Can tax laws change immediately?

[Sean H.]

I'm probably going to be putting off my big section 179 purchase until next year. But, say Biden gets elected this year, could he immediately cap section 179, so it becomes effective for the 2021 tax year?

[Michael Plaks]

@Sean H.

Politics have never been predictable, and now less than ever before.

That said, for any significant tax legislation to see the light, Biden (or Trump) will need support both in the House and in the Senate. It is highly unlikely that after this election we will see both arms of Congress and the President on the same side, like Trump enjoyed initially. Considering how partisan everything is today, pushing any meaningful legislation through the pipe will be a bloody fight. 

Next, it's hard to imagine that tax legislation will gain enough priority early on, regardless of who wins. We have more pressing issues to deal with, and federal spending is so out of control that taxation will not help. 

Is it possible for a major tax change to be implemented in 2021? Yes, in theory. Can it be applied retroactively to 2021 or even 2020? Again yes, at least in theory. But personally, FWIW, I consider the chances to be pretty slim. (Unlike myself after this quarantine.)