Biden Tax Proposals
The following is a review of President-elect’s Joe Biden’s tax proposals.
If Republicans retain control of the U.S. Senate under Mitch McConnell, after the apparent Georgia run-off elections, this fact should greatly temper any bold Biden tax change ideas, if not stop them entirely. For this fact alone, we feel that clients should not panic and not take any drastic action based on concerns or beliefs that the President-elect’s stated tax policy and ideas may adversely affect them.
Remember that tax legislation starts in the House Ways and Means Committee. Presidents can make proposals but not initiate legislation.
First, a caveat. The details of the proposals and generalizations are quite “fuzzy” on specifics. However, this is the norm for Presidential candidate proposals. Sometimes, we have to “read between the lines” to see what the position technically means. Other times, the proposal is intentionally gray to allow some leeway on the actual implementation of the idea.