I’m a Self-Made Millionaire: 5 Reasons a Trump Presidency Is Better for Building Wealth
Written by
Aja McClanahan
Edited by
Travis Woods
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 we enter another election cycle, many U.S. citizens are examining the platforms of presidential candidates in this season. Mainly, voters want to know how a particular candidate and their proposed platforms will affect their wallets.
Though no one really knows what Donald Trump will and will not do, in this brief guide, we’ll explore five ways a Trump presidency could be better for millionaires and those looking to building wealth.
1. Tax Cuts
One of the hallmark achievements of the Trump administration was the implementation of the Tax Cuts and Jobs Act (TCJA) in 2017, which provided some tax relief measures for both individuals and businesses.
This legislation increased take-home pay for many Americans, though many believe most benefits were skewed toward high-income households. The exemption for federal estate taxes, also known as ‘the death tax,’ was increased, allowing wealthier families to transfer assets to loved ones with less tax liability.
Some resources reveal that close advisors are urging him to campaign on doing away with the complex tax system and embrace a simpler, flat tax, which is a departure from Biden’s plans to raise personal income rates on the wealthy or those earning more than $400,000, in addition to raising the corporate tax rate and how capital gains are taxed.
2. Deregulation and Pro-Business Policies
The Trump presidency was also marked by a substantial reduction in regulatory burdens on businesses, particularly benefiting small and medium-sized enterprises headed by high-net-worth individuals (HNWIs), who often struggle with the cost of regulatory compliance.
3. America First Policy
Trump’s “America First” policy sought to prioritize the economic interests of the United States and its citizens by focusing on trade and domestic job growth. The Trump administration’s goal was to protect American industries and workers while reducing reliance on foreign goods by renegotiating trade agreements and imposing tariffs on international imports.
4. Stock Market Growth
The previous Trump presidency witnessed a notable rise in the stock market, driven by a combination of tax cuts, deregulation, and pro-business policies. The Dow Jones Industrial Average returned 56% during the Trump presidency.” According to LPL Research, this represents” an annualized gain of 11.8%, which is the best performance for any Republican president since Calvin Coolidge during the roaring 1920s.”
5. Consumer Confidence
Before the onset of the pandemic, consumer confidence rose to an all-time high under Trump’s first term. Higher consumer confidence generally leads to increased spending and investment, which in turn can stimulate economic growth. If this can be repeated for a second term, it will definitely impact the potential for millionaires and HNWIs to increase their wealth and investments.
The Bottom Line
Stephen Kates is a CFP professional and personal finance expert specializing in financial planning and education. He advises business owners, high-net-worth individuals and millionaires on managing their finances and building wealth.
He notes, “While there are historical differences in market performance between past presidents, there is very little correlation between the president and those returns. ” His advice? “My recommendation for any investors, young or old, is to continue to invest based on the information available. Neither president will have a magic wand.”
More From GOBankingRates
