Yahoo Finance 5 Ways a Trump Win Could Affect Your Finances If You Make Less Than $100,000 a Year
According to a PEW Research Center report, 44% of registered voters say that if the election was today, they’d vote for Donald Trump. Many Americans are looking at November’s election and trying to choose the candidate that can help with pressing issues like the rising cost of living and inflation.
Learn More: Should Trump Eliminate Income Taxes? Here’s What Tax Experts Say
Read Next: 9 Things You Must Do To Grow Your Wealth in 2024
Since Trump does have a slight lead right now, here’s a look at what experts say a second term of a Trump presidency would do for those who make less than $100,000 a year.
Let’s dig a little deeper into what a Trump win in November might mean for folks earning less than six figures.
Earning passive income doesn't need to be difficult. You can start this week.
No Direct Tax Cuts
During Trump’s first term, he approved tax cuts for those with incomes in the top 1%. Chuck Warren, host of “Political Podcast,” said that if Trump is reelected, those in that under $100,000 income bracket can expect to see more tax policies that do not benefit them.
However, Dr. Jim Ronan, a lecturer in the political science department at Villanova University, said there could be an upside when it comes to taxes for those making less than $100,000. “Based on the 2017 tax legislation, a further reduction in both the corporate and individual tax rates seems guaranteed. Therefore, those earning less than $100,000 would benefit from the individual reductions, and many would benefit from a potential increase to the Child Care Tax Credit.”
Find Out: Trump-Era Tax Cuts Are Expiring — How Changes Will Impact Retirees
More Jobs
Warren said the tax cuts could have some benefits: economic growth and job creation.
“On the other hand, President Trump’s emphasis on deregulation and tax cuts for businesses could be a powerful impetus to economic growth accompanied by job creation. It is the potential effect of more jobs that may be available to middle-income earners, providing them employment opportunities and raising wages in certain industries,” Warren said.
Isabella Brown, a politician and campaign manager for Qualify Candidates, said, however, that though there may be more jobs, there won’t necessarily be a wage increase.
“Trump’s policies concerning labor rights, as well as minimum wage legislation, might affect the less fortunate employees. While deregulation can lead to employment increases, it may also reduce worker protections that adversely impact pay rate growth and working conditions,” Brown said.
Possibly Limited Healthcare Access
During Trump’s first term, he took steps to restrict access to benefits the Affordable Healthcare Act (ACA) offered. He cut the open enrollment period in half, decreased the advertising budget by 90% and reduced funding for enrollment assistance.
Recently, Trump has said that he won’t make the ACA weaker, and in fact, will be making it more affordable for voters.
Warren said, however, that based on his actions in his first term, he could reduce access to ACA benefits.
“The ACA was under attack by Trump’s administration through various efforts to dismantle it. In case of his reelection, there will possibly be more attempts towards repealing or replacing the ACA, which might hurt millions of Americans relying on this cheap healthcare provision. This would lead to increased medical expenses and reduced access to health care services among individuals earning below $100K,” Warren said.
Brown said Trump’s healthcare policies could especially hurt those who depend on Medicaid.
“Reelecting Trump could further efforts to repeal or scale back the Affordable Care Act (ACA), which would directly affect low-income families who depend on Medicaid expansion and subsidies for coverage,” Brown said.
Potentially Higher Cost of Goods
President Trump has introduced the idea of “all tariff policy,” and plans to leverage tariffs against “bad actors” in other countries.
Warren explained how this tariff policy and Trump’s thoughts on trade policies could contribute to inflation for some items.
“Although there would be winners among domestic sectors insulated from international competition, retaliatory tariffs could hurt some industries through higher goods prices,” Warren said. “This would lead to increased expenses for those already living in poverty-stricken states since the costs of everyday items will increase even further.”
Consequences for Undocumented Workers
Trump has said that, if elected, he has plans to deport millions of undocumented workers. Many of these people would fall into the category of those who make less than $100,000 a year.
“Trump’s stance on immigration reform could influence undocumented workers, who are frequently found in low-wage sectors,” Brown said. “The possibility of more stringent enforcement actions in some industries could impact job security and decrease wages.”
More From GOBankingRates
5 Things You Should Stop Wasting Money on if Kamala Harris Wins in November, According to Experts
Here's How To Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
This article originally appeared on GOBankingRates.com: 5 Ways a Trump Win Could Affect Your Finances If You Make Less Than $100,000 a Year
