Joe Biden’s Economic Plan
This episode of Your Money brought to you by Gem Young features a high-level assessment of former Vice President and 2020 presidential nominee Joe Biden’s economic plan. This assessment from Gem Young Insurance and Financial Services’ Leo Daprile is based on data collected from the current plans put in place by each party.
One of the biggest components of Biden’s economic plan is to not raise taxes on anyone making under $400,000. However, Daprile says that could get interesting if he still intends to repeal President Trump’s tax plan, which would affect those who make under $400,000; those individuals are currently getting a small tax break under Trump’s tax plan.
As a part of Trump’s tax plan, small businesses got a large tax cut that mirrors the 20% corporation tax cut. Some small businesses that qualified for the tax cut had the first $315,000 of their income taxed at 20% instead of taxed at the personal tax rate, which saved them money on taxes. If Biden’s plan holds true to repeal Trump’s tax plan, there would be a lot of people who would pay more in taxes.
Biden’s economic plan would include adding an additional $5.4T over the next ten years.
“The government spending as a percentage of the gross domestic product (GDP) increases year-over-year, meaning that the government is becoming more of a player in the functioning of the economy and thus plays a greater role in our lives in terms of dependency,” Daprile says.
Currently, the percentage of government spending against the GDP is 21% – but things like the stimulus check money during the pandemic inflate this percentage for a less-than-accurate depiction. If you put the Biden economic proposal in the equation, that number rises to 25%, again pending some of the below items that may be pandemic related upon speculation (i.e. paid leave for COVID-19).
To learn more, watch the video above.
Original Air Date: Sept. 15, 2020. Every Tuesday during the Dan Rivers show on AM570 WKBN, Gem Young’s President, Leo Daprile, hosts a radio show called Your Money. Daprile brings his vast knowledge of all things “money” to discuss the topics in language everyone can understand.
Copyright 2022 The Business Journal, Youngstown, Ohio.