Prepare For Potential 2021 Tax Law Changes Now

As a consequence of the results in the U.S. Senate runoff elections in Georgia, the Democrats are, at least in theory, in a position to pass legislation via the "reconciliation process."  Under reconciliation, 51 votes are all that is needed to pass tax legislation, such as Economic Growth and Tax Reconciliation Relief of 2001 and the Tax Cuts and Jobs Act of 2017.

This is, of course, not a prediction that any legislation will pass.  With control of the Senate so closely divided, all 50 Democrats would need to vote on a bill.  This would appear to give various members significant input into the drafting of the legislation.  Given that typically bills are not introduced in the first year of an administration until the spring, the precise changes will not be known for some period.