Page 7 - Means Wealth 2020/2021 Perspectives
P. 7


            nder a Biden Administration, a few changes may occur. Biden’s goals
        U include:

           •  Making climate change a front and center environmental concern.
              ● ●   Biden wants 10% clean energy by 2035 and net zero emissions
               by 2050. He wants to rejoin the Paris climate agreement and may
               propose a   carbon tax.
           •  Expanding Obamacare. He is opposed to Medicare for all and wants to
             lower Medicare eligibility from 65 to 60.

           •  Enacting an infrastructure bill of over $1 trillion.
           •  Increasing the federal minimum wage to $15.
           •  Increasing employment-based green cards.
           •  Raising the top income tax rate to 39.6% and the top corporate income
             tax rate to 28%. Capital gains and dividends would be taxed at ordinary
             income rates for individuals with annual incomes of more than $1 million.
           •  Eliminating the step-up basis on estate assets.
           •  Decreasing the limits that couples would be able to pass down to their
             heirs tax-free from $23 million to $7 million. The estate tax rate would
             increase from 40% to 45%.
           •  Forming coalitions with trade allies and partners to confront China on
             intellectual property and technology.
        Keep in mind that if the Republicans retain control of the Senate, a divided
        Congress will most likely mean gridlock from a political perspective.  This will
        most likely prevent some of President Biden’s agenda from being executed.
        The areas of common ground may be COVID-19 aid, an additional stimulus
        program, an infrastructure package, higher education funding and rural
        broadband, to name a few. What does this all mean for you? Now is an
        important time to review your finances with your Tax and Financial Advisor.

        The good news is that history tells us this could mean positive returns within
        the markets. Jefferies Financial Group did a study going back to 1989 and
        found periods where a Democratic president led a divided government
        produced an average gain for the S&P 500 of 33.9%. Periods absent that
        division dating back to 1989 showed a gain of 22.5%. Of course, past
        performance is no guarantee of future results. n

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