The swearing-in of the Democrat majority in Congress this month ended 12 years of Republican control.

Was the 2006 election the result of a “perfect storm” of issues that cut against the Republicans (Iraq, corruption, an economy that left many middle-class workers behind)? Or was the Democrats' electoral success a shift in voter preferences with long-term ramifications?

We won't know those answers until the dust settles on the 2008 elections. A more relevant question today is “What's in store for business from this Congress?”

Labor issues clearly top the Democrats' agenda. The AFL-CIO agenda was stymied during the years of Republican control, and that will surely change. According to Roll Call, a Capitol Hill newspaper, organized labor told the Democrats that labor support in the 2006 elections, “was a key reason the party is now back in power, and that labor's investment comes with the expectation of a return.”

The top issue on labor's agenda is “card check”—legislation that would make it easier for unions to intimidate workers into accepting union representation by abolishing secret ballot elections in union-organizing drives. NAW is on the Steering Committee of a business coalition organized to fight the card-check legislation.

Also on labor's priority list are health care (Patients' Bill of Rights or “single-payer” legislation) and pension protection.

The new majority will also deal with significant tax matters. House Ways and Means Chairman Charlie Rangel (D-N.Y.) said before the election that not a single one of the President's pro-business tax cuts had merit, and that all were, as reported by Congressional Quarterly, “on the chopping block.” His rhetoric since the election has changed, but tax hikes are nonetheless a serious threat to business.

Democratic leaders want to repeal the hated Alternative Minimum Tax (AMT) for individuals. And they want to restore “pay-go” rules by which any tax cut would have to be offset with a tax increase or reduction in entitlement benefits.

Business needs to understand what all that Congressional jargon means. If Congress repeals AMT—which NAW enthusiastically supports—the revenue loss to the government would be a staggering 1.3 trillion dollars over 10 years. And if they restore “pay-go” rules, they will have to raise taxes by an equal amount to make up for the lost revenue.

Repealing tax cuts “for the rich” is clearly in their playbook, as is repeal of LIFO (Last-In, First-Out inventory accounting)—a prospect that alarmed many in wholesale-distribution earlier this year when it was proposed by Senate Republicans. Though repeal of AMT is long overdue, business needs to pay close attention to what taxes Congress may try to increase in the process.

Business needs to stay involved. The Democratic minority in the last Congress allowed the Republicans very few legislative accomplishments. After the election, new Democratic leaders promised an end to that bitter partisanship.

It remains to be seen whether the Democrats will govern as a bi-partisan majority, or if the Republicans will find it necessary to exercise their minority rights to block the Democratic agenda.