The Tax Foundation said that Hillary Clinton's tax proposals would hurt the entire economy, dragging down incomes at all levels. | AP Photo Analysis: Clinton proposed almost $500 billion in tax increases

Democratic presidential candidate Hillary Clinton has proposed almost $500 billion in tax increases, according to a new analysis by a conservative group.

Though Clinton's proposals target the wealthy, the Tax Foundation said today that the increases would hurt the entire economy, dragging down incomes at all levels.


Using conventional budgeting techniques, the group figures her plan would reduce the after-tax incomes of the top 1 percent by 1.7 percent. Those in the top 10 percent of earners would see their earnings fall .7 percent.

But using so-called dynamic scoring, which aims to calculate the broader economic effects of policy changes, the group said Clinton's tax increases would reduce gross domestic product over the long term by 1 percent, which would cut after-tax incomes by an average 1.3 percent.

“This reduction in GDP would translate into 0.8 percent lower wages and 311,000 fewer full-time equivalent jobs,” the foundation said in its first analysis of a Democratic presidential candidate's tax plans.

The foundation, a leading proponent of dynamic scoring, has issued a string of analyses of the Republican contenders’ plans that have tended to find they boost the economy and the debt. The Washington-based nonprofit, founded in 1937 by a group of business leaders, has Republicans on its board, including Douglas Holtz-Eakin, chief economic adviser to Sen. John McCain's 2008 presidential campaign.

Democrats are skeptical of dynamic scoring.

"Their analysis of Hillary Clinton’s plan is both misleading and does not even attempt to take into account her tax relief for businesses and individuals, and investments that would promote growth," said Brian Fallon, a spokesman for the Clinton campaign. "And, they do not follow evidence that modest increases in top tax rates have no impact on growth."

Most of the revenue raised would come from Clinton's proposals to cap itemized deductions for the rich, impose a minimum tax on millionaires and impose a 4 percent surtax on incomes that exceed $5 million, the Tax Foundation said.

The group plans to release an analysis of Democratic presidential contender Bernie Sanders’ tax plan as soon as this week.