Latest news with #middleClass
Yahoo
6 days ago
- Automotive
- Yahoo
4 Used Luxury SUVs That Are a Bad Investment for the Middle Class
Used luxury SUVs can seem like a smart way to score premium features for less, but they often come with problems. Between high maintenance, complex systems and expensive parts, these vehicles can quickly turn into money pits. Read More: Find Out: If you're middle class and weighing your options, these are the used luxury SUVs that would be best to avoid. Suggested Price: $44,900 Don't let the classy interior of this small luxury SUV fool you, customers and Consumer Reports both have unfavorable reviews when it comes to driving, acceleration and the transmission of the 2024 Mercedes-Benz GLC. Consumer Reports' road test report on the 2024 Mercedes-Benz GLC Class discusses problems with a mushy brake-pedal feel, a delay of power taking off from a stop, bumpy downshifting, a too-firm ride quality and overly pronounced bumps while driving. One Edmunds customer review of the Mercedes-Benz GLC Class mentions problems with acceleration for the 2024 Turbo gas/electric mild hybrid model, including the vehicle lacking power when starting in first gear, and that sometimes, the transmission felt confused, shaking and bucking, especially before the car was up to operating temperature. Another customer review referred to issues with software messages about the steering wheel, and even after replacing the steering wheel, the customer still received the same messages. When Mercedes had replaced the same customer's 2024 Mercedes-Benz GLC with another, they still had the same problem with the steering wheel. Discover Next: Suggested Price: $42,995 to $55,998 Hyundai's section of the Genesis brand has a 2024 Genesis GV70 compact luxury SUV, but some trouble spots definitely need to be addressed. Looking at the road test report for the 2024 Genesis GV70 by Consumer Reports shows problems with the engine stop-and-start, the fuel-saving feature having a shudder when re-engaging, bigger than normal rear blind spots due to the slope of the roofline and thicker pillars on the sides of rear windows, and when accelerating from a rolling stop there is some turbo lag. Edmunds' customer reviews included one customer stating a need for new brake calipers at 3,000 miles, and a leak in the transfer case at 10,000 miles. Yet another customer touched on a possible wiring issue when dealing with all the electronic features malfunctioning, no signal for the navigation system, and not being able to see the speed or the turn signal when driving. Suggested Price: $37,827 to $45,984 The 2024 Audi Q5 is known as a competent and refined luxury SUV, but the Q5 Premium Plus S model does not sit well with customers or Consumer Reports. The reliability of the Audi Q5 is questioned by Consumer Reports based on the following four recalls: Electrical system fire risk issues due to a possible high-voltage battery Outlets or charging cables overheating, causing a fire risk Deactivated front passenger airbag not deploying during a crash Engine screws loosening causing oil leaks and possible risks for fire Edmunds' customer reviews of the Q5 Premium Plus S model had problems with the adaptive cruise, auto braking and auto start/stop, resulting in the dealer's advice to turn off or disable these safety features and the transmission slipping and also stuttering when in drive. Suggested Price: $40,765 to $47,000 Volvo's 2024 XC60 has an elegant interior design, advanced safety features and optional Pilot Assist for drivers, but performance and driver safety when navigating the phone controls, climate control, and audio are just a few of the problems that could cause drivers to be wary of this luxury SUV. Consumer Reports mentions the following issues with the Volvo XC60: Stiff suspension causes a bumpy feeling when turning corners Stiff downshifting and experiencing bumps when trying to relaunch the car from a rolling stop Start/stop feature turns off frequently, which could be a problem for drivers who try to navigate how to deactivate this feature while driving and navigating through several screens of phone controls Climate control and audio that are not as simple as they could be, leaving the question of the driver's safety when performing the actions of navigating through screens to correct. Edmunds' customer reviews include a critical charge alert of the 12-volt battery that resulted in a visit to the dealership, and then afterwards, having two separate incidents two weeks apart, of an alert for a system update and a total recharge of the battery. Other Edmunds' reviews mention that to use the infotainment system, there are a lot of screens that have to be navigated, and that the parking button was not easy to engage and sometimes failed after the first press. Editor Notes: Suggested prices for 2024 luxury SUVs are listed on and are subject to change. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years 10 Used Cars That Will Last Longer Than an Average New Vehicle This article originally appeared on 4 Used Luxury SUVs That Are a Bad Investment for the Middle Class
