Elections Have Tax Consequences

January 11, 2021

The seemingly endless election of 2020 is finally over, with Democrats winning both Senate seats in Georgia.
As a result, President Biden will have slender majorities in the House and Senate. These slender majorities limit many dramatic policies, which require 60 votes, but tax policy is likely to change in some significant ways.
Congress can use special budget procedures to pass tax hikes without needing 60 Senate votes to break a filibuster. A simple majority works. Budget reconciliation is how President Clinton passed tax hikes in 1993, President Bush passed tax cuts in 2001 and 2003, how President Obama got the Affordable Care Act in 2010, and how President Trump passed tax cuts in 2017.

Click here to read more…