Here’s How a Trump Presidency Could Impact Your Wallet If You Live in North Carolina

As North Carolina remains a pivotal swing state in the 2024 presidential race, voters are considering how another term for Donald Trump could directly impact their finances. From potential tax policies to healthcare and housing costs, the election outcome could bring significant changes to residents’ economic well-being. Here’s an in-depth look at how Trump’s policies might affect North Carolinians’ finances.

1. Taxes: Potential Extensions of the TCJA

If re-elected, Trump is likely to push for extending the Tax Cuts and Jobs Act (TCJA) of 2017, a move with mixed consequences for North Carolina residents. The TCJA, currently set to expire in 2025, brought reductions in federal income tax rates and increased the standard deduction, which could continue to benefit middle-income families if extended.

However, the TCJA capped state and local tax deductions, which has impacted North Carolinians in high-tax regions. While lower income taxes may boost disposable income, extending these cuts could exacerbate the national budget deficit, potentially affecting public services and infrastructure down the line.

2. Real Estate: Prospects for North Carolina’s Housing Market

North Carolina’s housing market has flourished in recent years, particularly in cities like Raleigh and Charlotte. A second Trump term could reinforce this trend, as the administration’s policies on deregulation and tax cuts tend to increase consumer confidence, which might fuel ongoing real estate growth.

On the flip side, Trump’s tariffs on imported building materials, including steel and aluminum, could increase construction costs, slowing new developments and driving up home prices. This scenario would pose challenges for first-time buyers and could make North Carolina’s housing market less accessible to new entrants.

3. Social Security: Uncertainty for Beneficiaries

Social Security is a significant concern for many North Carolinians, as around one in five residents depend on these benefits. Trump has previously considered payroll tax cuts, which would immediately increase take-home pay for workers but could undermine Social Security’s funding.

Given that nearly 50% of North Carolinians aged 65 and older rely on Social Security for at least half of their income, changes to the program could be especially impactful for retirees. Any potential cuts or adjustments to Social Security could add financial pressure to those depending on it for essential expenses,according to AARP.

4. Healthcare: Potential Repeal of the ACA

Healthcare policy remains a contentious issue under Trump, particularly due to his efforts to repeal the Affordable Care Act (ACA). If successful, such a repeal could lead to significant shifts for North Carolina’s healthcare landscape.

In December 2023, North Carolina expanded Medicaid under the ACA, providing coverage for an additional 600,000 low-income adults. However, without ACA protections, many residents might lose access to affordable healthcare. Additionally, if the individual mandate were repealed, premiums could increase, impacting residents who rely on ACA plans for health coverage.

5. Small Businesses: Continued Tax Cuts and Possible Trade Challenges

Small businesses are the backbone of North Carolina’s economy, and Trump’s policies have often focused on tax relief and deregulation for these enterprises. Extending the TCJA’s 20% deduction on qualified business income could continue to benefit local business owners, freeing up capital for investment and growth.

Yet, Trump’s trade policies — particularly increased tariffs on imported goods — could offset these advantages for businesses reliant on imports. While tax cuts offer some relief, the additional costs due to trade policies may strain business budgets and impact local industries.

Conclusion: Financial Impact Weighs Heavily for North Carolina Voters

As North Carolina voters head to the polls, financial factors will likely weigh heavily in their decision-making. With taxes, housing costs, Social Security, healthcare, and small business viability all potentially influenced by another Trump term, the election could have lasting impacts on North Carolinians’ financial stability and economic outlook.

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