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* Democrats score wins in Massachusetts, Indiana, Wisconsin

* Both parties seen digging in fight over taxes, spending

cuts

By David Lawder

WASHINGTON, Nov 6 (Reuters) – Democrats retained control of

the U.S. Senate on Tuesday night, taking over hotly contested

Republican seats in Massachusetts and Indiana while holding on

to most of the states they already had, including Wisconsin and

Virginia, according to projections.

The most significant turnover victory for Republicans came

in Nebraska, where conservative candidate Deb Fischer, endorsed

by former Republican vice presidential candidate Sarah Palin,

was the projected winner in a race for the seat of retiring

Democrat Ben Nelson.

Overall, the balance of power appeared poised to remain

unchanged in Congress – likely meaning more partisan gridlock –

as Republicans were projected to remain firmly in control of the

House of Representatives. Television networks also projected

that Democratic President Barack Obama won re-election.

While the Senate did not change hands, it could wind up as a

more polarized body, with fewer moderates in the ranks of both

parties.

That scenario was underscored by two victories in

particular.

Elizabeth Warren, the winner over moderate Scott Brown in

Massachusetts, is an activist Harvard Law School professor

strenuously opposed by Wall Street interests.

In Texas, the seat of a retiring Republican, Kay Bailey

Hutchison, was filled in an easy victory by Ted Cruz, a favorite

of the conservative Tea Party movement.

As Congress pivots from elections to the year-end “fiscal

cliff” of expiring tax cuts and the launch of automatic spending

cuts, the results portend a continued bitter divide.

“That means the same dynamic, that means the same people who

couldn’t figure out how to cut deals for the past three years,”

said Ethan Siegel, an analyst who Washington politics for

institutional investors.

House Speaker John Boehner said voters wanted to continue

Republicans’ agenda, but pledged to work “with any willing

partner.”

“With this vote, the American people also made clear there’s

no mandate for raising tax rates,” Boehner told party activists

in Washington.

With Obama’s projected re-election and the Democratic Party

retaining a m ajority in the Senate, Democrats too are seen as

emboldened to push their plan for tax fairness – cutting budget

deficits by asking wealthy Americans to pay higher tax rates,

while extending lower rates for the middle class.

But there is less than two months before tax cuts enacted

under President George W. Bush expire on Dec. 31, thrusting

higher tax rates on all Americans. Two days later, $109 billion

in across-the-board spending cuts begin to bite. If unchecked by

Congress, the fiscal cliff would suck some $600 billion out of

the U.S. economy next year.

DEMOCRATS TAKE OHIO, FLORIDA AND CONNECTICUT

Obama’s Democrats also beat back Republican challengers in

Ohio, Florida, Connecticut and Pennsylvania.

In Maine, independent Angus King won easily in the contest

to replace retiring Republican Olympia Snowe and is widely

expected to side with Democrats on many issues, handing them

another seat.

In Indiana, a state with a large majority of Romney voters,

Democrat Joe Donnelly pulled an upset victory against Republican

and Tea Party favorite Richard Mourdock, whose prospects faded

after he made inflammatory comments that pregnancy after rape

could be “something that God intended.”

Mourdock had defeated longtime Indiana moderate Republican

Richard Lugar in the Republican primary.

A well-financed Democratic campaign in Massachusetts for

Warren proved successful, unseating Republican Scott Brown, who

had succeeded the late liberal champion Edward Kennedy in a

special election in 2010.