Changes are Coming...
Our Weekly 2 Minute Read
2020 will be a year that will definitely stand out in the history books in the 21st century; I think most people would agree with that statement. As we move into the New Year coming up, lots of things have changed, most recently America’s new potential president of the country; Joe Biden. This means that the country will go into a certain direction for the next 4 years. What kind of direction would this look like?
Well the first thing that Biden wants to do is combat climate change. He wants to create a “Clean Energy Revolution” plan by investing 2 trillion dollars into clean energy and 4 billion dollars into renewable energy research. He also plans on reentering the Paris Climate Accord. His goal is to create an economy that runs off mostly clean energy and create less CO2 emission for the environment.
The next thing that a Biden administration would do is protect Obamacare and provide a Medicare like public option for everyone and not just for people 65 or older. Also the max out of pocket coverage would be lowered from 9.8% to 8.5%. Another thing Biden wants is to lower drug prices and eliminate out-of-network surprise billing. In terms of Covid19, he wants to provide free testing, mass supply PPE gear, hire tens of thousands of contact tracers across the country, and provide paid sick leave for people who have Covid19.
In terms of immigration, a Biden administration plans to boost the population and increase the labor supply by reversing the travel banned on Muslims, allow DACA recipients and undocumented immigrants who pay taxes a pathway to citizenship, and increase H1B visas for skilled workers coming from other countries. Biden believes this will help increase productivity and increase consumer spending.
For the students and alumni’s out there, a Biden administration would seek to forgive $10,000 in federal student loans. In addition, he would cut the payments of loans in half and would want to forgive 100% of loans for people who pay responsibly for 20 years. Biden would also want to provide 4 years of free college to households who make under $125,000 a year. Interesting stuff there.
For the work force, the jobs that Biden wants to focus on would be 5 million jobs in manufacturing and tech innovations where he plans to spend 700 billion dollars in that field. Biden also wants to create 100,000 new jobs in the public health sector. He wants to also spend 7 trillion dollars on infrastructure for upgrading highways, roads and creating new high speed rail systems. He also wants to invest $640 billion on affordable housing for the next 10 years. As for the stimulus package, the democrats want to provide over 2 trillion dollars worth of aid while the republicans want to provide one trillion or less. The two parties might possibly meet in the middle. Lastly, Biden wants to increase the federal minimum wage from $7.25 an hour to $15 an hour. Very interesting.
As for taxes, it seems obvious Biden is going after the high income earners. People who are making over $400,000 per year taxes will go up. For people who make less than $400,000 per year, taxes will probably remain the same for those individuals. The income tax rate for top earners, which is $400,000 and over, will increase from 37% to 39.6%. The corporate tax rate will increase from 21% to 28%. Capital gains tax will increase from 23.8% to 39.6% if you make more than a million dollars a year.
So what does this mean for us as Americans? Well change is inevitable. If this is the direction we are going, we can now just focus on living our lives and control what we can control. There will be more social programs now and it seems like the top 10% will be paying for these programs. The government will help jobs geared towards manufacturing, engineering, tech innovations and green energy. There will be an aggressive push towards combating climate change and immigration won’t be as strict. This is most likely what America will look like the next 4 years. Whether we agree or disagree, the wheels are already in motion. All we can do now is to focus on how we can play the game as it is set up and be the best that we can be in it. There are too many things that we can’t control in the world, but for the things that are within our control, we can put our focus there. I’m sure if we do that, we can find our greatness in America these next 4 years.