Trump proposals could be funded through deregulation and tax cuts, suggests Republican House speaker, not tariffs.

• Donald Trump can finance his campaign's economic plans by reducing regulations and increasing tax cuts to spur growth, as stated by Republican House Speaker Mike Johnson.
• According to the Penn Wharton Budget Model, Trump's policy proposals could increase the federal deficit by at least $5.8 trillion over the next decade.
• Trump has suggested imposing a strict tariff on all imports, particularly targeting Chinese imports, to finance his plans.

On Wednesday, Republican House Speaker Mike Johnson stated that former President Donald Trump could finance his campaign's economic plans by reducing corporate regulations and increasing tax cuts to spur economic growth.

"A Louisiana lawmaker stated on CNBC's "Squawk Box" that in order to achieve a pro-growth economy, a combination of aggressive tax code usage and government regulation reduction is necessary."

"With Republican leadership in the White House, Senate, and House, a unified government, we will accelerate the process, resulting in significant regulatory changes," he stated.

Trump has suggested perpetuating his 2017 tax cuts, reducing the corporate tax rate even more, and completely abolishing federal income taxes on tips, overtime pay, and Social Security benefits.

A study conducted in August by the nonpartisan Penn Wharton Budget Model estimated that Trump's policy proposals could increase the federal deficit by approximately $5.8 trillion over the next decade.

Trump's Sept. 12 proposal to exempt overtime pay from federal income taxes was not included in that figure.

If the proposal includes a tax exemption for all hours worked over 40 hours per week, it would add an estimated $1.3 trillion to the total cost of Trump's proposals over the next decade, according to an analysis from the Yale Budget Lab.

During his campaign, the Republican presidential candidate proposed reviving the state and local tax (SALT) deduction, which he had restricted in his previous term.

On Wednesday, Johnson stated that he concurred with all of Trump's proposals. He added that funding them would involve a mix of corporate tax cuts, deregulation, and energy policy to stimulate the economy.

Trump has consistently stated that he intends to finance his plans through the revenue generated from strict tariffs on all imports, with a particularly high rate imposed on Chinese imports.

In his debate with Vice President Kamala Harris on Tuesday, Trump boasted about the substantial revenue generated by his first-term tariffs, almost causing a trade war with China.

Johnson did not mention tariffs as a potential revenue source on Wednesday. The Trump campaign did not respond to CNBC's request for comment on Johnson's tax cut funding suggestions.

The Tax Foundation reports that as of March 2024, the total revenue generated from President Joe Biden's continuation and expansion of Trump's first-term tariffs reached over $233 billion, which was collected by the U.S. government through higher taxes paid by American consumers. Suppliers passed on the additional costs to consumers.

During the Trump administration, $89 billion of tariffs were collected, while $144 billion came in under Biden. The difference between the billions of dollars in tariffs collected and the estimated trillions of dollars in tax giveaways proposed by Trump is not lost on economists, who warn of exploding annual deficits and national debt if the plans are enacted as proposed.

Critics have warned that Trump's broad tariff plan could increase consumer prices, countering the recent decline in inflation from its 40-year high in 2022.

On Wednesday, Johnson made remarks before facing a House vote on his six-month funding bill, which is predicted to fail due to opposition from the GOP caucus. If Congress does not pass a funding resolution by Sept. 30, the government will enter a partial shutdown at 12:01 a.m. E.T. on Oct. 1.