Show Notes for this Episode:
If Joe Biden is elected the next President of the United States, changes in the tax laws are possible. This is especially true if we have a Democratic sweep vs. a split Congress. A Democratic sweep is the most likely scenario where the Biden Tax Plan could be implemented. Otherwise, it is unlikely that all of the proposed changes would get through Congress.
It’s important to remember that Presential Elections don’t drive the markets. Many other factors like interest rates, the economic outlook, company earnings, the dollar, and stimulus all have much more of an impact on how the markets perform in the near-term. Over the long-term, the trajectory has been upward regardless of who is in office.
If you would like to hear more about how markets have performed through past presidential elections, check out this episode of the podcast: The Presidential Election and Your Retirement Plan.
Election years are consistently volatile for the markets and you should expect this year to be no different!
There also seems to be some misunderstanding about the Biden Tax Plan that I wanted to provide some clarity on in this episode. If you or you and your spouse earn more than $400,000 per year in income, it is likely that you could be impacted by these potential tax changes.
It is not uncommon to see tax law changes with a new administration, as well as new spending and investing offsets. For example, part of Biden’s plan is to invest in clean energy and infrastructure.
With Covid-19, the level of stimulus that has been infused into the economy has significantly increased the national debt. Raising taxes is also one way to pay for that debt.
In this episode you will learn:
- The 3 possible outcomes for this year’s presidential election
- A quick overview of how markets have performed through past presidential election years
- The Biden Tax Plan Highlights
- Whether or not you could potentially be affected by the Biden tax plan proposals based on your income level
Join the Women Retire Smart™ Community
The Women Retire Smart™ Community is a virtual community and email newsletter for women professionals within 5 to 15 years of retirement who want to retire smart, secure, and happy!