Senator Barack Obama’s historic victory as the first African-American President of the United States also marks a milestone in the history of the Democratic party, as for the first time since 1992, Democrats will control the White House and both houses of Congress. Consequently, with the expanded majorities in favor of the Democrats in both chambers of Congress, it is expected that legislation and presidential nominations (e.g., Supreme Court Justices) will be easier to move.

The transition period is a key indicator of the new Administration’s priorities. In addition, a review of the Democrats past failures in the last Congress could be indicative of the Democratic priorities for new legislation. These include for example, increased taxes on the oil and gas industry ("windfall taxes") and reauthorization and expansion of the State’s Children’s Health Insurance Program.

With the economic crisis at the forefront of this election result, President-elect Obama will be inheriting a severe budget deficit, the $700 billion committed as part of the Emergency Economic Stabilization Act, the ongoing spending in Iraq and trillions in future entitlement promises through Medicare and Social Security. As the expiration of Bush’s tax cuts won't 'foot the bill' the revenue raising offsets expected include:

• taxation of carried interest for private equity and hedge funds;

• increases in capital gains taxes;

• taxation of repatriated corporate income; and

• higher marginal rates for certain individuals.

The likelihood of such a morbid fiscal reality can only increase, especially in view of Obama’s health care, energy and environmental policies.

Despite the second economic stimulus bill/package to be considered from November 17th by the current Congress, speculation in respect of this 'Lame Duck' session suggests that Congress will only consider bills that are deemed essential to pass before the new Congress convenes in January and inaugurates its new era.