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.
- Increasing capital gains taxes. Legislation of this nature also would need the approval of the House of Representatives and 51 Senate votes.
- Providing additional fiscal stimulus. For this type of measure, legislation would need to move through the House and get 60 Senate votes.
- Evaluate China tariffs, other tariffs. The president can use his executive authority to move these concepts forward.
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 a client who is concerned about one or more of these policies, please give us a call. We would welcome the chance to hear your perspective, and hopefully, we can provide some guidance.
If you are not a client but are wondering how these changes will impact your financial security and you would like to work with an advisor, please let us know and we would be happy to set up an introductory meeting.
WStreet.com, November 4, 2020
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The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.
Published for the blog on November 19, 2020 by Searcy Financial Services, your Overland Park, Kansas Fee-Only Financial Planner and Investment Manager.