Yahoo
14-06-2025
- Business
- Yahoo
4 Types of People Who Will Lose (and Make) Money Due to Trump's New Tax Initiatives
President Donald Trump's proposed tax initiatives promise lower rates, fewer deductions, and big shifts in how income is taxed. However, the real question for everyday Americans is simple: Will I come out ahead or lose money? Learn More: Find Out: Here are four types of people who will lose and make money due to Trump's new tax initiatives. The proposed plan would cut the top individual tax rate from 37% to 30%, significantly reducing tax liability for households earning over $400,000. 'Wealthy individuals will likely seize the opportunity of idle capital gains, given their new ability to offset this with additional depreciation,' said Hector Castaneda, certified public accountant (CPA) and principal at Castaneda CPA & Associates. 'Additionally, removing the SALT deduction cap would likely nudge the wealthy towards second homes or moving to income-tax states and spending less because philanthropy will become a little less attractive (at least from a financial perspective).' Read More: If passed, Trump's plan would expand the Child Tax Credit from $2,000 to $2,500 per child. While most families with children are expected to benefit, middle-income households are anticipated to gain the most, with average credits approaching $3,000. While the tax credit could help offset the rising cost of living, education and childcare expenses for most middle-class families, low-income families may not receive the full benefit. In addition, if funding for programs such as SNAP, childcare subsidies or Medicaid is cut to offset tax breaks, lower-income parents and children could end up worse off overall. 'Major cuts to SNAP and Medicaid will negatively impact child health outcomes, educational achievement and overall well-being,' said researchers in a report for Georgetown Law School's Center on Poverty and Inequality. Pass-through businesses could see a lower flat tax or expanded deductions, especially if Trump's proposal to cap business takes 15% to 20% passes. Entrepreneurs and gig workers using LLC structures may benefit from an expanded Qualified Business Income (QBI) deduction, streamlined tax reporting and potentially reduced tax rates. These provisions are designed to reward small businesses and self-employment. 'These tax cuts provide much-needed relief to small businesses and individuals, and encouraged billions of dollars in economic activity and investment,' said Javier Palomarez, founder and CEO of the United States Hispanic Business Council (USHBC). 'Extending these cuts would allow businesses to invest and grow at a faster rate.' However, critics at the Center on Budget and Policy Priorities (CBPP), a government watchdog agency, said that the pass-through business deduction disproportionately favors high earners. 'Heavily skewed in favor of high-income people, the deduction effectively cuts the top tax rate on this pass-through income by 20%, to 29.6%, compared to the 37% top rate that applies to wages and salaries,' CBPP researchers said. Seniors on fixed incomes may face unique challenges under Trump's tax proposal. To offset tax cuts, Trump has signaled potential changes that could affect seniors. For example, the budget plan proposes $700 billion in Medicaid cuts and enforced higher cost-sharing for beneficiaries above the poverty line. According to a Congressional Budget Office memo, an estimated 16 million Americans could lose health insurance as a result of policy changes included in Trump's 'Big, Beautiful Bill,' and two policies incorporated in federal baseline projections. 'The main culprit in the bill as it relates to healthcare is the effect on the Affordable Healthcare Act,' said Steven Conners, founder and president of Conners Wealth Management. 'Premiums will most likely increase. For those less fortunate, Medicaid will see less funding, which ultimately puts more pressure on this part of the population.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 4 Types of People Who Will Lose (and Make) Money Due to Trump's New Tax Initiatives Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
03-06-2025
- Business
- Fox News
CNN polling expert marvels at collapse of Democratic advantage with middle class in Trump era
