A sweeping GOP victory has led to both houses of the U.S. Congress being controlled by Republicans. American voters also chose Republican governors in a majority of states. How do these and other recent changes affect snowbirds?
First, there is the so-called “snowbird visa,” which has been held up in the current Senate after passing the House. The new GOP majority could revive the Act, titled Encouraging Canadian Tourism to the United States, which proposes to let Canadians who meet age and residence tests stay in the U.S. for up to 240 days within a calendar year.
Second, three U.S. senators are encouraging closing the border permanently to those who renounce U.S. citizenship.
Third, while it is not likely that the new leadership will call for a change in personal income tax, it will probably address corporate tax avoidance.
However, even before the elections, the IRS announced inflation adjustments for income, gift, estate and expatriation taxes. These affect more than 40 tax provisions. A few of the notable changes include: the tax rate on singles and married couples; standard and itemized deductions; exemptions and Alternative Minimum Tax. Chances are, even before the newly elected officials take office, these and other IRS-mandated changes will have an impact on your taxes, as well as your short- and long-term financial planning.