4 changes Biden wants to make that could reduce your debt
Joe Biden’s proposals are designed to help lower and middle class Americans find their financial footing.
Pay off the debt relies, in part, on making more money than you spend. To that end, here are some of the changes proposed by current presidential candidate and former Vice President Joe Biden. These can help you keep more money each month and minimize your debt amount.
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1. Reduce medical expenses
A 2020 Northwestern Mutual study found that nearly 8 in 10 Americans (79%) say they feel some level of anxiety about rising healthcare costs in the United States. of their hard-earned income in their pockets. Here are some of Biden’s propositions regarding the matter:
- Insure over 97% of Americans by stopping GOP efforts to reverse the progress made by Obamacare and building on the Affordable Care Act.
- Give Americans the option of choosing between their private insurance company and a public health insurance plan.
- Reduced premiums for those who have difficulty making these payments by increasing the value of tax credits.
- Extend coverage to low-income Americans regardless of their state’s policy. For example, state governors and legislatures in 14 states have refused to pass the Affordable Care Act expansion of Medicaid eligibility due to partisan issues. Biden plans to change that by providing premium-free access to the public option to 4.9 million Americans who would be Medicaid-eligible but who are barred by their state from accepting coverage.
- Help middle-class families pay for coverage by offering tax credits.
- Double US investment in community health centers.
- Reduce medical costs and improve the quality of care by aggressively combating market concentration throughout the healthcare system. In other words, make it impossible to concentrate market power in the hands of a few companies.
- Control drug company abuse of power by repealing the current exception that allows drug companies to avoid negotiating with Medicare.
- Limit introductory prices for drugs that do not face competition, as these prices are often arbitrarily set and abusive.
- Allow consumers to buy prescription drugs from other countries to promote competition and bring down outrageous drug prices.
- Stop pharmaceutical tax breaks for advertising spending.
- Improve the supply of quality generic drugs.
If your monthly health insurance premiums and out-of-pocket payments are straining your budget, Biden’s plan could help your bottom line. And if you’re one of the 79 million Americans with medical debt, Biden’s plan could help you get better night’s rest.
2. Increase the child tax credit
In an attempt to reduce child poverty rates, Biden is proposing to expand the child tax credit. This anti-poverty program would allow families who otherwise would not be eligible for the tax credit to recover part of the funds needed to raise a child. Currently, parents can claim a credit of $ 2,000 for each child 16 years of age or under. Biden wants to increase the tax credit from $ 2,000 to $ 3,000 per child for children between the ages of six and 17. For children under six, the credit would increase to $ 3,600 (in an attempt to offset the high cost of child care). In addition to increasing the amount of credit, the upper age limit is increased from 16 to 17 years. Biden wants the credit to be fully repayable, meaning families could receive it in monthly installments rather than having to wait to file their taxes the following year.
The enhanced tax credit would be in effect for 2021, then would only last “as long as economic conditions require”. In short, it’s a short-term measure designed to help families as the country emerges from the coronavirus pandemic.
Joint tax filers with income of $ 400,000 or more and single tax filers (or head of household) with income of $ 200,000 or more will not benefit from the credit. If your income is below these thresholds, this enhanced credit could help you keep money in the bank.
3. Offer an initial tax credit for the purchase of a first home
Despite the devastation of COVID-19, the housing market is hot. Mortgage rates hit record highs. Unfortunately, many first-time home buyers can’t make a down payment. To help these people buy their share of the American Dream, Biden introduced a $ 640 billion housing plan, including a tax credit of up to $ 15,000 to help families offset the cost of entry into a house. “Advanced” means that homebuyers will receive the tax credit at the time of purchase, rather than waiting to file their taxes the following spring.
If you’re one of the millions of Americans hoping to buy a home but don’t know how you’re going to put together a down payment, Biden’s plan may be your ticket to home ownership.
4. Create new jobs
It’s no secret that Biden is a huge fan of green energy, part of the fight against climate change. On his website, Biden says that if his plan is executed strategically, his administration’s response to climate change could create 10 million well-paying jobs in the United States and build a more inclusive middle class. Suppose Biden manages to create 10 million new jobs, the majority of which will be available to those without a college degree. This fact alone could help millions of unemployed Americans find well-paying and sustainable careers.
Having access to more money is the first step in reducing your debt. If Joe Biden wins the next election and gets what he wants, you might find yourself able to spend less, save more, and ultimately reduce your debt load.