How the 2024 election could affect your salary

With the 2024 presidential election, Americans are watching closely to see what the outcome of the election might mean for them. WAGES.

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Presidential candidates Donald Trump and Kamala Harris are proposing very different approaches to tax policy, the minimum wage, and employment regulations—each with direct implications for the average wage and financial well-being of workers.

Here’s what you might see if the policies proposed by each candidate became law.

Tax policies and your home payment

Changes in tax policies are one of the most immediate ways elections can affect your paycheck. Adjustments affect how much disposable income workers bring home, meaning taxes directly affect net earnings.

“A government focused on business incentives could opt for tax cuts that improve corporate liquidity, which can lead to raises or bonuses,” said David Brillant, a tax lawyer in Northern California.

Traditionally, Republican candidates like Trump have prioritized things like tax cuts, lowering corporate taxes or easing the tax burden on high-income earners. In this election, Harris, the Democratic nominee, has said he favors tax policies that raise tax rates for the wealthy and give tax breaks to middle- and low-income workers.

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Financial experts suggest that these tax proposals have far-reaching implications for employees across all industries. For example, a cut in corporate taxes could encourage companies to either hire more people or raise wages.

However, a recent study found that cuts are not always rewarded with higher wages in low-wage sectors. So workers could see pay increases if their employers pass on the benefits, but it’s not guaranteed.

On the other hand, Harris’ proposal to shift taxes to higher earners and lower rates for middle-income earners could directly help workers. For families living paycheck to paycheck, this can bring instant relief and create much more disposable income.

Minimum wage and earning potential policies

After the election, the minimum wage could also be a factor; each candidate has proposed different priorities on this issue.

Harris said he would like to raise the federal minimum wage to $15 an hour to combat income inequality and provide stability for millions of low-wage workers. This proposal aligns with several states trying to raise the minimum wage due to the rising cost of living.

If Harris’ pledge to raise the minimum wage to $15 gains traction, many lower-income Americans could benefit from a substantial annual wage increase. As such, this policy could help lift many workers, but it could also pose challenges. In particular, some economists say a rapid increase in the minimum wage could push employers to reduce hours or cut staff to keep businesses profitable in industries such as retail and hospitality.

Trump has not committed to a federal minimum wage, saying states should be given the power to decide. Even with this state-centric approach, minimum wage increases may not increase uniformly from state to state. But Trump has also advocated eliminating the tipped employee tax, which could make up for the lack of hourly wages for workers in states with the lowest minimum wages.

Changes to labor policy and employment regulations

Another area where voters’ choices will have a direct impact on wages is labor policies, particularly employee rights, benefits and job security. Stronger protections for workers, especially paid family leave and health care benefits, are part of Harris’ platform. Better worker protections could create more financial stability for families who need reliable sick or parental leave.

Under either administration, the labor law landscape could change completely, as one approach would promote worker protections while the other would deregulate to spur business growth.

The gig economy and the classification of workers

The outcome of the election could greatly affect gig workers and independent contractors. Harris also supported reclassifying gig workers as employees, giving them minimum wage protection, overtime pay and health care benefits.

However, the changes may not sit well with many companies in the gig economy, such as ride-sharing and delivery platforms, which have warned that such rules could undermine the flexibility enjoyed by both workers and and companies.

The gig economy is a chance to redefine it, to reshape how millions of Americans make a living and, by extension, how overall wages are affected as employers react to changes in the cost of labor.

This differs from Trump’s policies, which have typically supported the status quo. Some experts believe Trump may favor keeping gig workers classified as independent contractors. Between employee reclassification and self-employment, the decisions made could directly affect people working in the gig economy.

Workplace equity and anti-discrimination measures

Harris’ platform has focused on workplace equity — closing the gender pay gap and increasing diversity — but it’s unclear what her priorities will be behind closed doors. Harris wants to increase the quality of workplace culture and create fair compensation by promoting policies that address equal pay and discrimination.

These could be policies that help shift wages outward so that they are more gender-equitable, and in some industries, gender and wage gaps have been more dramatic.

Trump is focused on incentivizing businesses to pursue equity practices voluntarily. Those in favor of this approach say it is flexible, while opponents suggest that voluntary initiatives will not make a big difference. Both candidates of either approach understand that an inclusive workforce is essential, but differ on this approach.

Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and provide balanced reporting on politically focused financial stories. You can find more coverage of this topic on GOBankingRates.com.

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