The 2024 Election: What Trump's Economic Plans Could Mean for You

Riya Kalapurakkal
Nov 12, 2024
3 min read

At 312 electoral college votes, Donald J. Trump has been declared the 47th United States President. Every election, regardless of party status, impacts your future – from job opportunities, how much you’ll pay for college, to even everyday items like food and gas.

In this post, we will be discussing new economic policies the Trump administration imposes and their effects on your future.

Tax Cuts and Jobs Act

In our previous post, we explored Trump’s Tax Cuts and Jobs Act (TCJA) from his first term, which continues to be a major focus in his 2024 campaign. The TCJA significantly impacts federal taxes, with the greatest change in the reduction of corporate tax rate from 35% to 21%, the largest corporate tax cut in U.S. history. It also lowered individual tax brackets, including a 2.6% decrease in the top bracket. Trump’s 2024 campaign has focused on making these cuts permanent while also increasing the Child Tax Credit from $1,000 to $2,000 per child.

What this means for you:

While tax cuts and increased credits may seem appealing, there has been considerable debate over their impact, especially since they disproportionately benefit the wealthiest Americans, creating a larger income gap. In other words, despite all income brackets receiving tax reductions, those at the top gain the most. For parents, however, the increased Child Tax Credit offers financial relief by helping ease the burden of expenses like childcare, healthcare, and general costs of raising a child.

Tariffs

As many Americans are concerned with inflation and higher prices, Trump plans to make changes to tariff policies. Currently, the Federal Reserve targets a 2% inflation rate for the United States. In response, Trump has imposed a 10% tariff on all imported goods, with an additional 60% tariff on Chinese products.

What this means for you:

By raising national tariffs, businesses face higher costs for importing raw materials and commodities, which are crucial for production. These increased costs make it more expensive for businesses to produce goods. As a result, businesses are likely to pass these higher costs on to consumers. For many middle-class families, this could increase annual purchases by over $1,700, raise inflation by 1%, and drive up overall prices.

Cryptocurrency/Bitcoin

Leading up to Trump's victory in the 2024 election, his World Liberty Financial (WLFI) token reached an all-time high. He aims to create a similar wave with Bitcoin, positioning the United States as the global leader in cryptocurrency.

What this means for you:

With a focus on cryptocurrency, Trump is stated to be focusing on expanding bitcoin through bitcoin-mining which can create new job opportunities in technology, energy, and infrastructure, as mining operations require significant resources. Additionally, increasing domestic mining could spark innovation in sustainable energy solutions, as the industry looks to reduce its carbon footprint.

With every election, there are pros and cons in every policy created. As these policies take shape, they will likely have a lasting impact on how you manage your finances, from the costs of living to potential career paths in emerging industries. Understanding these shifts now will help you prepare for the changes that could influence your financial future.

Dictionary

Tariff: a tax on imported or exported goods

Policies: rules or guidelines set by governments or organizations

Electoral Votes: votes cast by electors to choose the president

Tax Brackets: income ranges taxed at different rates

Commodities: raw materials, like oil, gold, and crops, which businesses use to produce their goods

Sources

Works Cited

CBS News. "Trump's 2024 Election: Impact on Economy, Taxes, Inflation, and Your Money." CBS News, 7 Nov. 2024,

www.cbsnews.com/news/trump-election-impact-on-economy-taxes-inflation-your-money/.

Snopes. "Trump Tariffs: What You Need to Know." Snopes, 19 Sept. 2024,

www.snopes.com/news/2024/09/19/trump-tariffs-explainer/.