5 Ways Trump’s Second-Term Promises Could Affect You Financially
Former President Donald Trump has big plans should he win a second term this year, and many of those plans could impact how you build wealth — both positively and negatively.
Whether Trump returns to the White House (and delivers on his promises) won’t be known until November and beyond. But it’s worth looking at what he has planned.
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Downsized Government
Per the AP, Trump has made no secret of his dislike of the federal government and has promised to abolish whole agencies and fire tens of thousands of government workers.
If he succeeds, the most obvious impact would be that tens of thousands of former government workers will be unemployed. Many will have to compete for jobs in the private sector.
When this happens, it usually means employers have more leverage to tamp down wages and benefits.
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Taxes
Like most Republican presidential candidates, Trump has promised to cut tax rates for both businesses and workers. This could mean you’ll take more of your paycheck home and/or get a bigger refund during tax season.
But as Vox reported, some experts worry that tax cuts would mostly benefit the wealthy rather than middle- or working-class Americans.
Gas Prices
One of the key talking points during Trump’s campaign rallies is his desire to increase oil and gas production in the U.S. and do away with Biden administration initiatives to encourage electric vehicle adoption. This could lead to much lower gas prices.
In a recent interview with GOBankingRates, private equity investor Grant Cardone predicted that with Trump back in the White House, prices at the pump will “go to two bucks” a gallon and home heating costs will also be cheaper.
Deportation of Illegal Immigrants
At a December campaign event in Iowa, Trump said that on his first day back in the White House, he would “begin the largest domestic deportation operation in American history,” NBC News reported. This means millions of illegal immigrants will be sent packing — and employers will need to replace millions of workers.
That could be a tall order, considering that American citizens are not exactly lining up to take those jobs, which often require hard work for low pay. A shortage of workers in industries like agriculture, construction, distribution and services could lead to higher prices for everything from produce to apartments.
Tariffs
Another cornerstone of the Trump campaign is his promise to impose what The Washington Post called “unprecedented” tariffs on trillions of dollars of imports.
Such a move would likely strengthen U.S.-based industries and jobs by discouraging foreign imports. But it could also lead to higher prices on products that are much cheaper to source overseas.
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This article originally appeared on GOBankingRates.com: 5 Ways Trump’s Second-Term Promises Could Affect You Financially