The 7 plans Biden has proposed that could put extra cash in your wallet

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Joseph Zeballos-RoigNov 6, 2020, 00:01 IST
The 7 plans Biden has proposed that could put extra cash in your wallet

Drew Angerer/Getty Images

  • Biden has unveiled seven plans that could put extra money into peoples' pockets.
  • They include hazard pay for essential workers, a child allowance, a possible wave of stimulus checks, and boosted unemployment benefits.
  • Each proposal is detailed below.

With votes still being counted in several states, the race between Democratic nominee Joe Biden and President Donald Trump remains tight. But Biden has a clearer path to the 270 electoral votes needed to win the White House.

Biden may have to deal with a divided government. Republicans are on track to keep control of the Senate and gain seats in the House, making Mitch McConnell the majority leader in the upper chamber.

The former vice president has unveiled seven plans that could put extra cash into people's wallets. Here are the details around them.

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Biden supports providing families with children with monthly payments.

Biden supports providing families with children with monthly payments.
A mother and child. Erin Lester/Getty Images

Earlier this year, Biden unveiled a plan to allow families with children to receive a monthly federal payment of $250 to $300 during the pandemic.

Currently, people can claim a child tax credit of up to $2,000 based on their annual income. Biden's plan increases it to $3,000 for kids under 17 in 2021 and adds $600 for young children age 6 and below, totaling $3,600.

The credit is refundable in the Biden plan, meaning the amount people would receive is not dependent on their tax payments.

Some people now get a smaller sum back from the government since their tax bill isn't large enough to earn the full credit. It disproportionately impacts lower-income families.

The Tax Policy Center estimated that 90% of families with children would receive an average of $2,380 from the credit this year. About 40 million families claim it every year.

Read more: An advisor at the world's largest wealth manager breaks down why a Biden win and a split congress is the best long-term outcome for markets — and says investors should look to these 4 sub-sectors for ongoing gains

Boosted unemployment benefits for jobless people.

Boosted unemployment benefits for jobless people.
An unemployment form. KLH49

Biden supports extending unemployment benefits "as long as public health and economic conditions" call for it, per his campaign website. It didn't specify any amount.

Democrats have long pressed to reinstate the $600 federal unemployment benefit that expired in late July.

But negotiations for another stimulus package has stalled between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin.

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Hazard pay for essential workers.

Hazard pay for essential workers.
LM Otero/AP Photo

Biden has expressed support for "premium pay" for essential workers in line with a plan Senate Democrats introduced in April.

That proposal contained a $13 hourly boost for "frontline workers" like doctors, grocery store workers, nurses, and others employed in high-risk sectors.

The sum a worker could receive until the end of the year is capped at $25,000 in the Senate Democratic plan.

Read more: Iconiq Capital, which counts some of the world's most influential families as clients, broke down the investment implications of the US election. Here are the highlights of its 23-page presentation.

Another possible round of direct payments.

Another possible round of direct payments.
Economic stimulus checks. Jeff Fusco/Stringer

Biden indicated on his campaign website more stimulus checks could be sent out to taxpayers "should conditions require."

In March, around 160 million stimulus checks for $1,200 were distributed through the CARES Act. House Democrats included them in the $2.2 trillion economic aid plan they approved in October.

McConnell has expressed support for them, though Senate Republicans are divided on it. Many GOP lawmakers staunchly oppose passing another large coronavirus relief plan, citing the growing national debt.

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Sick pay for every worker.

Sick pay for every worker.
A sick person. Peter Dazeley/Getty Images

The former vice president also supports providing paid sick leave for every worker during the pandemic

"This should include workers in all industries and all sectors, regardless of company size, and including gig workers, domestic workers, contractors, and the self-employed," the campaign website says.

Workers are eligible for 12 weeks coronavirus-related paid sick leave because of a law Congress enacted in the spring. It took effect in April and expires Dec. 31.

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Increased Social Security checks.

Increased Social Security checks.
A Social Security office. Reuters

Biden wants to increase Social Security payments by $200 a month through the end of 2021, financed by higher payroll taxes on people earning above $400,000 annually.

It's a proposal hewing closely to another that Sens. Chuck Schumer, Elizabeth Warren, and Ron Wyden unveiled earlier this year.

The former vice president would also boost Supplemental Security Income benefits, a program providing cash assistance to disabled and elderly people.

The Urban Institute indicated in an analysis that SSI monthly payments would grow from $792 under existing law to $1,091 for a single adult — a 38% increase in the Biden plan.

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Enacting a $15 minimum wage.

Enacting a $15 minimum wage.
Fast food restaurant workers. AP Photo/Mark Baker

Biden supports raising the federal minimum wage to $15 an hour from its current level of $7.25. Congress hasn't raised it since 2009, the longest the US has gone without an increase in hourly pay.

His plan would increase the federal minimum wage and index it to the median hourly wage, so low-wage employees' incomes tracks more closely with salaried middle-income workers.

Research indicates it could increase paychecks for 27 million workers.

Read more: 'We are in a depression': A 35-year market vet says more stimulus will be powerless to prevent a coronavirus-induced economic meltdown— and warns stocks 'have a lot further to fall'

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