KPMG has issued a report on preliminary observations regarding the potential tax legislative agenda in the next Congress. It’s summary begins as follows:
Election Day in the United States was November 8, 2022. All seats in the U.S. House of Representatives and around a third of the seats in the U.S. Senate were in play.
As of 12:00 AM on November 18, 2022, results in a handful of House races were not yet official and the U.S. Senate race in Georgia was headed to a “run-off” election on December 6, 2022. However, it appears that, in the next Congress, Republicans will control the House and Democrats will control the Senate—but with very narrow margins in both cases.* Thus, it appears that, beginning in early January of 2023 (when the next Congress convenes), there will be divided government, with Democrats controlling the White House and the Senate and Republicans controlling the House.
As a general matter, divided government may make passage of major legislation in the next Congress difficult. As explained later in this report, bipartisan support would be needed for legislation to pass both chambers of Congress and to be signed into law by the president—but reaching agreement on significant legislation that has bipartisan support could be challenging in both chambers. Thus, although it is possible for Congress to pass some changes to tax law on a bipartisan basis, enacting major changes in tax policy could face significant hurdles.
Read a November 2022 report [PDF 793 KB] (14 pages) prepared by KPMG LLP that provides preliminary observations regarding the potential tax legislative agenda in the next Congress (i.e., the Congress that convenes on January 3, 2023)—as well as what tax issues might be considered this year during the “lame duck” session of the current Congress (i.e., the period between the elections and the end of the current Congress).
To see the full article, click “U.S. congressional elections and tax policy; preliminary observations”
Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.