7 Little Luxuries the Middle Class Will Be Able To Afford When Trump Takes Office
Written by
Rafaela Stalbalk Klose
Edited by
Rebekah Evans
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When Donald Trump and his administration take the helm on January 20, shifts in economic policies and cost of living will influence the purchasing power and lifestyles of many — benefiting some while impacting others differently.
Here are little luxuries that could become more accessible to the middle class when Trump assumes office.
4 Economic Shakeups That Could Happen on Day 1 of Trump’s Presidency
Dining Out
Donald Trump’s proposal to eliminate taxes on tips aims to boost the disposable income of middle-class workers, especially those in the service industry, according to Business Insider. By removing the tax burden on gratuities, restaurant staff can retain more of their earnings, leading to better service quality and potentially lower menu prices as restaurants pass savings onto customers. This financial uplift allows families to enjoy more dining out experiences, enhancing their overall quality of life.Â
Taking Short Vacations
Donald Trump has expressed intentions to enhance the financial flexibility of middle-class families through tax reforms, making weekend getaways and short trips more affordable. Lower taxes free up earnings, allowing for family vacations and weekend escapes to become feasible and enjoyable without stretching the budget.
Deducting Auto Loan Interest
Trump aims to improve the financial well-being of middle-class families by allowing the deduction of auto loan interest. This policy lowers the cost of vehicle financing, making reliable and efficient cars more affordable without adding financial strain. With reduced taxable income, households have more disposable income for essential needs or discretionary spending.
Additionally, the deduction encourages the purchase of higher-quality vehicles, enhancing transportation safety and reliability. By making auto financing more accessible, Trump’s initiative empowers the middle class to improve their personal mobility and economic stability.
Automotive Upgrades
With Donald Trump’s proposed tax benefits and a strengthening economy, middle-class families may find it easier to upgrade to newer vehicles or enhance their current cars with luxury features. These tax incentives can make advanced safety technologies, improved fuel efficiency and state-of-the-art infotainment systems more accessible.
As a result, families might choose to invest in the latest car models or add desirable features to their existing vehicles, boosting both comfort and safety. This increased affordability allows the middle class to enjoy automotive enhancements without financial strain, making vehicle upgrades a reachable luxury when Trump takes office.
Increasing the Child Tax Credit
Donald Trump aims to strengthen the financial well-being of middle-class families by increasing the child tax credit, as the The Association for Health Care Journalists reported. This policy provides additional funds for each qualifying child, boosting household income and allowing parents to better cover essential expenses like education, healthcare and child care. By expanding the child tax credit, Trump’s initiative enables the middle class to invest more in their children’s futures and everyday needs, promoting economic stability and growth.
Home Improvements
Donald Trump wants to make home improvements more accessible for middle-class homeowners through deregulation and targeted incentives.According to NPR, he plans to reduce rules and build more houses by using more federal land for construction. Trump also aims to lower mortgage rates, making it cheaper to buy homes and do upgrades like painting or landscaping.
By offering tax breaks and incentives, he hopes families can invest in things like new kitchens, bathrooms or energy-saving features. These improvements can make homes more comfortable and increase their value without costing families too much money.
Investing in Hobbies and Leisure
An increase in disposable income can lead to more frequent and fulfilling experiences for middle-class families. Donald Trump’s tax reforms may provide the financial flexibility needed to invest in hobbies and leisure activities such as gardening, photography or crafting.
Additionally, families might subscribe to entertainment and fitness services, enhancing their personal well-being and enjoyment. Access to regular health and wellness treatments can also become more attainable, promoting a healthier and more active lifestyle.
Editor’s note on political 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.
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