According to the Associated Press, Joe Biden was projected to become the nation’s next president on Saturday, following a campaign on an ambitious domestic agenda that he hopes will improve voters’ finances and manage the economy suffering from the coronovirus epidemic.
Tax increases for the wealthy, comprehensive health care coverage and student loan forgiveness were some of the projects on candidate Biden’s to-do list.
“I asked this office to restore America’s soul, rebuild the backbone of this nation, the middle class,” Biden said in a victory speech Saturday night that listed many challenges ahead, such as “the virus Battle to control, fight to build prosperity, fight to secure your family’s health care. ”
However, as the President changes his eyesight in the laws, it will now do the trick.
The Democratic challenger united President Donald Trump, but a party with a majority in the Senate is an unanswered question. Both parties currently hold 48 seats and races in Georgia, North Carolina and Alaska were still undeclared until Saturday morning.
related:Joe Biden’s Epidemic Plan
If Republicans retained control, their opposition could measure Biden’s plans. One investor said a Biden Presidency and Republican Senate would limit a second stimulus to about $ 500 billion.
If Democrats take control, it won’t be much. Currently 60 votes are required to end a debate on a bill and a filming is done to delay or prevent a vote on a bill where just a simple majority is required after passage.
So what does this mean for financially struggling Americans?
Stephen Myro, managing partner at Baden Policy Advisors, advised institutional investors that Biden would need to withdraw his legislative agenda without Democratic majorities in both houses. But, Biden still has ways to help families with an eye on their budgets through executive budgets, he said.
‘All these things are incremental steps that successfully add to real change and to remake the economy into a more progressive image.’
Biden, for example, may try to influence Federal Reserve policy to close income inequality, or he may set a hard antitrust priority to ensure that consumers are not hit with unfair prices . “All these things are incremental steps that successfully add to real change and remake the economy into a more progressive image,” Myro said.
Some Democratic senators have previously stated that the president can cancel student loans without congressional action.
Indirectly, a Biden administration and a Republican Senate may actually give a dose of certainty to companies looking to over-hire in the future. In a divided government, Myro said he would not have to bother to face a new set of tax laws. The stock markets already see this possibility.
The oath is sworn in on January 20, 2021, with a moratorium after a period of less than one month, and programs protecting consumers’ cash-security expire on December 31, 2020.
Current Majority Leader Sen. Mitch McConnell said Wednesday that he intends to strike a deal on a new rescue package following the $ 2.2 trillion cars act in March.
The CARES Act is the best thing for low-income families during an economic crisis.
The initial incentive plan is “the best thing we’ve ever done for low-income families during an economic crisis and it’s not even close”, said Luke Shaffer, a public policy professor at the University of Michigan, the school’s interdisciplinary poverty Head of the solution. The initiative.
Shaefer said that more public health steps such as closure may be necessary, along with recording the US daily COVID-19 case. “It is clear that we need another economic stimulus to help families at this time” to soften the economic consequences of more shutdown orders, but the prospect of a divided government makes Shaffer nervous “What that means Whether we get another meaningful encouragement. ”
If there is a lesson in 2020, it is that a lot can change in a very short period of time. The exact type of Biden administration’s actions may therefore be uncertain, but here we know that the president-elect is pledging to campaign.
Biden states that America’s corporations and its wealthiest citizens must pay a “fair share” of taxes. Some well-heeled Americans are already making plans for that scenario.
Biden is proposing to raise the income tax rate from 37% to 39.6% for people earning more than $ 400,000 annually. This sets the top rate back to where it was during the Obama administration.
Biden will also set a corporate income tax rate at 28% to the current 21%. The rate was 35% at the end of the Obama administration.
Biden did not ask for an additional “money tax”, something for Democratic Democratic rivals to advocate during the primaries.
Biden wants to change the tax rules surrounding capital gains and inheritance. People earning more than $ 1 million will have their capital gains charged at their normal income rate, 39.6% according to their plans.
