Wed Nov 7, 2012 4:13am EST
* Democrats score wins in Massachusetts, Indiana
* Both parties seen fighting over taxes, spending cuts
* More polarized replacements for moderate Democrats, Republicans
By David Lawder
WASHINGTON, Nov 7 (Reuters) - Democrats were poised to boost their thin U.S. Senate majority early on Wednesday, taking over hotly contested Republican seats in Massachusetts and Indiana while holding on to most of those they already had, including in Virginia and Missouri.
While the result was no surprise, Republicans had given themselves an even chance of winning a majority, so the night represented a disappointment for them, especially for the Senate's Republican leader, Mitch McConnell, thwarted in his twin missions of taking over the Senate and defeating President Barack Obama.
Overall, Democrats were poised to boost their majority from 53 to 55, counting two independents who vote with the party in the Senate.
The Republican setback was in part self-inflicted, the result of internal battles waged in the party.
Had conservative Republican Richard Mourdock not defeated veteran moderate Richard Lugar in Indiana's primary, for example, that seat might have stayed in Republican hands instead of being won by Democrat Joe Donnelly on Tuesday.
Missouri Senator Claire McCaskill, who kept her seat on Tuesday, had been considered a vulnerable Democrat until conservative Todd Akin won the state's Republican primary.
Akin and Mourdock stumbled badly with remarks about abortion that were widely criticized as unsympathetic to rape victims, handing Senate Democrats two of Tuesday's biggest wins.
The election left the Senate somewhat more polarized, with generally fewer moderates and more conservatives among the Republicans and more liberals among the Democrats.
Republicans remained firmly in control of the House of Representatives, ensuring that Congress still faces a deep partisan divide as it turns to the year-end "fiscal cliff" that threatens to crush U.S. economic growth.
With President Barack Obama retaining the White House, the status quo result portends more partisan gridlock.
"That means the same dynamic. That means the same people who couldn't figure out how to cut deals for the past three years," said Ethan Siegel, an analyst who tracks Washington politics for institutional investors.
It was a rough night for the some of the conservative Tea Party's loudest and most controversial members.
The movement's leader, failed Republican presidential candidate Michele Bachmann, was fighting to keep her congressional seat in Minnesota in a race that was too close to call.
Representative Joe Walsh, another Tea Party activist, soundly lost his bid for a second term representing a district outside of Chicago, and Representative Allen West was losing to his opponent in Florida, Democrat Patrick Murphy. But by early morning, the Miami Herald was reporting that outcome was too close to call.
MAJORITY MATH
Republicans managed to flip one Democratic Senate seat, in Nebraska, where conservative candidate Deb Fischer, endorsed by former Republican vice presidential candidate Sarah Palin, was the projected winner in a race for the seat of retiring Democrat Ben Nelson.
Democrat Senator Jon Tester in Montana was still locked in a close race with Republican Representative Denny Rehberg early on Wednesday. If Democrats pick up that seat and two others that were still too close to call early on Wednesday, they would have 55 votes, including the independents compared to the 53 they wield now.
Two victories underscored the Senate's shift away from moderates who are more able to find common ground.
Elizabeth Warren, the winner over moderate Senator Scott Brown in Massachusetts, is a consumer activist and Harvard Law School professor unpopular with Wall Street. In a victory speech, she vowed to "hold the big guys accountable."
"To all the seniors who deserve to retire with the security they earned, we're going to make sure your Social Security benefits are protected and that millionaires and billionaires pay their fair share," Warren old supporters.
In Texas, the seat of a retiring Republican, Kay Bailey Hutchison, was filled in an easy victory by Republican Ted Cruz, also a favorite of the Tea Party.
As Congress starts this week on finding a way to deal with the year-end expiration of Bush-era tax cuts and the launch of automatic spending cuts, the results point to a continued bitter divide.
Republican House Speaker John Boehner said voters wanted to continue Republicans' agenda, but pledged to work "with any willing partner."
"With this vote, the American people also made clear there's no mandate for raising tax rates," Boehner told party activists in Washington.
With Obama's re-election and the Democratic Party retaining a m ajority in the Senate, Democrats are seen as emboldened to push their plan for tax fairness - cutting budget deficits by asking wealthy Americans to pay higher tax rates, while extending lower rates for the middle class.
But less than two months remain before tax cuts enacted under President George W. Bush expire on Dec. 31, thrusting higher rates on all Americans. Two days later, $109 billion in across-the-board spending cuts begin to bite. If unchecked by Congress, the fiscal cliff would suck some $600 billion out of the U.S. economy next year.
The top Senate Democrat, Harry Reid, called for Democrats and Republicans to work together.
"The strategy of obstruction, gridlock and delay was soundly rejected by the American people. Now, they are looking to us for solutions," Reid said in a statement.
Top Senate Republican McConnell, who will face tougher bargaining on the Democratic side, said voters simply gave Obama "more time" to fix the country's problems. Putting a brave face on the results, he called on the president to work with Republicans on the fiscal cliff and tax reform.
"To the extent he wants to move to the political center, which is where the work gets done in a divided government, we'll be there to meet him half way," McConnell said.
A senior Democratic aide said that, beyond attempting fiscal measures, such as major tax reforms and long-term spending reductions, the Senate in 2013 is likely to try to advance the Obama jobs bill he unsuccessfully floated during his first term. It is aimed at creating construction jobs through infrastructure repairs and providing states and local governments more funds for hiring teachers, firefighters and police.
Also possible is an attempt at U.S. immigration reform - a top priority of Hispanic voters and unions, the aide said.
