Unless there are successful challenges by President Trump in several states with respect to vote counts, it appears that Joe Biden has won the 2020 presidential election. The Republican Party picked up seats in the House of Representatives but did not gain majority control. The Senate currently has 50 Republican Senators. Control of the Senate therefore comes down to Georgia and its runoff elections. The Republican party needs to win one of these seats to control the Senate since the Vice-President breaks ties in the Senate.
For clients, gridlock resulting from a divided government for the next two years should prove favorable (or at least provide some certainty that the tax laws will not change). However, we still believe that clients should, in the appropriate circumstances, continue with planning for the following reasons: