Democrats won control of both the U.S. Senate and House in the Nov. 3 midterm elections. What does this mean for federal tax legislation over the next two years? Democrats could pursue repealing or revising some tax provisions of 2025's One Big Beautiful Bill Act or implementing other tax law changes. However, President Trump's veto power and Senate procedural rules may make major tax legislation difficult to enact without bipartisan support. Negotiations over federal spending and the debt ceiling could also become contentious. Stay tuned for developments.
