Trump’s proposals would add $4tn more to US debt than Harris’s – study

Many of their proposals would have to be approved by Congress, and it remains unclear how much either candidate would be able to muscle through the divided legislative branch which has ultimate power over taxes and spending.

“Both candidates are wanting to get elected so, you know, tax cuts sound better than higher taxes so I think that’s what you’re hearing. Whether or not all of that gets through we’ll see,” said Jimmy Lee, the founder and CEO of the investment firm Wealth Consulting Group.

But Mr Lee said he thought investors were not “paying enough attention” to the threat from spiralling borrowing.

The US has long been able to borrow cheaply, thanks to strong demand for its debt among private investors, which has helped to keep interest rates relatively low.

But some analysts have warned that the US may be facing higher costs in the future.

The ratio of US debt to its economy or GDP, gross domestic product is already one of the highest among major economies in the world.

It stands at about 120%, according to the IMF. That compares to 144% in Italy, 110% in Spain, 101% in the UK, 106% in Canada, 77% in China, 67% in Germany and 56% in Australia.