Election 2020: Biden’s Policy Initiatives

Biden’s Policy Initiatives and What They Could Mean

Now that several major news groups have projected Joe Biden the winner of the presidential election—and Congress appears divided with Democrats in control of the House and Republicans the Senate—it’s a good time to review what type of legislative support would be needed to pass certain proposals.

The key item to remember is that any change will follow a process, which would allow some time to evaluate the economic impact. Let’s take a closer look at four examples:

Repealing the 2017 Tax Cuts and Jobs Act

First, lawmakers would need approval from the House of Representatives and at least 51 Senate votes to move this legislation forward.¹

Increasing Capital Gains Taxes

Similarly, changes to capital gains taxes would also require House approval plus 51 Senate votes.¹

Investors concerned about long-term growth may want to review our Best Strategies for Long-Term Stock Investments to ensure portfolios remain well-positioned.

Providing Additional Fiscal Stimulus

Meanwhile, new stimulus measures face a higher hurdle. In this case, legislation must pass the House and secure 60 Senate votes.¹

Evaluate China tariffs, other tariffs. The president can use his executive authority to move these concepts forward.¹

Right now, uncertainty remains. Although candidates discussed many ideas during the campaign, priorities may shift as the new administration settles in. Over the coming weeks and months, clearer direction should emerge.

In the meantime, staying informed matters more than reacting emotionally.

If you are concerned about one or more of these policies, please give us a call. We’d welcome the chance to hear your perspective, and hopefully, we can provide some guidance.

^{Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.}

^{The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.}