Yahoo Finance 5 Changes That Could Be Coming for the Middle Class If Biden Is Reelected in 2024
On Nov. 5, Americans will decide if President Joe Biden serves another term, or if we see a second term from former President Donald Trump. Both men could massively impact the American economy and individual’s ability to build wealth, specifically, middle class households making between $39,693 and $119,080.
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As discussed in 3 Ways President Biden’s Policies Impact the Middle Class’ Money, Biden’s past four years have set forth some policies that have impacted the middle class’s finances. He helped lower the cost of childcare for more than 100,000 working families that received federal child care assistance. The unemployment rate has also decreased. However, in a recent poll, 50% of respondents said Biden did nothing to benefit the middle class.
What could be on the horizon if President Biden is reelected? Here’s what experts had to say about what will change in the middle class if Biden is elected in November.
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Potentially Lower Taxes
“According to economists, President Biden may still advocate for higher taxes on wealthy people and businesses while intending to cut down taxes on middle-class citizens,” Chuck Warren, host of The Breaking Battlegrounds Politics Podcast, said. Warren’s referring to how Biden plans to extend the parts of former President Trump’s Tax Cuts and Jobs Act that expire in 2025 that support higher taxes for the upper class and lower taxes for the middle class.
Warren added that this could come with other attractive tax benefits for the middle class. “This implies the possibility of increased refundable tax credits, like the Child Tax Credit and Earned Income Tax Credit specifically targeting middle-income families.”
President Biden said he’d like to expand the Child Tax Credit from $2,000 per child to $3,000 for children over six, and $3,600 for children under six. During his presidency, President Biden increased the Earned Income Tax Credit for those working who don’t have dependent children. It’s not guaranteed, but another increase could come if he wins in November.
Lower Healthcare Costs
Recently, President Biden has extended the deadline for those losing Medicaid to sign up for a new healthcare program established under the Affordable Care Act. Those losing coverage are doing so because their healthcare policies were established during the pandemic and are now expiring. During his presidency, he extended Affordable Care Act benefits to DACA recipients and expanded subsidies in 2021.
Warren said if he continues to add programs to the Affordable Care Act, healthcare costs for middle class Americans could decrease. “There might be additional measures during his second term to reduce healthcare costs for middle-class families, probably through better subsidies or a public option that creates more competition leading to lower premiums.”
Decreased Student Loan Debt and College Expenses
President Biden has approved the forgiveness of billions of dollars in student loan debt. He also recently ratified a plan to forgive debt specifically for middle income earners.
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Warren said these actions are a good sign that more student loan forgiveness is on the way, and there could be a push to make college less expensive in general. “Biden could enforce guidelines aimed at decreasing the student loan burden and making higher learning more affordable, greatly affecting middle-class families.”
More Affordable Housing
In March of this year, President Biden passed legislation to lower housing costs by providing a $10,000 tax credit for first-time homebuyers and people who sell their starter homes. He also called for the building and renovation of more than 2 million homes and lower rent costs. Warren said if he’s reelected, this pattern of making housing more accessible could continue. “Increased availability of cheap housing can help members of the middle class struggling with high rental or mortgage payments, especially in cities.”
Continued Inflation
Warren said these programs that Biden is proposing do come at a cost. “Increased government spending may fuel inflation thereby hurting middle-class families in terms of cost of life.” Economists say that to combat this, Biden would have to focus on targeted spending and smart investments to help offset the costs of these programs.
President Biden has claimed that inflation was higher when he was inaugurated than where it is now. That’s not true. The inflation rate was 1.4% and now sits at 3.5%. Inflation during Biden’s presidency peaked at 9.1% in June of 2022 due to Russia invading Ukraine, causing food and energy prices to rise.
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This article originally appeared on GOBankingRates.com: 5 Changes That Could Be Coming for the Middle Class If Biden Is Reelected in 2024
