It's unclear what will happen regarding tax policy. Leading Republicans like Rep. John Boehner (R., Ohio) and Sen. Mitch McConnell (R., Ky.) have pledged to extend all the tax cuts for all Americans and possibly filibuster legislation that doesn't achieve that goal. But with a screeching deficit to address and the public still angry at Wall Street, top earners may not be able to avoid a return to Clinton-era tax rates for long.
"What most of Wall Street wants is a short-term windfall - for Wall Street," says James Gomes, director of the Mosakowski Institute for Public Enterprise at Clark University. "That would mean a White House that seeks to lower taxes on higher incomes, lower capital gains taxes, the permanent end of the estate tax, and less financial regulation."
As the Obama administration searches for a new economic adviser to replace Larry Summers, Gomes joked: "The best person to advise the White House on policies like these is probably Gordon Gekko."
-- Written by Lauren Tara LaCapra in New York.
>To contact the writer of this article, click here: Lauren Tara LaCapra.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV