Let’s take a look at what Biden’s presidency means for you! Joe Biden has already got his “build back better” plans laid out. But what does this mean for you and your future?
1: Taxes
If Biden gets his way, it looks like the wealthiest people in the country could expect a bigger tax bill.
At the same time, the government is proposing expanding certain tax benefits like the Child Tax Credit during the pandemic for middle- and low-income families. In the future, we are being told that we can also expect additional tax credits towards home buying, as well childcare and health insurance costs.
But that does not mean everybody is off the hook. With states currently running broke, the county will need to make up for their deficits. The consensus on taxes is hope for a decrease but expect an increase.
2: Student Loan Debt
There is good news for borrowers and better news for future college students. The Biden-Harris administration understands the country’s problem with student debt and has announced initiatives to make higher education more affordable. This includes making community college tuition free for up to two years. It also makes public colleges and universities tuition free for families who are on lower incomes.
3: Unemployment
Biden is promising immediate jobs with better wages and more attractive benefits. His team are also keen to focus on growing the workforce by making investments in key industries like infrastructure, clean energy, caregiving and education.
There is also a plan to “immediately” create new jobs by employing people in fields like contact tracing to help fight the coronavirus pandemic.
4: The Racial Wealth Gap
Biden is promising lots of plans in this area, including many ideas to help the problem wealth inequalities caused by racism. The new government says it will reform opportunity zones, invest more in homeownership and access to affordable housing for black, brown and native families. They are also promising more equity in management, training and higher education linked to the jobs of the future.
5: Health Care
With the world in the middle of a pandemic, healthcare is at the forefront of everyone’s minds. However, reform in this area is likely to be slow-moving. The Biden-Harris team’s major plan is to build a “public option” for health insurance. This is set to be run by the government and available to people of all ages. In theory, this would be more affordable than private market options.
Whatever your political views, it is not sensible to use Biden’s proposals t as a playbook for your current personal finances. As with any new President, Joe Biden will almost certainly have his work cut out for him. And of course, The COVID-19 pandemic is nowhere near behind us. That means recovery will be slow, which Biden has been clear about.
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Next article, Further help from the IRS for taxpayers