Trump’s tax plan: key policies ahead of the US election

1 min read by Unbiased team Last updated June 14, 2024

Understand what is Trump’s tax plan, and gain insights into its potential impact on investment, consumer spending, and international trade relations.


  • The Trump tax plan aims to maintain the 21% corporate tax rate established in 2017. 

  • Trump’s tax plan would impose a universal baseline tariff on all US imports, including a 60% tariff on imports from China. 

  • Unbiased will connect you with an expert advisor for financial advice on how to maximize your tax savings successfully. 

What are Trump’s tax policies? 

As the election approaches, many people are comparing Trump's tax plan to Biden’s tax plan.  

Trump's new tax plan builds on the framework of the 2017 Tax Cuts and Jobs Act (TCJA), aiming to cement his economic legacy and rally voter support.  

Trump’s tax plan's overarching goals include stimulating economic growth, increasing the competitiveness of American businesses, and providing tax relief for individuals.  

By making the TCJA's temporary provisions permanent and introducing new measures, Trump seeks to create a more favorable economic environment that he believes will benefit the country as a whole. 

What are the proposed tax changes? 

Trump’s plan for taxes focuses on several key elements central to his economic strategy.  

He aims to maintain the 21% corporate tax rate from the 2017 TCJA, ensuring American businesses remain globally competitive. To protect family-owned businesses and farms, he proposes making the expiring estate tax cuts permanent.  

Trump also plans to tax large private university endowments to address rising education costs. He also intends to make the expiring individual income tax cuts permanent, continuing tax relief for many Americans.  

His trade policy includes imposing a universal baseline tariff on all US imports and a 60% tariff on imports from China, which aims to protect American industries and correct trade imbalances. 

Changes to business taxes 

Trump’s tax plan retains the 21% corporate tax rate established by the TCJA.  

This rate reduction from the previous 35% was one of the most significant changes made to make the US more attractive for business investment.  

By maintaining this rate, Trump seeks to sustain the momentum of economic growth, encouraging businesses to invest, expand, and hire more workers.  

Proponents argue that this lower tax rate has made American businesses more competitive globally, leading to increased economic activity and job creation. Critics contend that the benefits have disproportionately favored large corporations and wealthy shareholders without significantly trickling down to average workers. 

Adjustments to estate and wealth taxes 

Trump’s new tax plan also includes making the estate tax cuts from the TCJA permanent. The 2017 changes raised the estate tax exemption, significantly reducing the number of estates subject to this tax.  

Trump argues that eliminating the estate tax would prevent family-owned businesses and farms from being unfairly penalized and ensure that they can be passed down through generations. Critics see this as another measure that benefits the wealthy, arguing that it reduces revenue needed for essential public services and exacerbates wealth inequality. 

Excise tax modifications 

An interesting addition to Trump’s tax reform plan is the proposed tax on large private university endowments.  

This measure targets endowments exceeding a certain threshold, aiming to encourage universities to use their substantial resources more effectively. The intention is to push institutions to lower tuition costs and increase financial aid.  

Supporters believe this tax could help address the rising cost of higher education and the burden of student debt. Detractors argue that it could reduce the funds available for scholarships, research, and educational programs. 

Individual income tax changes 

Making the individual income tax cuts from the TCJA permanent is a cornerstone of Trump’s tax plan. These cuts lowered tax rates across various income brackets, providing relief to millions of taxpayers. By extending these cuts indefinitely, Trump aims to boost consumer spending and economic growth.  

The tax cuts have been credited with increasing disposable income for many Americans, but they also contribute significantly to the projected increase in the federal deficit.  

What if Trump’s tax reform plan doesn’t work? Critics argue that because the benefits have been skewed towards higher-income individuals, the cuts could lead to reductions in critical public services due to decreased federal revenue. 

Tariffs and trade updates 

Trump’s trade policy includes a universal baseline tariff on all US imports and a 60% tariff on imports from China. This aggressive stance on tariffs is intended to protect American industries from foreign competition and address trade imbalances, particularly with China.  

While these tariffs aim to boost domestic manufacturing and create jobs, they also risk raising prices for consumers and inviting retaliatory tariffs from other countries.  

What are the pros and cons of Trump’s tax plan? 

Is Trump's tax plan good? It has both supporters and detractors, each highlighting different aspects of the proposal. 


  • Economic growth 

  • Business competitiveness 

  • Estate tax elimination 

  • Increased consumer spending 


  • Revenue loss 

  • Income inequality 

  • Potential cuts in public services 

  • Trade war risks 

Get expert financial advice 

The Trump tax plan for the 2024 election presents a comprehensive approach to taxation aimed at promoting economic growth and competitiveness. While it offers potential benefits such as increased investment and consumer spending, it also poses significant risks related to federal revenue, income inequality, and international trade relations. As voters consider these factors, the debate over the efficacy and fairness of Trump's tax policies will undoubtedly play a crucial role in the upcoming election. 

Unbiased will connect you with an expert financial advisor for tailored financial advice on how to optimize your tax planning. 


Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.