Joe Biden has officially been elected as the 46th Presidential elections of US, 2020. Vice President-elect Kamala Harris is breaking history as the first female and Black and Asian American vice president.
Not only will he now be heading the power center of the world, but he also faces the biggest political challenge of extensive plan shifts from the Trump’s conservative administration that favored the rich instead of rebuilding the middle class.
But those plans had resulted in the Democratic Senate majority, which as of publishing looks to be a long shot.
From the next stimulus package to health care, here’s how President-elect Biden’s plans to effect the Covid-19 economic relief, student loans, health care, taxes and more.
1 Covid-19 Stimulus Relief
Joe Biden and democratic party have made it clear that they require a decent stimulus package. Biden has been calling out for Covid-19 relief since as early as April, right after the CARES Act was passed, when he spoke for measures that needed to be taken into consideration for the support of women during the Covid-19 crisis. Latest research finds that the labor force participation for women has been set back as much as three years because of the Covid-19 crisis—and it’s bound to have a devastating toll on the economy, leaving us with a question of as to why women have been hit harder during covid?
Democrats also have been standing up for the HEROES Act (their attempt at a second stimulus bill) since it was first introduced in April. Since then, it has cleared a declining version worth a still-outbreaking $2.2 trillion that includes support for small businesses, improving the Paycheck Protection Program, providing state and local government funding and including another round of direct stimulus payments to Americans.
Biden’s “Build Back Better” scheme includes aids like extending unemployment aid and implementing another Main Street relief package. It is highly possible to be witnessing these and many more aids in the coming stimulus packages.
Biden also vows to “create millions of good-paying jobs” to help Americans get back on their feet after being hard-struck with economical reality by introducing more manufacturing and infrastructure projects nationwide.
Senate Republicans have long opposed Democrats’ proposals and thrashed them for being too expensive. Also reluctant to pass additional funding to states.
The Affordable Care Act (ACA) was a major highlight in the election. The Trump administration tried the best to strip away some of the law’s most crucial provisions, including putting an end to the funding for enrollment centers and halting cost-sharing subsidies for insurance companies.
The ACA is termed to change in the following ways under Biden’s administration:-
- There will be an updated public health insurance option that will work similarly to Medicare.
- Tax credits to help afford insurance premiums will be increased.
- The 400% income cap that advocates eligibility for tax credits will be eliminated to help lower insurance premiums.
- Americans who are eligible for expanded Medicaid but live in the states that refused the expansion will be offered coverage.
- Individuals who are covered by their employers will have the opportunity to turn down that coverage and enroll in a Marketplace plan.
These are bold proposals that will increase federal spending.
3. Student Loans
The subject of student loans was a hot topic during the presidential primaries. Both Biden and Harris have a common opinion about the need to lower higher education costs in the U.S.
Biden’s plan contrarily doesn’t grant student loan forgiveness (as Harris did during her primary campaign), but his plan advocates cheaper higher education opportunities available to the students. Biden plans to make the community college fee free for up to two years, or allowing students to use those exact funds for enrolling in training programs.
Under Bidens plan, students will be able to use Pell Grants and other state aid for expenses beyond tuition and fees. Additionally, states will also be granted financial subsidies to provide support for students who face unique challenges, including additional financial aid for textbook and transportation costs to and from school.
Biden’s big plans call for higher federal spending, which means higher taxes. But Biden vows to pay for these expenditures by raising taxes on the richest Americans, and not the middle class.
According to his tax policy, taxes will be raised on individuals making $400,000 or more per annum. Additionally, big corporates will see their tax liabilities significantly increase; the rate increasing from 21% to 28%, and will close offshore loopholes by raising the minimum tax on all foreign earnings of United States companies to 21%. Corporations that transfer jobs overseas to sell products back to Americans (such as Apple) will face a tax penalty.
Everyday American families are promised a tax relief. That includes expanding the Child Tax Credit for the duration of the coronavirus crisis (to $3,000 per child aged 6 to 17 and $3,600 per child under 6). The tax credit can also be made available in monthly installments if families choose so, rather than a lump sum amount.
Child care, caregiving and the restoration of first-time homebuyer tax credits are also promised in Biden’s tax plan.