Washington area voters prove bullish on their incumbents

Washington area voters prove bullish on their incumbents

The great Republican election resurgence notwithstanding, Washington area voters stuck with their incumbents in the mid-term elections concluded this week. Most incumbents from Metropolitan Washington locations were Democrats, who, in the House of Representatives, will be losing the power base that led to passage of legislation like Heath Care Reform and Finance Reform, but also the industry bail out and important dealer protections.

Democrats Steny Hoyer, majority leader in the House, and his colleague Chris Van Hollen, along with Senator Barbara Mikulski, came back strong, having been especially helpful to the auto industry. In addition, Reps. Donna Edwards of Maryland and Jim Moran in Virginia were reelected handily. Northern Virginia Congressman Gerry Connolly as the Democrat is likely to have his election subject to a recount because it was so close with his Republican counterpart Keith Fimian. Rep. Frank Wolf, the lone Republican incumbent in Northern Virginia and around the Capital Beltway, was also reelected.

Come 2011, Republicans will chair all the committees in the House and bring with them a lawmaker mentality that is at odds with the big government legislation passed in this Congress. The most prominent committee chair to watch will be the House Energy and Commerce Committee, with its oversight of the auto industry. The committee is currently headed by Rep. Henry Waxman (D-CA), a longtime thorn in the side of the auto industry, and business in general. Likely to replace Waxman is Rep. Fred Upton (R-MI), who should have a fluid and favorable auto industry perspective.

With the changeover at the Energy and Commerce Committee, it is likely that any push for further regulation of the industry, like higher fuel economy or tougher safety standards, will fail.

Meanwhile, indications from the White House and returning Democrats suggest that action may be forthcoming within the lame duck session to repeal or significantly amend the controversial 1099 tax reporting rule that was included in Health Care Reform. The controversial measure requires businesses to issue a 1099 to any vendor with whom they do more than $600 in business and had been used as a prime example of government overreach during the elections.

For more on the meaning of the mid-term elections, area dealers will want to attend WANADAs Annual Meeting and Luncheon on Nov.23 at Congressional Country Club, where Fox News anchor Chris Wallace will provide his insights. (See story that follows)