Nearly 5 times the size of Joe Biden's proposed budget, Donald Trump's budget plan would increase the federal deficit, according to a study by the Penn Wharton School.

• According to two reports by the Penn Wharton Budget Model, the economic proposals of Republican Donald Trump would result in almost five times greater federal deficits over the next decade compared to those of Democratic nominee Vice President Kamala Harris.
• While Harris suggests increasing corporate taxes to fund her plan, Trump advocates for a strict tariff policy on all imports, including higher rates specifically for China.
• The Trump and Harris campaigns are competing to depict the other as an economic threat, in an attempt to sway voters disillusioned by the rising cost of living.

A pair of studies from the nonpartisan Penn Wharton Budget Model reveals that former President Donald Trump's economic proposals would increase federal deficits by $5.8 trillion over the next decade, almost five times more than those of Vice President Kamala Harris, which would add $1.2 trillion.

The Trump report revealed that his plan to make the 2017 tax cuts permanent would result in a deficit of over $4 trillion in the next decade. Additionally, his proposal to remove taxes on Social Security benefits would cost $1.2 trillion, while his promise to lower corporate taxes would add nearly $6 billion to the deficit.

The Harris analysis revealed that her plan to increase the Child Tax Credit, Earned Income Tax Credit, and other tax credits would result in a $2.1 trillion deficit in the next 10 years. Additionally, her proposal to provide a $25,000 subsidy for first-time homebuyers would add $140 billion to the deficit over the same period.

The Harris report suggests that increasing the corporate tax rate from 21% to 28%, as proposed by the vice president, could partially offset the costs of her $1.1 trillion spending plan.

In addition to corporate tax increases, Harris has expressed support for the $5 trillion in revenue-generating measures outlined in President Biden's 2025 fiscal year budget proposal.

The lion's share of Harris' revenue streams are contingent on congressional approval.

Trump proposes to fund his agenda through 10% tariffs on all imports and 60% tariffs on Chinese imports, which do not require Congress' approval. Trump believes that these trade policies will generate enough long-term domestic growth to offset the short-term costs of his economic plan.

According to NBC News, Mark Zandi, the Chief Economist at Moody's, predicted that Trump's tariffs would generate approximately $2.5 trillion in revenue. However, economists caution that a strict tariff policy could lead to inflation, as the rate of consumer price increases has recently decreased.

The Trump and Harris campaigns are competing to depict the other as an economic threat, targeting voters disillusioned by the high cost of living.

James Singer, a spokesperson for the Harris campaign, stated in a CNBC interview that Donald Trump's Project 2025 economic plan is a recipe for inflation and a deficit disaster that disproportionately harms the middle class while benefiting the wealthy.

Karoline Leavitt, a spokesperson for the Trump campaign, defended the Republican presidential nominee in a statement to CNBC, asserting that President Trump is a successful businessman who has built the strongest economy in American history and does not require economic guidance from a liberal communist pushing price controls from San Francisco.

Since Biden withdrew from the race, the Harris campaign has been rapidly implementing its economic plan.

The pressure on the Democratic campaign has intensified due to the economy being a persistent weakness during this election cycle, as voters fondly remember the pre-pandemic economy under the Trump administration.

— NBC News' Sahil Kapur contributed to this report.