Now that the election dust has settled, the hard work really begins. Election night may seem like the culmination of years of work. But really, it just marks the start of the actual implementation of policies by an administration. Incumbent President Trump has officially conceded to allow Biden’s team to begin the transition. But what does a Biden presidency mean for businesses in the Santa Clarita Valley?
The Economy and the Election
The economy can be a major factor in deciding a president. This is clear when analyzing how societal and economic crises impact presidential elections. For example, Bush used his administration’s calls for economic stability to shore up his slim 2000 victory in 2004. He cut taxes and implemented The Economic Growth and Tax Relief Reconciliation Act of 2001. He also launched The Jobs and Growth Tax Relief Reconciliation Act of 2003.
However, despite this, social issues arguably led the ballots for both Obama and McCain in 2008. In 2016, Trump suggested a slew of economic measures. His victory in places like Pennsylvania showed that economic policies and the ‘America first’ approach to certain industries was an important issue for voters. The economy in 2020 was a key factor in both candidates’ policies and platforms.
The Economy Under Trump and Biden
The extent of what a president can do depends in part on what they inherited. While Trump inherited a positive economy, Biden has entered one in a state of global flux. Trump implemented several tax cuts to businesses, which were received positively. But Biden won’t be able to do that. Biden’s pledges and policies are about stimulating the economy through spending. So, he won’t be able to promise sweeping tax cuts. In fact, Biden has pledged to increase taxes.
Biden’s tax plan would see the top rate of 37% reverting to the pre-2016 39.6%. He specifically pointed out that those earning over $400,000 would be expected to pay more. There is evidence that, through the overwhelming popular vote that Biden received, the general population are comfortable with the tax rises. Many understand the need for spending.
How Will Biden’s Economic Plans Impact Santa Clarita
Some individuals will see that their take home pay has reduced slightly. But the average salary of a Santa Clarita resident is $33,879 per annum. So, under Biden’s proposed economic plans, the residents of Santa Clarita may experience other changes. Through spending, Biden aims to create more valuable jobs. He also hopes to bring production back to America and influence citizens to buy American-made goods. Stimulus incentives are also targeted at smaller businesses to help this.
Through the redistribution of benefits, Biden’s team hopes to revitalize the high street. Smaller businesses in Santa Clarita could be better cared for financially. There will be a focus away from the big conglomerates and Wall Street. This could invariably benefit Santa Clarita businesses. Even improving infrastructure, such as internet connectivity, transport links, and the local area could help.
Biden’s plans – like most presidents before him – are bold. Subject to further approval, they do aim to benefit a wider range of citizens. By focusing on building the ‘middle class’, Biden has laid out a foundation fit for the majority of Americans. Santa Clarita businesses could be expected to benefit – at least from how the policies are laid out on paper. In reality, it may take some time to see if Biden can live up to his campaign promises.