Happy New Year fam! I know it's been quite a minute since I wrote up a new post on the blog, and this is my first post with the new site launch !
Joe Biden is now the 46th president of the United States of America. Let us all take a collective sigh (whew). Now... let's get down to business.
With every new administration comes a slew of new things you can expect. And if the last presidency taught us anything... it's that administrative changes are often swift and affect the masses on many different levels in many different ways.
With COVID-19 still at the forefront of our day to day lives, we can anticipate some form of action regarding the pandemic in the first 100 days. But beyond that, Joe Biden surely has his work cut out for him in in regards to many other issues the country is facing.
As Democrats managed to take slim lead in the Senate after the Georgia run-off, it would be irresponsible of me to sell you a false narrative that we're now strolling down easy street. We're not! There is still tons of work to be done and it will not be easy by any stretch of the imagination.
So what can we expect from President Joe Biden in terms of personal finance?
Joe Biden has been pretty clear on his view points when it comes to higher education and student loan debt. So what is being proposed and what does it mean for those planning to go to college or currently paying for their college experiences.
With 1.6 trillion dollars in student loan debt, it is no secret that higher education costs are (dare I say it) ASTRONOMICAL. For those planning to go to college the Biden-Harris administration are proposing free tuition for community college attendants for up to 2 years, as well as tuition free attendance to public colleges and universities for families making less than $125,000
For those that would not benefit under those two proposals, there is also an attempt being made to double the maximum value of certain types of federal aid you are able to receive if you fiscally fall into the low income or middle class income requirements.
What if I already graduated and now have student loan debt?
Don't fear Biden has a proposal planned for you as well. Though he isn't going the Senator Warren route , President Biden is offering a more modest approach of 10,000 dollar student loan forgiveness.
As of right now, we can thank the president for extending the moratorium on student loan payments from January 2021 to September 31, 2021. This means payments will not have to be made and interest rates will remain at 0%!
If there is anything we have learned in the last year, it is that America handles health care in the most asinine manner in the entire world. When people starting losing their jobs and their health care during a global pandemic, it became glaringly obvious (as if it already weren't something that we knew) that health care reform was not simply a good idea, but a necessary requirement.
So what is Joe Biden planning to do about it and how much will it cost you?
The Affordable Health Care Act (also known as Obamacare) was signed into law in 2010 by President Barack Obama. Since then, it has come under attack on several occasions and is being brought under review as unconstitutional by the Supreme Court this month.
Biden is stepping in to defend the Affordable Care Act with a new version affectionately coined as "Bidencare". This updated version would put the individual mandate back in place that Trump previously eliminated. In re-instating the mandate, new affordable options would be provided that would be similar to Medicare.
This means that health care would ACTUALLY be affordable because it would essentially be run by / subsidized by the government.
Why does this sound too good to be true?
I wouldn't say it is too good to be true, and I certainly wouldn't say it is impossible. What I will say is that the Biden-Harris administration will require backing from the Senate and with everything else going on, especially with the constitutionality of the ACA in question... it will be a steep hill to climb that will take quite a bit of time.
I put taxes 3rd on the list, because I'm still in awe at how many people were angered by this plan when it was proposed. Why was I in awe? Because the people who were angry were the people who'd benefit the most from it.
And in their anger they were defending people like... Jeff Bezos and Elon Musk... LOL... okay.
Moving on to the info... plain and simple Joe Biden has proposed for higher federal taxes to be implemented. Before you also transition into anger... I think it's crucial to understand the MAIN points of this proposal.
The increase in taxes has been proposed to impact the country's richest people. How much your taxes will increase or decrease always has and always will depend on how much money you make. Anyone who makes $400,000 or more will see a tax increase, while those making less than $160,000 will likely see a tax reduction.
There is also several tax credits that could see an increase or expansion for middle and low income families in regards to child care, home buying, and health insurance.
The "con" or down side is we can expect major corporations to pass on the increased cost to the consumer AKA higher prices on goods and services that we will have to pay.
Much like the ACA, this will be no easy fight in the Senate, so we can anticipate a bit of a wait on these potential changes.
I know you were waiting on this one and I promise not to disappoint.
Where the h--- is our next stimmy Joe?
every one on Twitter
Our unemployment rate is sitting at around 7% and we have received (not all of us mind you) a total of $1,800 dollars in the last 9 months. I won't even mention the amount that other people in other countries have received... because it'll just piss you off.
While the government is going back and forth we're sitting here impatiently waiting... and with good reason. One thing our bipartisan leaders seem to agree on is that another stimulus is needed to help the economy.
With Joe Biden's tweet confirming that $600
"is simply not enough when you have to choose between paying rent or putting food on the table. We need $2,000 stimulus checks"
Joe Biden
It is still unclear when the next stimulus will arrive and will it provide the $2000 or a $1,400 dollar follow up to the previously provided $600. Now that Democrats have control (barely... but it is what it is) of the legislative branch, it is likely we will see a 3rd stimulus payment in the near future.
For my FIRE fam and long term investors this piece of info is most definitely for you!
Remember our chat on taxes a few paragraphs ago... well they are coming into the discussion yet again. Joe Biden's tax proposal is two fold as it also focuses in on Social Security benefits.
By increasing taxes on those earning more than $400,000 a year, Biden plans to use that money to increase and improve Social Security benefits.
As it stands, Social Security benefits are estimated to run dry by 2035, meaning Millennials, Gen Z, and a large percentage of Gen X'ers will not be seeing a cent of Social Security money.
Under Biden's plan the minimum benefit that retires can get would be increased, as well as providing benefit increases for seniors between 78- 82.
With that being said... I have very very very little faith or interest in this particular tid bit, because I am extremely skeptical of the benefits that will be available for me with Social Security in 40+ years.
FIRE fam... stay the course... we're just going to mind our business and keep doing what we're doing.
This is probably one of Joe Biden's weaker stances, but he has made mention of proposals when it comes to the housing shortage.
Currently his plans are to create incentives that would provide for the development of low-cost housing in areas of housing shortages.
In attempt to address racial disparity when it comes to housing, Biden also plans to expand section 8 housing choice voucher programs so that everyone who is eligible for housing assistance can get it as opposed to the extremely competitive nature of it in its current state.
Alongside this proposed expansion, he also wants developers to set aside a percentage of their units to be rented or sold at a reduced cost to reduce racial and income based restrictions / discrimination. This... I would love to see play out.
In regards to taxes, yet again (it always comes back to taxes y'all), a proposal for a refundable tax credit for people who spend 30% of their income or more on rent.
Just like with the Social Security proposal, the housing proposal is based on the increased revenue from an increase in taxes. With so many things relying on one another it is going to be interesting to see how Joe Biden is able to make this proposals a reality.
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This is the most stupid drivel I've ever read and the nerve of you to so overjoyed that millions of America who saved and scrimped and worked 3 jobs to pay for their college educations - now have to pay for yours!? Many people skipped high price universities because THEY couldn't afford to pay for it. Now THOSE U.S. citizens have to pay for yours?
You have some GAUL.
I paid off 100,000 dollars in student loans on a teacher salary... you must be new here. welcome... have a good time !
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