Republican Leaders Outline Post-Election Agenda

As the midterm elections conclude, Republican leaders in the House of Representatives are weighing in on their legislative priorities for the next two years. Representative Spencer Bachus (R-AL), a likely future chairman of the House Financial Services Committee, and Representative Dave Camp (R-MI), the incoming ranking member of the House Ways and Means Committee, shared their views on the future of tax policy, the economy, and regulatory reform during an interview on CNBC's Squawk Box.

The two Republicans emphasized the need to reduce taxes, cut spending, and promote economic growth. Representative Bachus stated that the American people want limited government, jobs, and a growing economy, and that the new Republican-led House will work to achieve these goals. He also expressed his intention to conduct rigorous oversight of the Obama administration's policies and regulations.

Representative Camp focused on the need for fundamental tax reform to make the US more competitive globally. He noted that the current high business tax rate is a major obstacle to economic growth and that the Republican agenda is centered on preventing further tax increases and implementing pro-growth policies.

The interview also touched on the potential for gridlock between the House and Senate. Senator Judd Gregg (R-NH) suggested that the Senate will become the primary hotspot for legislative gridlock due to the Democratic majority's left-leaning leanings. Senator Evan Bayh (D-IN) countered that the outcome depends on the ideas being proposed by the House, and that moderate Democrats could be willing to work with Republicans if they present sensible proposals.

Key Takeaways:

• Representative Spencer Bachus is likely to become chairman of the House Financial Services Committee and has expressed his intention to conduct vigorous oversight of the Obama administration's policies and regulations.
• Representative Dave Camp has emphasized the need for fundamental tax reform to make the US more competitive globally.
• The Republican agenda prioritizes reducing taxes, cutting spending, and promoting economic growth.
• The House and Senate are likely to experience gridlock, particularly on legislative issues such as tax reform, healthcare, and financial reform.
• Senator Evan Bayh suggests that moderate Democrats may be willing to work with Republicans on sensible proposals.
• Representative Bachus highlighted the need for addressing entitlements and improving education performance as key components of the Republican agenda.

Statistics:

• The US has the highest business tax rate in the world, except for Japan (according to Representative Camp).
• The US unemployment rate has been above its level during the Great Depression for more than a year (according to Representative Camp).
• 16,000 new IRS agents were created as part of the financial bill (according to Representative Bachus).
• Derivatives on exchanges will drive liquidity and impact the economy (according to Representative Bachus).

Sources:

• CNBC Squawk Box interview with Representative Spencer Bachus (R-AL) and Representative Dave Camp (R-MI) on November 3, 2010.
• Federal News Service, "CNBC Squawk Box Interview with Rep. Spencer Bachus (R-AL) and Rep. Dave Camp (R-MI)" (November 3, 2010).