The Washington Update
As he enters his second year in office, President Biden faces a full agenda. His priorities include stemming the ongoing Covid pandemic, reducing inflation, freeing up the nation’s supply chains, overcoming the labor shortage, and handling simmering relations with Russia....
As he enters his second year in office, President Biden faces a full agenda. His priorities include stemming the ongoing Covid pandemic, reducing inflation, freeing up the nation’s supply chains, overcoming the labor shortage, and handling simmering relations with Russia.
An additional priority is securing passage of at least portions of his Build Back Better Plan to expand the nation’s social programs. Congressional approval is not a given. Passage requires the support of all fifty Democratic Senators, some of whom are skeptical about the scope and cost of the legislation. The debate will lead the headlines, as Democrats go back to the drawing board. Depending on the breadth of the bill, the markets might have to contend with a substantial increase in US debt.
To pay for at least some of its outlays, the Build Back Better Plan incorporates tax increases, the bulk of which would fall on affluent investors and businesses. The legislation would impose surtaxes on high-income taxpayers, increase taxes on owners of pass-through entities, and limit the size of retirement accounts. These changes would substantially impact tax planning. The legislation also would raise taxes on large corporations, particularly those with overseas operations, potentially reducing their after-tax earnings and equity valuations.
Overhanging these matters are the midterm elections, where Democrats hope to hold onto their whisper-thin Congressional majorities. Doing so will be a challenge, particularly in the House, where off-year elections typically favor the party out of power. The election results have the potential to upend the Washington power structure for the final two years of Biden’s term.
In his Washington Update, Jeff Bush delivers a nonpartisan, comprehensive review of these and other Washington developments and their potential effects on taxes and investing. His presentation includes a detailed analysis of proposed tax changes, the likelihood of passage, and planning ideas to help investors prepare. He also focuses on the likely results of the midterm election, and how those results could affect taxes, the economy, and the markets going forward.
Jeff’s unique insights allow investors and financial advisors to navigate the changing landscape in the nation’s capital. Those insights include ideas investors and advisors may consider to take advantage of (or protect against) market effects and volatility arising from Washington initiatives, together with specific strategies for investment, wealth transfer, and retirement planning.
