I wanted to briefly touch on President Biden’s tax plan that he unveiled last night.
Over the past several days it has dominated the headlines, with snippets appearing here or there, but in the end, the best action I can recommend at this time is no action.
In my opinion, the rates discussed are not going to end up being where he proposes, and this bill is going to require some political haggling.
And I can hear some of you saying: But Mike, the Democrats have both houses – surely this will pass…
And that may very well be the case, but let’s not forget that the 2022 midterm election is not that far away, and railroading something through without gaining the support of moderate politicians could be a serious miscalculation by the majority party.
What leads me to believe this is the serious differences in each proposal:
Source: Bloomberg
I believe this will lead to a serious discussion around what we consider and prioritize as infrastructure and what we do not.
So stay tuned, as I am sure this will be an ongoing story in the coming months, one that warrants our attention for now and flexibility later.
Financial Recon 