Change in political regime: How to cope up with changes in taxation policies?
The United States of America recently witnessed one of the most critical elections to elect its next President for another term of four years amidst the ravages of the Coronavirus pandemic. With a fairly good turnover of people who has participated in the US Presidential elections of 2020, Joe Biden of the Democrats emerged victorious, thus defeating his rival the President Donald Trump of the Republicans. It is quite obvious now that the US has been grappling with the political discrepancies and that Trump has filed various lawsuits against the jeopardy in elections leading to his defeat.
Impact Of The Changes In The Political Regime In The Taxation Policies Of the US
Now, that the people of the USA, will be witnessing the grand swearing-in ceremony of the President-elect Joe Biden in the month of January 2021, there are several tax implications that are anticipated to emerge with the change in the political regime-
- Both the Democrats and the Republicans hold fairly opposite views on various policies. Taxation is one of them and Biden is expected to be quite stringent as compared to Trump in filling government coffers through tax collection.
- Biden aims to hold back the nation’s human resources from generating employment opportunities for the foreigners and also levy the richer segment of the society with heavier taxes, especially the households making more than USD 400,000 per annum.
- The income tax is likely to increase from 37% to 39.6%, while the corporate tax will be raised from 21% to about 27%.
- Biden has promised to be considerate and gentle with the middle class and expenses on children by raising the child tax credit to 3,000 from 2,000.
- There is an additional burden on the Biden led administration to make up for the economic losses incurred by the US economy because of the Coronavirus for which there would be an excessive focus on infrastructure, manufacturing, communication, and energy development.
How To Plan Your Budget Under The Changing Political Regime Of The US?
Taxes are indeed worrisome, especially when the earning is not sufficient to sustain the expenditures in congruence with the taxation slab. The Internal Revenue Services (IRS) department deals very strictly with the filing of correct taxation policies. Following strategies can help in coping with such political changes and uncertainties-
- People should closely monitor the political developments and the inclination of the political parties in power.
- They must plan their savings and expenses in congruence with the latest tax laws.
- As many US citizens have been involved in trade and business activities with Canada, there are many Tax consultants in New Orleans and International Tax Consultants in Toronto, New Orleans, and other places whose expert guidance can help in mitigating the financial risks because of the political uncertainties.
Thus, there always exists some positive and negative under every new political supremacy. It depends on how intelligently, common people deal with such situations to maximize their benefits for a contented life ahead by securing their financial health.
