2 States Where Middle-Class Paychecks Could Rise If Trump Wins in November
Written by
Laura Beck
Edited by
Zuri Anderson
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 Election Day draws ever closer, middle-class Americans are wondering how their wallets might be affected. Is their income going up, down or will it stay the same? While a Trump victory could impact workers across the nation, experts suggested that residents of certain states might see bigger benefits to their paychecks.
GOBankingRates spoke with financial experts to find out which states could see the biggest boost to middle-class paychecks if Trump wins in November. Here’s what we learned below.
The former president also wants to eliminate income taxes — here’s what that would mean for the economy and your wallet.
Texas: A Tax-Friendly Haven for the Middle Class
Cliff Ambrose, FRC, founder and wealth manager at Apex Wealth, pointed to Texas as a potential winner for middle-class workers.
“If Trump wins, middle-class paychecks in states like Texas could rise,” Ambrose said.
He explained why Texas is well-positioned for potential gains.
“Texas benefits from no state income tax, so middle-class workers already keep more of their income,” he shared. “Trump’s policies, such as lower payroll taxes and support for job growth, could lead to higher wages or reduced tax burdens for the middle class.”
Thomas J. Brock, CFA, CPA and an expert with Annuity.org, agreed that Texas could see benefits.
“If Donald Trump wins the upcoming presidential election and Republicans secure a commanding position in Congress, I anticipate the implementation of policies favoring deregulation, low corporate taxes and infrastructure spending,” Brock said. “This could greatly benefit middle-class workers in states with strong manufacturing, energy production and agricultural sectors. Texas is top-of-mind.”
Ohio: Manufacturing Might Lead to Middle-Class Gains
If Trump wins in November, Ohio could see higher middle-class paychecks, according to Ambrose and Brock.
“Trump’s policies, particularly support for job growth in manufacturing states like Ohio, could lead to higher wages for the middle class,” Ambrose said. “These states are likely to feel the positive impact of his economic agenda, especially for middle-income earners.”
Trump’s Broader Economic Impact on the Middle Class
While Trump’s campaign promises focus on lifting the middle class, experts suggested his policies might have mixed results. The Brookings Institute, a nonpartisan think tank, concluded that “the 2017 tax law doesn’t help the middle class. The benefits of the law tilt toward the well-off both now and in the future.”
This suggested that similar policies in a second Trump term might result in minimal tax relief for the middle class while potentially increasing budget deficits.
Trump’s take on trade, and in particular, his proposed tariffs could have unintended consequences for middle-class consumers.
The Peterson Institute for International Economics estimated that Trump’s proposed 10% across-the-board tariff on foreign imports and up to 60% on Chinese goods could reduce after-tax incomes by 3.5% for those in the bottom half of the income distribution. So, a typical middle-income household might face about $1,700 in increased taxes each year due to these tariffs.
The Final Word
As always, a disclaimer. While candidates’ economic plans can sound promising, it’s always a good idea to take them with a hearty grain of salt. What candidates say on the trail and what policies they are able to implement can be different — and, of course, many must go through Congress.
Keep in mind that the economy doesn’t operate in a vacuum. It’s a complex and influenced by many factors — from global events to technological breakthroughs — that no president can fully control.
No matter what, middle-class Americans should stay informed about potential changes. Your financial situation is specific to you, so it’s always a good idea to consult a financial planner to figure out what your right move is right now — regardless of election outcomes. After all, being financially prepared is a smart strategy, no matter who ends up in the Oval Office.
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 6 States Where Middle-Class Paychecks Could Rise If Kamala Harris Wins in November.
More From GOBankingRates
