Republican Gains Raise Hopes Of Further US Tax Cuts

by Mike Godfrey, Tax-News.com, New York

07 November 2002

Unexpected gains for the Republican party in US mid-term congressional elections have left the GOP with a 24-seat majority in the House, and a 3- or 4-seat majority in the Senate. Although a super-majority (60 votes out of 100) is needed to overcome procedural hurdles in the Senate, the Republicans will have a far easier time in future in following out their policy agenda.

Senator Trent Lott (Rep - Miss.) said yesterday that the economy will be their first focus. "We need to take a good look at the economy and see where there are some places that we can help the economy," Lott said on the CBS "Early Show."

Senator Lott is the current minority leader, and likely to be the next majority leader. He said that a GOP economic package could include new tax cuts, but that the GOP would also work to control federal spending. But before the new Congress begins in January, there will be a 'lame duck' session in which the existing Congress will try to tidy away outstanding legislation from the past session.

Lott said it would be difficult to finish work on 13 appropriations bills for fiscal 2003. The urge to compromise will have deserted Republicans, anticipating their greater freedoms after 1st January. "I don't think it's possible," said Lott on Cable News Network, suggesting instead that Congress tries to put through a further continuation of last year's spending bills.

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