What Would a Divided Government Mean for Taxes?
Joe Biden is set to become the next president of the United States. The president-elect put forth an ambitious tax plan prior to the election, but Americans shouldn't count on their tax situation changing anytime soon.
The president cannot unilaterally change tax policy but instead can only urge Congress to act. And while the Democrats will control the House of Representatives, the Republicans will likely retain control of the Senate. Republicans currently have a 50-to-48 lead going into 2021. There are two runoff elections scheduled in Georgia in January, and the Republicans are slight favorites to win at least one, if not both. Unless the Democrats win both seats and count on Vice President Kamala Harris as a tiebreaker, the Senate will remain in Republican hands.
And that means the government will most likely remain divided until at least the 2022 elections. So it's worth looking at what this would mean for tax policy.
Source Fool.com
