The 2024 presidential election between President-elect Donald Trump and Vice President Kamala Harris was a contentious one, with both candidates dueling over warring policy proposals, many of which will impact the personal finances of Americans. Ultimately, Trump’s vision for America’s domestic and foreign policies won out, with two out of three voters polled stating that the American economy was on the wrong track, per NBC News.
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Now that Trump is set to take office in January 2025, which policies of his can Americans expect to impact their bank accounts?
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As reported in The Guardian, Trump has promised in his second term to cut the corporation tax from 21% to 15% for American companies that make their products in the United States. Additionally, he has made clear his desire to renew the income tax cuts he instituted in 2017, which are set to expire in 2025.
As The Guardian noted, though, while these cuts may save Americans money during tax season, they will more than likely increase the country’s GDP budget deficit and national debt.
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Regarding those increases to the national debt and the GDP budget deficit, Trump has announced that he will pay for them through the imposition of tariffs upon goods imported to America from foreign countries.
While these tariffs may help offset some of the debt and budget deficits, economists have also warned that they will like increase the costs of goods here in America and will lead to large cost-of-living increases for most Americans.
“Drill, baby, drill” is how Trump has characterized his energy policy. He has categorized President Joe Biden’s industrial policies and the Inflation Reduction Act for green energy stimulus to be too expensive for taxpayers.
Instead, Trump plans to decrease energy costs via “the resumption of large-scale oil and gas drilling.”
Trump’s tariffs plan will likely increase inflation, which The Guardian reported will force the Federal Reserve to be hesitant to cut interest rates. This would mean savers would earn more interest on products like deposit accounts, but borrowers would pay higher interest rates on debt.
Trump has also promised to deport the approximately 11 million people who lack legal status currently living in America, as well as completing the U.S.-Mexican border wall begun in his first term. Were he to do this, he would also “reduce the supply of low-cost labor” and thus increase business costs.
