Trump Says He’d Cut Taxes If Elected: Why That Might Not be Great for Your Wallet


According to ABC News, Donald Trump could be on track to reclaim the White House in 2024, as indicated by his favorable standings in polls compared to fellow Republicans and even President Joe Biden. The news outlet suggests that Biden may be losing support among voters, particularly concerning the economy, with only 30% of respondents in an ABC News / Washington Post poll approving of his handling of economic matters.

In August 2023, Trump disclosed to Fox Business his intentions to impose up to a 10% increase in taxes on imported goods, with plans for a gradual four-year elimination of essential Chinese imports. ABCNews.com highlighted potential short-term consequences such as increased prices of consumer goods, including electronics, as American producers would need time to ramp up production.

Trump asserted that the rise in prices would be counterbalanced by tax cuts, aiming to extend the tax cuts established by the Tax Cuts and Jobs Act of 2017 beyond their 2025 expiration date. These tax reforms, as previously outlined by GOBankingRates, involved restructuring tax brackets, lowering rates for most taxpayers, and doubling estate and gift tax exemptions, primarily benefiting the wealthy.

Despite Trump’s claims of tax reductions for Americans, reports from the 2018 tax season revealed smaller refunds for many taxpayers due to reduced withholding throughout the year, leaving some with unexpected tax bills, CNBC.com reported. If Trump’s policies persist and the TCJA-era tax cuts are prolonged, Americans may continue to experience diminished refunds or increased tax liabilities in the years ahead.

Furthermore, the potential extension of tax cuts could exacerbate the national debt, with estimates suggesting an additional $3.5 trillion, according to analysis from the Congressional Budget Office. This could elevate the risk of a government default and lead to a downgrade in the U.S. credit rating.

Moreover, concerns arise regarding Trump’s purported plans to offset lost tax revenue by reassessing Social Security and Medicare programs, despite assurances from the Biden Administration against such measures, as reported by Reuters. Biden emphasized his commitment to safeguarding these programs in a campaign speech published on the White House website, warning against any attempts to reduce benefits or raise the retirement age.

In conclusion, Trump’s potential return to the presidency in 2024 comes amid economic uncertainties, with his proposed policies raising questions about their impact on taxpayers, the national debt, and vital social programs.

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