Who Might Benefit Most From a Biden Economy?
Written by
James Holbach
Edited by
Renee Ross
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With election day just months away, there is no clear favorite for who will be the next President of the United States. President Joe Biden and former president and now convicted felon Donald Trump both have very low approval rates, with recent polls indicating that nearly half of voters would prefer to replace both candidates if given the chance.
Unfortunately for these voters, that’s not exactly likely to happen. The next president will either be Biden or Trump again, and given the way stock markets and the broader economic environment tend to react to elections, it’s to your benefit to understand if the election results might affect your financial situation for good or ill.
So, if Biden is the victor, who stands to benefit the most? GOBankingRates spoke with experts to find out.
Small Business Owners
Philip Wenthworth Jr. is the CEO and co-founder of Rockerbox, a technology platform that helps small businesses take advantage of employer-based tax credit programs. He sees a Biden economy having a significant positive impact on small businesses and their cash flow.
“Small businesses often struggle with liquidity, and Biden’s proposed tax relief for middle-income earners can indirectly boost their revenues. Reduced tax burdens on the middle class increase disposable income, leading to higher consumer spending. This uptick in spending benefits our clients, such as those operating in consumer-facing sectors like retail and services. For businesses in designated Empowerment Zones, the additional tax incentives can significantly reduce operational costs, permitting reinvestment into business growth,” Wentworth said.
Wentworth also believes that the Biden administration’s focus on clean energy and infrastructure investments can catalyze opportunities for businesses in a variety of industries, including construction and technology. “For companies investing in R&D to develop eco-friendly products or improve existing processes, the R&D tax credits provide essential financial support. This allows smaller entities to compete more effectively with larger firms, fostering a more competitive market and encouraging innovation.”
Young Professionals
While small business owners may be the group most benefited by another Biden administration, there are others who stand to reap significant financial advantages. David Brillant is a tax and estate lawyer and the founder of Brillant Law Firm. He believes that the Biden student loan forgiveness programs will profoundly impact young professionals.
“Reducing student debt means increased disposable income and financial stability for many. This is crucial for clients employing young professionals who are often one of their biggest assets. For instance, when billionaire Robert F. Smith promised to pay off student loans for the Morehouse College class, potential tax ramifications were a major concern. Biden’s policies streamline such complexities, making financial planning easier and less burdensome for both benefactors and recipients. This ensures that more young talents are retained in smaller firms, driving innovation and productivity,” Brillant said.
It’s important to remember the existing student loan reduction programs continue to face legal challenges from a coalition of Republican states led by Missouri and Kansas. As that legal battle continues to play out, it could end up slowing down or even completely halting the Biden administration’s efforts.
Commercial Real Estate Investors
Brillant also cited the Biden administration’s emphasis on clean energy and infrastructure investment. He thinks it will be of significant benefit to commercial real estate investors, who can leverage incentives to retrofit existing buildings to meet new energy-efficiency standards, enhancing their property’s value.
“In my experience handling complex litigation cases like the successful challenge to Alameda Unified School District’s Measure H, I’ve seen how regulatory changes can impact property values. Biden’s clean energy initiatives offer a proactive way to increase asset value without the adversarial nature of litigation,” he said.
Of course, many people won’t fit into the above categories. Consulting a financial planner or tax professional is a great way to find out what your benefits could be if Biden wins reelection, and how to position yourself to best take advantage of them.
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