The two runoff elections in January to choose Georgia’s senators could have a direct effect on the bank balances of companies nationwide. That’s because Georgia’s voters will determine which party controls the Senate, which in turn will heavily influence whether President-elect Joe Biden’s business tax proposals become law.
The stakes are high. Biden has advocated for several tax increases on companies, starting with a substantial increase in the corporate tax rate, currently 21%. “There is this dynamic that Presidents do come back to the topic of tax over and over again,” says John Gimigliano, a principal at KPMG who previously served as senior tax counsel for the House Ways and Means Committee. “What does this tell us? Taxes are the Swiss Army knife of policy implementation—a one-size-fits-all tool for doing indirectly what you might not be able to do directly.”
Even if the Democrats don’t achieve a Senate majority, … Read More