Republican Control of 108th Congress

Jan. 7 -- Twenty-five months into George W. Bush's presidency, control of the government is back where he wants it: in Republican hands.

Today marks the first day of the 108th Congressional session and welcomes 52 freshman faces in the House of Representatives and 9 new senators to Washington; the historic midterm shift puts Republicans firmly in control of Congress and gives Bush a second chance to more easily push his domestic agenda.

Deterred momentarily by a Democratic win in Louisiana's Senate runoff race and, more significantly, by last month's controversy surrounding racist remarks uttered by then-Majority Leader Trent Lott, R-Miss., most experts now expect Republicans to bound out of the new Congress' gates with a slew of domestic proposals.

Though the tone and priority of such proposals will likely be set by the president's third State of the Union address later this month, several issues are more likely than not to surface in the GOP's Washington.

Economy

In 2002, Wall Street tumbled and accounting scandals scarred the summer, but make no mistake, this adminstration understands former President Bill Clinton's 1992 battle cry: "It's the economy, stupid."

On his ranch in Texas last Thursday, Bush insisted, "Now, I recognize there are some uncertainties. But one thing is certain — that the economy of the United States is resilient."

With Congress back in Republican hands, the president is expected to pursue an economic stimulus that aims to speed up 2001's tax cuts in all income brackets. White House aides also say that Bush may support eliminating taxes on stock dividends and a cut in certain business taxes as well as increasing child care tax credits.

Last week, Democrats pounced on the suggestion of a corporate tax cut.

In the Democrats' weekly radio address, Senate Minority Leader Tom Daschle, D-S.D., retorted, "The tax break the president is said to be proposing is the wrong idea at the wrong time to help the wrong people."