2020 Election: Insights for the middle market

additional election insights

Policy snapshot: Life sciences

Biden plans to expand Medicare, a move that the Congressional Budget Office estimates would cut drug spending by $450 billion over 10 years.

Policy snapshot: Consumer products

The immediate actions of the Biden administration will most likely be focused on efforts to combat the COVID-19 pandemic.

Policy snapshot: Family offices

Now that Democrats’ best-case scenario in the Senate is a 50-50 split, it is safe to expect significant challenges to tax policy changes.

Policy snapshot: Capital markets

Biden’s victory will inevitably lead to changes at the top of key regulatory agencies, which will help him push his regulatory agenda.

Policy snapshot: Specialty finance

Middle market consumer loan companies and loan servicers will most likely face a dramatically different regulatory environment.

Policy snapshot: Banking

With Biden’s big-ticket items such as tax changes almost certainly off the table, the focus of banking will shift to regulation.

Policy snapshot: Technology, media and telecom

We expect the Biden administration will bring heightened oversight of anti-competitive behaviors, and the privacy and security of data.

Policy snapshot: Manufacturing

We expect Biden to be more supportive of free trade, even though Biden’s “Buy American” proposal does reflect protectionism.

Policy snapshot: Real estate

Based on Biden’s campaign platform, long-term capital gains, currently taxed at 20%, would be taxed at ordinary income rates.

Policy snapshot: Energy

Companies should assess Biden’s pledge to invest $1.7 trillion over the next 10 years toward the goal of achieving 100% clean energy.

Policy snapshot: Government contracting

The new Democratic White House hopes to usher in an extended period of greater government spending.

Policy snapshot: Health care

Biden will want to strengthen and expand the Affordable Care Act; however, he could face Senate opposition.

Policy snapshot: Private equity

It remains to be seen whether the transition to the Biden administration will have a significant impact on the private equity industry.