COVID Caution Slows Recovery

COVID Caution Slows Recovery

( – As the economy opens across the nation, COVID-19 may have forever changed the way Americans think about taxes and work, and how they spend money. Yet, Democratic-nominee Joe Biden says he would increase taxes on middle-class families.

In a new survey released by WalletHub, nearly 80% of respondents said they believe unemployment will not rebound until the end of 2021. That could have a profound psychological impact on the nation’s ability to recover after COVID-19, economically. As school districts, municipalities, and states evaluate their budgets; some are raising taxes despite the economic hit to workers, homeowners, and consumers.

According to the survey, only one-third of respondents think taxes should be increased. Which means nearly 70% don’t want a tax raise. However, taxing authorities will struggle with revenue if people don’t spend more money. The survey said:

  • 40% don’t want to travel on a plane without a vaccine
  • 34% say they’ll feel comfortable shopping in stores if everyone is wearing a mask
  • 27% are uncomfortable staying in a hotel without a vaccine
  • 21% don’t feel comfortable eating out without a vaccine

Most states are only allowing in-person dining and shopping at 50% capacity or less. That’s also slowing economic growth. As a result, taxing authorities will have to decide if they have enough money in rainy day funds to cover expenses, cut expenses, or raise more revenue in the form of higher taxes.

COVID-19 has changed the way Americans evaluate how they make and spend money. The fallout and reprioritization of America are just beginning, and so are the tax wars.

Stay tuned!

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