Americans came out in large numbers to vote for their preferred leader after the much-respected Obama era. And although the results of the elections came as a shock to many, Donald Trump was crowned the 45th president of the United States.
The Trump win sparked different reactions from people across the world and not just in America. However, this businessman-turned-president promised to serve the entire nation and be a president for all. Sadly, up to date, there are still so many qualms surrounding his leadership. All in all, it is our greatest concern to highlight ways in which Trump’s fiscal plan and policy may affect the wallets of millions of Americans.
This article covers a number of ways in which his plan and policies could affect our pocketbooks. So, (please) keep reading to find out how. Before it all though, let’s first understand what fiscal policy is. It is the use of government revenue, that is, mainly taxes collected from the taxpayers, to influence the economy. And now that you have a good understanding of the term, here are six ways that Trump’s new policy could affect our wallets in the coming years;
- Manageable tax obligations for entrepreneurs –For the longest time, capital gains tax has been said to hurt entrepreneurs across America. And if truth be told, if you have been in business for long, then it is obvious that at some point in life you have complained of the heavy tax burden on entrepreneurs. Well, this is going to change in the new policy because Trump promises that his new policy will lower the capital gains tax. In fact, new policies have been put in place stating that there will be a lower tax rate for entrepreneurs who decide to sell their business.
- Low tax brackets on individual income – The tax relief is not only for the business women and men in America. Individuals who are employed will also have a huge tax weight lifted off their shoulders. When selling his manifesto, Donald Trump promised to cut individual taxes into 3 major tax groups; 12%, 25% and 33% depending on each and every individual’s tax bracket. This will definitely be a huge relief for many Americans, especially the low earners in our midst.
- Pensions and other allowances for the old and retired – The old have not been forgotten in Trump’s new policy. And although he may not have stated figures for the pensions and allowances, it is expected that the living alone allowances will go up and so will the individuals’ pension. The deal does not end there; remarkably, there will be a huge cap on the drugs payment scheme which will reduce the medical charges in general for millions of cardholders. This is bound to improve retirees’ standards of living.
- Amazing benefits for people living with disabilities–There are a lot of promises that are expected to come with the Trump win. And one of the most notable and touching to many is the promises to increase the benefits for people living with disabilities, a good deal on their allowances and also pensions.
- Affordable mortgages and house rates –In his big plan for America, there is a pledge to cut the house rates to at least 9% VAT rate. And even if critics may have a lot to say concerning this, we can confidently say that at the end of the day, this type of commitment will mean a lot for first time home buyers. The mortgage and house rate plan also promises to convince banks across America to lower their standard mortgage rates so that younger buyers can come in. Looking at it from a positive side of view, the plan is a win-win situation for the bank, for the buyers and for our economy in general.
- Low students’ loans –One of the most moving messages in his campaign was his promise to make college affordable for all. In one of his many messages, Trump said that millions of American students are chocking on these loans and not to mention the ridiculously high tuition costs. So, it is his plan to see that reduce to something more reasonable.
For a more elaborate approach on student loans, Donald Trump plans to get rid of the students’ loan program that has been charging low-income students some interest while they are still in school. And in addition to this, in his plan to make education affordable, Trump plans to cap the students’ monthly payments to maybe 12.5% of their income and forgiving any remaining balances after 15 years.
Well, there you have it. We are just a year into Donald Trump’s presidency and we are yet to see him fulfill his promises.