Speculation: Biden may increase taxes to boost healthcare
With the advent of the COVID-19 led global pandemic, health has become a primary concern for all the countries around the world. The global superpower and the world’s most industrialized nation such as the United States of America has been suffering heavily as compared to most other developing countries. Moreover, with President-elect Joe Biden who is all set to take charge of the Presidential office on 20th January 2021, the USA is likely to experience some considerable shifts in the healthcare policy. This new healthcare regime is expected to have a significant impact on the taxation policies of the USA.
Biden has clearly stated during his Presidential campaigning that his prime focus is on strengthening the basic infrastructural, health, and educational facilities for its citizens. He is likely to be more concerned for the well-being of the under-paid and the marginalized communities like the Blacks and the Latins, who do not enjoy the luxury to afford better healthcare facilities and are more frequently exposed to several potent health hazards. Hence, the rich individuals and the highly profitable corporations of the US are likely to experience a cut in their share of tax rebates.
To boost up the government’s treasury to increase the affordability for enhanced and all-pervasive health plans, Biden has already signaled to raise the income tax from 37% to 39.6% on the income of people making more than $400,000 annually. Corporate income tax which was reduced from 35% to 21% on the commencement of the Trump administration is likely to experience a hike of 7% on the existing 21%.
Moreover, several other taxes are also under observation that are likely to be restored to the pre-Trump level or might experience a considerable hike from the current level. Many of the US Tax consultants in Toronto are exploring the silver lining in this prospective taxation economy underneath which the under-privileged taxpayers will be safeguarded against any tax hikes.
The Affordable Care Act (ACA) that was launched during the Obama administration was not received well by the Trump administration. Joe Biden is expected to work rigorously on the same with some important amendments to give ACA his name. Chances of imposing a penalty on the individuals who do not get themselves insured under the public health policy, adding a public option to the ACA, and reducing the age for Medicare eligibility from 65 to 60 years are key items on the table.
Biden aims to lower the cost of the public healthcare system without compromising with the quality and effectiveness at the cost of the taxes collected from the affluent society of the USA. Tax consultants in New Orleans along with other Corporate Tax consultants in Toronto are meticulously working to assess the implications of COVID-19 on the to be announced taxation and health policy.
