November 2020 Volume 2

WASHINGTON UPDATE

tags (namely an infrastructure initiative). And what would those recommendations look like? Biden has been quite clear that he would look to roll back the 2018 corporate tax cuts to change the rate from 21 to 28 percent, while also going back to the top marginal rate of 39.6 percent for individuals (the current top marginal tax rate for individuals is 37 percent). Infrastructure Vice President Biden has often referred to New Deal-like policies to tackle infrastructure challenges and put people back to work. With a narrower House Democratic majority and Republican Senate, these aspirations are going to be scaled back but are still possible in some form. He would like to implement a $2 trillion infrastructure plan spread over four years that is focused on stimulating the economy while also addressing climate change. In addition to substantial investment in traditional infrastructure projects like roads and bridges, other tenants of the plan include bringing back the successful “Cash for Clunkers” program that was launched in 2009 as a result of the 2008 financial crisis to encourage Americans to purchase more fuel-efficient vehicles, the construction of 500,000 electric charging stations, and setting an ambitious goal of having American-made public transportation buses emit zero emissions by 2030. It is likely that enhanced broadband build-out, particularly in rural areas, will be included. Trade Aside from the USMCA passing in Congress earlier this year, much of what the Trump administration has done on trade has been done by executive order. So in theory, these executive actions could be rolled back. However, throughout his campaign, Biden was noticeably silent on what he would do in this space and so we will be in wait and see mode as to what, if anything, a Biden administration would do with current tariffs. So, We Really are a NationDivided -What Does It All Mean? If you’re a Democrat, the results of the November election show that many of the idealistic and more bold progressive policies that we assumed a Democratic Washington would pursue are now off the table. While Democrats will have control on the House for the 117th Congress and a favorable map for 2022 Senate races, the results show that there are still deep divisions in our country andDemocrats need to tread carefully over the next 24 months in order to maintain their majority in the 2022 midterms. If you’re a Republican, one can argue that the elections showed that Trumpism is alive and well, even though Trump himself lost. So what to do? Work with a new Democratic Biden administration on economic recovery priorities like COVID relief, trade and infrastructure? Or do you look to push back and not allow legislative action to reach the desk of newly sworn-in President Biden? With a tough Senate map in 2022 where Republicans could lose seats, but with a favorable map where they could regain the House of Representatives, these debates will likely be raging within the Republican conference over the next several weeks before a new

Congress convenes on January 6, 2021, and President Biden is sworn in on January 20, 2021. Meanwhile, the COVID pandemic still rages across every state with each passing day bringing new records. Ten million folks have now contracted the virus, with nearly 250,000 lives lost. And both of those numbers grow daily. There has been positive news about possible vaccines, but the final approval of one vaccine, much less the few needed, is still a while away. And we haven’t even discussed how long deployment would take. Bottom-line, COVID is with us for the foreseeable future and our government will have to act not just for the sake of the health of Americans, but for the health of the American economy. Will a dividedWashington come together? We’ll see. Let’s hope. ■

Steve Haro is Principal at Mehlman Castagnetti Rosen & Thomas and can be reached at sharo@mc-dc.com

FIA MAGAZINE | NOVEMBER 2020 9