Election Day 2020 has come and gone. Following failed attempts by the Trump administration to block the path to the White House, the future occupant of 1600 Pennsylvania Avenue appears to be Joe Biden. After winning back the blue-wall states of Michigan, Wisconsin, and Pennsylvania, Biden ultimately secured the 270 electoral votes required for victory. Despite Biden’s edge in the Electoral College, a blue wave of Democratic control of both sides of Congress in addition to the presidency didn’t materialize. Democratic losses in the House and underperformance in a few key Senate races all but ensure that Republicans will continue to control the latter, with Senate runoffs in early January hanging in the balance.
This divided political environment makes sweeping Democratic policy changes, including tax policy, less likely. More likely is the possibility of a resumption of the status quo, with some potential for marginal tax policy changes. Be that as it may, we proceed with an analysis of the Biden tax plan to provide an understanding of the direction and magnitude of the impact on equity tax management given his proposed policy goals.