Well, it's pretty clear who's got the momentum. Republicans staged a comeback of historic proportions Tuesday, winning at least 60 seats in the House of Representatives and gaining in the Senate. Angry voters threw a whole lot of people out of office. So what momentous changes are in store for our economy as a result?
- Taxes: For all their fire and brimstone, Republicans were actually running to maintain the status quo on taxes, opposing the expiration of Bush tax cuts on income and investment gains. Even Obama wanted to leave cuts in place for about 95 percent of the country. So while we may see a lot of confusion early next year, most people's taxes will remain the same. One caveat: $240 billion in Obama tax cuts—part of the 2009 stimulus plan—will expire, so some taxpayers will face a slightly higher bill. MoneyWatch blogger Carla Fried breaks it down for you in her post-election tax story. (She also notes that long term we're in a pickle: Congressional Budget Office estimates that leaving the tax cuts in place doubles the projected deficit in 2020.)
- Stock Market: Market gurus expect stocks will climb in response to the mid-term elections — in fact they almost aways do. One strategist predicts an 8.5% bump in the next few months. So why not jump on the rally bandwagon. Allan Roth explains why he's selling stocks.
- Financial Reform: The big news here is that any further regulation to address the causes of the 2008 crash are probably doomed. Economist Mark Thoma explains what happens to the financial sector under the new Congress.
- Jobs and the Deficit: The election is over, but the country's economic problems remain. Here is our recap of the best ideas to come out of the campaign: two favored by Republicans, two favored by Democrats, and one tough decision that no one wants to face.
- What the Republican Mid-Term Win Means for Your Taxes
- Will the Elections Results Send the Dow Higher?
- How the Republicans Will Change Banking Rules
- 5 Ways Congress Can Fix the Economy Now