In honor of President’s Day on February 15th, it may be a good idea to discuss with your financial professional how our new president, Joe Biden, may affect your finances, taxes, and retirement. Meeting with your financial professional will enable you to prepare accordingly for the next four years and beyond. Here’s a brief overview of what Biden has in store for his upcoming term:
The Biden Administration plans to increase federal taxes for those who earn over $400,000. If you earn less than $400,000, however, you’re not necessarily off the hook. Your state and local taxes may go up. Biden also plans to expand tax benefits such as the Child Tax Credit, including child care, home buying, and health insurance.
Due to the $1.6 trillion in U.S. student loan debt, the new president plans to make higher education more affordable for everyone. One initiative the administration hopes to accomplish is making community college free for up to two years and offering tuition-free colleges and universities for families who earn below $125,000. Other plans include increasing federal aid for low and middle-class individuals. Those who have already graduated from college may qualify for additional forgiveness if they opt for a public service career. Also, Americans with student loans may benefit from lower monthly payments.
Biden is a strong advocate of the Affordable Care Act, enacted by President Obama in 2010. He will strive to develop a public health insurance option and make it available to everyone. The public health insurance option’s goals would be to make healthcare more affordable than current private choices. Also, putting an end to the coronavirus pandemic is high on our new president’s priority list as well.
The Biden Administration has promised “higher wages, stronger benefits, and fair and safe workplaces.” Right away, the new administration plans to create new jobs by hiring individuals in fields that can help fight the pandemic. Investments in clean energy, education, and infrastructure will also bring various new jobs to America under the Biden plan. When it comes to unemployment insurance for the pandemic, Joe Biden hopes to extend it and implement “work-sharing” to help employers avoid layoffs.
Only time will tell whether or not all or some of our new president’s initiatives happen. In the meantime, it’s a good idea to review your financial situation with a professional to design a realistic plan that helps set you up for a financially secure future.
Disclosure: The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. This presentation is not endorsed or approved by any Government Agency.
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