What President Trump means for your wallet
NEW YORK — Donald Trump scored a huge win on Election Night.
As Trump predicted, Americans were fed up with politics as usual and voted for something completely different. In addition to vows to shake up Washington, Trump promised to bring his business success to the White House.
In his victory speech, Trump said he would usher in “the strongest economy anywhere in the world.” He has promised big tax cuts, lots of spending on roads and bridges and “America First” economics — a crackdown on trade and immigration.
Here’s a rundown on what exactly he said he would do for Americans’ pocketbooks. But keep in mind most changes will need an approving nod from Congress.
Taxes: Many people’s tax bills are likely to fall under Trump. He plans to lower rates for businesses and individuals, although low-income families may end up paying more. His proposal calls for just three tax rates for people: 12%, 25% and 33%. He would slash businesses taxes to 15% (down from a high of 35%).
The question remains how Trump will pay for his tax cuts. Otherwise, America’s debt will grow substantially.
Jobs: Trump has vowed to bring jobs back from Mexico and China. He wants to renegotiate trade deals and use tariffs to force companies like Ford to make more products in the U.S. Experts are skeptical that Trump — or anyone — can bring back manufacturing jobs. One study predicted his plans would end up cutting millions of jobs.
Much may depend on Trump’s ability to work with Congress to enact tax cuts and increase spending to repair America’s roads and bridges. Those measures could boost growth and jobs.
“We will rebuild our infrastructure, which will become second to none,” Trump said in his victory address.
Stocks: U.S. stocks are down, but it’s not a huge selloff. Since World War II, the stock market has performed better when a Democrat is in the White House (9.7% average annual gain) versus a Republican (6.7% average annual gain), although Trump isn’t typical.
Trump himself has warned the stock market is in a “big, fat, ugly bubble,” and he has been ardent that he wants to replace Janet Yellen as the head of the Federal Reserve.
Health care: Goodbye, Obamacare. Trump campaigned to scrap it and replace it with a more “free market” plan that allows insurers to sell policies across state lines. He says he’ll work with a Republican Congress to finalize details, but he wants to allow those who buy health coverage outside of their jobs to deduct their premium costs.
College: Trump vows to hold colleges accountable if they don’t lower tuition. He has threatened to take away the tax-exempt status of college endowments. He also wants to forgive student loan debt after 15 years of full payments instead of 20.
Child care: Making child care affordable was a big pledge of both Trump and Clinton. Trump has proposed letting parents deduct child care costs up to the average in their state for their children’s age. He also wants to let new mothers six weeks of maternity leave where they can collect unemployment payments.
Retirement: Don’t expect Social Security to change under President Trump. He didn’t call for any tweaks on the campaign trail.
Growth: Trump’s main proposals to hypercharge economic growth are large tax cuts, scaling back regulations (including Obamacare) and changing U.S. trade relationships. His economic team argues these policies will stimulate growth, but the vast majority of Wall Street experts and independent economists think they could lead to a recession. Much will depend on how far Trump goes on curtailing foreign trade.