What the Upcoming Election Will Do to Your Personal Expenses

Unless you’ve been living under a rock recently, the forthcoming election on November 5th, 2024, can’t have escaped your notice. But with Joe Biden and Donald Trump both battling it out for your vote, what will each administration actually mean for your personal expenses and household budget? Below, we take a look at the likely impact on your finances in the event of a Republic, Democratic, or divided government outcome.

Changes to Tax Policy

Experts predict that whoever wins the coming election, there will be major changes to tax policy ahead, which are likely to have a significant impact on your own personal expenses. While the Republican party would no doubt be keen to prevent tax cuts brought in during Trump’s presidency from expiring at the end of 2025, a Democrat government would be eager to ensure a similar expiration doesn’t occur regarding expanded subsidies for health insurance.

Should a divided government be the outcome of the forthcoming election, expect to see a permanent extension of the key tax priorities of both parties. This situation would result in an increase in deficits of at least $1 trillion through 2033 and beyond.

Spending Changes

While tax policies will no doubt see some major upheavals following the upcoming election, major governmental spending changes may not be as wide-ranging. In terms of household expenses, a full Democratic government would likely see an expansion of social safety net provision. If you’re in a low-income household, this could be a very positive move – although if not, the tax rises that may be required to support these initiatives could have an impact on many household budgets.

A full Republican government could see greater spending on national defense – while a divided house would make any changes to governmental spending uncertain at best.

Possible Wage Increase

A Biden victory would also like to see an increase in the federal minimum wage, which currently stands at $7.25 an hour. The current incumbent of the White House has clearly indicated that this is a measure he’d like to introduce should he be re-elected in the upcoming election. If you’re an employee on a low wage, this is great news – if you own a company with employees, however, this will necessitate an increase in your expenditure that you may not welcome quite so much. On the other hand, putting more money in people’s pockets should result in higher consumer spending and the sort of boost to the economy that’s great for everyone. Increased job opportunities and enhanced services – due to higher tax revenues – bring benefits to the nation as a whole.

And if we wake up to a Trump electoral victory on November 6th, 2024? While an increase in the federal minimum wage may not be on the cards, a Republican government is likely to favor a low-taxation approach, which could also help keep many American household budgets in the green.

Household Bills

This is the big one: what will be the impact of the election on household budgets and personal expenses? Well, it’s an unclear picture. A Republican win would likely result in a general roll-back of “red tape” and taxes on businesses and corporations- these financial savings may be passed on to consumers who’ll see savings on their bills. A Democratic victory, however, could see the sort of assistance, subsidies, and regulations that result in bills being capped and help provided to the many households struggling in the current challenging economic climate.

Regarding regular bills, bear in mind that the cost of renters insurance is pretty low and unlikely to increase significantly in the near future, so be wary of canceling any policies that you may view as “optional.” It’s a different story when it comes to energy bills, however. A Biden administration will inevitably be a much greener affair than that of one under Donald Trump. However, the nature of the levies on energy companies and the subsidies and incentives that will affect household budgets as a result, are as yet uncertain.

And what about gasoline charges? While you might expect that a Trump administration would certainly deliver lower-end prices on this score, you may be surprised. Since the summer of 2022, gasoline prices have steadily fallen under Biden’s government, helping to keep personal expenses down.

Final Thoughts: Beyond November 5th, 2024

With the election result seemingly hanging in the balance, the thoughts of many Americans are turning to what the outcome will mean for their personal finances. How, exactly, could a Biden re-election help alleviate the pressure on lower-income households, or how might a Trump victory assist small-business owners? While much remains unclear about what the post-November 5th landscape will look like, the above guide aims to provide some food for thought about the potential impact on your family finances.