Yahoo Finance How Will Your Monthly Bills Change Under a Trump vs. Biden Presidency?
Americans tend to vote based on their pocketbooks. If they feel they are doing well economically, they may vote for the incumbent. If they feel things are going downhill, they may take a chance on an untested challenger in hopes that their position will improve.
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The 2024 election is unique in that both major party candidates have a track record that can inform voters’ decisions. But the unique circumstances of the past several years make it difficult to draw true comparisons. That said, here’s how your monthly bills might change under a Trump vs. a Biden presidency.
Housing
With interest rates and property values climbing steadily, the prospect of continuing increases in the cost of housing is a real concern for most Americans.
If Trump is re-elected, interest rates could come down, which would be a boon for housing prices. But the president doesn’t control interest rates, so his influence would be limited to pressuring the Fed for rate cuts. The deregulation Trump proposed could increase the prices of both single-family homes and rental properties, which may cause prices to continue rising.
Biden’s platform includes a focus on expanding affordable rental units, which could save renters a significant amount on their monthly payments. He has also proposed tax credits for homebuyers which could offset some of the increase in prices and mortgage rates.
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Energy
The cost of energy — including gas, home heating oil, electricity and more — has risen significantly under President Biden. His Inflation Reduction Act and Bipartisan Infrastructure Law include provisions to support clean energy and cost reductions, but these provisions have yet to be fully felt by American consumers. Expect more progress on energy cost moderation in a second Biden term.
Former President Trump supports drilling for oil and gas on federal lands, tax cuts for oil companies and other programs that could decrease energy costs in the short term. However, these programs could also reduce competition among energy producers, leading to higher prices over time. Thus, they certainly will impact climate change negatively.
Taxes
Taxes may not be the first thing that springs to mind when you think of your monthly bills, but just because taxes come out of your paycheck before you see them doesn’t mean they’re inconsequential. And they will become more consequential as a result of the upcoming election.
The Tax Cuts and Jobs Act of 2017 cut individual and estate taxes by $3.4 trillion, benefitting almost everyone. This bill expires in 2025, and each major candidate has a different way of handling its lapse.
President Biden has said that he will allow the tax cuts for corporations and high-income taxpayers to expire while preserving the cuts for those earning less than $400,000 per year. He has also said he will increase the corporate tax rate from 21% to 28% and increase taxes on the wealthiest Americans. He will use the income generated to further cut taxes on those earning less than $400,000.
Former President Trump has promised to cut taxes for everyone, including corporations and the super-wealthy. He has yet to say where the money will come from to fund these tax cuts.
Major Purchases
Major household purchases like cars, computers, appliances and big-ticket consumer goods will likely cost more under a Trump administration than under a Biden administration. Trump has proposed a 10% tariff on all imported goods, this is in addition to any tariffs that are currently imposed.
Biden’s approach to promoting American-made goods is to encourage the production and purchase of these goods rather than punish those who buy imports. The CHIPS and Science Act, for example, which Biden signed into law in 2022, encourages companies to build semiconductor manufacturing facilities in the U.S. rather than importing chips from overseas.
Of course, there are other factors to consider, besides your personal financial outlook, when casting your ballot. But the impact on your wallet is a place to start.
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