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Its important to note that Trump does not claim any correlation to Project 2025.
Trump himself has discussed the proposed policies listed in this article.
This might incentivize many small businesses to change entity classifications.
Moreover, many of the policies of Trumps tax elimination plan relate to the middle class.
In arecent campaign stop, Trump advocated for eliminating taxes on tips generated by service workers.
Trump has also suggested the replacement ofpersonal income taxeswith tariff increases.
Heres a look at some data to see the impact of the possible elimination of income taxes.
Themedian weekly earningsfor full-time workers aged 25 to 34 years old is $1,103.
The 35- to 44-year-old age group reports a slightly higher median weekly earnings at $1,247.
Multiplying this on an annual scale results in a gross income of $61,100.
Using the 2024 tax brackets, you would have a tax liability of $5,348.
Trumpsproposed tax planwould eliminate this tax liability, putting over $5,000 back into the average millennials pocket!
What could you do with an additional $5,000?
How about save for a house, take your dream vacation or add to your rainy-day fund?
In addition, Trump has suggested increasing tariff revenue by implementing auniversal baseline tariffon all U.S. imports.
The impact of these increased tariffs could be price hikes on goods imported from countries outside of the U.S.
These price adjustments may be passed down to consumers in the form of increased prices or added taxes.
However, the goal of increasing tariffs is to stimulate domestic purchasing.
In addition, many millennials would be saving money each year through the elimination of income taxes.
But would the price of imported goods increase more than the amount saved fromno personal income tax?
Say that you import about $10,000 worth of goods each year.
If prices were to increase by 20%, you would pay an extra $2,000 annually.
The Bottom Line
These proposed tax adjustments are still in their infancy.
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