Now that several major news groups have projected Joe Biden the winner of the presidential election—and Congress appears divided with Democrats in control of the House and Republicans the Senate—it’s a good time to review what type of legislative support would be needed to pass certain proposals.
The key item to remember is that any change will follow a process, which would allow some time to evaluate the economic impact. Let’s take a closer look at four examples:
- Repealing the 2017 Tax Cuts and Jobs Act. This type of legislation would need the approval of the House of Representatives and 51 Senate votes.[i]
- Increasing capital gains taxes. Legislation of this nature also would need the approval of the House of Representatives and 51 Senate votes.1
- Providing additional fiscal stimulus. For this type of measure, legislation would need to move through the House and get 60 Senate votes.1
- Evaluate China tariffs, other tariffs. The president can use his executive authority to move these concepts forward.1
Right now, it’s uncertain what proposals will be taken up. Many items were discussed during the campaign, but what initiatives will take priority may become more clear in the weeks and months ahead.
If you are concerned about one or more of these policies, please give us a call. We’d welcome the chance to hear your perspective, and hopefully, we can provide some guidance.
[i] WStreet.com, November 4, 2020
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your overall tax strategy.
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