Here’s a look at Trump’s proposed economic plans

President-elect Donald Trump has proposed a range of ideas focused on affordability and economic growth, responding to voters’ top concerns. However, many of these plans, currently lacking specifics, would require congressional approval, which could be challenging in a divided Congress. Here’s a summary of Trump’s economic goals:

Some key provisions of the 2017 Tax Cuts and Jobs Act (TCJA), one of Trump’s notable achievements, are set to expire in 2025. Trump wants to extend individual income and estate tax cuts, increase the standard deduction, reduce marginal tax rates for most brackets, and increase the estate tax exemption. He also plans to remove the $10,000 cap on state and local tax deductions (SALT), set to expire in 2025. Trump advocates for lowering the corporate tax rate to 15% for some businesses and restoring immediate deductions for investments in equipment and research.

Trump has proposed targeted tax relief, including eliminating federal taxes on tips, Social Security benefits, and overtime pay. He was the first to suggest ending taxes on tips, a promise made earlier than Democratic candidate Kamala Harris. While these measures could help certain workers, they might lead to reduced Social Security benefits over time if payroll tax revenue drops, potentially impacting Social Security’s trust funds by 2031. Trump has also floated replacing federal income tax with tariff revenue.

Trump has outlined several initiatives to ease costs for the middle class, including temporarily capping credit card interest rates at around 10% and making car loan interest tax-deductible. He has proposed a tax credit for family caregivers and increased support for at-home care, with a plan to address worker shortages in caregiving. Trump’s running mate, Sen. JD Vance, has proposed increasing the child tax credit to $5,000 per child, though Trump has not formally adopted this idea.

If re-elected, Trump has stated he would impose tariffs of 10% or 20% on all imports to the US, and a 60% tariff on Chinese imports. He also proposed tariffs of up to 200% on Mexican-made cars or products from companies relocating manufacturing to Mexico. These tariffs are intended to boost American manufacturing, create jobs, and generate revenue for tax cuts. Trump also plans to renegotiate the USMCA trade deal with Mexico and Canada.

Trump has pledged to bring down the cost of gas, groceries, and other essentials by boosting oil and gas production, allowing more drilling, and reducing regulatory restrictions. He has also promised to rescind unspent funds from the Inflation Reduction Act and has proposed a new efficiency commission to audit federal spending, with Elon Musk potentially leading this effort.

Trump has spoken about making housing more affordable by removing cost-inflating regulations and opening federal lands for large-scale housing projects. He believes falling interest rates will make mortgage rates more affordable, though he doesn’t control interest rates. Trump also links housing costs to undocumented immigration, proposing mass deportations and preventing undocumented immigrants from accessing mortgages. The GOP platform supports tax incentives for homeownership and first-time buyers.

Trump argues that his tariffs and tax cuts will drive a revival in American manufacturing. He intends to impose tariffs on companies moving production abroad, citing John Deere as an example if they shift work to Mexico. Trump’s goal is to make imported goods less competitive, though retaliatory tariffs and higher costs for U.S. manufacturers needing imported parts could counter this. In 2019, the Federal Reserve reported that Trump’s tariffs led to an overall decrease in manufacturing employment.

While health care was a significant focus in Trump’s first term, it is less prominent in his current campaign. He has expressed interest in repealing the Affordable Care Act and replacing it, though specific plans are unclear. Running mate JD Vance recently suggested risk pools for healthy and high-cost enrollees but later supported state reinsurance programs, which have lowered premiums under Obamacare by funding insurers covering high-cost patients.

These policies reflect Trump’s vision for a stronger economy, though the extent of their impact will depend on both legislative support and potential market responses.