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ENGRAVING BY LEGISLATION BYASHLEY DAVID HICKEY BRAY
Things to Come
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s the new year rolled in, it brought a new look in Washington. We saw the transition of the White House from Republican to Democratic, a split Senate (with ties broken by the Democratic vice president), and a tightening of the Democratic majority in the House. No matter how you feel about the results personally, it is clear that a new presidential administration and new Congress can impact our industry in the months and years ahead. Of course, there are complicating factors, such as the slim margins in Congress and the priority of fighting against COVID-19. These may slow any initial changes. But looking at President Biden’s experience through four decades in the Senate and as vice president, we can get some insight into how he might govern.
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Sign Builder Illustrated
March 2021
During the campaign, Biden promised to provide incentives for smaller manufacturers (particularly those owned by women and minorities) and to invest in new technologies such as electric vehicles, 5G networks, and artificial intelligence. Other campaign promises vowed to deliver universal paid sick days, twelve weeks of paid family and medical leave, and a fifteen-dollars-per-hour minimum wage. There are issues that are bipartisan in nature, and with neither party completely dominating Congress, we might actually see some success here. That could include more infrastructure spending, stimulus packages to help the economy recover from the pandemic, workforce development programs, and immigration reform. Here are a few areas that should be on your watchlist for 2021 and beyond:
Tax Policy President Trump pushed through tax cuts in 2017 that have a high probability of being overturned in the new Congress, and which will especially affect those sign and graphics companies that file as S-corps, or pass-throughs. It is anticipated that the top individual tax rate will increase from 37 percent to 39.6 percent and that we will see a phaseout of the 20 percent deduction for qualified business income. It also is likely that the corporate tax rate will increase, too, from 21 percent to 28 percent. The estate tax exemption is likely to return to pre-2017 levels of $5 million instead of the Trump-era $11 million. Regulations The new administration’s regulatory apsignshop.com
Photo: Shutterstock/Stratos Brilakis.
A preview of possibilities during the Biden administration.