CNN senior political data reporter Harry Enten Monday marveled at how Democrats continue to face a stark lack of confidence from voters on the economy and middle class issues. Voter dissatisfaction with former President Biden's management of the economy was one of the major issues that led to President Donald Trump's return to the White House. While Trump may have stirred controversy with his tariff and immigration policy shakeups since then, the economy appears to be one key area where he retains voters' trust. CNN host Kate Bolduan observed as she spoke to Enten that, according to CNN's own polling, Republicans are actually gaining ground in terms of being trusted to help America's struggling middle class. "Yeah, you know, historically speaking, 'Which is the party of the middle class?' has been a huge advantage for Democrats," Enten said, referring to one question from the polling. He said Democrats had a 23-point advantage on this question in 1989 and a 17-point advantage in 2016, "But by this decade, we already started seeing declines back in 2022, where you saw that Democrats led, but only by four points, well within the margin of error." Now it's tied. "This, I think, speaks to Democratic ills more than anything else," he argued. "They have traditionally been the party of the middle class. No more! Donald Trump and the Republican Party have taken that mantle away, and now a key advantage for Democrats historically has gone 'adios, amigos,' and now there is no party that is the party of the middle class. Republicans have completely closed the gap, Kate." Enten also said while one might think Trump's rocky experimentation with tariffs might shake voters' faith in Republicans and make them consider the opposition, but, "It ain't so. It ain't so!" The data reporter noted that in November 2023, Republicans had an 11-point advantage as "the party that is closest to your economic views." He noted, "Now it's still within that range, still within that margin of error, plus eight point advantage for the Republican Party. How is that possible, Democrats?" Enten continued to break down the numbers, wondering, "How is it possible after all the recession fears? After the stock market's been doing all of this, after all the tariffs that Americans are against, and Republicans still hold an eight-point lead on the economy? Are you kidding me?" He argued that CNN's poll was echoed by similar findings from Reuters/Ipsos, showing that confidence in Republicans to handle the economy has risen. "And again, this is after months of supposed economic uncertainty in which the stock market's been going bonkers, in which tariff wars that Americans are against have been going on. And yet, despite all of that, the Democrats are down by 12 points on the economy," he said. "This speaks to Democratic problems on the economy better than basically anything that you could possibly look at," Enten continued, arguing that even if approval ratings are slightly lower than they once were, Republicans maintain a clear advantage with public opinion on their management of the economy.
CNA
28-05-2025
- Business
- CNA
‘Small benefit': Indonesia's banking on consumers to boost its economy but latest perks fall short, say analysts
JAKARTA: Indonesia is rolling out a slew of stimulus measures to get its people to spend more in the next two months, but these may not be enough to revive sluggish domestic consumption and lift economic growth, analysts say. Instead, broader moves are needed to help the country's dwindling middle class and protect businesses from the effects of higher United States tariffs, they add. With the school holidays set to take place between Jun 28 and Jul 12, the government is looking to boost domestic tourism and consumption. The government announced on Tuesday (May 27) discounts on electricity bills and transportation costs as well as cash and food handouts to selected households that will begin on Jun 5. Indonesians will enjoy a 30 per cent discount on train tickets as well as a 50 per cent discount on sea transport. In addition, the government will cover the 6 per cent value-added tax (VAT) on airfares from early June to mid-July. A 50 per cent discount on electricity bills will be given to around 79.3 million households with a maximum usage of 1,300 volt-amperes from Jun 5 to Jul 31. The government will also provide 150,000 rupiah in wage subsidy for two months to about 17 million workers earning up to 3.5 million rupiah (US$215) a month. It will give an additional 200,000 rupiah a month in staple food assistance to 18.3 million households. With the majority of the incentives set to benefit low-income families and not the middle class, experts are questioning just how effective the stimulus will be. 