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Obama victory could mean higher taxes

Merchandise showing President Barack Obama are displayed for sale during an election party at a bar on November 7, 2012.

With the election now in the rear view mirror, a sense of certainty has settled over the political landscape: President Obama will spend four more years in the White House, the Democrats keep their majority in the Senate, and the House remains under Republican control.

So what's next for the economy?

Though it seems like not much has changed, Chris Low, chief economist with FTN Financial, says last night legislators recieved "the stamp of approval of the voters" and will come back energized for the next term.

Last night in his victory speech in Chicago, President Obama laid out a basic agenda for his next four years: "You elected us to focus on your jobs... I am looking forward to reaching out and working with leaders of both parties to meet the challenges we can only solve together: Reducing our deficit, reforming our tax code, fixing our immigration system, freeing ourselves from foreign oil."

First up will be negotiations over automatic spending cuts and tax increases. Low predicts Democrats and Republicans will come together and strike a "grand bargain" to avoid the so-called "fiscal cliff". Yet, with an Obama victory, Low says some taxes are likely to go up.

 

 

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.
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Did I miss the news last night? Was Grover Norquist ripped limb from limb last night by an angry crowd of congressional pages? Did Chris Low find a survey that says Americans' approval of Congress went from 15% to 99%? Is this post a cross of communications lines with the Daily Show?

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