As election season draws to a close, it's a great time to review what type of legislative support would be needed to pass certain policy proposals that may come forward from the Biden Administration.
It's important to remember that legislative changes take time, and it remains unclear what initiatives may take priority in the months ahead, especially with the ongoing pandemic.
It would also be foolish to think that the 117th United States Congress won't move forward with some new ideas and proposals. As has been said, "elections have consequences."
Let's take a closer look at some of the policy proposals and what they require to pass:
- 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.1
- 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, such as $2,000 checks. 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
If you are concerned about one or more of these potential policy initiatives, please give us a call. We'd welcome the chance to hear your perspective, and hopefully, we can provide some guidance.
- WStreet.com, January 8, 2021
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. Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.