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Biden administration to unveil $2 trillion infrastructure plan: The headlines and your money

Plus: Thirty million Social Security beneficiaries will receive $1,400 payments next week.

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President Joe Biden holds a meeting with US Senators about infrastructure improvements in the Oval Office of the White House in Washington, DC, February 11, 2021.
Saul Loeb | AFP | Getty Images

Stock indexes stumbled. Biden will unveil his $2 trillion infrastructure plan. And Social Security beneficiaries who don't file taxes will receive their third stimulus checks. Here's how the news could affect your money.

Major indexes sputter

The market fell Tuesday as investors continue to fret over rising long-term interest rates. The S&P 500 and the Dow each shed 0.3%, while the Nasdaq surrendered 0.1%.

The yield on 10-year Treasurys climbed to more than 1.77% at one point on Tuesday, hitting its highest level since January 2020, before receding to 1.72%. Rising rates on long-term debt are thought to reflect investor confidence in the strength of the economy, but also ding the future prospects for stocks, as rising rates make companies' future earnings look less attractive to investors.

The market was up Wednesday morning.

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Biden to unveil infrastructure bill

President Joe Biden will unveil a $2 trillion infrastructure package on Wednesday. In addition to infrastructure spending, provisions also include care for elderly and disabled Americans, affordable housing and schools, manufacturing, R&D, and job training. 

The proposed legislation's major sticking point comes from how the administration plans to pay for it, by raising the corporate tax rate to 28%. Republicans say a hike in the rate — which was slashed from 35% to 21% under the 2017 Tax Cuts and Jobs Act — would hamper American business and kill jobs. 

Though no deadline has been set, Democrats say they hope to get the bill passed this summer, with House Speaker Nancy Pelosi telling the Democratic caucus that she'd like to see it passed by July 4.

30 million Social Security beneficiaries to receive stimulus checks next week

Beneficiaries of Social Security and several other federal programs who do not file taxes can expect their $1,400 payments from the latest stimulus legislation to be sent out starting this weekend, the IRS and Treasury Department said Tuesday. Most recipients should see the money in their accounts on April 7.

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Words you've heard: SALT deduction

Before the Tax Cuts and Jobs Act of 2017, taxpayers could claim an unlimited federal tax deduction for state and local taxes (SALT), including state income, sales, real estate, and property taxes. The law capped the deduction at $10,000, a costly change for residents of high-tax states such as New York and California. 

Senate Majority Leader Chuck Schumer, who represents New York, plans to bring up the possibility of lifting the cap as part of tax reform discussions surrounding the upcoming infrastructure spending bill.  

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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