This year’s presidential election has become a hot topic, and how you vote will undoubtedly have a tremendous impact on not only the entire nation, but also you and your personal finances. Let’s talk about where Biden and Trump stand when it comes to finances.
Tax Policy
No one likes to pay taxes and politicians are always arguing over tax policies. Biden and Trump are no different. In 2017, a bill called the Tax Cut and Jobs Act (TCJA) was passed by under the Trump administration. This bill essentially cut down tax rates for individuals and corporations all around. Biden plans to repeal some of the effects of TCJA and raise taxes on corporations and high income individuals who make more than $400,000 a year. All other income brackets would remain untouched from the changes made by TCJA. Trump plans to make the effects of TCJA (which are set to expire in 2025) become permanent as part of his tax policy. He has also mentioned lowering taxes for the middle class, but has provided no details yet.
Coronavirus Stimulus Package
Back in March, Congress passed the CARES Act, which provided economic assistance to all eligible Americans. Many Americans depended on the stimulus checks provided by the CARES act and have been waiting for a second round for months at this point. Both presidential candidates discussed their stance on how they will handle the second round of stimulus checks. Biden has stated that if he wins the election, he will provide Americans with another $1,200 check. Trump had originally stated that he had instructed his representatives to completely halt all talks of a new stimulus bill, though shortly after, within a week’s time, started pushing for a new stimulus to be passed. Congress is currently working out the conditions of this new stimulus bill, although the likelihood of it passing before November 4th is incredibly slim.
Minimum Wage Increase
Federal minimum wage has remained at $7.25 and has not changed since 2009. Many Americans argue that the economy has changed since then and that the minimum wage needs to be adjusted for inflation in order to reflect that change. In July 2019, House Democrats tried to pass a bill that would gradually increase the federal minimum wage to $15 by 2025, but Senator Mitch McConnell, the majority leader of the Senate, said he would not be taking up the bill in the Senate. Since then, the bill has remained in limbo. Biden, however, has openly supported raising the minimum wage to $15. As of the most recent debate, Trump has stated that while he would consider raising the federal minimum wage to $15, he prefers to leave that matter up to the states.
Student Loan Debts
As of 2020, student loan debt has increased to an alarming amount of $1.6 trillion. The topic of student loans could potentially draw the attention of young voters, who have been historically known to have low voter turnout rates, but have the ability to sway the election from one side to the other. Biden states that, should he be elected president, he will forgive $10,000 every year for up to five years to those who earn less than $125,000 a year. That means up to $50,000 will be canceled for those in debt. Trump has not made any clear statement on where he stands with student loan forgiveness. However, in response to the COVID-19 pandemic, he has halted federal student loan payments until next year.
Getting Involved
There is so much more at stake in the upcoming elections on November 3. Exercise your right as an American citizen and let your voice be heard by voting in the elections this year. Election Day is on Tuesday, November 3. While there are several options to submit your ballot, voting by mail is, by far, the safest option during the pandemic. For those who plan to vote by mail, your ballot must be postmarked by election day. States can have varying requirements, so make sure to read your state’s guidelines carefully! If you prefer to vote in person, check where your local voting centers are beforehand and make necessary preparations to vote while abiding by coronavirus safety regulations. If you are unable to vote, there are other ways to get involved, such as, encouraging others to vote and advocating for issues important to you. So, get out there and let your voice be heard!