South Carolina's DeMint gives up Senate seat

Sen. Jim DeMint, R-S.C., perhaps the Senate's most prominent tea party proponent, is quitting to take the top job at the Heritage Foundation, a conservative think tank in Washington.

Stocks appeared to have reacted positively to the news. The announcement came shortly before 11 a.m. ET Thursday.

The market had been mostly lower, but the major averages promptly pushed into the black, although gains are small. That suggests a few traders believe DeMint's departure may make getting a fiscal cliff deal a touch easier to achieve.

But the fact is the market has been quite quiet, fairly typical on the day before the Labor Department releases the monthly report on joblessness and payroll employment.

DeMint has been outspoken in opposing any tax increases to solve the fiscal cliff -- the witch's brew of spending cuts and tax increases that could go into effect after Jan. 1.

This week, in fact, he opposed House Speaker John Boehner's budget plan, arguing it will kill U.S. jobs.
DeMint became a driving force for the tea party in the Senate, working aggressively to prop up the most conservative candidates. He often irked his party’s leaders.

He first gained prominence in 2007 helping to sink immigration reform supported by President George W. Bush, deriding such efforts as "amnesty."

His profile grew enormously in the 2010 elections when he joined tea party forces to become an influential player in Senate Republican primaries. He often said he would prefer to see a Senate of 30 rock-ribbed conservatives, rather than 60 more moderate Republicans.

But his support of Christine O'Donnell in Delaware and Ken Buck in Colorado backfired. Both were defeated, and Democrats were able to maintain control of the Senate in 2010. The Democratic majority expanded this year.

DeMint expects to use his position at Heritage as a bully pulpit to push his views of cutting federal spending to the bone.

He will also enjoy some nice perks and a much larger salary. His Senate salary is $174,000. Heritage CEO Ed Feulner, whom DeMint will replace, earned $1 million in 2010, news reports say.

DeMint will leave with two years left in his term. South Carolina Gov. Nikki Haley will appoint a successor to hold the seat until a special election in 2014 for a four-year term. Sen. Lindsay Graham is expected to run for another six-year term in 2014 as well.

More from Money Now

• 1-in-3 chance of going over fiscal cliff, expert says
• Macy's plans to stay open for 48 hours straight
• A Barbie construction toy? Why not?