What to expect now the elections over

What to expect now the elections over

In the week after the election, pundits, politicians and prognosticators are pondering likely next moves by Congress and the White House. The fiscal cliff looms, with $700 billion in tax increases and spending cuts set to start January 2, 2013, without swift action on Capitol Hill to come up with a deficit reduction plan in the lame duck session.

Some post-election predictions from the Small Business Legislative Council (SBLC) for 2013:

Health care reform will take effect as planned in 2014, though Congress might throw in some obstacles or make some tweaks.

Taxes will increase, as soon as January 1, for those making $250,000 or more.

New regulations in environmental, labor relations and workplace safety and health can be expected in 2013.

Tax reform is a likely component of any deficit reduction deal.

House Speaker John Boehner (R-Ohio) has said he is open to new revenue measures but is not willing to let tax cuts for those earning more than $250,000 expire. The SBLC says the taxes most likely to be used to help balance the budget are the Alternative Minimum Tax, which would affect more taxpayers than currently, and the estate tax, which will likely remain where it is.

If Congress fails to act, the Bush era tax cuts would expire on December 31, an action some economists believe would trigger a new recession in a fragile economy. At a minimum, car sales would be hurt as consumers pull back on making new purchases. The Washington metro area could quickly lose up to 95,000 federal contractor jobs and as many as 65,000 direct federal jobs, George Mason University public policy professor Stephen Fuller told wtop.com.

Another expected result of Obamas re-election could be a renewed interest in pushing electric vehicles. The president has set a goal of 1 million EVs on the road by 2015, and there are no indications that will change. Obama also proposed in February that the tax credit for EVs be raised from $7,500 to $10,000.