Will Trump’s Tax Plan Boost Crypto Investments?

Could 93M Americans Stop Paying Taxes?

Oct 22, 2024

Crypto Backing Boosts Donald Trump's Odds in US Election 2024

Donald Trump’s tax reform plans are getting a lot of attention for their potential impact on millions of Americans. According to CNBC, his proposals could exempt about 93.2 million Americans from paying income taxes—nearly half of the US electorate.

A Vision for Tax Exemption

As the Republican nominee for the 2024 election, Trump advocates for eliminating income taxes for various groups, including those who receive tips, Social Security benefits, and first responders like firefighters, police officers, and military personnel. This could provide substantial financial relief to many households.

Shifting Revenue Sources

Trump’s strategy involves replacing income tax revenue with tariffs. He has proposed a 20% tariff on all imports and a 60% tariff on goods from China. The idea is to shift the revenue burden from individual taxpayers to international trade.

However, many economists question whether tariffs can adequately replace income tax revenue. The Tax Foundation estimates that these reforms could lead to a $3 trillion loss in federal revenue from 2025 to 2034.

Political Landscape and Challenges

Despite optimism in prediction markets—where Trump shows a 64% lead over Vice President Kamala Harris—his tax reforms face uncertainty. Winning the presidency is only part of the equation.

Trump would also need a Republican majority in the House of Representatives to implement his proposals.

Support for Vice President Harris

Amid this political landscape, Chris Larsen, co-founder of Ripple, is making headlines with his support for Harris. He recently donated $10 million in XRP to Future Forward USA, a political action committee backing the Democratic candidate. This follows his earlier contribution of $1 million to the same PAC in August, one of the first major crypto donations for Harris’ campaign.

As of writing this article XRP was trading at $0.54 with 1% increase in last 24 hours as per Coinpedia Markets data.

For a deeper dive into the future of XRP, check out our detailed XRP price prediction article!

As the 2024 election approaches, Trump’s tax reform proposals could reshape the financial landscape for millions of Americans. However, the feasibility of these changes remains a topic of debate, with many uncertainties still in play. Voters will closely watch how these discussions unfold in the coming months.