2022 Elections Are Over, Now What?
Episode 206 – 2022 midterm elections are over and legislative gridlock will continue. That’s why it is important to plan for our future financial security against the unexpected.
Transcript of Podcast Episode 206
Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, 2022 Elections Are Over, Now What?
Going into the 2022 national midterm elections, many professional prognosticators predicted a red wave of Republicans winning their Congressional races and taking control of the Senate and the House of Representatives. Instead, the elections ended with a trickle. The Democrats retained control of the Senate and the Republicans eked out a slim majority in the House, leaving us with divided government. So what does all this mean for us–the public?
The new Congress will be seated on January 3, 2023. In the meantime, during the lame duck session, Democrats still control the Presidency, the Senate, and the House. They will work on passing legislation to fund the federal government. They must also pass the annual National Defense Authorization Act to fund the Pentagon and national military policy. That’s expected to get bipartisan approval. The proposed Respect for Marriage Act, which seeks to provide federal protection to same-sex and interracial marriages has also received bipartisan support and may be passed.
The House January 6th Committee has yet to finish its work and issue its final report and findings on how the Capitol riots happened and how to prevent it in the future. The new Republican controlled House will surely disband that committee. The House previously passed The Electoral Count Reform and Presidential Transition Improvement Act that contains provisions that would make it harder for the losing Presidential candidate to contest the election. The Senate is expected to take up the proposal with some bipartisan support. Since Democrats have retained control over the Senate, they are expected to continue appointing federal judicial nominations which would continue into the new Congress.
What will happen in 2023 and 2024 during President Biden’s last two years of his term? With a divided legislature, many of the key campaign proposals made by President Biden will probably not come to fruition, including tax reform, increasing taxes on the wealthy, and increasing corporate taxes. These proposals will fall by the wayside because unlike in 2022, legislation cannot be pushed through using the process of “reconciliation” without bipartisan support. Efforts to legalize abortion throughout the country will be blocked but at the same time, so will efforts to further restrict abortions. Fights over the future of Medicare and Social Security may ensue but with little substantive legislation expected. Increased questioning over support for the war in Ukraine is expected and more efforts to compete and otherwise deal with China’s aspirations may be more focused. Proposals to limit government spending and combat inflation will continue to be debated. Negotiations are expected with regard to eliminating or extending certain provisions of the Tax Cuts and Jobs Act of 2017 because those provisions expire after 2025. That is also expected to be a major focus for the 2024 elections.
So, with legislative gridlock expected, we must all do the best we can by continuing to plan for the unknown. Just because something exists today does not mean it exists forever and that’s why planning for our future financial security is more important than ever. That includes saving more for the future, being tax aware, and ensuring that we are fully insured through life and disability income insurance to ward off the effects of an unexpected tragedy.
Contact your Security Mutual Life insurance advisor today to review your goals and objectives and plan for your future now in an uncertain world.
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