The 2020 Election, Taxes, and Effect on the Business World

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Wow, this three-day week has been fast! We hope you had a somewhat restful long weekend after midterms. For those of you who missed the meeting this morning, ABC talked about the 2020 Presidential Candidates and the effects of their policies on the business world. 

We began by talking about the tax policies of each candidate, namely that Trump proposes continuing to cut corporate and that Biden proposes to increase corporate taxes to 28% from 21% right now. Luc brought up a good point when he compared corporate taxes of both these candidates to that of Obama, which was closer to 38 percent, much higher than that of other wealthy countries. Both Biden and Trump's corporate tax proposals are significantly lower than Obama's, which could prove an important factor in economic recovery during a post-covid world.

We also delved into Biden's 5.4 trillion dollar spending plan and his 2 trillion dollar deficit, even after increasing both income and corporate taxes. Is it an effective plan to increase taxes on corporations and individuals if he still cannot collect enough money for his initiatives? Or will it unnecessarily drive away corporations without executing his agenda? 

Nick and Rohan brought up good points about the national debt. Biden's budget makes up roughly 25% of the annual GDP, which is a lot. But there's a distinction to be made in the sense that 78% of the debt is issued to Americans, not foreign powers. Does this mean that the US can keep spending without chipping into the global confidence in the dollar? How does debt issued to the public versus foreign powers differ?

Linked below is one article ABC utilized for the discussion:

https://www.wsj.com/articles/biden-after-rejecting-progressive-spending-plans-now-hones-multi-trillion-dollar-budget-11600075802

As always, it's never too late to join ABC! See you next Wednesday!


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