I’m an Accountant: 4 Ways a Trump Presidency Could Help Middle Class Taxpayers
Written by
Laura Beck
Edited by
Renee Ross
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The 2024 presidential race is heating up, and middle-class Americans are diving into different issues that they think might affect their day-to-day life. One of those issues is a biggie: taxes.
Former President Donald Trump’s economic proposals are in the spotlight — but what do they all mean, exactly?
GOBankingRates spoke with accountants Kathy Gilchrist and Eliza Gwendalyn to analyze how Trump’s platform could impact the average American family’s finances.
Here are four ways Trump’s proposed policies might benefit middle-class taxpayers.
Permanent Tax Cuts for Individuals
Trump has promised to make the 2017 individual tax cuts he introduced permanent for all tax brackets.
If implemented, this could provide some financial stability for middle-class families. Regardless of who wins the election, Congress will need to address this issue before the end of 2025 when the tax cuts expire.
The Complex Issue of Tax-Free Tips for Service Workers
Trump’s take on tax-tree tips for service workers is worth looking into. At a campaign event in June, Donald Trump suggested not taxing tips. This idea became popular among his supporters.
However, a deeper analysis reveals some potential drawbacks to this plan. According to the Tax Policy Center, this policy might primarily benefit a small segment of tipped workers while potentially harming others. Half of wait staff in the U.S. make $32,000 or less annually, and many of these workers already pay little to no federal income tax due to existing credits and deductions, meaning they wouldn’t see much benefit from this policy.
The proposal could have unintended consequences, as well. It might slow efforts to raise the minimum wage for tipped workers, could cause complications with Social Security and Medicare, and other issues.
Potential Energy Cost Reduction
Kathy Gilchrist, accountant and CFO at CFOKathy, pointed out something else that Trump has said he would do: “He said his goal is to cut people’s energy costs in half within 12 months.”
While the feasibility of this promise may be debatable, any significant reduction in energy costs could provide some savings for middle-class households.
Economic Growth Through Deregulation
Eliza Gwendalyn, certified bookkeeper and founder of Book Media, shared that Trump’s deregulation efforts could indirectly benefit the middle-class. “Deregulation could boost company profits and drive up stock prices, which could benefit middle-class families with investments in the stock market. Additionally, fewer regulations might lead to job creation and higher wages, giving the middle class more disposable income and financial security.”
This approach, while controversial, could potentially stimulate economic growth and job creation.
Additional Considerations
While these proposals sound promising, experts point out that the impact of Trump’s policies could be mixed.
Gilchrist said, “It’s not always clear how Trump will impact middle-class taxpayers, because he often makes contradictory statements, and he didn’t live up to his 2016 campaign promises while in office.”
Moreover, some of Trump’s more ambitious proposals, such as replacing income tax with tariffs, could have complex economic consequences.
The Final Word
The jury is still out on whether Trump’s money plans will actually help average families or not. While some of his ideas sound good for middle-class people, it’s not clear if they’ll really work out that way in real life.
Gilchrist said, “Trump is usually a mixed bag. He wouldn’t have the power as president to do some of the things he promises, like controlling the global energy market.”
As more people start paying attention to the upcoming election, it’s always a good idea to listen carefully to what the candidates promise and compare that to their track record.
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 Accountant: 3 Changes I Anticipate Coming to Your Taxes If Harris Wins the 2024 Election.
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