Outlook For The 111th Congress

Economy Is Job #1

While both presidential campaigns made bold statements about enacting sweeping reforms to effectuate change throughout government and virtually every sector of the economy, the Obama Administration and the 111th Congress will be faced with the reality and challenges of a sinking economy and unstable financial markets. We can expect that economic stimulus proposals and other efforts to create jobs, bolster consumer confidence, and place financial institutions on sound footing will take precedence over other issues. The growing budget deficit, the possibility that pay-as-you-go rules will be adopted again by the House of Representatives, and the increasing numbers and clout of conservative Democrats in Congress will mean that every spending proposal will face intense scrutiny and some may not be adopted unless the cost is offset by spending cuts and/or tax increases. It remains to be seen how Congress will deal with the Alternative Minimum Tax, which