'It is difficult to achieve the expected consumption boost with such (a) small benefit given to such a small number of beneficiaries,' Achmad Nur Hidayat, an economics and public policy lecturer from the Jakarta National Development University, told CNA. Almost all of the planned incentives will benefit lower-income households, he noted. According to the Indonesian Statistics Bureau, there are 25.2 million Indonesians who live below the poverty line, surviving on less than 600,000 rupiah (US$36) monthly. 'Houses with 1,300VA (maximum electricity usage) are typically found in housing complexes for low-income families. Workers with a salary of less than 3.5 million (rupiah) are low-income workers,' he explained. 'If the intention is to boost consumption, then the government should target the middle class with disposable income,' he said. 'The middle class has been responsible for much of Indonesia's domestic consumption and their purchasing power has been dwindling for the last few years,' concurred Yusuf Rendy Manilet, an economist from the think tank Center of Reform on Economics (CORE). 'And yet, incentives for the middle class are limited to transportation fares.' RISK OF MORE JOB LOSSES Household consumption contributes around 54 per cent of Indonesia's economy, according to official data. However, consumption appears to be slowing over the last few years. In the first quarter of 2025, consumption grew by 4.89 per cent compared to the same period in 2024 despite major festivities like Chinese New Year and Idul Fitri occurring during the period. The year-on-year growth was Indonesia's weakest for a first quarter in more than three years: The rate was 5.11 per cent in 2024, 5.03 per cent in 2023 and 5.01 per cent in 2022. Indonesia clocked 4.87 per cent gross domestic product (GDP) growth in the first quarter, and is aiming for around 5 per cent growth for the second quarter. Meanwhile, import of household goods in January and February this year stood at US$1.64 billion and US$1.47 billion respectively. The figures were 10.6 and 21 per cent lower year-on-year, another sign of sluggish household consumption in Southeast Asia's largest economy. One major factor is the shrinking of Indonesia's middle class population, which has been responsible for around 40 per cent of the country's total consumption. The country is still reeling from the effects of the COVID-19 pandemic, which caused thousands of businesses to shutter. The number of people categorised as middle class dropped from 57.33 million in 2019 to 47.85 million in 2024. During the same period, Indonesia's population increased from 267 million to 280 million. Experts believe that Indonesia's middle class could shrink further with the US' threat of 32 per cent tariffs on goods from Indonesia. The Trump administration has put higher 'reciprocal' tariffs on hold until July. The Indonesian government's latest economic stimulus incentives will only cut household expenses temporarily, said Tauhid Ahmad of the think tank Institute for Development of Economics and Finance (INDEF). 'But if we want something which is long-lasting, then we need to do much more, starting from creating new jobs to preventing existing jobs from disappearing,' he said. Indonesia's Manpower Minister Yassierli said in parliament on May 12 that more than 24,000 people lost their jobs between Jan 1 and Apr 23 this year. He said tens of thousands more are at risk because of the trade war. This is particularly so in the textile and furniture sectors, where goods are mostly bound for overseas markets. The Indonesian Employers Association (APINDO) has painted a more alarming picture, saying on May 14 that at least 70,000 people have been laid off between January and March. APINDO warned that if the looming impact of the trade war is not mitigated well, 250,000 people could lose their jobs by the end of the year. INCENTIVES FOR 'LONG-TERM GOOD' NEEDED Some experts like Tauhid said it is important that Indonesia gears government stimulus and incentives towards mitigating the impact of a punishing trade war. But they noted the government funding to be allocated to President Prabowo Subianto's signature programmes like free meals for millions of school children, breastfeeding and expectant women. This year, Indonesia is earmarking US$7.4billion for the initiative, with plans to nearly double the budget to US$13.3 billion next year. Aside from the free meal initiative, Prabowo also plans to build 3 million houses for the poor every year, which is expected to cost taxpayers US$7 billion annually. To cover the costs of the programmes, the government initially planned to increase its VAT from 11 to 12 per cent from Jan 1. The plan, however, was cancelled after fierce public backlash. Without the VAT hike, these programmes are predicted to cause a government deficit of around US$37billion or 2.53 per cent of the GDP by the end of 2025. '(These programmes) give little room for the government to provide meaningful incentives to revive our economy,' said Achmad, suggesting that these programmes be postponed or reviewed. 