Against the backdrop of the economic turmoil created by the COVID-19 pandemic and the enactment of Republican-only tax reform in 2017, tax policy will be a critical point of differentiation in the 2020 presidential race.
Below is a summary of the key tax law changes each candidate is suggesting.1
In these tumultuous times it’s difficult to predict what policy initiatives the winner of the 2020 presidential election is likely to pursue. However, given the backdrop of the economic devastation, it seems certain that tax policy will take center stage. Should Democrats win the White House as well as the House and Senate, the enactment of tax changes in 2021 is highly likely. As tax changes aren’t typically retroactive, the changes likely wouldn’t be effective until 2022. Republicans in 2017 demonstrated how highly partisan tax legislation could be passed even with a slim majority in the Senate through a budget reconciliation process that bypasses the 60-vote filibuster threat. Democrats are floating whether the filibuster rule should be eliminated entirely. The tax changes on the table are sweeping in nature, and it’s never too early for you to prepare.