Trump vs Clinton: Their Tax Plan, Our Economy, Your pocketbook. Who wins? Who loses? (Part 3)
By Anthony Rivieccio, MBA
If you followed the first two parts of our story, let’s remember some of the simple but most important things we learned regarding our analysis:
- Consumer & Investment Spending make up about 70 percent of our Economy or Gross Domestic Product.
- Gross Domestic Product is growing at 3 percent year over year.
- Consumer Incomes are growing at 2 percent year over year.
- Consumer Spending is growing at 5 percent a year.
We also learned that the Hillary Clinton Economic Tax Plan is designed to decease economic growth and consumer spending by higher progressive taxes–designed to be spent for government programs and infrastructure.
We also learned that the Donald Trump Economic Tax Plan us designed to “put more money” into the economic system. High Income Earners & Corporations will get massive Tax cuts, designed to get Consumers to spend.
But let’s get back to one of our fundamental questions! Do we need to put more money or build growth into our system? As you can see from some of the numbers above: Incomes are not keeping up with growth! Consumer Debt is growing (3%) , which in the long run, will slow our economy down ( while move it forward in the short term by an infusion of ” extra” spending- financed monies).
Economic theory would tell you that the best way to lower consumer debt, which will increase your personal net worth–based on the state of the economy is TODAY–is to:
A) Lower spending
B) Increase income
If you’re a Hillary fan, then her economic political message says: our economy is booming, we need to slow it down. We need a higher progressive Tax system. Remember. This will take money away from the economic system.
If you are a Trump fan, then his economic/political message says our economy is stalling. We need to get it booming. We need to lower individual and corporate taxes to have more money into the system.
What does that mean to your pocketbook?
Bottom line: The Hillary Plan will put “less money” into your pocketbook, whereas the Trump plan will put “more money” in your pocket, not Uncle Sam’s.
Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating its 20th yearasafee-only financial planning firm specializing in solving financial problems. Anthony, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News and The Bronx Chronicle.
For financial assistance or a FREE 2016 Investment Analysis. Anthony can be reached at (347) 575 5045.