'Must we do them now? Can we scale them down? The government needs to think about these options,' he said. Tauhid of INDEF suggested also offering help to companies. 'Instead of providing incentives to individuals, why not provide incentives to businesses so they can stay afloat? Why not provide tax breaks so investors are willing to build factories here and create jobs?' he said. 'The plan to provide discounts on electricity bills and distribute cash handouts are popular with the general public and can give quick results but the results are temporary and superficial. We need something for the long-term good of our economy.' Bhima Yudhistira, executive director of the think tank Center of Economic and Law Studies (CELIOS), said the government could consider reducing the VAT, currently at 11 per cent, to 9 per cent. 'By keeping prices low, people will be encouraged to spend more on goods and services," he said. "This will in turn help small and medium enterprises providing these goods and services,' Bhima said, highlighting that many countries like Ireland and Germany have lowered their VATs to aid recovery from the effects of the pandemic.
Yahoo
25-05-2025
- Business
- Yahoo
5 Ways Trump's Suggested Income Tax Elimination Could Hurt the Middle Class
Income taxes may seem like one of those unchangeable facts of life that you just have to deal with as long as you work. However, one of President Trump's tax reform proposals is to consider doing away with income tax altogether for people who make less than $150,000 per year. Trump has also proposed eliminating taxes on overtime pay, Social Security Benefits and tips. Find Out: Learn More: While the initial result might seem positive — keeping more of your earnings — Christopher Stroup, CFP and president of Silicon Beach Financial, warned that there could be financial downsides that might actually hurt middle-class wallets down the line. While it's unclear if and when any of these proposals might move beyond theory, Stroup explained what might come of eliminating income taxes for this segment of American workers. If income tax disappears, expect higher sales taxes, property taxes and other fees to make up the difference, Stroup said. 'Middle-class households, who spend a greater percentage of their income on essentials, would bear the brunt.' A 10% national sales tax, for example, would make everyday necessities significantly more expensive while benefiting wealthier Americans with lower tax burdens. Be Aware: Income tax plays a major role in funding Social Security and Medicare. Without it, where does that money come from? Stroup explained that 'a tax overhaul could lead to benefit cuts, delayed eligibility or even privatization.' Middle-class workers and retirees who rely on these programs the most could face financial instability just as they need guaranteed income the most. If there's no income tax on a certain level of earnings, then some entrepreneurs and small-business owners who benefit from income tax deductions on expenses like health insurance, retirement contributions and home offices would not have these deductions. 'Without an income tax, these deductions disappear,' Stroup said. 'This could increase net tax burdens and make it harder for self-employed professionals to reinvest in their businesses while larger corporations find new loopholes.' Most states rely on federal funding for infrastructure, education and public safety — much of which comes from income taxes, Stroup explained. 'If those funds dry up, states would likely increase property and local taxes, disproportionately affecting middle-class homeowners. The result? Higher costs without the benefits of improved public services.' Eliminating income tax primarily benefits high earners who derive most of their wealth from investments rather than salaries, Stroup said. 'Middle-class professionals who rely on wages would still face taxes in other forms, whether through consumption or payroll taxes.' This shift could exacerbate income inequality, making it harder for working families to build long-term wealth. These are all just speculations at the moment, as no official tax reforms have been passed either by executive order or through an act of Congress. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 5 Ways Trump's Suggested Income Tax Elimination Could Hurt the Middle Class
