I’m an Economist: Here Are the Financial Reasons To Vote for Trump
Written by
Dawn Allcot
Edited by
Ashley Barnett
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
As Americans evaluate the presidential candidates in preparation for visiting the polls in November, some voters will make their selection by following their heart. Others have specific issues, from women’s rights to the environment, they feel strongly about. And some will vote, almost exclusively, with their financial well-being in mind. After all, housing, food, and healthcare are basic human needs that must be met to enjoy any sort of quality of life.
If you are concerned about the economy, inflation, taxes, and the job market, some economists believe that Donald Trump and his expected policies could have a positive impact on your wallet. Cliff Ambrose, founder and wealth manager at Apex Wealth, spoke candidly with GOBankingRates about how Trump’s policies could spark economic growth and bode well for the middle class.
The Tax Cuts and Jobs Act Could Be Renewed
The Tax Cuts and Jobs Act, Trump’s massive overhaul of federal tax laws, is set to sunset in 2025 unless Congress votes to extend the provisions. That’s far more likely if Trump is in the White House.
The TCJA lowered marginal tax rates for the middle class, as well as many lower-income households, which means people can keep more of what they earn. For instance, as a single filer earning $45,000 annually, your marginal tax rate (the highest tax rate you’ll pay on your last dollar of income) is 12%; pre-TCJA, that rate was 15%.
The TCJA also raised the standard deduction, which encouraged people not to itemize. This leveled the playing field and lowered tax bills for taxpayers who can’t afford (or don’t want to pay for) professional tax prep services to help them practice tax avoidance strategies to lower their tax bill. “Itemized deductions can help with tax avoidance, which is a way to legally reduce your tax bill. But they also open doors to tax evasion, or illegally declaring deductions you don’t deserve,” according to a blog post published by Alleviate Tax, a California-based tax debt relief.
The TCJA also increased the Child Tax Credit and introduced other changes benefiting middle- and upper-middle-income taxpayers.
TCJA Provisions Put More Money in the Hands of Businesses
It’s no secret that many of Trump’s policies favor larger businesses and corporations. The TCJA introduced a flat corporate tax rate of 21% and other benefits to larger businesses. “When you lower corporate tax rates and offer incentives for businesses, it allows more money to be freed up in the economy,” said Ambrose. “It increases business investment and hiring. The more capital you have, the more you’re able to grow.”
When companies grow, the U.S. economy as a whole grows. The Growth Domestic Product (GDP), one measure of the U.S. economy’s health, was 2.6% in 2017 – 2019, which is consistent with growth in the past decade, according to GISReportsOnline.com.
Fewer Regulations Could Spark Economic Growth and Reduce Unemployment
Ambrose also brought up the point that Trump’s looser regulations on energy production and manufacturing could support companies’ growth. “People that favor that approach, with a reduction on regulatory burdens, make it easier for companies to operate,” he said. “That can increase productivity, cost savings, and potentially jobs or job creation.”
It’s difficult to say if this occurred during Trump’s first presidency, as his term was marred by high unemployment rates due to the pandemic. Prior to the pandemic, however, between 2017 and 2019, the jobless rate dropped from 4.7% when Trump entered the White House to 3.7% pre-pandemic, according to GISReportsOnline.com.
Overall, Trump added 6.7 million jobs to the economy, excluding the pandemic months, while President Joe Biden added 15.4 million jobs, so far, during his presidency, according to APNews.com. However, it’s important to point out that some of Trump’s policies, including the TCJA laws, are still in effect, which could help spark job growth.
Fuel Prices Could Drop with Reduced Dependence on Foreign Oil
During his famous interview with Elon Musk, Trump repeated his classic line, “Drill, baby, drill,” in regard to opening the Keystone XL pipeline, shut down during the Obama Administration, to release stores of oil. Trump also told Musk, “We have to bring energy prices down.” Opening the pipeline created 48,000 jobs, according to Trump.
Ambrose said, “With energy companies, deregulation relating to environmental policies definitely allowed them to expand operations and invest in more projects… Anytime you can buy something domestically and not have to outsource it from another country, it’s obviously going to be less money. Gas prices were lower.”
The price of fuel, of course, has a tremendous effect on the costs of food, consumer products, manufacturing, and virtually everything else since the cost of transport is a key factor in prices. “Energy independence can strengthen the economy because it could help lower energy prices and boost jobs in the sector, as well,” Ambrose said.
Adam Ferrari, CEO of Phoenix Capital Group, added, “During his first presidency, the [Trump] administration made increasing the domestic supply of oil and other resources a priority by opening Federal lands and offshore areas for drilling. His push for infrastructure development and energy independence could create new opportunities for entrepreneurs, which would open new markets and business opportunities for the economy.”
Inflation Control
Oil and fuel prices are just one factor related to inflation rates. While people often attribute high inflation or low inflation — and the economy as a whole — to the president, stimulus checks, the printing of money, consumer supply and demand, and interest rates also affected inflation in recent years.
“When you emphasize economic growth through business incentives, tax cuts, and deregulation, you’re going to increase the supply side of the economy, which could counter inflationary pressures,” Ambrose said. “Obviously, at the end of the day, it’s all in the hands of the Federal Reserve. But a different administration could focus on reducing costs for businesses and mitigating inflation indirectly.”
Conclusion
In general, some economists feel that Trump’s policies of tax cuts and deregulation for businesses could benefit many Americans.
“I think if you take his character out of it and just focus on what his strengths are, it would be in the deal-making arena. A guy who is incredibly successful in business sounds like a guy I would want running, arguably, one of the most powerful corporations in the world, which is the United States. From that pure economic standpoint, that would be my opinion,” Ambrose concluded.
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. For more coverage on this topic, please check out I’m an Economist: Here Are the Financial Reasons to Vote for Harris.
More From GOBankingRates
