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Donald Trump's 2024 economic agenda is all about big changes to taxes, Social Security, and even food stamps. First, Trump wants to expand the tax cuts he initiated in 2017 by lowering corporate tax rates even further, from 21% to 15%. He's also aiming to eliminate taxes on Social Security benefits and tips, believing this will create jobs and boost the economy. "I'd love to bring [corporate tax] down to 15%... Everybody would be pouring into the United States because our tax rate would be highly competitive," he said on Fox News.
The idea of tax-free Social Security is appealing to many seniors, but economists are concerned about the broader impact. Cutting these taxes could lead to a funding shortfall of about $1.6 trillion over the next decade, which could threaten the future of Social Security and Medicare.
The Committee for a Responsible Federal Budget warns that eliminating these taxes could push Social Security toward insolvency three years sooner than expected, meaning benefits may eventually be cut by nearly a third unless Congress intervenes.
For trade, Trump wants to implement tariffs on all imports, potentially a 10-20% tax on all goods entering the U.S. This policy, aimed at protecting American jobs, includes a steep 60% tariff on Chinese goods. He believes this move would drive domestic production and help lower inflation, claiming foreign producers would absorb the cost.
However, economists argue that tariffs often raise prices for American consumers, as businesses tend to these costs along. According to Robert Lawrence of Harvard, "Imported goods would go up in price... even goods that are not directly imported."
Trump promises major tax cuts and social security boosts
Trump's economic plan also targets food assistance programs like SNAP (food stamps), aiming to tighten eligibility requirements. The changes could restrict access to food stamps, a point that's concerning to advocates for low-income families.
Combined with his plans for mass deportations, which he claims would lower housing prices by reducing competition, Trump's vision could create both economic disruptions and higher costs for certain goods. Deportation of undocumented workers may cause labor shortages, which would push wages and prices up.
In summary, while Trump's economic proposals aim to reduce taxes and inflation, experts warn they may come with high costs. Increased tariffs could hike consumer prices, and cuts to Social Security funding could threaten benefits for future retirees. Trump's ambitious agenda may lower costs in some areas but is likely to raise them in others, making it a mixed bag for American families.