How a Trump 2024 Win Could Impact the Costs of the American Dream
Depending on where you live, achieving the traditional American dream of getting married, having a couple of kids (and a pet), and owning a home and car might cost you anywhere from about $110,000 a year to more than $260,000. U.S presidents can impact those costs both directly and indirectly. Should ex-President Donald Trump win the 2024 election in his rematch with President Joe Biden, some of his actions could have an impact as well.
Be Aware: I’m an Economist — Here Are My Predictions for Inflation If Biden Wins Again
Check Out: 4 Genius Things All Wealthy People Do With Their Money
Although the Trump campaign has not issued much in the way of specific fiscal policies, you can expect his administration to pursue the same kinds of tax cuts and trade tariffs he pursued during his first term.
Here are some of the ways a Trump 2024 win could impact the costs of the American dream.
Wealthy people know the best money secrets. Learn how to copy them.
Taxes
The biggest tax legislation Trump passed as president was the 2017 Tax Cuts and Jobs Act (TCJA), which raised the standard deduction, lowered corporate and estate tax rates and increased the child tax credit. Those cuts are set to expire at the end of 2025. If Trump wins a second term, one of his first moves will likely involve extending the TCJA. This would keep taxes low for certain Americans, especially the wealthy, which would serve to lower their American Dream costs.
Explore More: Trump-Era Tax Cuts Are Expiring — How Changes Will Impact Retirees
Trade
A blog earlier this year from financial services company Allianz predicted that tariff increases are “likely to be more moderate and targeted” during a second Trump term, though still substantial. According to that blog, record-high tariffs would “hurt the U.S. economy more than in 2018-19,” and Trump’s pledge to “crack down on trade diversion and tariff evasion” could keep inflation high. In terms of the American dream, this would have a negative impact on costs because imposing strict tariffs on imported goods will likely lead to higher prices.
Student Loans
Student loan borrowers hoping for relief under Biden can probably kiss those hopes goodbye under a second Trump term. Trump is almost certain to end student loan forgiveness efforts that have been a highlight of the Biden administration. For taxpayers, it means fewer tax dollars going to expanding these programs, which could be a plus in terms of the cost of the American dream. But it would be a minus for millions of student loan borrowers who were banking on debt relief.
Energy
As ABC News reported, Trump has vowed to slash U.S. energy and electricity costs by accelerating domestic production of fossil fuels. The agenda includes tax breaks for fossil fuel producers and an end to clean-energy incentives included in Biden’s Inflation Reduction Act. The upshot for American consumers is that they could see a dip in gasoline prices and heating costs, at least temporarily. At the same time, Americans who have benefited from renewable energy and electric vehicle incentives could see their costs go up.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: How a Trump 2024 Win Could Impact the Costs of the American Dream