7 States Where Upper-Class Paychecks Could Benefit Most If Trump Wins in November
Written by
Laura Beck
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
As the presidential race heats up, high-income earners are keeping a close eye on how the outcome might affect their wallets. While a victory by Donald Trump could potentially impact wealthy individuals across the nation, experts suggest that residents of certain states might see more significant benefits.
GOBankingRates spoke with financial experts to uncover which states could see the biggest boost to upper-class paychecks if Trump wins the election.
Also see what a Trump presidency could mean for Social Security.
Texas, Florida and Nevada: A Tax-Free Trifecta
Cliff Ambrose, FRC, founder and wealth manager at Apex Wealth, points to states without income tax as potential winners.
“If Trump wins, states like Texas, Florida and Nevada are likely to see upper-class paychecks benefit,” Ambrose said.
He said these states already have a leg up when it comes to retaining wealth.
“These states have no state income tax, so wealthy residents already keep more of their income,” he said. “Trump’s policies, including tax cuts and business-friendly measures, would likely keep federal taxes low for upper-income earners, helping them retain even more of their earnings.”
Ambrose said these states could become even more attractive to the wealthy.
“These states, known for attracting wealthy individuals because of favorable tax environments, would see further advantages if Trump’s tax policies are extended or expanded,” he predicted.
New York and California: Relief for High-Tax States?
Interestingly, Anthony DeLuca, CFP and expert for Annuity.org, suggested that some of the biggest beneficiaries could be in traditionally high-tax states.
“Upper-class earners living in areas with high state and city taxes need federal and corporate relief,” DeLuca explained. “That would be New York, California, New Jersey, Massachusetts, etc.”
DeLuca pointed to Trump’s past tax policies as a guide.
“Trump enacted the TCJA of 2017 which gave huge tax relief to the upper-class,” he said. “It lowered both the individual tax rate from 39.7% to 37% and the corporate tax from 35% to 21%.”
Wyoming and West Virginia: Energy States Could See a Boost
DeLuca also highlighted potential benefits for states with strong energy sectors.
“Trump has always touted a pro-coal, pro-oil mindset,” he said. “As stated above, he [would] once again lower EPA regulatory requirements and offer tax cuts to large U.S. oil companies as he once did. That [would] favor Wyoming, West Virginia, Pennsylvania, Kentucky, etc.”
This could mean significant benefits for upper-class residents in these states, particularly those involved in the energy industry.
“All business owners and key employees (the upper class) living in these states or in these industries [would] benefit,” DeLuca said.
The Final Word
It’s good to remember that what candidates say during campaigns doesn’t always become real policy. Big changes need to go through Congress first, which can take a while and doesn’t always go as planned.
Also, the economy is complicated. Even when experts make their best guesses, things like what’s happening in other countries or new technologies can change how policies actually work out in real life.
As we get closer to election day, it’s a good idea for high-income earners to keep an eye on possible policy changes. Talking to a financial advisor can help you understand how these changes might affect your money. No matter who ends up in the White House, knowing how it could impact your wallet is always smart.
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