* Democrats score wins in Massachusetts, Indiana
* Both parties seen fighting over taxes, spending cuts
* More polarized replacements for moderate Democrats, Republicans
By David Lawder
WASHINGTON, Nov 7 (Reuters) - Democrats were poised to boost their thin U.S. Senate majority early on Wednesday, taking over hotly contested Republican seats in Massachusetts and Indiana while holding on to most of those they already had, including in Virginia and Missouri.
While the result was no surprise, Republicans had given themselves an even chance of winning a majority, so the night represented a disappointment for them, especially for the Senate's Republican leader, Mitch McConnell, thwarted in his twin missions of taking over the Senate and defeating President Barack Obama.
Overall, Democrats were poised to boost their majority from 53 to 55, counting two independents who vote with the party in the Senate.
The Republican setback was in part self-inflicted, the result of internal battles waged in the party.
Had conservative Republican Richard Mourdock not defeated veteran moderate Richard Lugar in Indiana's primary, for example, that seat might have stayed in Republican hands instead of being won by Democrat Joe Donnelly on Tuesday.
Missouri Senator Claire McCaskill, who kept her seat on Tuesday, had been considered a vulnerable Democrat until conservative Todd Akin won the state's Republican primary.
Akin and Mourdock stumbled badly with remarks about abortion that were widely criticized as unsympathetic to rape victims, handing Senate Democrats two of Tuesday's biggest wins.
The election left the Senate somewhat more polarized, with generally fewer moderates and more conservatives among the Republicans and more liberals among the Democrats.
Republicans remained firmly in control of the House of Representatives, ensuring that Congress still faces a deep partisan divide as it turns to the year-end "fiscal cliff" that threatens to crush U.S. economic growth.
With President Barack Obama retaining the White House, the status quo result portends more partisan gridlock.
"That means the same dynamic. That means the same people who couldn't figure out how to cut deals for the past three years," said Ethan Siegel, an analyst who tracks Washington politics for institutional investors.
It was a rough night for the some of the conservative Tea Party's loudest and most controversial members.
The movement's leader, failed Republican presidential candidate Michele Bachmann, was fighting to keep her congressional seat in Minnesota in a race that was too close to call.
Representative Joe Walsh, another Tea Party activist, soundly lost his bid for a second term representing a district outside of Chicago, and Representative Allen West was losing to his opponent in Florida, Democrat Patrick Murphy. But by early morning, the Miami Herald was reporting that outcome was too close to call.
MAJORITY MATH
Republicans managed to flip one Democratic Senate seat, in Nebraska, where conservative candidate Deb Fischer, endorsed by former Republican vice presidential candidate Sarah Palin, was the projected winner in a race for the seat of retiring Democrat Ben Nelson.
Democrat Senator Jon Tester in Montana was still locked in a close race with Republican Representative Denny Rehberg early on Wednesday. If Democrats pick up that seat and two others that were still too close to call early on Wednesday, they would have 55 votes, including the independents compared to the 53 they wield now.
Two victories underscored the Senate's shift away from moderates who are more able to find common ground.
Elizabeth Warren, the winner over moderate Senator Scott Brown in Massachusetts, is a consumer activist and Harvard Law School professor unpopular with Wall Street. In a victory speech, she vowed to "hold the big guys accountable."
"To all the seniors who deserve to retire with the security they earned, we're going to make sure your Social Security benefits are protected and that millionaires and billionaires pay their fair share," Warren old supporters.
In Texas, the seat of a retiring Republican, Kay Bailey Hutchison, was filled in an easy victory by Republican Ted Cruz, also a favorite of the Tea Party.
As Congress starts this week on finding a way to deal with the year-end expiration of Bush-era tax cuts and the launch of automatic spending cuts, the results point to a continued bitter divide.
Republican House Speaker John Boehner said voters wanted to continue Republicans' agenda, but pledged to work "with any willing partner."
"With this vote, the American people also made clear there's no mandate for raising tax rates," Boehner told party activists in Washington.
With Obama's re-election and the Democratic Party retaining a m ajority in the Senate, Democrats are seen as emboldened to push their plan for tax fairness - cutting budget deficits by asking wealthy Americans to pay higher tax rates, while extending lower rates for the middle class.
But less than two months remain before tax cuts enacted under President George W. Bush expire on Dec. 31, thrusting higher rates on all Americans. Two days later, $109 billion in across-the-board spending cuts begin to bite. If unchecked by Congress, the fiscal cliff would suck some $600 billion out of the U.S. economy next year.
The top Senate Democrat, Harry Reid, called for Democrats and Republicans to work together.
"The strategy of obstruction, gridlock and delay was soundly rejected by the American people. Now, they are looking to us for solutions," Reid said in a statement.
Top Senate Republican McConnell, who will face tougher bargaining on the Democratic side, said voters simply gave Obama "more time" to fix the country's problems. Putting a brave face on the results, he called on the president to work with Republicans on the fiscal cliff and tax reform.
"To the extent he wants to move to the political center, which is where the work gets done in a divided government, we'll be there to meet him half way," McConnell said.
A senior Democratic aide said that, beyond attempting fiscal measures, such as major tax reforms and long-term spending reductions, the Senate in 2013 is likely to try to advance the Obama jobs bill he unsuccessfully floated during his first term. It is aimed at creating construction jobs through infrastructure repairs and providing states and local governments more funds for hiring teachers, firefighters and police.
Also possible is an attempt at U.S. immigration reform - a top priority of Hispanic voters and unions, the aide said.
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