One of the reasons President Trump is so popular these days is because the economy is zooming.
The tax cuts he put in place after taking off jump-started the economy and if he has his way, there will be a Tax Cut 2.0 that will be HUGE news for our retirement accounts.
Tax Cut 2.0
President Trump has reportedly told his staff and congressional allies that he wants another tax cut for the middle class in place before the November elections.
This would be devastating to Democrats who continue to spread misinformation about the first tax cut that they claim only benefitted the top one percent of the country.
At the core of the new proposal would be better tax breaks on retirement accounts.
The idea would be that a Universal Savings Account would be created, offering better terms than traditional retirement accounts, such as IRAs and 401(k)s as well as making it easier to access the money.
Additionally, Trump would like a portion of everyone’s household income to be treated as tax-free income if it is invested in something other than a 401(k).
The tax rate is also reportedly being targeted.
We currently have seven tax brackets, with many American falling into the 12, 22, and 24 percent bracket.
The new plan would try to combine these and do a 15 percent tax bracket.
About That Deficit
If this goes through, it will be exciting and will surely help keep the economy rolling, which is obviously a huge focus point for Trump.
When the economy is good, it is very hard to beat an incumbent, so he needs to not only keep it rolling but ensure that it stays rolling throughout his next term.
The problem, though, is Trump needs to find a way to address a deficit that has yet to go backward, or even taper off for that matter, under his administration.
He has delivered on a lot of his promises, but spending has to be reduced and the deficit needs to be controlled and eliminated.
This is going to be a big issue for Trump in the upcoming election, but it’s not something he will not be able to overcome, especially considering Democrat plans would escalate the debt significantly more.