The 2020 Election Could Bring Big Changes to Your Tax Bill
Key themes from the Democratic primary field
With less than a year until the next United States presidential election, Democratic candidates are testing a variety of proposals with voters as they campaign on the primary trail. Not limited to reforms to private and public healthcare programs and changes to tax code to fund their proposals, this article summarizes the core proposals of the top four candidates as ranked by a November 20, 2019 New York Times poll. These proposals represent billions in new taxes mostly from high-net worth and high-income individuals.
In terms of politics, promoting big and bold tax proposals on the campaign trail is much easier than the arduous task of convincing Congress to pass your campaign promises. If Republicans maintain control of the Senate after the election, it will be difficult to pass Democratic tax priorities before the next midterm election. Democrats' need a net gain of three seats in the 2020 election for a voting majority in the Senate if they also capture the White House. This seemed unlikely until the Democrats' strong showing in the November state and local elections. The proposed tax increases are to fund a national healthcare plan, as well as addressing income inequality.
Common Themes from the Top Four Candidates
- New tax on net wealth of ultra-wealthy individuals
- Estate Tax: increase and reduction in the exemption
- Tax Rate: increase plus a surtax on high income
- Corporate Tax: rate increase
- Capital Gains: rate increase
- Carried Interest: rate increase
- Accelerate Depreciation: elimination
- Foreign Income Tax: increase
- Tax on securities transactions
The candidates' views on taxes are evolving and changing. The chart below reflects a general summary of key tax proposals from candidates' published plans and campaign trail comments as of November 20, 2019.
We will keep you informed regarding the impact of the tax proposals on your business and individual taxes as the election season progresses. If you have any questions, please do not hesitate to contact your Boston Private representative.
Boston Private is pleased to announce a partnership with Doug Fisher, a Washington Policy expert, who will offer a series of insights into a number of reform proposals making their way through Congress in 2019. Doug is Director of Retirement Policy at the American Retirement Association. In this role, Doug works with the ARA membership to protect, advise and grow their businesses through ideation and advocacy in the benefits area. Before joining ARA, Doug led Fidelity's legislative policy and thought leadership development teams involving retirement, health and welfare benefit plans. Doug has advised many Fortune 1,000 companies on the impact of legislation and regulation on the design and delivery of benefits. Before joining Fidelity, Doug served as tax counsel to the U.S. Senate Finance Committee and was involved in writing the pension, health and insurance provisions of the Small Business Job Protection Act of 1996; the Balanced Budget Act of 1997, including the Roth IRA, Simple retirement plan, medical savings account (predecessor to the health savings account); and the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
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