tax analysis post-2020 election
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What You Need to Know About Tax Planning Heading Into 2021 

We now have a clearer picture of the tax and economic policy environment in 2021 and beyond. Some of Joe Biden’s tax proposals are more likely to pass than others, but companies and individuals should still prepare for big changes in 2021. Tax and economic planning will be essential heading into the new year, and we have laid out coming changes to the tax policy environment and crucial tax planning tips. This report should not serve as legal advice – plan to consult CPAs, advisors, and attorneys. 

Ramifications for Tax Policy 

Joe Biden is now the President-elect, but how much of his agenda he can get done will depend on the composition of Congress. He will have a narrow majority in the House, but control of the Senate won’t be decided until runoffs for the two Georgia Senate seats on January 5th. If Democrats win the Senate, they can avoid a filibuster by passing a tax bill in a process called budget reconciliation. But if Republicans win 52 or even 51 seats, there’s no way through the Senate without some Republican support. 

Source: The New York Times

Before the election, we wrote a report on the future of tax and economic policy (including ideas for tax and estate planning). That information is still relevant, but a few weeks later, the future looks somewhat clearer. Narrow (or nonexistent) majorities for Democrats will make big tax increases less likely. However, some proposals may be able to garner bipartisan support – and significant changes to the tax code could still happen. 

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