The upcoming election could lead to significant changes in the tax laws if the Democrats gain control of the White House and Congress, especially for high income and high net worth individuals. Of course, the election outcome is a matter of speculation, and predicting which, if any, of the Democrats’ proposals would be enacted is even more speculative. Still, given the scope of potential changes and the possibility that some or all of these changes could be made effective as of January 2021, it is worth considering if you would benefit from implementing any changes to your tax planning.
Moreover, many of the changes to the tax laws are scheduled to take place automatically at the end of 2025 under current law, and many economists believe that taxes will be increased sooner or later regardless of who is in power so as to address the deficit. As such, these tax strategies might be useful in the longer term even if the Democrats do not sweep the upcoming election.