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Within the first 30 days of a new administration we often seen significant changes at the federal particularly when there is a change in party control of both the office of President and Congress as occurred in 2021. We can expect many changes to tax codes, business regulations, and regulations on personal choices that may will require us to evaluate and make changes to our current plans.

There is no doubt that taxes are going up with the change in administration. Part of it is because the Democrats control the office of President and Congress and their plans for government involvement are materially different than what has existed the last four years. Their view of “economics” seldom leads to tax cuts. On top of the party change, the national debt has grown substantially due to the response to Covid, reduced taxed collections due to government shutdowns, and other factors. This increased national debt will likely call for massive tax increases as well.

Already, we can expect that tax increases will mean increased tax burdens on everyone and even if the taxes are weighted toward “the rich” or “corporations” both of those groups are the primary producers and employers. They will not just absorb these tax increases, they will pass them on to consumers – all consumers.

Many families and businesses are dealing now with possible tax increases and possible elimination or reduction in tax credits such as the unified credit, the estate tax exemption, the issue of stepped up basis, etc. We can help you with reviewing and updating your estate documents, review options regarding taking advantage of existing gifting and credits to lock up values before they disappear.