A Biden presidency will be financially beneficial if you’re middle- or lower-income, according to a WalletHub analysis of the President-elect’s policies. The benefits would come from favorable tax policies, tuition-free education, health care benefits, and more.
WalletHub’s senior analyst Jill Gonzalez says that people who identify as middle- or lower-income should be happy with a Biden presidency — at least when it comes to your finances.
“You should actually be excited for what a Biden presidency would look like, especially I think in light of coronavirus,” Gonzalez explained. “He’s giving a few different types of tax credit, or at least that is his plan.”
According to the President-elect’s tax plan, Americans earning under $400,000 will not lose tax cuts that were first passed under the Tax Cuts and Jobs Act.
“The people that should be concerned are those that are in the 1.9%, that are making over $400,000,” Gonzalez said. She explained that this group of people will be charged a “slightly higher tax rate.”
“Not too much higher — about 0.2%,” she added.
But Americans can expect some more tax credits which might come particularly useful during the coronavirus pandemic.
The Biden tax plan aims to create a $5,000 tax credit for “informal” caregivers — family members and loved ones who provide long-term care to the elderly. And families with dependents will be able to claim $8,000 per child, with a cap of $16,000. The Child Tax credit — currently $2,000 — would be expanded to $3,000 for children ages 6 to 17.