As the 2024 presidential election approaches, Americans are closely watching what the election outcome could mean for their country. paychecks.

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Presidential candidates Donald Trump and Kamala Harris are proposing very different approaches to tax policy, minimum wages and labor 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 become law.

Tax policies and your take-home pay

Changes in tax policies are one of the most immediate ways the election could affect your salary. The adjustments affect the disposable income that workers take home, that is, taxes directly affect net income.

“A government focused on business incentives could opt for tax cuts that improve business liquidity, potentially leading 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 earners. In this election, Harris, the Democratic nominee, said she preferred tax policies that raise tax rates on the wealthy and provide tax breaks for middle- and low-income workers.

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

However, a recent study found that cuts are not always paid off in higher wages in low-wage sectors. So workers could receive pay increases if their employers pass on their benefits, but this is not guaranteed.

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

Minimum wage policies and earning potential

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

Harris has made clear she 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 more states seeking 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 low-income Americans could see a substantial annual increase in their wages. As such, this policy could help improve the situation for many workers, but it could also pose challenges. In particular, some economists say a rapid increase in the minimum wage could push employers to cut 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 have the power to decide. Even with this state-centric approach, minimum wage increases may not increase uniformly across states. But Trump has also advocated eliminating the tip tax, which could make up for the lack of hourly wages for workers in states with the lowest minimum wage.

Changes in labor policy and employment regulations

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

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

The gig economy and worker classification

The election outcome could greatly affect gig workers and independent contractors. Harris also supported reclassifying gig workers as employees, granting them protections for minimum wage, overtime pay and health benefits.

However, these changes may not please many gig economy companies, such as ride-hailing and delivery platforms, which have warned that such rules could hurt the flexibility enjoyed by workers and businesses.

The gig economy is an opportunity to redefine it, to reshape the way millions of Americans earn a living and, by extension, how overall wages are affected as employers respond to changing costs of labor.

This differs from Trump’s policies, which generally support the status quo. Some experts believe Trump could favor keeping gig workers in the independent contractor category. Between employee reclassification and independent status, the decisions taken could directly affect people working in the gig economy.

Workplace equity and anti-discrimination measures

Harris’ agenda has focused on workplace equity — reducing the gender pay gap and increasing diversity — but it’s unclear what her priorities will be behind closed doors. Harris wants to improve the quality of workplace culture and create fair pay by promoting policies aimed at equal pay and discrimination.

These could be policies that would help shift wages outwards to be more gender equitable, and in some sectors the gender and wage gaps have been more dramatic.

Trump is working to get companies to voluntarily adopt fairness practices. Proponents of this approach believe it is flexible, while opponents suggest voluntary initiatives will not bring major change. Both candidates, regardless of approach, understand that an inclusive workforce is essential, but their approach differs.

Editor’s Note on Election Coverage: GOBankingRates is nonpartisan and strives to objectively cover all aspects of the economy and present balanced reporting on politically charged financial topics. You can find more coverage on this topic at GOBankingRates.com.

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