3 Bills You Might Not Have To Pay With Trump as President
Written by
Lydia Kibet
Edited by
Rebekah Evans
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President Donald Trump’s return to the White House is poised to bring significant changes — and already has — one of which is bills. If you’re worried about having to shell out more money for some bills that might be going up, that could be true. However, some bills may be reduced with the Trump administration, along with other economic changes.
Taxes
The Tax Cuts and Jobs Act (TCJA) enacted by Trump in 2017 will be a key priority for the president this year. The law that brought several tax breaks for Americans is scheduled to sunset at the end of 2025. This would mean taxes will revert to the higher levels. However, with Trump taking office, he’ll probably extend the TCJA with Congress’ approval. Extending Trump’s TCJA will save you money on your tax bill.
“One particular saving in the TCJA is the expansion of the child tax credit. Before 2018, parents got a tax credit of $1,000 per child. The TCJA increased that credit to $2,000. If that’s extended, parents will continue to see a significant offset of the bills they pay to raise their children,” said Alex Astin, financial advisor at Burns Estate Planning.
Trump vowed to eliminate federal taxes on Social Security benefits, tips and overtime pay on his campaign trail. Melissa Pavone, certified financial planner (CFP) and founder of Mindful Financial Partners, said, “I hope President Trump will prioritize eliminating taxes on Social Security benefits. Retirees have contributed to the system throughout their working years — it’s only right they should keep more of what they’ve earned to ensure a secure and comfortable retirement.” This would save considerable amounts on tax bills for retirees and workers.
While eliminating these federal taxes will provide short-term relief, it might deplete Social Security funds, reducing retirees’ benefits. Even worse, it could accelerate the running out of Social Security funds by two years, from 2035 to 2033.
Energy
Trump has been very vocal about his plan to increase oil and gas production. Throughout his campaign, he repeated his slogan, “Drill, Baby, Drill,” promising to make America more energy independent and lower pump prices by expanding drilling on federal lands. He vowed to cut energy costs by half within a year of being in office.
“The president has suggested he will boost domestic energy production through reduced environmental regulations and a streamlined permitting process for energy projects. This could result in reducing, or at least avoiding the increasing of, your energy bills,” Astin added.
Prescription Drugs
According to a KFF survey, 55% of Americans said they’re worried about not being able to afford prescription drugs. During his campaign, Trump emphasized protecting Medicare and ensuring older adults receive the necessary care without facing excessive financial strain.
While Trump didn’t clarify his stance on the current Inflation Reduction Act caps on drug prices, his support for cost caps during his first term of presidency may continue. If this happens, Americans may save money on prescription drugs with the current $2,000 cap on out-of-pocket costs covered by Medicare.
Astin also thinks that some bills may increase with Trump as president. “While there are bills that could be cheaper during Trump’s administration, it’s also possible other bills will go up. If he implements the tariffs he’s promised, that could cause a price increase for many consumer goods. It could also cause interest rates to rise again in response to that inflation.”
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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