How Biden's economic policies can affect millions of Hispanics

By Janet Álvarez - CNBC + Acorns

The election of Joe Biden as president has important economic implications that affect all citizens, from fiscal policy to educational initiatives and more.

In particular, some of the policies proposed by Biden's team may have a profound impact on the Latino community, as described by the PWBM analysis of Biden's electoral platform.

In the long run, this model projects that Biden's policies would reduce federal debt by 6.1% and increase gross domestic product by 0.8%.

But the nuances of the plan also have a more specific meaning for the Hispanic community, as Rich Prinsinzano, Penn Wharton director of budget policy analysis, explains.

Fiscal policy

Biden's tax plan calls for an increase in taxes for people with high incomes, so the vast majority of citizens would not be affected.

"Employment taxes can go up for those who earn more than $ 400,000 a year," Prinsinzano explains, "but these make up less than 1% of American households."

The majority of Hispanics will be part of that majority that will not be affected, "he adds. 

Still, some of Biden's other tax policy proposals, such as imposing taxes on capital gains at the same level as traditional income rates, as well as raising taxes on corporate income earned abroad, could affect certain Hispanic investors or business owners.

Education

Biden's plan includes important proposals for education, including a

 free-for-all

and the cancellation of a portion of student loan debt.

For most middle-income citizens, including many Hispanics, that can create important new economic opportunities, Prinsinzano says.

“A more educated population creates opportunities, freeing people to advance in more ways," he says, "a more educated population is a more productive population.

The economy grows as educational levels increase. "

Biden's plan also proposes free public college for low-income citizens, which can make education even more accessible for millions of Hispanic families.

And canceling a portion of student loan debt positively affects the ability of millions of debt-burdened borrowers to use their earnings more productively, such as buying homes or starting businesses.

Immigration

Perhaps one of the biggest political differences between the Trump Administration and the Biden Administration is the management of immigration.

In fact, Penn Wharton's budget model suggests that Biden is likely to base his immigration policy on the foundation of the Immigration Modernization, Economic Opportunity, and Border Security Act of 2013.

"There are proposals from the Biden campaign for a path to a citizenship bill similar to what was proposed under the Obama administration," says Prinsinzano, and that "is only good for the economy." 

"It is likely that Biden will override the limitations of the H1-B visa, and that would be a positive boost for the economy," he adds. 

Furthermore, Biden's policies may affect trade with Latin American countries.

Trump's renegotiation of NAFTA and other regional trade agreements affected some Latin American nations, and Biden may seek to renegotiate them further.

Whether the changes proposed by Biden are clearly negative or positive for your home depends on several factors and personal preferences.

However, the tenor of the overall impact on citizens, including Hispanics, is likely to represent a sea change from the current political environment.

This article is part of the Invest in You Ready series.

Set.

Grow (Invest in you: Ready. Done. Grow), an initiative of CNBC and Acorns, the micro-investment app.

NBC Universal and Comcast Ventures are Acorns investors.