Chaos and Democratic Senate

Just when we thought 2021 was going to be a better year, the first week included terrorists storming the capitol building. I’m not going to go dive any deeper besides saying that our country is the laughing stock of the world right now.

I was admittedly very surprised to see the Democrats win both of the Senate seats in Georgia in the special run-off election. Given Georgia’s history going red, this is a tremendous feat by the Democratic organizers (ahem Stacey Abrams) and perhaps a testament to how bad things have gotten for the Republicans.

Now that the Democrats control the House, Senate and White House, I expect lots of legislation to pass very quickly. I’m hoping that lawmakers work quickly on things that are much needed such as climate change and COVID relief.

I’m already getting a lot of questions on the potential tax changes, specifically whether Biden will remove capital gains tax altogether.

My guess is that there will not be major tax reform on the docket in the next year. There are too many other pressing issues such as COVID relief. We are still in the middle of a pandemic and leaders will be addressing that head on.

People are quick to forget that both Trump and Obama both said they would eliminate the capital gains tax which obviously did not happen.

Increasing capital gains tax will undoubtedly have a major impact on the market. A crashing economy is possibly the worst thing that can happen for the “blue wave” and I just don’t see the Democrats trying to piss off Wall Street anytime soon.

There is simply too much that can go wrong with raising the capital gains tax and I don’t see democrats touching that and ruining the momentum they’ve had from the past two elections.