He adds that the tax increases on the rich were not as high as many had feared, making the deal more palatable to wealthy Americans. "If [the wealthy] saw something that was really extreme, say an increase to 45-percent income tax, the normal nature of those individuals is to digest and to slow down," he says. "Now that we have some clarity, most logical thinkers are thinking the tax increases are within acceptable levels of taxation and will allow wealthy business owners to continue to grow their business."
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Both Sherman and Kirchenbauer say they believe Washington has finally provided guidance on what national policy will be over the next four years. While it's not yet clear how the Affordable Care Act or the Dodd-Frank Wall Street Reform and Consumer Protection Act will change regulations, the tax code is now clearly defined, removing an enormous amount of uncertainty from the market.
"The best way to fix these problems is to grow our way out of it. The government is creating the roadmap for us to potentially follow," says Sherman. "It will be interesting to see if they can adjust the course of spending and entitlements, but the roadmap is now out there. The government had laid the blueprint to let the private sector drive [economic growth.]"
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