Q: As we near the transition to the Biden administration, what policy changes should we be aware of?

A: At this point, everything is speculation. The outcome of the Georgia senate races will make a big difference in Biden’s ability to push through more controversial initiatives like tax increases and clean energy initiatives.

Among the proposals that are likely to get some traction are additional COVID-19 initiatives and a large infrastructure program. These are likely to boost economic growth in the short-term and could see bipartisan support unless many Republicans rediscover a forgotten passion for fiscal conservatism.

We are concerned about President-elect Biden’s proposals regarding employer-sponsored retirement plans. Among them are changes to how retirement plan contributions are treated for tax purposes. This may reduce the incentives for higher-income earners to save without increasing the savings rate for lower- and middle-income households. Not everyone agrees with this assessment