The year has gotten off to a volatile start—not necessarily in financial markets, but in Washington, D.C. However, despite the chaos of January 6th, we did close the week with two very important issues of uncertainty resolved.
The first is that Congress finalized the certification of electoral college votes in the presidential election. The Georgia Senate runoff was also called, which means that we can now look ahead to potential fiscal policy initiatives and the economic outlook for 2021 and beyond.
With a tie-breaking vote in the Senate, the Democratic party has a majority in Congress as well as control of the White House. Given President-elect Biden’s statements and policy positions, we believe that this will pave the way for more expansionary fiscal policy than we might have otherwise expected.
The incoming administration’s economic team also has a demonstrated interest in issues around employment, socio-economic parity, and support for lower-income earners. This could drive the focus of future COVID-19 relief efforts towards these areas. Of course, this could have an influence on potential tax policy changes, which are all the more relevant given that many of the 2017 reforms are set to expire in 2025.
All that said, we are gearing up for a year that could be as newsworthy as the last one. While much remains unknown, we are here and monitoring the situation for our clients—not just from a market perspective, but with respect to tax policy, the economy, and beyond.
Please do not hesitate to reach out with any questions or concerns. This is obviously a dynamic and, in many ways, a challenging time, and we are here to offer our support in any way we can.