Can Joe Biden Implement His Tax Plan?

Two months ago, we presented an article concerning incoming President Biden’s tax plan.
Although we knew his tax goals, it is difficult to predict what will pass through Congress and become law. This is why we refrain from predicting future changes in tax regulations.
As you may be aware or recall from our previous article, Biden’s plan calls for significantly increased taxes on the wealthy and corporations. He also expressed his desire to lower the stress of middle and low-income earners through higher tax credits on dependent children and dependent care for adults.
Some financial experts believe it is a forgone conclusion that Biden’s tax initiatives will be passed by Congress. However, many believe that although Democrats have control of the House and a split in the Senate with the tie vote reserved for the Vice President, there are several moderate Democrats who may not support some of Biden’s tax initiatives. So, there is no way to accurately predict what will transpire. Other doubts include that:
Trump’s lame-duck session left the Biden administration with decisions concerning the global pandemic, such as distribution of the vaccine and stimulus packages, which will be Biden’s
priority. This could possibly lead to compromises on tax bills to ensure Biden can push through his plan for further stimulus.
The narrow majorities in Congress may force Biden to limit his priorities to winnable initiatives, thus resulting in the postponement of tax initiatives.
If controlling the pandemic takes the forefront for even a year, this could limit Biden’s ability to push through tax legislation due to members of Congress focusing on their own re-elections.
Tax Planning
Future uncertainties regarding taxes and the economy make careful tax planning imperative. You should consider meeting with your tax planner soon, so you are ready regardless of whether tax changes take place. We urge our clients to come prepared with questions about tax planning for their annual tax meeting. Furthermore, if you are a client, remember we offer you unlimited tax planning advice throughout the year.
Professional Tax Services is a locally owned provider serving over 3,500 local residents and businesses. For more information call 661-259-1967 or visit www.protaxservices.com. Through their complimentary EZ2 Thrive program, they provide unlimited free tax planning advice to their clients.