The 2020 United States Of America election is near, How will it affect your finances?

There are lots of news out there about how the election will affect the stock market. As an investor, your goal is to continue to make money and you always want to know that the next administration will care about your stock portfolio, retirement, savings, and your property taxes as must as you would like. 

There are lots of news out there about what each party would do if they win the next term. The Democrats have a plan and the Republicans do too.  Investingport has some information below that will tell you what you need to know about the upcoming tax changes that may affect the stock market and your finances overall. 

Donald Trump Tax Plan

We can say that Trump's tax plan of the year 2018 and 2019 will carry over if he gets elected and some changes will be mixed in but Trump and his camp haven’t made the clear yet. According to the CPA-practice-, this is what we found out about Trump's tax cut.

“Donald Trump‘s Tax Plan

Individual tax rates: Trump intends to keep the top 37% tax rate right where it is. In addition, he would implement a 10% rate cut for middle-income taxpayers, effectively lowering the 22% rate to 15%.

Itemized deductions: Under Trump’s plan, the TCJA changes for itemized deductions would be extended beyond 2025, when they are set to expire, and be made permanent.

Capital gains and dividends: Although he has not offered any specifics, Trump has indicated he would reduce tax rates for capital gains, index gains for inflation and create a capital gains tax holiday for a limited time.

Individual tax credits: Essentially, Trump hasn’t proposed any major changes for the CTC and dependent credit and the dependent care credit. However, he would require Social Security numbers to be eligible for any of these credits.

Education: Under current law, you generally can’t realize tax benefits for contributions to state-authorized organizations sponsoring scholarships (other than a possible charitable deduction). Trump would provide a tax credit for individual and corporate donations to such organizations.

Corporate tax rates: Trump wants to preserve the status quo under the TCJA. He has no plans to reinstate a corporate AMT.

Payroll taxes: The president recently issued an executive order that postpones Social Security tax for employees for September 1 through the end of 2020. He has said that this reprieve could turn into a permanent extension.

Estate taxes: Trump has stated that he will push to extend the more generous estate tax exemption and would not change the rules relating to a step-up in basis.”

As you can see, there are some uncertainties in the Trump tax plan.

Joe Biden Tax Plan

Joe Biden will not raise taxes on anyone making less than $400,000. Period. But he will ask wealthy Americans and big corporations to pay their fair share, including by:

Raising the corporate tax rate to 28 percent.

Requiring a true minimum tax on ALL foreign earnings of United States companies located overseas so that we do our part to put an end to the global race to the bottom that rewards global tax havens. This will be 21% — TWICE the rate of the Trump offshoring tax rate and will apply to all income.

Imposing a tax penalty on corporations that ship jobs overseas in order to sell products back to America.

Imposing a 15% minimum tax on book income so that no corporation gets away with paying no taxes.

Raising the top individual income rate back to 39.6 percent.

Asking those making more than $1 million to pay the same rate on investment income that they do on their wages.

Hope you can figure out how this plan will affect your finances from the information that we provided above.  

What Goldman Sachs said about Biden winning the 2020 presidential election. 

Here is what Goldman Sach said will happen if Biden wins, According to the new release from Goldman Sachs, they think that the stock market will do great under Biden. 

·      A blue wave this November led by Democratic presidential nominee Joe Biden would lead to a surge in economic growth, according to Goldman Sachs.

·      Goldman said in a note on Monday that Democratic control of the presidency and Congress would raise the probability of a fiscal stimulus package worth at least $2 trillion.

·      Longer-term spending measures proposed by Biden targeting infrastructure, climate, healthcare, and education would also help boost economic growth prospects, Goldman said.