6 Reasons Wealthy Folks Could Get Even Richer in 2025
Written by
Brooke Barley
Edited by
Amber Barkley
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President-elect Donald Trump has been making headlines with his economic plans for 2025. These proposals include extending tax cuts for the rich and raising tariffs on foreign goods. Some of his plans could greatly benefit the upper class financially.
Here’s a look at how the rich could get even richer come 2025.
Extended Tax Cuts
“It would seem the first benefit for wealthier Americans would be the renewal of the Trump tax cuts from his first term,” said Dr. Jim Ronan of the department of political science at Villanova University. “This was a major campaign pledge and is guaranteed to be the focal point of any new proposal.”
Trump has voiced his intent to renew the parts of the 2017 Tax Cuts and Jobs Act that provided tax cuts for individual incomes and breaks on estate taxes. In 2025, Americans in the top 1% of earners would receive an average tax cut of $60,000, according to the Center on Budget and Policy Priorities.
Elimination of the Income Tax
Trump has pushed the idea that he wants to end the federal income tax and instead impose tariffs to make up for it. This would mean America’s wealthiest people would not be taxed on their tremendous income, potentially saving them a big chunk of change each year.
“Longer term, substituting tariffs for the income tax as the primary means of funding our federal government would be hugely beneficial to high income Americans — especially those with substantial unearned income,” explained Michael Montgomery, a lecturer in the department of health and human services at University of Michigan-Dearborn.
Fewer Regulations on Real Estate Development
“Trump mentioned easing regulations on home construction at various points during the campaign, which may potentially benefit those in real estate development,” Ronan explained.
Trump has discussed wanting to eliminate federal laws that make home development expensive, with the goal of cutting the cost to build a home by 50%. This is great news for the wealthy real estate developers, who could make their largest profits yet if Trump is successful.
No Taxes on Social Security
During Trump’s campaign, he promised he would end taxation on Social Security benefits. Though this would be good for anyone receiving Social Security, the wealthiest recipients can save even more by not having to pay this tax.
Montgomery explained that while this practice might deplete Social Security funds in the future, wealthy retirees will benefit in the meantime. “For more affluent retirees able to afford taking cuts later, more cash now while prices are high would probably be a net positive.”
No Capital Gains Tax Increase
There was talk that the capital gains tax would increase, but with Trump in office, that’s unlikely.
“There will be no increase in the capital gains tax, which was part of [Vice President] Kamala Harris’ tax plan,” Ronan explained. “Given Republican control of Congress, a reduction in capital gains taxes is possible, but an increase will not occur.”
This means the wealthiest Americans will probably not have to pay an increased amount when they sell real estate or stocks.
More Support for Cryptocurrency
There could be substantial gains for rich Americans who have a lot of crypto. Trump was very pro-crypto in his campaigning, and news of his re-election sent cryptocurrency prices soaring. Those holding onto crypto stand to make a lot of money if this trend continues.
“Huge benefit here for those in the industry, those already holding lots of crypto, and, potentially, also for other investors willing now to participate in a less risky future crypto market,” Montgomery said.
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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