Laura Beck
Sep 17, 2024
Interestingly, Anthony DeLuca, CFP and expert for Annuity.org, suggested that some of the biggest beneficiaries could be in traditionally high-tax states.
“Upper-class earners living in areas with high state and city taxes need federal and corporate relief,” DeLuca explained. “That would be New York, California, New Jersey, Massachusetts, etc.”
DeLuca pointed to Trump’s past tax policies as a guide.
“Trump enacted the TCJA of 2017 which gave huge tax relief to the upper-class,” he said. “It lowered both the individual tax rate from 39.7% to 37% and the corporate tax from 35% to 21%.”
As the 2024 presidential election approaches, high-income earners are closely monitoring how the results might impact their finances, especially with the possibility of Donald Trump’s victory. Experts believe that certain states may benefit more than others from Trump's policies, particularly due to tax advantages and business-friendly measures.
Texas, Florida, and Nevada: Tax-Free States
Cliff Ambrose, wealth manager at Apex Wealth, emphasized that states without income tax, such as Texas, Florida, and Nevada, could see significant advantages for wealthy residents if Trump wins. Ambrose stated, "If Trump wins, states like Texas, Florida, and Nevada are likely to see upper-class paychecks benefit." These states already help residents retain more of their income, and Trump's potential tax cuts and federal policies could boost their earnings even further.
“These states, known for attracting wealthy individuals because of favorable tax environments, would see further advantages if Trump’s tax policies are extended or expanded,” Ambrose predicted.
New York and California: Relief for High-Tax States
Interestingly, Anthony DeLuca, CFP, noted that high-tax states like New York and California might also benefit. “Upper-class earners living in areas with high state and city taxes need federal and corporate relief,” DeLuca said, naming New York, California, New Jersey, and Massachusetts as states that would benefit from Trump’s approach.
DeLuca pointed to Trump’s 2017 Tax Cuts and Jobs Act (TCJA) as an example, stating, “Trump enacted the TCJA of 2017 which gave huge tax relief to the upper class. It lowered both the individual tax rate from 39.7% to 37% and the corporate tax from 35% to 21%.”
Wyoming and West Virginia: Benefits for Energy States
DeLuca also highlighted that states with strong energy sectors, like Wyoming and West Virginia, could see a boost under Trump’s policies. He said, “Trump has always touted a pro-coal, pro-oil mindset. As stated above, he [would] once again lower EPA regulatory requirements and offer tax cuts to large U.S. oil companies.” This would favor energy-producing states such as Wyoming, West Virginia, Pennsylvania, and Kentucky, where business owners and key employees in the energy industry would likely benefit.
The Final Word
Although Trump’s policies could bring financial benefits to wealthy residents in various states, it’s important to remember that campaign promises don’t always become policy, as Congress plays a key role. DeLuca and other experts advise high-income earners to stay informed and consult financial advisors to prepare for potential changes, as unexpected factors like global events and technological advancements could also shape the economy.