Middle class in America? This is what a Trump presidency would mean for you
US elections are just inches away now and with it, the hopes and aspirations of the middle class are also in major consideration. According to John F. Pace, a seasoned CPA with over 40 years of experience, a second Trump term would likely impact the middle class through tax policy changes.
During Trump's first term, the Tax Cuts and Jobs Act (TCJA) of 2017 offered limited benefits to middle-income earners, while providing more extensive benefits to the wealthy and corporations. Pace warns that similar policies in the future could result in minimal tax relief for the middle class, leading to larger budget deficits and potentially paving the way for future tax increases or cuts in essential services.
The nonpartisan Brookings Institute has also weighed in on the impact of the TCJA, stating that the law does not help the middle class in the least bit. The institute's distributional analysis found that the benefits of the law are slightly biased towards the high income earners, both in the short and long term. By 2027, the benefits of the tax law are expected to flow entirely to the rich.
Is the repealing of the Affordable Care Act a threat to the middle class?
Another area where a second Trump presidency could impact the middle class is healthcare. Trump has repeatedly vowed to repeal the Affordable Care Act (ACA), also known as Obamacare. Insurance experts are warning that repealing the ACA could lead to higher insurance premiums and reduced coverage options for middle-class families.
In January, nearly 21 million
