US time today (1/20)

President-elect Biden and Vice President Harris

Finally came to Capitol Hill in Washington DC

Participated in the inauguration of the 46th President of the United States.

At 8:30 in the morning (pst), Capitol Hill begins

Presidential inauguration.

At 9 o'clock (pst), the president and vice president began to take the oath.

photo credit: AP

After today’s inauguration,

President Biden has entered the Oval Office of the White House

Today, in order to ensure that the inauguration ceremony can be held normally and safely,

20000 National Guards arrived in the capital,

The venue for the event was partially blocked to ensure safety.

How will Biden take the stage affect our wallets

Third round of relief bill

Bernard Yaros Jr., an economist at Moody's Analytics, said that there will be a third round of relief shortly after Biden takes office.

Analysts predict that the new government will directly pay $1400 to millions of Americans.

In February of this year, we expect to launch a package of mitigation plans for COVID-2.He said that this measure may extend unemployment insurance benefits again and provide sufficient support for issuing a new round of checks to Americans, "whether it is 2K or slightly lower."Small businesses may also receive more grants and exempt loans. Yaros added: "We are also considering that you may get some additional funds to help with the lease.

Biden's other changes to social security

With the Democratic Party winning two Senate seats in the second round of elections in Georgia, it is more likely to switch from a "relief" model to a "stimulus" model at the end of 2021.

Economists at Moody's Analytics predict that the Biden administration will increase funding for the "social safety net", which may include:

• Expansion of eligibility for medical insurance

• Transform Obamacare into bidcare

• Introduce paid sick leave protection measures

• Provide universal preschool education for 3-4 year olds

• Student debt relief

Taxes may increase, but they will be lower than expected

Biden administration is expected to introduceHigher taxes, Will provide part of the funds to expand these social safety nets.

Biden is likely to successfully reverse Trump’s tax cuts,Increase the corporate income tax rate to 28%, increase the tax rate for taxable income of more than US$40, and cancel some tax benefits for income of more than US$100 million.

However, Michael Zezas, Morgan Stanley's head of American public policy research, said,The tax increase may be less than generally expected.

tax policy

The main goal of the tax reform proposed by Biden is stillAnnual income exceeds 40Of high-income groups:

• For people with an annual income of more than 40, additional levy12.4% social security tax

• AgainstAnnual personal income exceeds 52 and annual family income exceeds 62People, the personal income tax rate will also be restored from the current 37% to the pre-2017Present in several = 39.6%

This will lead to the effective tax rate that high-income people actually need to pay in the endFrom 40% now to 50%.

For the middle class, due to the reduction of payroll tax pressure:

• Annual income of 5 to 8 9People, 2022 can$620 tax cut

• 8 to 9The crowd can$420 tax cut

However, because the corporate tax rate will increase from 21% to 28%, this part of the tax may be passed on to employees.Therefore, middle-class taxpayers may find that their after-tax income has declined.

Retirement fund

Biden's general plan also has some ideas on reshaping employer-sponsored retirement plans.

Anne Tyler Hall, the founder and head of the Hall Welfare Act, said one of the proposals was to balance the tax benefits of retirement plans in order to "High-income earners will not get more benefits than low-income earners. This is a comprehensive standard."That is to say, different taxes but the same benefits.

The idea proposed by the Biden administration is to provide tax credits for low- and middle-income workers, thereby generating equal tax benefits.But the specific implementation depends on the final bill.

Review Biden's other policies

Next, we will start fromChina, immigration, real estate, medical, environmental protection policiesThese 6 aspects, to BidenA brief analysis and introduction of possible policies in the next four years.

 

China policy

In his attitude towards China, Biden’s current tone is very similar to Trump’s conservative policies:

• Economics and trade, Biden will continue to pressure China and does not rule outTrade war methodsThe possibility

• Human rights issuesOn, Biden also maintained "Never let go"Principle, put pressure on China in related fields

• In economics, trade, politics, etc.International affairs directly related to U.S. interestsLast, Biden claimed that he would work more closely with allies than Trump,Restrict ChinaRole played and current status

• In environmental protectionInternational affairs not directly related to the basic interests of the United StatesOn, Biden may chooseCooperation with China, But this is just to allow the United States to return to the framework of global cooperation

All in all, China has officially become theBiggest competitor, And Biden will no longer be the "old friend of the Chinese people" in the Obama era in 2008.In the next four years, China should face challenges from the Biden administration in economic, trade, political, and human rights issues.Continuous pressure.

 

Immigration policy 

If Biden wants to rebuild the friendly attitude of the United States in the international arena, he will reverse the tightening immigration policy during Trump's period to a certain extent:

• Biden promised in his campaign platform to modernize the immigration system, hoping to help the United States1100 millionImmigrants without legal permanent status, provideWays to obtain citizenship

• Stop building the U.S.-Mexico border wall, But it’s not clear whether he will demolish the built part

• May repeal the travel ban for some countries

• To curb local poverty and violence by providing economic assistance to the countries of origin of immigrants, and strive to reduce the number of immigrants from the root cause

• Biden has said that he hopes to accept12.5 refugees

• A decision to overthrow the Trump administration that domestic violence and gang persecution cannot be an effective basis for seeking asylum in the United States

However, Biden takes a positive attitude towards protecting the job opportunities of his country’s citizens.Therefore, although he hopes to increase the number of employment visas issued each year, will heVisa conditionsSome changes that will benefit the employment of our citizens are not yet known.

 

Real estate policy

Biden will inevitably need to increase taxation for his $7700 billion economic recovery plan.In addition to direct tax collection channels, he will also intervene in real estate transactions.

Currently, there is a tax bill that facilitates real estate transactions-1032 Exchange (1031 Like Kind Exchange).The content of this bill is that if the income from investment in real estate is transferred to another real estate within half a year after the transfer of the real estate,Capital gains tax can be deferred.

Through this bill, many people who invest in real estate can never pay capital gains tax.andBased on the investor’s total annual income, a real estate transaction with a profit of $40,Capital gains tax may be as high as hundreds of thousands of dollars.

Biden proposes to cancel 1031 exchange, Want to use this to increase the government's annual tax revenue of 100 billion US dollars.But in the past, Congress has rejected similar proposals. I don't know if Biden can get the results he wants this time.

 

Medical policy

Biden hopes to further expand the "Affordable Care Act":

• Implement a public health insurance plan in the United States to allowAll U.S. citizens can register and use, No longer restricted by the overlord clause of private health insurance

• Increase the tax credit for medical insurance (Tax Credit), Reducing the current medical insurance costs to 9.86% of personal income toPresent in several = 8.5%, So the monthly medical insurance expenditure will be$750 reductionabout

• Strive to provide affordable public medical insurance for nearly 490 million low-income people,

 

Environmental protection policy

Biden should make AmericaReturn to Paris Agreement, And also hope that the United States can reach net zero emissions by 2050.He will also propose to prohibit new oil and gas exploration projects on public land and investUSD 2 trillionFurther develop new green energy.

I hope that the chaos and division can end as soon as possible, and everything goes well in 2021...

Author | Boom

reference: https://www.cbsnews.com/news/what-a-biden-presidency-means-for-your-wallet/?ftag=CNM-00-10aac3a

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