NEW YORK (TheStreet) -- In his seventh State of the Union address, President Obama vowed to veto GOP bills aimed at scaling back financial regulation, but don't count the GOP out just yet. "In the House, Republicans have been receiving a substantial number of Democrats supporting bills to roll back parts of Dodd-Frank," Ronald Orol, senior editor at The Deal, said in an interview with TheStreet. "After the change in the hand of Congress, we saw a diminished number of Democrats in the house, say 50 members, support the rollback." Must Read: Jim Cramer Gives His Take on the State of the Union Address Orol says the Senate is a bit tougher to analyze. Republicans need a third of Democrats in the Senate to support some of their bills. "Republicans are running around looking for Democrats to co-sponsor a Dodd-Frank rollback bill, so I suspect there will be some Democrats in the Senate that want to roll back Dodd-Frank, but depending on how many, this will determine whether the president can be successful at vetoing a bill or not," Orol added. Aside from the veto threat comes the possibility of new taxes to pay for social reforms, including a proposal by the president to provide free community college for two years. "This proposal like others, such as raising the minimum wage and a $3,000 tax credit for child care, don't have much chance of passage," Orol said. "But if the college plan passes, there definitely will have to be tax increases to offset these costs, but again these proposals appear dead in the water." The increases would largely stem from higher capital-gains taxes, which Orol says would affect hedge-fund managers and private-equity investors. "Expect to see these discussed in Obama's budget in a couple of weeks," Orol said. Must Read: The U.S. Labor Market’s Chicken-and-Egg Dilemma --Written by Scott Gamm in New York. Follow @ScottGamm.
from Latest TSC Headlines http://ift.tt/1xY7QHz
No comments:
Post a Comment