Barron’s predicts GOP takeover of U.S. Senate

The cover of the latest Barron’s features an illustration of a blue-suited elephant holding a gavel. It’s designed to signify Republican control of Congress, a prediction spelled out in Jim McTague‘s cover story.

An analysis of this fall’s 33 Senate races sees Republicans poised to pick up as many as six seats, overturning Democrats’ current 53-47 advantage. We also see the GOP adding a seat in the House, pushing its majority up to 243-192. …

… For investors, our prediction is good news. GOP control of Congress will likely mean that most individual tax rates will stay where they are, and that Congress and the president may be able to agree on some serious spending cuts and major corporate-tax reforms. Steep reductions in defense spending probably will be curtailed, making this an auspicious time to invest in the sector. Regulations and policies inhibiting the production of domestic oil and gas will be relaxed. And the 2010 health-care bill passed by the Democratic-controlled Congress will be repealed.

Mitch Kokai / Senior Political Analyst

Mitch Kokai is senior political analyst for the John Locke Foundation. He joined JLF in December 2005 as director of communications. That followed more than four years as chie...

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