How the 2022 Midterm Election Will Impact You and Your Clients
On Tuesday, November 8, United States elections for the year 2022 were held. During this important midterm election, more than one-third of the seats in the Senate and all 435 seats in the House of Representative were contested. Now that the results are in, we know that Republicans will control the House and Democrats will retain control of the Senate come January. What does this mean for you and your clients?
With a Republican-controlled House and a Democratic-controlled Senate, it seems likely that any legislative action, outside of must-pass legislation such as funding the government, will come to a screeching halt. And negotiations on even the must-pass legislation will likely be factious, with each party seeing it as their only opportunity to pass policy.
GOP power in the House means Republicans will likely bring congressional investigations of certain people, policies, and corporations. For example, congressional hearings for the Justice Department's handling of the Trump Mar-a-Lago investigations and telecommunications companies that cooperated with the January 6 committee seem likely. Republican members of the House have also signaled support for probes into Hunter Biden, the White House's handling of the southern border, and President Biden's withdrawal from Afghanistan. Some far-right members have also said they would try to launch impeachment proceedings against President Biden, although this effort would likely not get far because the Senate, which has sole power to conduct impeachment trials, is controlled by Democrats.
The Republicans' agenda will likely include putting an end to Build Back Better, and they may also attempt to get spending cuts as concessions from the White House when the time comes to raise the cap on government spending in 2023.
On the other hand, Democrats will focus on what they can do with the Senate's power: confirming federal judges and executive branch appointments. Since only a simple majority in the Senate is required to confirm judicial nominees for district courts, circuit courts, and even the Supreme Court, a Democratic Senate will be able to confirm more of President Biden's choices.
The Democrats' retention of a majority in the Senate also means that they can determine legislative priorities-Senate Democrats can set their own floor agenda and reject bills approved by the Republican-controlled House. They can also ensure that hearings and committee time are not used on investigations of President Biden and other members of his administration.
In reality, at this point all we can do is speculate until the new congressional session begins. With such uncertainty, it is important to make sure we are meeting with clients and keeping them up to date. Life events such as marriage, divorce, birth, and death can have a major impact on our clients' lives and necessitate a review of their estate plan. It is up to us to remind our clients that comprehensive planning is not a one-and-done event. Although it appears that there are no substantial legal changes impacting our clients' financial and estate plans today, we pride ourselves on being your source for relevant estate planning information and look forward to working with you into the next year.
MEREDITH | PC
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Flower Mound Texas 75028
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This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
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