As Election Day approaches in the U.S., business owners and
their professional advisers are analyzing and evaluating the
potential impact of the election on the business environment. Among
these considerations is the impact of a potential Joe Biden
presidency on the federal tax system.
While we cannot predict the outcome of the election or whether
Biden's proposed campaign tax platform will pass, there are
several components that may shape the landscape of the mergers and
acquisitions environment in particular, encouraging business owners
to consider year-end deals.
Not only does the Biden tax plan propose to increase the
corporate and capital gains tax rates, but it also proposes to
phase out the qualified business income deduction. The prospect of
these key changes has stirred conversation around a possible uptick
in mergers and acquisitions through the end of the year and even
into 2021 as business owners seek to divest their interests for a
lower tax bill.
