Describing Tuesday’s national and state elections as a “status quo election,” NAPA’s Executive Director and Washington insider Brian Graff notes that, despite spending about $5 billion on this year’s elections, things remain largely unchanged — with President Obama still in the White House and control of House and Senate remaining the same, and with about the same balances of Republicans and Democrats.
Plan advisors should pay close attention during the upcoming 6-week lame duck session of Congress, Graff recommends. “How are they going to deal with gridlock? Is there going to be an openness to compromise that didn’t exist prior to the election? Are Republicans in the House going to be more open to the idea of some form of tax increase on higher income households? Is Obama willing to bend a little bit on his threat that if they aren’t, he’ll veto a tax reform bill? That’s what the markets are going to look at.”
This is all part of the looming “fiscal cliff,” Graff notes — a confluence of three adverse elements: the Bush tax cuts expiring at the end of the year, the debt ceiling being reached either at the end of this year or the beginning of next year, and sequestration going into effect next year if nothing is done. “This could have a big impact on the market, and in turn, on folks’ retirement savings accounts,” he warns.
For more on Graff’s take on what it all may mean for plan advisors, watch the “Washington Update: November” video in the right margin.
What’s your take on what the election results mean to the advisor community? Use the “Post Comment” box below to share your thoughts.
