IMPACT OF A BIDEN VICTORY – ANGELO KATSORAS, GEOPOLITICAL ANALYST, NATIONAL BANK FINANCIAL
- If the Democrats win the Presidency and the Senate they would be able to pass legislation more quickly. For example: taxation, environment, energy and healthcare.
- Joe Biden supports increasing corporate taxes from 21% to 28%. (President Trump reduced corporate taxes from 35% to the current 21%).
- Global average corporate tax rate is 24.18%
- G7 average corporate tax rate is 27.65%
- Biden would impose a 15% minimum tax on profits and would double the minimum tax on profits earned by foreign subsidiaries of US firms to 21% from the current 10.5%.
- Top personal tax rate would increase to 39.6% from 37% for those earning over $400,000.
- Capital gains and dividends would be taxed at the same rate as ordinary income for those earning over $1,000,000
- Highest personal tax rates were in the early 1960’s at 91% (yes, that is correct, 91%!)
- Biden would like to build on the Affordable Care Act (aka Obamacare), potential cost $750 billion over 10 years.
- Most expensive proposal is a $2 trillion, 4 year green energy plan.
- NBF Economics and Strategy projects that the increased debt could lead to a replay of the aftermath of WWII…US government kept interest rates below the rate of inflation for many years to gradually reduce debt levels.
BACK TO SCHOOL
- Check with your children’s school so that you have a full understanding of what precautions and changes are taking place.
- Obtain the most current information available as the science around COVID19 and the protocols are continually evolving. We are learning more about this virus every day.
- Children generally seem to experience very mild symptoms and the hospitalization rate is 8 per 100,000 vs 164.5 per 100,000 for adults (US CDC statistics from March 1 – July 25)
- UK study found that the rate of type 1 diabetes in children diagnosed with COVID19 nearly doubled during the peak of the pandemic.
- US added teachers to an “advisory list” of essential workers in a push for schools to reopen.
- Many universities in North America are opting for online or a hybrid version of classes including University of Alberta, Notre Dame, North Carolina, NYU, Michigan State etc.
CANADIAN FEDERAL GOVERNMENT RESET
- Prime Minister Trudeau has prorogued parliament until September 23rd and named Chrystia Freeland as Finance Minister in addition to her role as Deputy Prime Minister.
- Ms. Freeland will no longer spearhead US relations
- Speech from the throne on September 23rd expected to highlight a green recovery and new social platform
- CERB has been extended to September 27th. Canadians who were already eligible for EI will transition to that program when CERB ends.
- There is a potential for a November election in Canada.
- Immigration to Canada dropped 64% to 34,260 in Q2.
- Iran displayed a surface-to-surface ballistic missile with a range of 1,400 km as well a new cruise missile.