Yahoo Finance 5 Things That Should Excite the Middle Class About a Trump/Vance Presidency
According to the Pew Research Center, 51% of American families lived in middle-class households in 2023. These were classified as households with a median income of $106,100 for a three-person household.
With more than half of all Americans identified as middle class, presidential candidates must capture their attention and vote — and former President Trump has proposed several policies that would benefit the middle class.
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Keep reading for a look at some of the things that could happen under a Trump/Vance presidency that should excite many middle-class earners in America.
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Reduced Taxes
During Trump’s first presidential term, he completed a comprehensive overhaul of the country’s tax code, including the Tax Cuts and Jobs Act. The act introduced significant changes to the tax code for individuals, corporations and estate tax rates.
The Tax Cuts and Jobs Act increased tax deductions and eliminated several previous deductions. Several key tax provisions of the act will expire in 2025, and Trump has already said that he plans to make some of them permanent if he is reelected. This could affect how much money taxpayers receive back for their taxes. While the changes will be the largest for the wealthy, middle-class taxpayers may notice a difference in their taxes, as well.
“One of the key aspects that should excite middle-class earners about a Trump/Vance presidency is the prospect of further tax cuts and a simplified tax code,” said Dennis Shirshikov, professor at City University of New York and head of growth at GoSummer.
“Trump has consistently advocated for tax reforms that reduce the burden on middle-income households. The proposed tax cuts would likely aim to increase the standard deduction and possibly lower the tax rates for middle-income brackets, leaving more disposable income in the hands of families.”
Learn More: Trump Wants To Eliminate Income Taxes: Here’s What That Would Mean for the Economy and Your Wallet
Deregulation
Trump has made it clear that he doesn’t like government regulations. Deregulation can have both positive and negative effects on the middle class. One of the biggest things that should excite most Americans is that deregulation can increase competition, which adds jobs and reduces the cost of goods and services.
“Another promising aspect is the emphasis on deregulation, which is aimed at stimulating economic growth,” Shirshikov said. “Trump has been a strong proponent of reducing regulatory burdens on businesses, which can lead to increased job creation and higher wages. For the middle class, this could translate into more employment opportunities and better-paying jobs.”
More Construction Jobs
When Trump campaigned in 2016, he proposed a $1 trillion infrastructure plan to fix bridges, highways, airports, schools, hospitals and tunnels in the United States. Once he was elected, he still supported infrastructure reform, but not to the extent that he initially proposed.
If he is elected again and continues his infrastructure goals, it would likely lead to an expansion of infrastructure projects, which would mean the creation and expansion of construction-related jobs, many of which would impact the middle class.
“For [the] middle class, a potential Trump/Vance presidency could mean more job creation to secure [the workforce],” said Aaron Cirksena, founder and CEO of MDRN Capital. “Vance has outwardly addressed the economic struggles of [the] working class, stressing the importance of job creation to rebuild local economies that hold much of [the] middle class.”
Cheaper Gas and Electricity Prices
Trump is known to be a proponent of domestic fossil fuel production. He has been vocal that he plans to offer tax breaks for oil, gas and coal producers. He’s also said he plans to remove much of the Inflation Reduction Act, the largest climate measure in U.S. history. This increase in fossil fuel production should mean lower prices for gas and electricity in the United States.
Middle-class Americans would benefit from saving money at the gas pump and on their monthly utility bills.
Potentially Lower Interest Rates for Mortgages
Mortgage rates have risen since Trump’s presidency ended, thanks to the Federal Reserve’s attempt to slow rising prices. While the president does not directly control interest rates, the administration’s fiscal policy can influence inflation and economic growth.
If Trump were elected to a second term, he could pressure the Federal Reserve to keep interest rates low to support economic growth. He has a track record of doing this during his first term.
The Bottom Line
While the president can’t control everything about the economy, there are some things that he or she can control or influence. Middle-class Trump supporters hope a second term would bring them the benefits of lower taxes, mortgage rates and utility prices, as well as a stronger workforce.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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