The long, brutal presidential campaign has come to a close, and the voters have spoken, electing Donald Trump as the next President of the United States. He’s proposed many policies throughout the course of the campaign. How will they affect you? Bob Wamhoff, President at Wamhoff Financial Planning & Accounting Services, reviews the highlights.
- Trump has proposed the creation of new, simplified tax brackets, down to just three brackets (from seven) for married, joint filers. These brackets include tax rates of 10% to 39.6%.
- This simplification would lower the tax burden for most.
- If you make less than $75,000, you’d pay just 12% in taxes. $75,000 to $225,000, you’d pay 25 percent. For those who make $225,000 and more, 33%.
- Trump has also vowed to eliminate the so called “death tax” so that, in most cases, heirs would not be taxed on inheritances.
- Trump has proposed raising the minimum wage from $7.25 per hour to $10 per hour.
- This would increase the pay for nearly 15 million American workers.
- Currently, 870,000 hourly workers in the United States earn minimum wage.
Child Care Expenses, Paid Maternity Leave
- Trump plans to provide deductions for the cost of child care (and care of elderly dependents) from federal income taxes.
- In addition, he has proposed a child-care rebate to low-income taxpayers, as well as a matchin $500 contribution to their savings account.
- His plans also call for six weeks of paid leave for new mothers, at a rate equal to what they’d earn through unemployment pay.
- Finally, he’d allow parents to open tax-free savings accounts dedicated to child care.
- Trump has, thus far, been inconsistent on his position on whether he’ll favor an interest rate hike.
- He’s also been at odds with Federal Reserve Chair, Janet Yellen, throughout the campaign, leading some to believe that he may replace her in 2018.
- We have yet to see where Trump will land on his position on interest rates once his administration is in place.
- Throughout the campaign, Trump has vowed to repeal the Affordable Care Act completely, and replace it with heath savings accounts.
- Because there are so many variables associated with this issue, it’s difficult to say exactly how it may impact the average American’s wallet.
- We’re advising that everyone stay vigilant, as things will be changing.