Unprecedented. I thought we would stop using that word when 2020 came to an end. However, after what we all witnessed on Wednesday at our Capitol, it is a word that still makes its way to our lips. Change needs to happen – for us as Americans and our Republic.
Earlier this week we participated in a 2021 Outlook call hosted by JP Morgan (which followed the Senate runoff election in Georgia). While the “blue wave” did not fully materialize, concerns are still top-of-mind for some regarding future policy, significant changes to both income and estate taxes under the new administration, and the impact on the economy and stock market. We hope to calm some of those concerns.
Policy changes will be muted
While Biden ran on a significant tax increase (see Exhibit 1 below), we don’t believe they will be fully enacted into law. As we have seen from many new Administrations, once they are in office, actual policy changes are more muted. Under a Biden/Democrat-controlled House and Senate (Exhibit 2), there still will be changes, but not as significant as the original agenda.