Americans Think Washington Will Be Hard on their Pockets
Partisanship and a mistrust of “Washington Elites” has dissuaded great swathes of the American public that any positive change can come out of the nation’s capital, it seems.
At least that’s the gist of the latest Bankrate Financial Security Index, where just 23% of respondents believe the work of elected leaders in D.C. will have a positive impact on their personal finances. Meanwhile 40% believe the impact will be negative and 30% believe the Beltway will have no impact on their wallets.
Of those who have a negative view of Washington’s ability to improve their finances, 46% think they’ll pay more in taxes and 15% think higher expenses are coming their way, the survey says.
For advisors looking to educate their clients on the tax changes, it might be worth noting that some research suggests Americans broadly disapprove of the latest tax reform plan by almost a 2-to-1 margin; strong disapproval was 35% compared to 13% for strong approval, according to results of a Monmouth University poll. According to the survey, just one-third of the public support the tax cuts, whereas opposition is at 52%.
The research also showed half of Americans think their own taxes will increase under the new plan.
Bankrate.com’s senior economic analyst, Mark Hamrick, tells advisors and investors to use 2018 tax cuts to shore up finances, lock in gains, pay down debt and add to savings, “because the tax bill adds to the nation’s debt in coming years [and] the prospect of even higher interest rates looms larger.”