Here Are All the Promises Trump Has Made to the Middle Class If He’s Reelected
Written by
Jennifer Taylor
Edited by
Chris Cluff
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Donald Trump wants to “Make America Great Again.” If elected, the former president has made big promises to the middle class, but his plan of action remains a mystery.
In June, the Associated Press sent the Trump campaign 20 basic questions to learn more about his economic views, but they all went unanswered. Instead, spokeswoman Karoline Leavitt told the news agency that the former president best speaks for himself and directed them to video clips of him.
Offering a similar viewpoint, Stephen Moore, an informal Trump advisor and Heritage Foundation economist, told the AP that the Republican candidate is in a unique position, as voters can judge his previous record in office.
Here’s a look at four promises Trump has made to the middle class if he is elected to a second term.
‘Stop Outsourcing, and Turn the United States Into Manufacturing Superpower’
In theory, turning the U.S. into a manufacturing superpower sounds great. Creating more domestic jobs and relying less on other countries certainly seems enticing.
However, there’s more to it than that. If elected, Trump has called for a 10% tax on all foreign imports.
If imposed, this would cause the average American household to endure an approximately $1,500 annual tax increase, according to the liberal-leaning Center for American Progress Action Fund. The right-leaning American Action Forum puts the cost at $1,700 or more.
The tax increase would make the price of American goods more expensive, without significantly increasing the number of U.S. manufacturing jobs, according to the Center for American Progress.
It actually wouldn’t be the first time Americans were in this situation.
In 2018 and 2019, Trump levied tariffs on thousands of products valued at approximately $380 billion, according to the nonpartisan Tax Foundation. This imposed nearly $80 billion worth of new taxes on Americans.
Worth noting: The number of American manufacturing jobs slightly declined from the beginning of Trump’s presidency to the end. In January 2017, a total of 12,366 Americans were employed in this sector, falling to 12,188 in January 2021, according to Bureau of Labor Statistics data.
‘Large Tax Cuts for Workers, and No Tax on Tips!’
Introduced by Trump, the Tax Cuts and Jobs Act was the largest overhaul of the federal tax code in three decades. It went into effect on Jan. 1, 2018, permanently reducing business tax rates and temporarily offering lower tax rates for individuals.
The individual income tax cuts are currently set to expire at the end of 2025. However, Trump has said he plans to extend the TCJA, if elected.
This might sound great in theory, but extending the Trump tax cuts would cost $3.2 trillion over 10 years, $6.8 trillion over 20 years and $10.3 trillion over 30 years — in 2024 dollars — according to an analysis by the Center for American Progress.
As for Trump’s “no tax on tips” plan, it likely also looks better on paper. Announced at a June 9 rally in Nevada, this plan failed to impress key groups, including the Culinary Union, which represents 60,000 workers in Las Vegas and Reno.
Tipped workers also represent just 2.5% of the workforce, according to an analysis by Ernie Tedeschi at the Yale Budget Lab. Of this group, only 5% of workers are in the bottom 25% of earners, so most low-income and middle-class workers wouldn’t be impacted by eliminating the tax on tips.
‘End Inflation, and Make America Affordable Again’
One of the biggest issues impacting the 2024 presidential election, inflation has soared during President Joe Biden’s term. The inflation rate — before seasonal adjustment — was 3% in June 2024, compared with 1.4% in January 2021, when Trump left office.
Trump is capitalizing on this by promising to end inflation, if reelected.
His plans for a second term could actually make inflation worse, according to Axios. At least four key aspects of Trump’s economic philosophy come with significant inflation risks.
This includes the 10% tariffs on all imports, 100% tariff on cars made outside the U.S. and a minimum 60% tariff on Chinese goods. However, an analysis from the Center for American Progress revealed this would raise consumer costs, leading to increased inflation.
He also wants to lower interest rates. This might sound great, but the Federal Reserve uses interest rate hikes to combat inflation.
Additionally, he wants to extend the TCJA, which would cost the economy trillions — as noted above. Beyond that, putting more money out into the economy would raise consumer demand, thus creating the potential for higher prices.
Finally, Trump has always been vocal about his desire to heavily curb immigration. This could backfire by creating labor shortages that boost inflation, economists say.
‘Fight For and Protect Social Security and Medicare With No Cuts, Including No Changes to the Retirement Age’
Trump took to Truth Social on July 31 to share his belief that senior citizens shouldn’t pay taxes on their Social Security benefits. In theory, this might sound ideal, but in reality, it comes with major consequences.
Unless he’s able to find a replacement for this tax revenue, it would increase deficits by $1.6 trillion to $1.8 trillion through 2035, according to the nonpartisan Committee for a Responsible Federal Budget. It also would increase Social Security’s 75-year shortfall by 25%, nearly triple the Medicare HI 75-year shortfall and advance the insolvency date of Social Security’s retirement trust find by more than one year and the Medicare HI trust fund by six years.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
