most benefits accruing to lower- and middle-income earners, according to the Tax Foundation’s report.

The LIFT the Middle Class Act, released on Oct. 18, would create a large refundable tax credit for families earning less than $100,000 per year, The Hill reported. The credit would be for $6,000 and would decrease as income increases.

President Donald Trump also said he is considering a 10 percent middle class tax cut that would cost the federal government between $410 billion and $2 trillion over 10 years, according to a report by the Joint Committee on Taxation and the Congressional Budget Office.

The Tax Foundation said the cost of Harris’ plan factors in the economic slowdown it could cause, though it does not include proposed tax hikes.

Kyle Pomerleau, an economist at the Tax Foundation, said the plan “has a very small economic impact.”

It would eliminate 825,000 jobs during the first ten years and lead to a 0.7 percent decrease in America’s gross domestic product.

Job creation would decline because the tax credit would reduce the incentive to work, according to the Tax Foundation.

Harris’ plan would offset the $2.7 trillion hit to federal revenues by repealing parts of President Donald Trump’s tax reform bill that she said do not benefit the lower and middle classes

It would also set a new tax on banks with more than $50 billion in assets, Bloomberg reported.

Lily Adams, a spokeswoman for Harris, said the Tax Foundation’s analysis is “fundamentally flawed” because it misunderstands why people go to work.

“The notion that receiving a tax credit of up to 500 dollars a month would provide a disincentive for people to work is insulting to every American who shows up to work every day,” Adams said to Bloomberg. “In fact, the bill would substantially increase living standards for millions of Americans, putting money back into their pockets to help them keep up with the rising cost of living.”