Democrats and Taxes

From the Western Ag Network, I’m Bob Larson. The 2026 elections have changed the political landscape in Washington D.C., but could that have implications for federal tax policy over the next two years?

Roger McEowen, Professor of Ag Law and Taxation at the Washburn University School of Law, says you’ll likely see considerable political discussions about taxes, but he wouldn’t expect much actual tax legislation over the next two years …

McEOWEN … “The important distinction is between controlling Congress and actually changing the tax code. So, Democrats will control the legislative agenda and the committee assignments and oversight activities starting in January. They'll have opportunities to introduce legislation and hold hearings, but the Constitution's in their way.”

And that, McEowen says is the way it’s set up …

McEOWEN … “What I mean by that is President Trump remains in office. He has veto authority. So any legislation designed to reverse significant portions of the One Big Beautiful Bill would have to receive his signature or get enough votes in both chambers to overwrite a veto, and that requires a two-thirds vote, and they don't have that. And so that's a substantial obstacle.”

McEowen says it’s not guarantee, but in all likelihood …

McEOWEN … “So the bottom line, I think while the political rhetoric may get louder, farmers and ranchers shouldn't assume that the tax rules are about to change.”

McEowen expects very little significant change to the federal tax code over the next two years.