Election day in the United States was November 3, 2020. Results are not yet official. Nonetheless, as of 3:00 PM EST today (November 11, 2020):
As a result, assuming that projections are correct, it might not be clear until early January 2021 whether there will continue to be divided government at the federal level or whether the Democratic party will control the White House and both chambers of Congress. This lack of certainty has implications for tax planning (including year-end planning). The prospects for the enactment of major tax policy changes in the next couple years can be expected to be lower under a divided government scenario than under a scenario in which one party controls the White House, the House, and the Senate.
Read a November 2020 report [PDF 702 KB] prepared by KPMG LLP that summarizes key election results and provides some preliminary observations regarding the possible implications of the elections on tax legislation in 2021.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.