WASHINGTON — Republicans won enough races in Tuesday's midterm elections to gain control of the Senate — the first time they've controlled both chambers in eight years. At least two Senators who have sponsored bills relating to bonds and state and local finance during the last two years lost their reelection bids.
As of Wednesday morning, the Republicans have gained at least seven seats, more than the net gain of six they needed to have a majority in the Senate starting in January. Republicans also maintained control of the House and gained at least 12 seats.
At least three sitting Senate Democrats were not reelected: Sens. Mark Pryor of Arkansas, Mark Udall of Colorado and Kay Hagan of North Carolina.
Pryor, who lost to Rep. Tom Cotton, had introduced a bill over the summer that would permanently revive the Build America Bond program at a 28% subsidy rate. He also was a cosponsor of legislation that would provide tax relief to presidentially declared disaster areas. Additionally, he has co-sponsored the Marketplace Fairness Act, which would allow states to compel online retailers without a physical presence in the states to collect sales taxes if the states simplify their sales tax laws.
Udall, who lost to Rep. Cory Gardner, has also cosponsored disaster tax relief legislation and introduced a bill that would make permanent the federal Payment in Lieu of Taxes program. Under the PILT program, which is currently expired, the federal government makes payments to local governments to help offset the losses in their property tax revenues that occur because of the presence of federal lands in their jurisdictions. Republicans picked up four seats being vacated by retiring Senate Democrats. In the West Virginia race, Rep. Shelley Moore Capito won and will succeed Sen. Jay Rockefeller, who is currently the chairman of the Senate Commerce, Science and Transportation Committee. In South Dakota, former Gov. Mike Rounds won the seat being vacated by Sen. Tim Johnson. In Montana, Rep. Steve Daines will replace Sen. John Walsh, who had been appointed to the seat earlier this year after former Senate Finance Committee Chairman Max Baucus became ambassador to China. In the Iowa race, Joni Ernst, a Republican state senator, defeated Rep. Bruce Braley to take the seat held by retiring Sen. Tom Harkin.
The Senate race in Virginia did not have a definitive winner Wednesday morning. The Democratic incumbent, Sen. Mark Warner, was expected to win reelection easily but only had a slight lead over Ed Gillespie, the former chairman of the Republican National Committee. Warner sponsored legislation requiring the disclosure of markups in "riskless principal" transactions. He also introduced legislation that would create a national infrastructure bank.
The Alaska Senate race also did not have a definitive winner Wednesday morning, but incumbent Sen. Mark Begich, a Democrat, was trailing Dan Sullivan, a former Alaska Attorney General and Commissioner of the Alaska Department of Natural Resources. Begich took the lead on a letter to President Obama last year that opposed limiting or eliminating the tax exemption for municipal bonds.
Meanwhile, the Louisiana Senate race will result in a runoff election in December between Sen. Mary Landrieu, a Democrat, and Rep. Bill Cassidy, a Republican. Like Pryor, Landrieu cosponsored disaster tax relief legislation and the MFA. She is a former state treasurer.
Two Republican incumbent senators who were in danger of losing their seats won their elections. Sen. Pat Roberts, a Kansas Republican who has expressed concerns with President Obama's proposal to cap the value of the tax exemption for municipal bonds, beat independent Greg Orman. Sen. Mitch McConnell, R- Ky., survived a challenge from Kentucky Secretary of State Alison Lundergan Grimes, Democrat.
McConnell is now poised to become Senate Majority Leader. Sen. Orrin Hatch, R-Utah, is likely to become chairman of the Senate Finance Committee, which has jurisdiction over taxes.
One of the House Democrats who lost reelection was Nick Rahall of West Virginia, the top Democrat on the House Transportation and Infrastructure Committee.
