US Tax - How Biden's Presidential Win Could Affect Taxes

Following on from his previous blog about Biden's proposed tax plans, here Ed Rieu, US Tax Specialist, discusses the US presidential election results and the difficulty of predicting tax change until after the Senate is decided:

'The election is past, and the result seems clear…to most. With that, Joe Biden is to all accounts the next president unless you think the claims on voter fraud may hold up. If Joe Biden is sworn in at 12:00 noon, 20 January 2021 as the 46th president, there will be a democrat in the White House and a Democrat controlled House of Representatives. However, what is not now certain is which party will control the Senate. The vote count has left the Senate currently with 48 Republicans, 46 to the Democrats, 2 “Other Party” senators and 2 seats, both in Georgia, needing to be re-run in early January. If the Democrats take those 2 Georgia seats then any ties in the Senate are settled with a vote by the vice-president (possibly Kamala Harris as a Democrat).  

What this means is if the Georgia seats Go to the Democrats then Biden may push for some or all of his aggressive tax agenda. If there is a split or if the Republicans win both seats in Georgia, it is unlikely any major changes will happen on the tax front without major concessions.

With that, the smaller house majority and an open Senate make up mean it may be best to wait until after the January run off to discuss what may happen with any of Joe Biden's tax proposals.

More later.'

Should you wish to discuss anything in more detail please contact Ed Rieu, US Tax Specialist. Alternatively, you can complete our online contact form, email us at enquiries@sopherco.com or call 020 8207 0602.