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It could mean a big change in how muchmoney you take home each month.
We dont know exactly what will happen.
Well explore whatTrumps second termcould mean for your paycheck.
But carrying out these cuts may not be straightforward.
With only a slim Republican majority in the House, Trump could face resistance from Congress.
Termini added that he might get some pushback since the GOP hasonly a thin majorityin the house.
But somewhere between where we are today and zero leaves a lot of room for some cut.
Trade Policies and Global Impact
Another bold proposal from Trump is to replace income taxes with tariffs.
Trumps trade policies were a big part of his first term.
He implemented tariffs on imported goods from countries like China to address trade imbalances and protect domestic industries.
This protectionist approach was meant to encourage the growth of American businesses and bring back manufacturing jobs.
The Treasury department collects about $5 trillion in income taxes.
We import about $3 trillion in goods.
Unless tariffs are 166% of everything that comes into the country, its unlikely this plan will work.
A Tax Cut for the Middle Class
Many of Trumps proposals are bound to face some hurdles.
But amiddle-class tax cutis more likely to succeed.
This is in line with Trumps tax changes in his first term, which lowered rates for many Americans.
But Termini still thinks you might seesome positive changesin your paycheck.
A middle-class tax cut sounds great, but the details matter.
Cuts to payroll taxes might give you aslightly bigger checkeach month.
You might see some immediate benefits to your bottom line and more money in your pocket.
But there could also be long-term consequences years down the road.
It could ultimately lead to less funding for government programs and create long-term headaches forSocial Security and Medicare.
Tax Cuts and Job Growth
One of the critical aspects of Trumps economic agenda was tax cuts.
For some, reduced tax rates and increased deductions may have resulted in noticeable savings.
He may push to make the TCJA permanent.
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