Should Millennials Be Worried About Their Money Under Trump?
Should Millennials Be Worried About Their Money Under Trump?
President Trump is coming and ready or not his presidency will likely affect you to at least some degree. While trump’s policies will have varying degrees of influence on different people, depending on their life circumstances, almost everyone will see changes to their financial status once the Trump team begins to make changes to the nation’s tax system. While most people understand this, there are also many other Americans who don’t think a Trump presidency is going to change their financial situation, namely Millennials. In fact, according to the results of a recent survey from BankRate.com, almost 45 percent of all respondents between 18 and 35 don’t think Trump will affect their wallets one way or the other. So are they right? Probably not.
How Will Taxes Differ?
The fact is there are several policy changes that could end up affecting Millennials, and in fact, most likely they will. For starters, Trump’s proposed changes to the tax system will affect almost everyone, either for good or for bad. While many people will see their taxes cut under Trump’s plan, there are some groups that will see an increase, including even some middle- and lower-income families. So why the increase? Trump wants to raise the lowest tax bracket from 10 percent to 12 percent and he also wants to drop head of household status and personal exemptions, which often help single parents.
Changes in Health Care
Millennials might not see it coming but there could be some big changes to their health care plans under Trump, which could affect their bottom line. It’s no secret that the Trump administration plans to repeal the Affordable Care Act, otherwise known as Obamacare. If the ACA is repealed millions of Millennials might end up without any healthcare coverage replacement and a lot of uncertainty, including higher medical bills.
Student Loan Debt
When it comes to student loan debt, Trump has made a proposal very similar to the outgoing president’s plan. Trump wants to cap how much a graduate would have to pay on their loan at 12.5 percent of their salary, which would also be based on their current income. Additionally, Trump said graduates might be able to have their debts forgiven if they make regular payments for 15 years.
What About Childcare?
Throughout the election, Trump claimed he wanted to help families who had to pay for childcare, especially young families and single mothers. Trump has proposed allowing parents to deduct the average cost of childcare in their state for up to four children and depending on the child or children’s ages. These deductions would be far-reaching as well, as they would be available to any a single parent making less than $250,000 a year and married couples making less than $500,000. It would also help parents who work and stay-at-home parents whose spouses work outside of the home.
The bottom line is that even though many Millennials might not expect much financial change under Trump, the fact is, many, if not all will see some kind of difference, for better or for worse during Trump’s presidency.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
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