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Will Joe Biden as President be good for your finances?

Will Joe Biden as President be good for your finances?
(Image credit: Getty)

The declaration that Joe Biden is the President-Elect of the USA might have provided some clarity over who will take up residence in the White House next, but what most Americans will be wondering now is whether a Biden presidency will be good for their finances. 

Biden spoke of an economic plan that “is all about jobs, dignity, respect and community” when delivering his acceptance speech over the weekend, but what could his policies mean for your wallet more specifically? How he approaches the coronavirus threat, his ideas for business and economic recovery, and his views on healthcare and taxes will all ultimately have an effect on your household finances somewhere along the line. So what do we know so far about what Joe Biden plans to do?

Coronavirus stimulus

With President Trump’s promise to pass a “major” Stimulus Bill “immediately after I win” the election now seemingly a moot point, hard pressed Americans remain in a state of limbo. With most already likely to have made use of the original stimulus check, and time running out for those yet to claim the first payment to do so, many will inevitably be turning to the best personal loans online and credit cards simply to get by.   

However, among those households that are facing the worst financial struggles, it is the lack of a proper replacement unemployment program that is likely to be hurting them the most. The additional $600-a-week benefit that out of work Americans were receiving up until the end of July would have likely been all that was keeping the most hardpressed households away from the temptation of payday loans and the like, and yet almost four months has now passed since the program ended. 

Will Joe Biden as President be good for your finances?

(Image credit: Getty)

On Biden’s part, he has backed providing further financial support to states to allow them to extend unemployment benefits, while his Emergency-Action Plan to Save the Economy includes a “restart package” for small businesses to help create new jobs. A second stimulus payment would also definitely be on the cards too. 

However, with over two months remaining until inauguration day on January 20, 2021, the great unknown is how President Trump will use that time, and whether further stimulus will be at the forefront of his mind. And even if it is, any new package would still need to be negotiated through the Senate, leading to the rather uncomfortable conclusion that further meaningful stimulus appears unlikely to be agreed until the transition of power is at least complete. 

Taxes

The President-Elect has been a staunch critic of the tax cuts implemented by President Trump in 2017 which doubled the standard deduction for individual taxpayers, and reduced corporate tax rates. Believing that the measures played too strongly in favor of the wealthy, Biden’s candidacy ran on the promise of a return to higher corporate taxes and a pledge not to raise taxes for households that earn less than $400,000 a year. Those who earn less can therefore be reasonably reassured that their incomes won’t be diminished further than they already have been once they’ve employed the best tax software to do its work. 

Will Joe Biden as President be good for your finances?

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Further monetary assistance for families could also be forthcoming given Biden’s pledge to temporarily expand the Child Tax Credit to a maximum $3,000 from $2,000 for children under 18, and provide a $600 credit for children under six. Of course, how much of this is eventually delivered will also again depend heavily on the sway of power in the Senate, and most likely the Democrats not ceding control to the Republicans. 

Health care

Biden backs the Affordable Care Act and wants to spend $750 billion strengthening Obamacare over the next 10 years to ensure even those with pre-existing conditions can access the best health insurance companies. He has also promised to protect the Act from the “continued attacks” it has encountered over the past decade and the threat that it now faces in the Supreme Court. 

“He opposes every effort to get rid of this historic law – including efforts by Republicans, and efforts by Democrats,” says Biden’s website. “Instead of starting from scratch and getting rid of private insurance, he has a plan to 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.”

The President-Elect also plans to lower the eligible age for Medicare to 60, providing a further 20 million Americans with access to the best medicare Part D plans

Will Joe Biden as President be good for your finances?

(Image credit: Getty)

Stock market investors

Those investors who are standing by with the best online stock trading software appear reassured by the sight of Biden taking up residence in the White House. Indeed, the markets strengthened amid the suggestion that the challenger was on track for a win, but also that the Senate could end up in the control of the Republicans. 

Sentiment has been boosted by the feeling that with Biden in situ, a new stimulus package could happen sooner rather than later and that an infrastructure plan might be more likely than under Trump, which could help the economy overall. At the same time, investors like the idea of a Republican controlled Senate, as that would make it more difficult for Biden to pass the tax laws that he favors but which could put a dampener on corporations and their ability to post big profits.