2021 Tax Changes
Tax changes are on the horizon for the coming year. As a candidate for president, Biden spoke frequently about wanting to roll back some 2017 tax cuts, especially those he felt were too favorable to higher-income earners and business. As president, he’s calling for:
- A 2021 tax increase of about 8% on the top 1% of income earners
- The remaining 99% will pay slightly more in taxes and see a 2% reduction in take-home pay
- His administration will also seek Senate approval to raise corporate taxes by 33%, from 21% to 28%
2021 Health Care Changes
Healthcare changes are also likely in 2021. While the Biden administration’s plan for health care isn’t crystal clear at this point, officials have said they want to tighten privacy rights. They’ve spoken specifically about eliminating the right for corporations to conduct genetic testing and are likely to propose changes in the law to eliminate ambiguity. They also favor incentivizing or forcing states to comply with the original intent of the Affordable Care Act and may act to plug loopholes that have permitted exemptions for Medicare, Medicaid, and so on.
As a nation, we’re in better economic shape today than we predicted last spring. The outlook for business in 2021 looks pretty good for the nation as a whole; however, here in the Northeast, the situation is a little different. States in the region have clamped down hard on small businesses, particularly restaurants, inns, bars, and others in the hospitality industry. The industry’s suppliers and customers have been impacted along with the business owners. I’m not saying that shutdowns are right or wrong. I’m just pointing out the reality of the situation. And my point is that the Northeast has a hard road ahead. Small business owners and individuals received an additional round of COVID-19 relief in late 2020.
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