According to a paper by SNR Denton, an international legal practice, more than 80% of voters cited the economy as the most important factor driving their choice at the polls. Now that the GOP has strengthened its role in shaping legislative policy, SNR Denton is expecting to see several changes regarding the economy in the months ahead.
According to the paper, “Election Insight 2010,” some of these possible changes include:
- Reexamination of budget and tax priorities – House Republicans have already committed to passing small legislative initiatives on a weekly basis to cut federal spending, according to the firm.
- Resolving the 2001 and 2003 tax cuts, the estate tax, and the 2009-2010 “tax extenders” issues.
- Targeted changes to the Dodd-Frank Act. SNR Denton thinks it is unlikely that the entire act will be repealed. The firm thinks Republicans will focus on portions of the legislation considered to be most overreaching, such as the newly established Bureau of Consumer Financial Protection (BCFP) and regulation of derivatives.
- Efforts to reform the government sponsored enterprises (GSEs) – Republicans focused on this area are likely to attempt move one or more pieces of legislation to loosen the federal involvement in the GSEs and reform the housing finance system in 2011.
SNR Denton found that “concerns about the continuing frailty of the economy and an anti-incumbent narrative successfully directed against Democrats overwhelmed whatever concerns the voters may have had about the Republicans who will be replacing the defeated Members.”