President Trump continues to dispute the results of last week’s election, and Biden’s agenda remains uncertain since Republicans may retain control of the Senate. According to Bloomberg.com, Biden’s proposed policies — from tax hikes to health-care changes — could shape the way millions of Americans save, spend and manage their finances for years.
▪ Taxes increases?
Biden has proposed a tax plan that would increase taxation to target the wealthy. He has promised to enact a number of polices, including an income tax, a capital gains tax and payroll tax. But the middle class does not seem to be in the clear: Biden has yet to provide specifics on how he would finance the cost of his tax plan – “I just don’t see another way that he can go, than to raise taxes on the middle class, because that’s where all the money is,” Andrew Silverman, a tax analyst for Bloomberg Intelligence said.
The president-elect indicated that his plan to grow U.S. employment will include $400 billion for manufacturing and $300 billion for research and development, which he says could create 5 million jobs on top of those lost to the coronavirus outbreak. Biden has also vowed to raise the federal minimum wage to $15 per hour.
▪ Capital Gain Taxes
Biden has called for taxing capital gains and dividends at an ordinary income tax rate of 39.6% for those making more than $1 million. If Biden’s plans get the green light from Congress, they may weigh on your stocks, according to Goldman Sachs Group Inc. Still, experts see global trade tensions easing under Biden.
▪ Health Care
Biden has said his goal as president would be to ensure that no American buying health care insurance in the individual marketplace pays more than 8.5% of their annual income on health care. That could save people hundreds of dollars a month, but it could also damage the employer-sponsored health insurance market.
▪ Student Loans & Social Security
The next U.S. president supports student loan forgiveness and has also proposed to expand Social Security, by increasing payroll taxes on individuals with incomes above $400,000. But in the U.S. presidential system the executive cannot enact policy alone. Much will depend on Congress: Biden’s plans might not become reality if the Democrats don’t have the Senate majority.
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