KPMG has issued a report on possible tax legislation under the Biden Administration. Their summary reads as follows:
Democrats Joe Biden and Kamala Harris on January 20, 2021, were sworn in as president and vice president of the United States.
Later that day, the U.S. Senate switched from being controlled by Republicans to being controlled by Democrats (due to the swearing in that afternoon of two Democratic senators and the replacement of former Vice President Pence as president of the Senate with new Vice President Harris); however, as of the time this report was finalized, Democrats had not yet become committee chairs due to delays in organizing the new Senate. Democrats also hold the majority of seats in the House, but by a narrow margin. As a result, the White House as well as both chambers of Congress are controlled by Democrats.
Significant tax law changes may be on the horizon. These could include new incentives and credits for certain activities and categories of taxpayers, as well as potential tax increases for some taxpayers intended to discourage certain activities or to raise revenue for various initiatives. The narrow margin of Democratic control in the Congress, however, presents some legislative challenges and might affect the details of tax provisions that ultimately may be enacted.
Read a February 2021 report [PDF 2.4 MB] prepared by KPMG LLP that includes preliminary observations regarding the potential tax legislative agenda of the Biden Administration and the Democratic controlled Congress.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.