Even before Democrats take the reins of power in January, the lame-duck session of Congress that began on Monday is providing a preview of what's to come.

It appears that although the GOP agenda is in retreat, Democrats are picking their battles carefully as they try to hold onto the independent voters who swung Democratic in last week's election....

With a short window of time, Congress is likely to pass a continuing resolution to fund most other agencies and "leave the hard choices" for next year, said Maya MacGuineas, director of the Committee for a Responsible Federal Budget.

Congress is also likely to extend tax credits for research and development, state and local sales taxes, tuition, and teacher purchases of classroom supplies. Republicans had packaged those and other tax cuts with a minimum-wage hike and permanent estate-tax relief to try to win Democratic support. The GOP is ready to drop the estate-tax relief and pass the tax cuts itself.

Democrats campaigned on a pledge to institute pay-as-you-go budgeting, meaning they won't cut taxes or add spending programs without finding offsets. It's unclear whether Democrats will simply go along with the tax credits or insist on finding offsets.

While the lame-duck session "isn't the best indicator of what will happen" once Democrats take charge, it will offer an early signal on how serious they are about being the party of fiscal responsibility, MacGuineas said....

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