5 Huge Ways the 2016 Presidential Election Will Impact Your Future
It’s hard to get through an entire day without hearing about the presidential elections and the swinging fists of the Democratic and Republican campaigns that are occurring. Although, you may not believe either candidate will have a major impact on you personally if elected, this is far from the truth. In fact, with the widely varying beliefs and policies of the presidential candidates, you’ll see a major difference in your life depending on who is president. This is especially the case when it comes to your finances. Let’s take a look at how the 2016 presidential elections will have an impact on your future.
The Impact on Healthcare
Healthcare has been a big topic for both candidates as they go over how they’ll change things in the future. This will have a major effect on health insurance companies and biotech stocks and will do so for quite some time. On the one side Hillary Clinton and the Democrats claim to want to continue to make healthcare more affordable by looking at the fact that drug companies charge an exorbitant price for medicines and how many people have to choose between food and affording their needed medication. On the other hand, Donald Trump and the Republicans are discussing the repeal of the Affordable Care Act by replacing it with new legislation. Either way, healthcare costs represent on average 30 percent of the publics budgets and so will have a major impact on you financially.
There’s a lot of debate between the candidates when it comes to corporate tax rates and how large companies are moving their headquarters offshore in order to evade income taxes. The proposals range from still taxing them no matter where they go and taking a massive fee for relocating at all. Any change that has an impact on these corporations will likely have an impact on you financially, whether through hiked prices in order to absorb the cost of staying in the US or changes in stocks.
As of now, estate taxes in the US start at those properties that are worth more than $5.3 million. Although this doesn’t affect all US citizens or even a majority, both candidates are looking at ways to change estate tax policy to put more money in the treasury. Lowering the threshold for taxable estates is one considered option as well as increasing tax rate maximums from 40 percent to 66 percent. Even if you don’t have a million-dollar estate, these policies may affect you financially in the case that you want to gift money or set up a trust fund.
There’s a lot of discussion from both candidates about whether minimum wage and increasing it to $15 an hour will help the economy and individuals struggling to make ends meet. There are 46 million US citizens that live in poverty and so this will certainly improve their lives. However, we must also take into consideration how this will affect small business and prices throughout the US.
Social Security is a huge hot button issue as in its current state it will become insolvent in 2030. Trump would like to see the system privatized and the government liability taken away from it while also letting funds given by individuals and companies to be invested into the stock market. Although while social security won’t necessarily disappear altogether, we are likely to see reduced benefits. You may also see a total shift in your retirement plan into dividends, stocks, part time incomes, as well as Social Security depending on where the pendulum swings this election.