Democratic Control of the House Could Mean for Your Wallet
The Democrats’ success in winning back control of the House comes after an election in which economic issues were often overshadowed. Still, the change on Capitol Hill will make a difference on some spending priorities and tax policy.
House Democrats are in a position to block Republicans from extending the temporary tax cuts and provisions enacted last year, and from giving further breaks to businesses. President Trump even talked at his Wednesday news conference about working with Democrats to raise business taxes to pay for a middle-class tax cut.
Teaming up to rebuild infrastructure is another possibility, the president said.
The momentum on health care has shifted toward shoring up and improving the Affordable Care Act and reining in prescription drug costs, an issue that has caught Mr. Trump’s attention as well. Republican efforts to shrink spending on what are known as entitlement programs Medicare, Social Security and Medicaid will also be shunted aside with Democrats pushing to patch up the safety net.
Prospects for agreement, though, are still sketchy. Republicans and Democrats “can have overlapping positions,” said William G. Gale, co-director of the nonpartisan Urban-Brookings Tax Policy Center in Washington. “But any compromise requires trust, and I just don’t think there’s any trust available right now.”