The 40% property tax will also come into force very soon. The Tax Cuts and Jobs Act of 2017 raised the exemption level to less than $ 11.4 million for individuals and $ 22.8 million for couples. The Trump administration law increased the exemption by $ 5 million and Biden says he wants to bring it back to “historical norms”.
Biden may get some traction on the big hair tax credit. Trump doubled the $ 2,000 credit in his tax bill and Biden called for a $ 4,000 credit. Speaking before the election, Sen. Rob Portman, a Republican from Ohio, said a bipartisan agreement could be reached on some kind of expansion.
While the Obama administration passed the Affordable Care Act (ACA), Biden says he wants to build on the program.
Biden will add a public option for the ACA. According to the Kaiser Family Foundation, people with less than a fixed income who do not extend Medicaid will automatically be installed in a public option with a premium option. Biden will also reduce his medical qualification from age 65 to age 60.
He will also follow the rules and extend eligibility on tax credits to reduce the cost of health insurance. Also on costs, Biden says he would prevent people from being blinded by massive medical bills.
The president-elect plans to build the program, but the Supreme Court is due to go to trial on 10 November. 10 oral arguments where the Trump administration and Republican-leaning states argued cheaply
The Biden administration cannot veto a challenge to the ACA in the Supreme Court, but could, in principle, argue to uphold the law now.
The Care Act should be completely void due to the mandate of a person with a penalty of $ 0.
According to Alison Hoffman, a University of Pennsylvania law professor at the University of Pennsylvania Kerry Law School, the Biden administration could, in theory, turn around and defend the ACA, but could not overcome the case. He said Republican-leaning states would still press the case. Hoffman said the Biden administration would require court permission to file new court papers arguing for the ACA.
Biden could have legislated to fix the ACA’s alleged defects in a separate mandate and potentially legislate the Hoffman case, Hoffman said – but it would require a change in the law, which, just a Democrat- Controlled House and Senate will pass.
Any Biden housing schemes come amid a possible eviction crisis. According to the Federal Reserve Bank of Philadelphia, about 1.3 million rented homes will be on rent by December. It is approximately 2.8 million adults and 1.1 million children. The rent for these tenants would be $ 7.2 billion, an average of $ 5,400, researchers estimated.
Ahead of the epidemic, Biden said he would strengthen tenant protections and enforce the rights of a homeowner and tenant.
See it all:Landlords are still evicting tenants, even though there is a national ban on eviction – how tenants can protect themselves
Biden wants to reduce the financial commitment for first-time homebuyers with a tax credit of $ 15,000. Likewise, the president wants to add more housing benefits for people working in the public sector, such as teachers and first responders.
The presidential-election has also pushed tax credits for tenants. This credit will reduce housing income to a maximum of 30% for those who do not qualify for a Section 8 voucher to compensate for rental costs.
Student Loans and College Affordability
Even before the epidemic, Americans had a $ 1.6 trillion financial crisis in student loan debt that went away at the capacity of borrowers to buy a home, start a family, or pursue a career of their choice.
Biden is proposing to cancel $ 10,000 of a borrower student loan; Debt forgiveness will eliminate the loan balance for 30% of borrowers according to an analysis. Critics say Biden will also end a debt forgiveness program, which has helped many public sector workers.
The President’s Secretary of Education has ‘specific and unrestricted rights’ to modify or cancel federal student loan debt, some lawyers say.
Biden also says that families earning less than $ 125,000 should not pay for their child’s education in a public college. This would apply to about 80% of the families, his campaign estimated.
Although new laws will be required for free public college plans, the censors have said Chuck Schumer and Elizabeth Warren that the president can cancel the loan by himself. Some education law experts also say the same. Lawyers for the Harvard Law School’s Project on Predatory Student Lending have previously stated that the President’s Secretary of Education has “specific and unrestricted creation and cancellation or modification of outstanding loans under federal student loan programs in the Higher Education Act (HEA).” Right. ”
Jillian Burman, Jacob Passy and Elizabeth Buchwald contributed to this report.