Election Update: 2021 May Bring Some Changes

Election Update: Potential Policy Changes in 2021

As election season concludes, it’s important to review which legislative measures may emerge from the Biden Administration. Legislative changes take time, and the pandemic continues to influence priorities. Nevertheless, the 117th United States Congress is likely to move forward with new ideas and proposals. As the saying goes, “elections have consequences.” For more on how legislation can impact the economy, see US Economy Today: What You Need to Know.

Let’s take a closer look at some of the policy proposals and what they require to pass:

Repealing the 2017 Tax Cuts and Jobs Act

Repealing this legislation would require approval from the House of Representatives and at least 51 votes in the Senate.¹ This process could take several months, depending on congressional negotiations and priorities.

Increasing Capital Gains Taxes

Proposals to raise capital gains taxes would also need approval from the House and a simple majority in the Senate.1 Economists and investors are closely monitoring these discussions, as they could affect investment planning and long-term financial strategies.¹  Learn more about financial advice for retirement planning for Florida retirees.

Providing Additional Fiscal Stimulus

Measures such as $2,000 checks would require approval from the House and at least 60 votes in the Senate.1 While these measures could provide immediate relief to Americans, they must navigate a more challenging legislative path.¹   See our guide on social security retirement planning: future concerns you need to understand the interplay of fiscal stimulus with retirement security.

Evaluating China Tariffs and Other Trade Policies

The president can use executive authority to adjust certain tariffs and trade policies.1 Such actions could move forward more quickly than legislation, but they still carry economic and market implications.¹

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

Important Disclaimer
This article is for informational purposes only and does not replace professional advice. Consult your tax, legal, and accounting professionals before modifying your tax or investment strategy. Investing involves risks. Your investment’s value will fluctuate with market conditions, and returns may be higher or lower than your original cost.

The content comes from sources we believe are accurate. FMG Suite, LLC produced this material to provide general information and is not affiliated with the named representative, broker-dealer, or state- or SEC-registered investment advisory firm. The opinions expressed are for informational purposes and do not constitute a solicitation to buy or sell any security.