The year is already shaping up to be an interesting year, especially with a change in president and the resulting policy shifts. While we don’t yet know exactly what President-Elect Biden will do in his first 100 days, his proposed economic policy certainly offers some hints.
Tax Policy: One big question for many in business is what type of taxes Biden will enact to pay for some of his other goals in healthcare and infrastructure development. Currently, most of the proposed taxes will likely impact those in the top tax brackets and those who make significant income from capital gains. Further, it is likely that he will raise the corporate income tax rate as well. This will hit hard businesses who will be paying more of their income into taxes, though in may encourage them to re-invest profits into growth, equipment, and other avenues.
Worker Protections: Biden has also advocated putting in place a higher national minimum wage. His policies may also include rules that make it harder for companies to hire independent contractors, requiring everyone to be categorized as an employee and receive the resulting protections. Many states such as California already have similar protections in place.
Infrastructure Investment: Biden has stated that he plans to significantly invest in national infrastructure, ensuring that the contractors and goods are American-owned and American-made. This will include a focus on transportation, particularly in serving disadvantaged areas, and on connecting all households to broadband. Many hope that much of this investment will also be in research for electric cars and other green technologies.
Biden’s economic policies can have a broad impact on manufacturing and other businesses across the nation. HRH Investment will continue to look for promising ventures in areas that are likely to grow over the next decade.