Odds are you too Joe Biden excited about the Presidency or the prospects of devastation. These days, it does not appear that someone is in the middle.
But whatever your feelings about the new administration, the following changes are coming. Affect your bank account And finance:
- Excitement check.
- student loan.
- Utilities and Energy.
- Real estate and mortgage.
- your career.
In the days before the Georgia Senate runoff elections, there was a lot of talk on both sides of the aisle that Americans received $ 2,000 stimulus checks. Now-former President Donald Trump was the proponent of the idea, and on January 10, Biden tweeted that $ 600 “just isn’t enough when you have to choose between paying rent or placing food on the table. We get a $ 2,000 incentive. Checks are required. “
So will there be more stimulation checks?
Jonathan Brogaard is Professor of Finance at David Eccles School of Business University of UtahSay yes.
“I expect there will be a third stimulation check,” he says.
Brogard points out that after Georgia’s two Senate seats were won by Democrats, Democrats had effective control of the legislative branch, increasing the stock market by about 1.5%.
He says, “I think the market reaction is driven by the increased likelihood of a third stimulus check, and that the market feels that additional incentives will increase the valuation of companies.”
Said that, even though the stock market and Americans are expecting more incentive checks, Congress will have to give the incentive check.
There are also unanswered questions about whether Americans will receive a $ 2,000 denomination or if a recent $ 600 incentive check will be considered part of $ 2,000. But it seems like a safe bet that in late January or February, Americans may see a flow of cash into their bank account or in the form of paper checks or Economic impact payment Card in their mailbox.
Narcissian says, “Someone with an income of $ 400,000 or more will see a tax increase, while those with lower incomes – less than $ 160,000 – will see a tax reduction due to a whole host of proposed tax credits.”
It sounds great if you make less than $ 400,000 and especially less than $ 160,000, though Curtis Nichols, Associate Professor of Accounting Bucknell University In Lewisburg, Pennsylvania, it is possible that people will pay more for goods and services, even if their income tax is not increased.
Nichols says corporate taxes are expected to rise. “Changes in corporate taxes can have a more direct impact on the average American as companies can pass through increased costs through price increases,” he says.
Still, as a general rule, “for the average American resident, taxes should change very little,” Nichols says.
“President-Elect Biden has indicated his favor to forgive a portion of outstanding borrowers. Soon after the election, several Democratic officials began calling for an executive order for a $ 50,000 pardon of student loans. President-Elect Biden’s proposal was a little over $ 10,000. ” Says Nicholas. “Anyhow, I would expect some level of forgiveness. There has also been some movement towards addressing long-term preferential treatment for student loans in relation to bankruptcy forgiveness.”
Parents and students can also have a better understanding of how much college costs.
“With student loan forgiveness capability, the new administration could start building on Obama-era reform that requires more transparency in college costs,” says Nichols.
Will Delavan is Associate Professor of Economics Lebanon Valley College, In Anvil, Pennsylvania agrees that more transparency is likely in the coming years.
“It seems that Biden is going to try to help make student loans and grants more affordable, transparent and available,” he says.
Utilities and energy
You don’t usually look at your electricity bill and wonder what will change if a new president is elected, but Nicholas thinks some people will see him Energy costs fall. Or perhaps consumers can get a break on the type of car they buy.
Nicholas says, “I foresee an expansion of the federal tax credit for renewable energy. This could lead to consumers seeking to buy a new car or make their home more energy efficient.”
On the other hand, under the Biden administration, some people may have to increase their energy costs.
“Energy policy can curb controversial energy production in some areas, such as fragmentation and drilling. This shift could drive up short-term utility prices until more sources of renewable energy are implemented,” Nichols says.
Real Estate & Mortgage
New administration will be unlikely Affect your mortgage or rent As high as the epidemic, Franklin L. Burns predicts Ron Thorpe, Associate Professor at the School of Real Estate and Construction Management. University of DenverDaniel’s College of Business.
He says, “Residential real estate markets have seen price increases in recent times, and suburban markets have been particularly strong with migration from cities with current COVID-19 restrictions and the ability to work remotely. ” “Residential prices as COVID-19 subsidiaries will be relatively flat, economic recovery accelerates as demand improves and interest rates begin to rise as a response to further economic stimulus.”
If you are looking for a new place to rent, Throwfy thinks the rent will go down, “especially in cities as the leases roll out and remote work is an adept at coming out of COVID. Work becomes the choice. “
Moody’s Analytics, a financial services company that specializes in financial intelligence, released a report on 23 September, stating that Biden’s “Build Back Better” economic plan, if enacted under democratic administration, would 18.6 million jobs will be created. It also suggested that A. Middle class american income Will go up to $ 5,000 per year.
While this may or may not happen, Delavan says that you should not assume that you will get a new job or have to spend any time soon.
He says, “Job creation is not like instant coffee. If someone really knows how to create jobs easily, we’ll just pay that person and voice: instant jobs. But jobs don’t appear immediately by Fiat,” They say.
And, of course, we should consider the epidemic, which has stifled employment generation in 2020 and will likely continue in 2021. Nevertheless, hopefully, when COVID-19 becomes smooth, whether or not you are a fan of the policies of the Biden administration. Everyone’s finances will improve.