Will the new Congress take a new direction?

• Author: Roberts, Tyler
• Position: Washington insights

On Jan. 5, the 112th Congress of the United States will be sworn in. In the House of Representatives, a new style of governing and a host of new legislative initiatives will be on the docket, as Republicans reclaim the lower chamber for the first time since 2006. Democrats will still control the U.S. Senate, but with a smaller majority, as Republicans gained six seats in the midterm elections.

FEI members can expect active discussion in Congress on the debt and deficit, an attempt at revising health care reform and quick legislation aimed at lowering the unemployment rate that remains uncomfortably high at almost 10 percent. It will be up to both parties--in a bipartisan fashion--to get vital legislation passed.

There will be many priorities on the legislative calendar in the weeks and months ahead. Republicans will look to tackle the staggeringly high unemployment rate, despite word from Federal Reserve Chairman Ben Bernanke that long-term high unemployment is likely here to stay.

Regardless of party, voters made it clear in November that jobs should be a top priority of the incoming Congress. If jobs do not materialize in the next two years, voters will hold incumbents (House Republicans and President Barack Obama) responsible, much like they put the blame on Democrats in the last election.

There will be fundamental debate in Congress on the deficit and tax reform policy. With Republicans in power, it's expected that many of the new proposals will be favorable to businesses and that a reduction in spending will be aimed at bringing down the deficit.

Republicans will likely attempt to repeal President Obama's health care reform law, but it is largely viewed to be symbolic. With Obama in the White House, any appeal reaching 1600 Pennsylvania Avenue would likely get the veto pen.

A more realistic approach would be working with Democrats on issues of mutual agreement. One of these is repealing the requirement that businesses file a 1099 form for services of more than $600. Bipartisan attempts to repeal this in the last Congress failed, and it will be a good way for both sides of the aisle to agree on legislation.

The leadership style of the incoming Speaker of the House John Boehner (R-Ohio) differs from that of outgoing Speaker Rep. Nancy Pelosi (D-Calif.). Boehner has said that most legislation in the new Congress will come from House committees, as compared to the current system established by Pelosi, in which legislation was formed by a...