The November 3 election results remain undecided, with many ballots yet to be counted. At this writing, according to the Associated Press, Democratic presidential candidate Joe Biden is projected to have won at least 238 of the required 270 electoral college votes, against 213 for Republican incumbent President Donald Trump. A winner has yet to be announced in several key battleground states, including Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin.
While it appears that Democrats will retain their House majority in the next Congress, Senate control (where Republicans currently hold a 53-seat majority) has not been decided.
If Biden is elected, Democratic control of both the House and Senate will be critical to action on Biden’s proposals to increase business and individual taxes. A Republican-controlled Senate would largely eliminate the prospect of any significant tax increases until at least after the 2022 midterm elections.
If Trump is re-elected, his proposals on taxes and other issues are expected to face a continued challenge of divided government.
The results of the 2020 elections for control of the White House and Congress will have a significant impact on the direction of tax policy over the next four years. Businesses and individuals will want to examine the potential impact of proposed tax changes and should be prepared to engage with policymakers when legislation is considered.
For a PwC Insight on individual tax considerations for the 2020 elections, click here.
For a PwC Insight on business tax considerations for the 2020 elections, click here.
For more PwC road to election 2020 analysis, click here.