6 Ways Trump Helped Make These 4 People Rich
Written by
G. Brian Davis
Edited by
Molly Sullivan
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As president, Donald Trump’s highest approval ratings centered around his handling of the economy, compared to other issues polled by Gallup.
So how did his economic policies actually impact real Americans on Main Street? GOBankingrates talked with both financial experts and laypeople about what they experienced under Trump’s first presidency.
Lower Personal Income Taxes
Many pundits argue that Trump’s signature legislation that he championed as president was the Tax Cuts and Jobs Act of 2017 (TCJA).
“There were several ways Trump’s administration’s policies have positively impacted me and my family,” said Alina Trigub, managing partner at SAMO Financial. “The TCJA lowered the tax rates for our bracket, which we couldn’t be happier about.
“Also, the standard deduction increased significantly under the TCJA.”
That lowered the taxable portion of incomes for many lower- and middle-income families, saving money on taxes and time on preparing tax returns.
Business Tax Changes
Thomas Brock, a CPA, CFA and contributor to Annuity.org, credited Trump’s corporate tax changes for the economic growth under the Trump administration.
“The most significant way Donald Trump fostered wealth accumulation is via the corporate tax rate changes enacted via the Tax Cuts and Jobs Act of 2017,” Brock said. “The centerpiece of the law was a sharp, permanent cut in the corporate tax rate — from 35% to 21% — and a shift toward a territorial tax system, which exempts certain foreign income of multinational corporations from tax.
“The law also adopted a new 20% deduction for certain income associated with pass-through businesses, such as partnerships, S corporations and sole proprietorships. Collectively, these changes provided shareholders of corporations and owners of pass-through businesses a significant boost in wealth accumulation potential.”
Trigub, too, pointed to how these business-friendly changes boosted the economy.
“These policies contributed to stronger GDP growth and a better economy, creating more jobs. This combination resulted in better bonuses for both my husband and me at our respective jobs.”
Strong Stock Market Performance
The S&P 500 rose 67% between Trump’s inauguration and his last day in office.
While that doesn’t set any records, it still marks healthy stock market growth. Although it can’t be fully attributed to Trump, investors enjoyed the success either way.
“The stock market was bullish, and our Wall Street portfolio kept building up on its own,” Trigub said. “This impacted direct investments, as well as our 401(k) and IRA balances.”
Cheaper Mortgages
“Mortgage rates were a lot more favorable under President Trump,” Trigub said. “That made it easier for real estate purchases to pencil out.”
During Trump’s tenure in office, 30-year fixed mortgage rates ranged between 2.6% to 4.9%. They largely hovered around 4% through much of the pre-COVID-19 portion of his presidency. Again, this isn’t strictly his doing, but it did happen during his time in office.
Over the last few years, inflation has driven the Federal Reserve to raise interest rates skyward. They hit a President Joe Biden-era peak of 8.45% on Oct. 17, 2023.
Less Regulatory Burden
Brenda Christensen, founder of Stellar Public Relations, noted that Trump’s changes to federal regulation allowed her business to serve new sets of clients.
“I worked with Trump years ago in the commercial real estate space. If he wins the race, his policies will likely reduce burdens on businesses by eliminating taxes and other regulatory restrictions, just as he did when he was in office before.
“One of these was loosening the FINRA (Financial Industry Regulatory Authority) rules. As a result, I was successful in representing clients for venture capital and angel funding, as it was no longer required that I be a licensed commercial broker.”
Opportunity Zones in Real Estate
“The Opportunity Zones initiative, introduced during Trump’s presidency, played a significant role in my real estate journey,” said Austin Glanzer, owner of 717 Home Buyers. “These zones are designated areas in cities that needed revitalization, encouraging investors to put money into these areas.
“When my wife and I were just starting out in real estate, we had limited funds. We were searching for a multi-unit property, but you typically needed to put down 20% for an investment property, which was out of our reach. Thanks to the Opportunity Zone Act, we could purchase a duplex in one of these zones with only 5% down. This allowed us to keep much-needed cash to invest in the future.
“Because of the reduced down payment, we also took advantage of various tax breaks provided by the Opportunity Zone Act. Over the course of the loan, this property is expected to gain around $300,000 in equity! And we only needed to bring $9,000 to the table.”
You don’t need to actively buy properties to take advantage of Opportunity Zones. Some private equity real estate syndications and other passive real estate investments use the financing and tax benefits of Opportunity Zones to invest in affordable housing with lower risk.
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.
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