Today is Election Day—an invaluable opportunity to collectively influence policies that shape the financial landscape for business owners and individual taxpayers alike. As you consider tax strategies for the coming year, remember that voting also plays a critical role in shaping the environment around these strategies. Consider this another tax planning tactic in your toolbox.
This election cycle offers a variety of perspectives on tax policy. Some candidates focus on reducing taxes to relieve financial burdens on businesses and individuals, while others prioritize increasing taxes on wealthier individuals and corporations to fund essential services. While these differences are significant, enacting sweeping tax changes usually requires a “trifecta” in government at the federal level—where one party controls the presidency, House, and Senate. For instance, the Tax Cuts and Jobs Act (TCJA) of 2017, which brought substantial changes to tax rates and deductions, was achieved under a unified government.
The political chatter is cheap, but the summation of these concepts do give us a glimpse of what may be in the future:
No tax on tips, Social Security income, or overtime
Reduced vs increased tax rates
Car loan interest deductions
Large expansions of child tax credits
Taxes on unrealized gains
Increased capital gains tax rates
In other words, a whirlwind of oppositional statements and ideas that may or may not ever come into reality.
Why is this important for you as a business owner or taxpayer? With the scheduled sunset of TCJA benefits in 2026, this election is a timely reminder to review your tax planning strategy. While dramatic changes to tax policy may not be immediate without a trifecta, appropriations, funding, and smaller adjustments can influence the financial environment. By voting, you’re not only exercising a civic duty but also supporting tax policies that align with your goals and those of your business and family.
Taking action on Election Day is an effective way to support your desired future tax strategies. As always, we’re here to help you navigate the tax planning landscape, whether it’s adjusting for current laws or preparing for potential changes. Schedule a free consultation to see how we can help you stay ahead, no matter what the future holds.
Go out and VOTE!