Published in: Personal Finance | Sept. 24, 2020
A far-reaching economic stimulus plan, affordable housing, and tax credits galore are just some of his proposals.
We're in the final stretch of the presidential race between Joe Biden and Donald Trump, all while the U.S. faces twin catastrophes: a global health crisis and a recession.
Americans have taken hard hits to their finances from unemployment and income loss to evictions and decimated savings accounts, and are largely focused on protecting their bottom lines and getting coronavirus relief. That's why it's important to cut through the election noise and focus on policy proposals.
Here's exactly how a Biden presidency could impact your wallet.
Biden makes clear in his tax plan that no one making under $400,000 per year will pay more in taxes -- a statement that's been fact checked by the Washington Post. His plan calls for a number of tax credits that can save working class families thousands.
Here are some key points in Biden's tax plan:
The Wall Street Journal and the American Enterprise Institute, a public policy think tank, recently analyzed Biden's tax plan and came up with estimates for how it would impact five hypothetical families. The first three families bring in over $1 million per year, and they all end up paying an effective tax rate that's 3% to 4% higher under Biden's proposal. However, a family with an annual income of $80,000 and one child sees no changes in their taxes under Biden's plan. A family with an annual income of $50,000 and one child is projected to gain $2,900 annually, thanks to Biden's child-care tax credit.
The next president will face the dual crisis of the coronavirus pandemic and a recession. Biden's plan focuses on supporting small businesses and local governments, providing relief to the unemployed and working class families, and making sure healthcare is accessible.
Below are some key points:
Apart from supporting a comprehensive second stimulus bill, Biden wants to create a slew of new federal programs to provide financial help during the coronavirus. In addition to the ones listed above, he also wants to provide more federal aid to local, state, and tribal governments to help pull the U.S. economy out of the current recession. Additionally, Biden's running mate, Kamala Harris, introduced a bill to give Americans $2,000 per month for the duration of the crisis, though it remains to be seen whether Biden supports this proposal.
Most of Biden's policy proposals focus on empowering the middle class while providing additional financial support to our country's most vulnerable. Some of the presidential candidate's other major plans address affordable housing, fixing Social Security, and revamping retirement savings plans.
For affordable housing, Biden's key proposals include:
Most personal finance experts recommend spending no more than 30% of your income on rent or mortgage payments, a feat which isn't possible for many Americans currently, particularly those living in major U.S. cities. Biden's plan aims to make sure that's achievable for everyone.
Biden has a long list of policies in mind that can impact your wallet. Apart from those mentioned here, he also wants to revitalize rural economies, lower the price of prescription drugs, restructure tax-advantaged retirement savings plans to make them more equitable, and provide additional Social Security funds to older beneficiaries and folks who spend at least 30 years in the workforce.
Read up on the plans presented by each of the presidential candidates, and remember: your vote counts, and affects your financial outlook, too.
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