Post-Election Tax Consequences
September 18, 2020
Concerned about how the election outcomes may impact the economy? Catch our newest TrendsTalk episode with ITR CEO and Speaker Brian Beaulieu to learn our expectations for taxes post-election.
Transcript by Rev
Hello. Welcome to this edition of TrendsTalk. I'm Brian Beaulieu, CEO and Chief Economist of ITR Economics, and glad you joined me today.
We're going to talk about something that is often a politically-laden topic, but we're not going to drag politics into it. It really is economics, it's about taxes. We have a major election coming up in November, and there are likely some tax consequences that are going to come about. We're not going to know until after the election, whether it's President Trump or President Biden. We're not going to know whether it's a Democrat-controlled Senate, or the Republicans are still in charge of the Senate. Those are the key issues when it comes to thinking about the taxes.
Candidate Biden's, Vice President Biden's proposals on taxes are out there. They're known, and they are going to result in tax increases. If he has the Congress to support him, for corporations and for high income individuals, that has consequences upon the economy. Alan and I are going to have a webinar after the election so that we know what we're dealing with, then we can break it down for you. But there's a new wrinkle in this, and someone reminded me of this recently.
Taxes can be increased retroactively. Bill Clinton did that in 1993, with the Budget Reconciliation Act. I think it was '93, it could have been '95. It was in the early part of the 1990s. He raised taxes along with the Congress and said they're applicable back to Jan 1. So if that happens and all of a sudden we owed this money back to Jan 1, that's going to put the brakes on the economy more so than we would normally be looking at. Now, it's not normal to make them retroactive, but that's, what's keeping me up. That's one of the little monsters under my bed at night when I think about economics and what could go wrong.
Stay tuned. There's a lot for us to talk about. You should be thinking about that little monster too. This is TrendsTalk. I'm Brian Beaulieu. Thank you for joining me.