Via foxbusiness.com This abbreviated version of the article is what Fox Business believes to be Donald Trumps affects on your wallet should he ultimately succeed in becoming the 45th President of the United States. On the surface, they seem reasonable and would help soften the hard collapse in the economy that appears to be teetering on the brink of disaster.
1. Individual income tax reforms
2. Corporate tax reforms/domestic job initiatives
3. Interest rates
4. Tax reform on investments
5. Healthcare reform
6. Social Security
1. Individual income tax reforms: Perhaps what most clearly separates Trump from the rest of the presidential field is his simplified but aggressive tax reform proposal. Under Trump, the progressive seven-tier tax brackets we have now would be replaced by four simple brackets.
2. Corporate tax reforms/domestic job initiatives: On top of reforming individual income taxes, Trump proposes major business reforms that are designed to spur economic growth and bring jobs back to American soil. Trump’s tactics include reducing the corporate income tax rate from 35% to just 15%, creating a 10% tax holiday for American businesses that choose to repatriate foreign earnings, and possibly implementing tariffs on imported goods. Trump commented during a March debate that he’d be in favor of implementing a 45% tariff on Chinese goods “if they don’t behave.”
3. Interest rates: Trump could also directly affect your money by tinkering with the Federal Reserve chair position. The president of the United States is responsible for appointing the Federal Reserve chairperson, and current chair Janet Yellen’s term will be up in February 2018. Earlier this week Trump commented that he would “most likely” replace Yellen when her term is over.
4. Tax reform on investments: In addition to adjusting individual ordinary income tax brackets, Trump’s tax reforms aim to encourage investing, which should come as no surprise, given that Trump made his fortune as a real estate investor.
5. Healthcare reform: In March, “The Donald” unveiled his long-awaited seven-point healthcare reform designed to repeal and replace Obamacare. Trump has been an outspoken opponent of Obamacare from the start, and his plan would make a number of key changes. This would include the sale of health insurance policies across state lines, allowing consumers full health-premium tax deductions, encouraging the use of Health Savings Accounts, removing barriers for foreign-made pharmaceuticals to enter the U.S., and advocating for block grants to every state concerning Medicaid. You can read a much more thorough synopsis of Trump’s health reform plan.
6. Social Security: Finally, since the vast majority of Americans are covered by, or paying into, the Social Security program, what happens with Social Security is of increasing importance. This is especially true considering that the Board of Trustees predicts that the Trust could exhaust its excess cash reserves by 2034, possibly necessitating a benefits cut of up to 21%.
You may have noticed my hesitation in my introduction. Quite frankly, I have seen Donald Trump contradict himself so often that I’m not sure how they can claim that this is his financial platform.
The best outcome would be for Fox Business and Donald Trump to prove that this author’s doubts are completely unfounded. I hope they do, but pardon me if I don’t hold my breath.