With the approach of the November election, voters are starting to examine the proposals of President Trump and former Vice President Biden on taxes and other issues.
Both candidates have laid out significantly different tax proposals as part of their 2020 campaigns agendas. Trump has proposed to make permanent individual tax cuts that were enacted as part of the 2017 tax reform act (the 2017 Act) and has indicated that he may propose further cuts to the current 21% corporate tax rate as well as lower capital gains tax rates if he is re-elected. Biden has proposed tax increases for business and higher-income individuals to offset the costs of various policies, including increased spending on infrastructure, incentives for clean energy and domestic manufacturing, expanded access to healthcare, and increased funding for education and job training,
The analysis in this Insight examines in detail general business tax changes that have been proposed by Biden relative to provisions that were enacted as part of the 2017 tax reform act. Biden also has proposed a number of sector-specific proposals as well as tax incentives as part of his plans to address climate change and promote US infrastructure investments.
The outlook for legislative action in 2021 on business tax proposals will depend on who is elected president and which party controls the House and Senate. The status of the pandemic and the US economy also likely will influence legislative priorities next year. If Biden is elected, chances of a significant tax overhaul will depend on whether Democrats retain control of the House and take control of the Senate, and what policies current and newly elected members would support. A continuation of divided government control is likely to create challenges for either presidential candidate to see their campaign tax proposals be enacted.
For a PwC Insight on individual tax considerations for the 2020 elections, click here.