Although there is still some uncertainty surrounding the 2020 Presidential election, the Associated Press and others have projected that Joe Biden will be our next President. During his campaign, President-elect Biden made several pledges to address issues such as health care, the environment, and infrastructure. Of course, in order to do that, there are costs involved and the funding must come from somewhere. In this case, he plans to raise the funds through taxes. The question that everyone has now is, “How will this affect me?”
First of all, President-elect Biden may not be able to get his tax plan passed right away for a number of reasons. At this point in time, the Senate is still run by a Republican majority. We will not know until January whether this will remain the case. If he does not have a Democratic majority, he may have trouble getting his plan passed. In addition, he will be dealing with a struggling economy as a result of the COVID-19 pandemic. The possibility of another stimulus package and potential health care legislation, depending on the U.S. Supreme Court decision on the Affordable Care Act (ACA), will also come into play. Changes to tax policy may not be his top priority in the first months of his presidency.
However, it is important to be aware of the changes that are being proposed and how they could impact taxpayers. Click the button below to view some highlights of the proposed plan as compared to the current tax law. It is crucial that we consider this proposal now when doing year-end planning for 2020.