[rank_math_breadcrumb]

Politics

What a Trump Presidency Could Mean for the Middle Class

Updated: 06-11-2024, 02.02 PM

One thing that just about every presidential candidate in history from both parties and all corners of the country have in common is … they promise to lift the middle class.

After all, campaigning to only help the rich get richer probably wouldn’t get them very far.

Find Out: Financial Expert: 4 Economic Predictions for the Day After the Election If Kamala Harris Wins

Learn More: 9 Things You Must Do To Grow Your Wealth in 2024

Even so, the rich do indeed get richer with every presidential cycle while the middle class continues shrinking.

Like President Joe Biden did before him, former President Donald Trump vows to change all that if elected to another term. But with that in mind, what actual impact would a second Trump presidency have on the middle class?

Trending Now:

John F. Pace, founder of Pace & Associates, has over 40 years of experience as a CPA, including roles as vice president at U.S. Trust, a family office executive for a Forbes 400 family and a senior manager for the 38th-largest CPA firm in America.

Looking back at Trump’s first term, he believes a second stint in the White House would most immediately impact the middle class through his area of expertise.

“A second Trump presidency could affect middle-class finances through potential tax policy changes,” Pace said. “During Trump’s first term, the Tax Cuts and Jobs Act (TCJA) of 2017 offered limited benefits to middle-income earners and more extensive benefits to the wealthy and corporations. Similar future policies could result in minimal tax relief for the middle class and possibly larger budget deficits, raising concerns about future tax increases or cuts in essential services.”

In assessing the impact of the TCJA, the nonprofit, nonpartisan Brookings Institute wrote, “The 2017 tax law doesn’t help the middle class. The benefits of the law tilt toward the well-off both now and in the future, according to the distributional analysis of the Tax Policy Center. By 2027, benefits of the tax law flow entirely to the rich.”

Media Bias/Fact Check rates the Tax Policy Center as “least biased in research.”

Discover More: I’m an Economist: Here’s What a Trump Win in November Would Mean for the Tax Burden on the Poor

Griff Harris, CIC, president of Griffith E. Harris Insurance Services, is an insurance expert with experience in risk management and economic forecasting. He’s keeping a close eye on how a second Trump term might impact the middle class’ ability to afford health insurance, which, thanks to federal credits and subsidies, ties into tax policy.

Leave a Comment

Design by proseoblogger