Newton, Mass.—As the 109th Congress gets into full swing, business leaders across the country are hopeful that the Republican victory in November will boost commerce and bring permanent relief on tax issues, litigation reform and health care—issues that gained little or no ground during President George W. Bush's first administration.

Groups such as the National Assn. of Wholesaler-Distributors and the Small Business Legislative Council, who work on behalf of distributors, retailers and others, say they are optimistic about action on litigation reform and taxes, in particular.

In January, the Associated General Contractors said it has similar legislative priorities for the next two years, calling on Congress to increase investment in highway and transit improvements, expand infrastructure investment to promote economic growth, and make tax cuts permanent.

"A strong construction industry is vital to our nation's economy, particularly as recent employment rates indicate that 12 percent of the 2.2 million jobs created in the U.S. last year were in the construction industry," said Stephen E. Sandherr, AGC's CEO. "AGC will continue to work closely with Congress and the White House to push for enactment of these important initiatives."

Republicans gained four seats in the Senate following November's election, bringing their total to 55, and held on to their majority in the House, with 231 seats as of early January. In the Senate, 51 seats are needed for a majority; 218 are needed in the House.

John Satagaj, president of the SBLC, said he's optimistic about litigation reform and tax cuts, referring to them as "the two positive [issues] I think we can do something about." The SBLC represents such distributor groups as the Specialty Tools & Fasteners Distributors Assn. and the American Machine Tool Distributors Assn.

"The thing I'm most hopeful on is product liability," said Satagaj, noting two key changes in the Senate: The retirements of Sen. Fritz Hollings (D—S.C.) and Sen. John Edwards (D—N.C.). "They were two of the biggest opponents of any kind of tort reform. With their retirement, we're closer in number to breaking a filibuster. So, after a decade of no action on tort reform, this is one of the highest priorities."

Hollings' seat was filled by Republican Jim DeMint, and Edwards' by Republican Richard Burr. A total of 55 Senate seats makes it easier to attain the 60 votes needed to break a filibuster, Satagaj explained.

Jade West, vice president—government relations for NAW, said the White House is likely to come out strongly on tort reform, and that she's hopeful product liability is put back on the front burner. However, she said three other legal issues will likely trump product liability: class action, asbestos and medical malpractice reform. President Bush has already come out strongly on those issues. Specifically, he gave a speech about medial malpractice in Illinois the first week of January.

Satagaj said he's less optimistic about action on health care reform, saying the issue is still too big to be tackled, in many ways, because it not only involves business owners, but lawyers, insurers and physicians—all of whom will have to "feel a little bit of the pain" in order to get costs under control.

West said NAW will work with the White House to maintain the president's support of Association Health Plans, an issue that went nowhere in the last Congress. The Association Health Plans bill would allow business associations, such as NAW and the SBLC, to offer health coverage to members across state lines, complying with one set of federal regulations that would govern the plan.

The other positive issue on Satagaj's list is the Estate Tax, commonly referred to as "the death tax." Though Estate Tax relief was delivered in the first Bush Administration, the changes were temporary, leaving many small-business owners with the costly burden of continuing to plan for estate taxes, Satagaj said.

"For a lot of smaller businesses, the issue is estate tax planning. They spend a fortune on it," he said. "Because there's still uncertainty on the issue, they're still spending money on it. We need a permanent solution...now."

West agreed that tax policy will be a central issue this time around, but added that questions loom about whether the focus will be on slow-moving, broad-based tax reform or on making permanent the tax cuts of 2001 and 2002.

She also said there is more optimism among business and political leaders for legislative progress during the second Bush Administration, which should come as good news for business owners. She said there's a sense that Bush's clear victory in November will put to rest some of the hostility that existed among some Democrats during the last session, following the president's controversial victory in 2000.

"The hope is that...at least some Democrats will decide that starting out with and continuing a fight throughout a long Congress is not practical," she said. "There is certainly a great deal more optimism."