How the 2020 Election Impacts your Finances🗳
See how your finances will be impacted by a Trump v. Biden Administration.
I don’t know about you but watching the 2020 Election between incumbent President Donald J. Trump and former Vice President Joe Biden has been anxiety-inducing.
We knew it would be a tight race but this is some serious neck-and-neck action.
Update: U.S. former Vice President Joe Biden has secured the 270 Electoral College votes needed to win the 2020 Election.
Whether you’re pro-Trump or pro-Biden, we’re all pro-financial freedom.
We all want to keep our money in our wallets. So let’s review how our finances will be impacted by a Trump Administration vs. a Biden Administration.
We will cover SEVEN main areas:
COVID-19 Stimulus Plans
Student Loans and Tuition
Taxes
Social Security
Mortgages
Jobs
Healthcare
If Biden Wins the 2020 Election:
COVID-19 Stimulus Plans
If the Democrats can win back the White House and the Senate, they will work collectively to pass a second stimulus package soon after the inauguration.
Biden's plan will include more direct stimulus payments (without specifics on how much / who would qualify).
Student Loans and Tuition
Biden proposes a brand new income-driven repayment plan which will cut the monthly loan payments in half as compared with PAYE (Pay-As-You-Earn Repayment, which was enacted during the Obama-Biden administration.)
Biden aims to forgive all tuition-related undergraduate federal student loan debt for borrowers who attended public colleges and earn less than $125,000 per year. Biden also supports a plan to wipe $10,000 in federal student loans.
Taxes
Biden wants to put into place multiple policies that will raise taxes on individuals that have an income of more than $400,000, including raising individual income, capital gains, and payroll taxes.
Biden also wants to raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax.
Social Security
Social Security’s trust funds were already at risk of running dry before the pandemic. Biden aims to set the minimum benefit at 125% of the federal poverty level, increasing annual cost-of-living adjustments, and creating benefit increases for those who have been receiving benefits for at least 20 years.
The changes would be paid for by adding Social Security payroll taxes to those making $400,000 and up. Over time, the changes would increase benefits by about 14%.
Mortgage
Biden aims to invest $640 billion over the next 10 years so that every American has access to housing that is affordable, stable, safe, and healthy.
Biden plans to help families buy their first homes and build wealth by creating a new refundable, advanceable tax credit of up to $15,000.
Biden also aims to fight the racial housing gap by creating a national standard for appraising homes to make sure properties in communities of color wouldn't be assessed at less than similar homes in comparable white neighborhoods.
Jobs
Biden says he doesn’t favor shutting down the country again but states and cities shouldn’t ease business constraints until the virus is tamed.
Biden’s overall plan is focused on recovering the remaining 11 million jobs lost in the pandemic-induced recession.
Healthcare
Biden promises to protect and build on the Affordable Care Act by giving Americans more choice, reducing health care costs, and making our health care system less complex to navigate.
Biden also wants to give Americans a new public health insurance option similar to Medicare. Biden aims to give everyone the choice to purchase a public health insurance option like Medicare.
If Trump Wins the 2020 Election:
COVID-19 Stimulus Plans
Similar to Biden, Trump is also favoring a plan that would add another round of stimulus checks and enhanced unemployment benefits for laid-off workers.
President Trump advised that if he wins and gets a second term, America will "get the best stimulus package you've ever seen."
Student Loans and Tuition
Trump proposes ending Public Service Loan Forgiveness, which forgives federal student loan debt for qualifying public service and nonprofit employees after 10 years of eligible payments.
Trump aims to terminate federal subsidized student loans. Subsidized student loans are need-based and don’t accrue interest while the student is enrolled in school.
Taxes
Trump's proposal would cut taxes by an additional $300 billion by the end of his second term, primarily for the wealthy and corporate America.
Taxes will gradually rise during Mr. Trump's second term due to portions of the 2017 tax cuts that will begin to expire.
Social Security
Trump signed an executive order in August that enabled workers to take a break from paying the Social Security portion of their payroll taxes if their employers agreed. Workers will have to repay those levies starting in January. Trump has suggested he would push to have those taxes forgiven in his second presidential term.
Trump aims to cut the payroll tax, which is the major source of funding for the program, and instead pay for it through the general tax fund, which comes mostly from income taxes.
Mortgage
The Trump Administration is aimed at creating fair housing while respecting the role of State and local decision-making for their communities.
At the beginning of his presidency, Trump signed an executive order, mandating that two regulations must be eliminated for every regulation created.
Jobs
Trump is promising to create 10 million new jobs in 10 months and 1 million new small businesses.
Trump aims to reduce payroll taxes which are paid specifically by employers to fund entitlement programs such as Social Security and Medicare.
Healthcare
The Trump administration has approved a plan to scrap HealthCare.gov which is the face of Obamacare, the online marketplace where millions of Americans sign up for health insurance.
Trump has also guaranteed to always protect people with pre-existing conditions.
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