Have you thought about how the world could change if the likely frigid morning of January 20 echoes with these words: “I Donald J. Trump do solemnly swear that I will faithfully execute the Office of President of the United States…”?
To some, the prospect is invigorating. To others, it’s terrifying. To WalletHub, however, the question is at least somewhat quantifiable.
They crunched the numbers on what’s likely in store for everything from GDP growth and the S&P 500 to tax rates and healthcare coverage should Mr. Trump pull out a Brexit-esque victory on Election Day. Below, you can check out what we found, along with commentary from experts in each category. You can also learn what the other side of the coin has in store for us from our corresponding report on a Hillary Clinton win.
|Area Of Interest||Projected Impact|
|Personal Taxes||33% top Individual Tax Rates for income over $112,500|
|Corporate Taxes||Discouraging inversions through taxation in order to grow the economy|
|Stock Market||Political predecessors registered a 3.28% increase of the market (adjusted for inflation) (Divided Congress)|
|Unemployment||Points to energy as a source for new jobs in the future|
|Education||Pledged to invest $20 billion of federal dollars into a voucher program for students to attend school of their choice and repeal common core|
|Social Security||Has pledged to save Social Security without cuts|
|Health Care||Repeal and replace the ACA|
|Minimum Wage||Increase the minimum wage to $10/h but let states set the minimum wage as appropriate for them|
|Annual Income||Trump’s Proposed Tax Rate||Current Rate|
|$413,350 to $415,049.99||33%||35%|
|$190,150 to $413,349.99||33%||33%|
|$112,500 to $190,149.99||33%||28%|
|$91,150 to $112,499.99||25%||28%|
|$37,650 to $91,149.99||25%||25%|
|$37,500 to $37,649.99||25%||15%|
|$9,275 to $37,449.99||12%||15%|
|$0 to $9,274.99||12%||10%|
Other Notable Tax Policy Changes
|Issue||Trump’s Stance||Trump’s Comments|
|Estate Tax||Repeal it
Tax capital gains held until death and valued over $10 million, except for small businesses and family farms.
Prohibit contributions of appreciated assets into a private charity established by the decedent or decedent’s relatives.
|“The estate tax has been a disaster; it’s double taxation.”|
|Caregiver Benefits||Full deductibility of average-cost child care expenses.
Above-the-line deduction for children under age 13 that will be capped at state average for age of child, and for eldercare for a dependent.
Exclusion will not be available to taxpayers with total income over $500,000 (married-joint or $250,000 (single).
|“My plan will also help reduce the cost of child care by allowing parents to fully deduct the average cost of child care spending from their taxes.”|
|Itemized Deductions||Increase the standard deduction to $30,000 for joint filers and $15,000 for single filers
Cap itemized deductions at $200,000 for married-joint filers or $100,000 for single filers
No change for mortgage interest or charitable contributions
|Retirement Accounts||No stated position||No stated position|
|Alternative Minimum Tax||Eliminate it||“[We should] get rid of the death tax, as well as the horrific alternative minimum tax.”|
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