November 3, 2020 means a lot to all Americans, but this election may have especially significant impact on business owners. This blog is not intended to make political or social commentary, rather, it is a discourse on likely tax changes.

There are four possible outcomes, assuming the House stays Democratic (which seems imminent). Here’s what could happen:

1.     President Trump is re-elected, the GOP retains the Senate.

2.     President Trump is re-elected, the Democrats take the Senate.

3.     Joe Biden is elected; the GOP retains the Senate.

4.     Joe Biden is elected; the Democrats take the Senate.

Under the first scenario, things will likely remain largely the same, but we’ll still face the onerous task of paying for the massive deficits created by Congress’ fiscal response to COVID-19. Scenario 2 allows President Trump to veto any legislation for a revenue bill, barring a supermajority. Again, the deficit will eventually need to be addressed. Scenario 3 would give the new President the power of the executive order and presents the possibility of compromise (also possible in scenario 2).

In scenario 4: The Democrats will wield control of the House, Senate and Oval office. In this scenario, the new President and Congress could radically change the tax laws. Candidate Biden has announced his tax plan, which includes the following (amongst many other) changes and spending initiatives...

Click here to read the full blog post on Forbes.com.

 

View Leon LaBrecque's Forbes contributor profile and other blog posts here: https://www.forbes.com/sites/leonlabrecque/

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Image is Getty from original post on Forbes.com.