Will You Still Need Your Side Gig for Extra Cash If Trump Wins a Second Term?
Former President Donald Trump, the Republican primary nominee for the 2024 presidential election, could become the only second commander-in-chief to win two non-consecutive terms. If he wins, Trump said he plans to return to lower taxes and fewer regulations. Does this mean you can give up your side gig? Probably not.
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Trump has promised to extend the 2017 Tax Cuts and Jobs Act, particularly the individual income tax breaks, which lowered the top marginal rate from 39.6% to 37%. If Congress doesn’t take action, most Americans will pay higher taxes starting in 2026. The Tax Foundation estimated that making the individual provisions of the TCJA permanent would reduce taxes for 62% of filers in 2026.
The Cost of Lower Taxes
You may pay less in taxes, but Americans could potentially see reductions to social safety net programs.
Trump’s advisers proposed cutting the federal payroll tax to the former president. According to Reuters, this could lower the flow of money into the Social Security and Medicare trust funds. Reuters also noted that while he is open to the idea, no commitments have been made.
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How Could This Affect Consumers?
Allianz Research found that Trump’s proposals so far could hurt consumers and disrupt financial markets. The report stated that much of it depends on how these policies are implemented.
“Another round of large, deficit-financed tax cuts (or increased spending) could thus reignite inflation and heighten concerns about the sustainability of U.S. public finances in bond markets,” the report read.
Maxime Darmet, senior economist for the U.S. and France at Allianz Trade, said to U.S. News & World Report that “Trump is a guy who likes to bargain to get deals. We don’t think he would do too crazy things.”
The economic environment has changed substantially since Trump left office. According to CBS News, food prices are 25% higher than in January 2020, and overall inflation has increased 19% during that time. U.S. Presidents cannot directly change consumer prices and interest rates, but they can make changes indirectly through various policies and decisions.
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This article originally appeared on GOBankingRates.com: Will You Still Need Your Side Gig for Extra Cash If Trump Wins a Second Term?
