This election cycle has been unprecedented in so many ways, and the result is sure to cause some economic upheaval. When the dust finally settles after Donald Trump's historic win, where will it leave American consumers, Social Security recipients, student loan holders and taxpayers? USA TODAY asked experts about a host of pocketbook issues. Here’s what we learned.
Minimum wage
Based on Trump's campaign positions, the federal minimum wage of $7.25 per hour might rise to $10 an hour, or the decision to raise minimum wages would be left to the states. In short, some workers — those in states that have raised or plan to raise the minimum wage — would see somewhat of a boost, while the rest would see little or no change in their standard of living.
Taxes
Trump intends to significantly reduce marginal tax rates, increase standard deduction amounts, repeal personal exemptions and cap itemized deductions, according to Bob Williams, senior fellow at the Urban-Brookings Tax Policy Center at the Urban Institute. His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the richest households, according to the Tax Policy Center (TPC). According to TPC’s analysis of his tax plan, on average, households throughout the income distribution would see their tax bills go down. But some taxpayers, especially single parents, would see higher taxes.
Your bottom line: To calculate the effect of on your own taxes, check out the Tax Policy Center's online calculator at http://tpc-election-calculator.urban.org/.
Student loans
Trump has proposed to cap repayments at 12.5% of a borrower’s income and if borrowers make repayments for 15 years, he would forgive the rest of the debt, according to Third Way. Trump does not offer a plan to make college affordable, according to Carmel Martin, executive VP for policy at the Center for American Progress Action Fund
Paid family and medical leave
Trump plans on guaranteeing six weeks of paid maternity leave, worth an average of $300 weekly. However, he offers no relief for adoptive parents, fathers or caregivers who might be taking care of other family members who are ill, Martin says.
Child care expenses
Trump plans to let working parents deduct child care expenses for up to four children and elderly dependents. He also plans to establish dependent care savings accounts.
Photos | Election Day in America
Social Security
Trump has proposed no cuts to benefits in Social Security right now, but he might revisit the issue at a later time, according to Third Way. Martin suggested that a proposed 13.5% across-the-board cut in federal spending would result in a cut to Social Security that would reduce the average monthly benefit by $182, from $1,360 in 2017 to $1,177.
Robert Powell is editor of Retirement Weekly, contributes regularly to USA TODAY, The Wall Street Journal and MarketWatch. Got questions about money? Email Bob at rpowell@allthingsretirement.com.
