The votes are in and President Obama has won a second term. While the end to the election wasn’t quite as dramatic as the pundits may have anticipated, there were some big winners and losers last night. So when the dust has settled, what does this mean for your pocket book? Here’s a quick snapshot of how you’ll win and how you’ll lose when it comes to your finances.
How You Win:
If you’re a business owner, you may end up paying lower taxes. Obama wants to cut the rate to 28 percent, which is lower than today’s rate.
Universal health care coverage. While controversial, Obama’s plan does prevent insurance companies from refusing to cover you because you’re sick, forces insurance companies to cover preexisting conditions and provides a host of other consumer protections.
Consumer financial protections will continue to thrive. Obama will prevent the Dodd-Frank Act from being repealed. This act provides consumer protections through financial regulation.
How You Lose:
You may end up paying more taxes if you make more than $250,000 a year. Obama wants to let the Bush era tax cuts expire for households whose income is more than $250,000 and impose a “Buffett rule” where people who have an income of more than $1 million are required to pay a certain minimum tax, regardless of the source of their income. Additionally, Obama wants to raise the rate paid on capital gains to 20 percent by the wealthy, leaving it a max of 15 percent for everyone else. He also wants to tax the income earned on stock investments as if it were ordinary income for upper-income individuals.
To Be Determined:
More companies may keep jobs in America, but it may cost those companies more to manufacture goods. Obama wants to give manufacturing firms additional tax credits and eliminate tax breaks for companies shipping jobs overseas. If you’re the owner of a large company who has a lot of employees overseas, this could hurt your bottom line and can impact your ability to manufacture goods as inexpensively in the past. However, it will encourage companies to keep jobs in America.
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