2020 was an impactful year to say the least. It brought a dangerous pair of crises: a worldwide pandemic and the deepest recession experienced since World War II. However, like a tornado that can tear through some houses and leave neighboring homes untouched, not all households were impacted on the same level. Many households went through 2020 unscathed financially, either by working from home or by having an essential job, but many homes lost jobs, retirement contributions, and insurance. Considering all that took place, the year ended with a bang. The stock market reached record highs and the election of a new president took place.
This upcoming term, President Biden will be tasked with aiding in the recovery of the pandemic, job losses, and businesses closing. He has released to the public his plans for the term as follows:
Biden’s Plan to End the Pandemic
- Change management of the pandemic from the state level to the federal level
- Increase testing by:
- Producing and distributing tens of millions of tests
- Ensuring consumers are not price gouged on pandemic-related drugs and therapies
- Creating at-home and instant tests
- Doubling the current number of drive-through testing centers
- Increase the production of U.S.-made masks, face shields, and other protective equipment, and provide these resources to schools, small businesses, and households
- Create a nationwide pandemic dashboard for people to be able to gauge the level of real-time transmission in any ZIP code
- Ensure that Americans who suffer long-term side effects from COVID do not face denial of health insurance or higher premiums
Biden’s Economic Plan for Household Recovery
- Offer a comeback package to help bring back small businesses which have had to close
- Generate new jobs by building new infrastructure and delivering clean energy in the future
- Establish U.S.-based, small business-led industrial supply chains to create millions of jobs in manufacturing and technology
- Provide affordable care for children, the elderly, and disabled individuals. With an increase in caregivers, millions more people will join the labor force to create a stronger economy
Biden’s Tax Plan
- Will not increase taxes for individuals earning less than $400,000 per year
- Increase access to tax subsidy credits so no family will spend more than 8.5% of its income on health insurance
- Implement a 10% tax penalty for companies that manufacture and service jobs to foreign nations, as well as a 30.8% tax rate on those profits
- Implement a 10% tax credit for companies who invest in creating more American jobs
- Implement a 21% minimum tax on foreign earnings of U.S. companies overseas
- Eliminate the ability to write off expenses for companies moving overseas
This term is just beginning, and the plans listed have not been implemented yet, nor is there a guarantee that Congress will allow for these changes to be made. To ensure you are positioned correctly for the course ahead, please give us a call and we can make sure that your roadmap through retirement reflects your needs!
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