Hi, I’m Lee Kramer, Founder of Kramer Wealth Managers. We were established in 1985- 35 years ago!
I want to talk today about how President-elect Biden’s plans may affect your finances.

From election day, November 3 rd until December 9 th , the US market as measured by the SP500 was up
about 10%. This could be a response to Biden or to the news of the vaccine for COVID-19 that has also
helped the market performance.

Biden has proposed for those earning more than $400,000 per year, there would be a tax increase. He
has also proposed that those earning more than $1 Million per year would no longer benefit from the
reduced tax on capital gains. Instead, they would pay ordinary income tax rates.

For lower and middle class taxpayers, Biden has proposed a new tax credits for the payments of health
care premiums, child care expenses, and long term care expenses.

For corporations such as IBM, Apple, and AT&T, Biden has proposed an increase of the corporate tax
rate from 21% to 28%.
All of these proposed changes depend on the ability to be passed by Congress. Right now, the House is
blue, controlled by Democrats. The Senate control will depend on the results of the GA election next
month. If Republicans win there, the legislature will be divided and the proposed legislation will be
harder to get through. If Democrats win there, and control both branches of Congress and the White
House, these changes will be easier to get through. So we will have to see what happens.

Aside from taxes, Biden’s plans include expansion of the Affordable Care Act (ACA) to include an option
for public health insurance option that would work similar to Medicare. He also wants to allow for
health insurance premium payments to receive a tax deduction to make premiums more affordable.
Another proposal provides free community college for up to two years for all. He also asked for up to
$10,000 of student loan forgiveness as part of the next stimulus package.

The FICA taxes that are deducted from your pay check are currently capped at $137,700. Biden wants to
increase that limit so that higher earners pay more taxes into social security.
Currently, Medicare begins at age 65. Biden has proposed moving this up to age 60.
Biden has also proposed that if you are caring for a spouse or elderly parent, you can claim a caregiver
deduction on your taxes.

For those who are working, Biden also wants to make enrollment into employer-sponsored retirement
plans like 401ks and 403bs automatic rather than voluntary. This will help people save more for
retirement.

All of these proposals will depend on Congress. It is up to them whether they are approved or not. So
we will have to wait and see what happens.