What a Biden Win in 2024 Would Mean For Your Paycheck
We’re about three years into President Joe Biden’s term, and many of his economic policies — dubbed “Bidenomics” — have profoundly impacted individuals and businesses alike.
See: How Much Is President Joe Biden Worth As He Seeks Re-Election?
Find: 3 Ways To Recession-Proof Your Retirement
As we look ahead to the 2024 election, it’s essential to understand how a potential Biden win could shape your own personal finances.
Let’s examine the current economic landscape, the administration’s past decisions and discuss what a 2024 Biden win might mean for your paycheck.
Building Back Better: Economic Recovery and Job Growth
President Biden’s Build Back Better agenda has been the cornerstone of his economic policies since taking office. The plan aims to revitalize the economy by investing in infrastructure, clean energy, healthcare and education.
By creating well-paying jobs and supporting small businesses, this initiative seeks to boost economic growth and improve living standards for American workers.
The first part of the plan, focused on COVID-19 relief, was passed as the American Rescue Plan in March 2021. Specific infrastructure goals were included in the Infrastructure Investment and Jobs Act, signed into law in November 2021.
Other priorities — like climate change and health care reform — have struggled to gain support. The Inflation Reduction Act was eventually passed in August 2022. It contained some climate change, healthcare and tax reform proposals from the Build Back Better Act while excluding its social safety net proposals, like a child tax credit and universal preschool.
If elected, Biden will likely continue to push this agenda, though it is primarily up to Congress to pass these bills.
Also: Cities Whose Economies Are Failing vs. Cities Whose Economies Are Thriving
Tax Reform: Potential Impact on Your Wallet
One of the most debated aspects of any political campaign is taxation. A Biden win in 2024 could bring potential changes to the tax code. President Biden has proposed several tax reforms, mainly targeting higher-income individuals and corporations.
A few potential impacts include:
Higher taxes for the wealthy: Biden’s plan includes raising the top individual income tax rate from 37% to 39.6% for individuals earning $400,000 and married couples earning $450,000 annually.
Increased corporate tax rate: The plan also suggests increasing the corporate tax rate from 21% to 28% to help cover other priorities like Medicare and Social Security. This could potentially impact consumers, as businesses may pass on some of the tax burden to consumers or reduce investments.
By implementing a more progressive tax structure, those earning higher incomes would likely see an increase in their tax burden.
“Biden wants to up taxes for the really high earners but give a break to the lower-income folks. Middle-income earners? Not much change for them,” said Jeff Rose, certified financial planner and founder of GoodFinancialCents. “If you’re making over $400k, you’ll probably see more taxes coming out of your paycheck, especially with higher rates on things like capital gains and salaries.”
It’s important to note that any changes would require congressional approval.
Minimum Wage Increase and Workers’ Rights
Another crucial aspect that affects our paychecks is the minimum wage. President Biden has advocated for raising the federal minimum wage to $15 per hour. Although this proposal has faced opposition in the past, a Biden win in 2024 might provide renewed momentum for this policy.
Biden’s proposal is over double the current federal minimum wage of $7.25. While 30 states and Washington D.C. have minimum wage laws above the federal minimum, a federal wage increase could help encourage further increases.
“That’s awesome news for anyone on minimum wage,” said Rose. “Plus, more attention to worker training could open doors to better jobs and pay.”
Increasing the minimum wage would lead to higher earnings for millions of low-wage workers. It may also generate more consumer spending and stimulate the economy. On the other hand, such an increase would increase federal spending and deficits, the Congressional Budget Office projected.
Job Creation and Training
Biden’s economic agenda has included substantial investments in infrastructure, renewable energy, and technology — all requiring workers. By prioritizing job creation, these initiatives aim to boost employment opportunities.
“Biden’s big infrastructure plan could create new jobs in sectors like construction and green energy with a massive investment in things like roads, bridges, broadband, and public transit,” said Rose. “With such a huge influx of funding, companies in these sectors might need more hands on deck, which could open up many job opportunities.”
If these plans come to fruition, we can expect increased job growth in various sectors. More job opportunities could lead to higher demand for skilled workers, increasing wages, and improved job security for many Americans.
“When more jobs are available in these fields, it often leads to better wages because companies want to attract the best talent,” Rose explained.
Affordable Healthcare and Childcare
Access to affordable healthcare and childcare has long been a concern for many Americans. The Biden administration seeks to expand the Affordable Care Act (ACA) and make healthcare more accessible and affordable.
A 2024 Biden win could alleviate financial burdens by enhancing subsidies and reducing healthcare premiums, allowing individuals to allocate more of their paycheck towards other essential expenses.
In 2021, the Biden Administration temporarily expanded the child tax credit, offering a monthly payment to working families. While the program has expired, the Institute on Taxation and Economic Policy reported that the initiative greatly reduced child poverty. It also gives families more disposable income to use on top of their paychecks.
If Biden wins, he may push to expand the tax credit again. He also aims to make quality childcare more affordable, investing in early childhood education. These initiatives would provide financial relief to parents and potentially increase workforce participation.
Education and Student Loan Debt
The cost of education and the burden of student loan debt have been pressing issues for young Americans. President Biden has proposed measures to make community college free and expand access to higher education.
Biden originally planned to cancel up to $400 billion in student loan debt, but the Supreme Court barred those plans. He has since tried different avenues and canceled $127 billion in debt for more than 3.5 million borrowers, per the Education Department. If elected again, he’ll likely continue this campaign.
Conclusion: Biden Likely To Stay the Course if Re-Elected
While political promises don’t always translate into reality, President Biden has consistently focused on revitalizing the economy and supporting the middle class.
Changes to taxation, minimum wage, job creation, and investments in education are among the key areas where a Biden win could bring potential changes. While the exact outcomes remain uncertain, staying informed about these policies is essential.
The political landscape is ever-changing, and various factors influence our paychecks. By understanding the potential implications of a 2024 Biden win, we can better prepare ourselves for a future that aligns with our financial goals.
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This article originally appeared on GOBankingRates.com: What a Biden Win in 2024 Would Mean For Your Paycheck
