Congress tries to wrap up talks on spending, tax bills

Associated Press

WASHINGTON

With the holidays beckoning, negotiations intensified on Capitol Hill on Thursday on a $1.1 trillion governmentwide spending bill and a sprawling tax package touching all sectors of the economy.

Dozens of issues remained unresolved, mainly policy disputes over environmental and other issues that lawmakers of both parties were trying to attach to the must-pass spending legislation. Republicans sought to lift the oil-export ban and roll back various Obama administration regulations; Democrats were maneuvering to protect President Barack Obama’s environmental rules and enact permanent tax credits for wind, solar and other renewable energy.

“We’re not going to get everything we want in negotiations. The Democrats aren’t going to get everything they want in negotiations,” House Speaker Paul Ryan, R-Wis., told reporters. “But I believe that we will successfully complete these negotiations.”

Under current law, government funding expires today at midnight, when the last short-term spending bill expires. The Senate agreed by voice vote and without debate Thursday to extend that deadline through Wednesday to allow more time for talks. The House was expected to follow suit today, but Ryan allowed that even more time might be needed.

“I’m not going to put a deadline on it,” he said. “I want to make sure that these negotiations are done well and done right, and not by some arbitrary deadline.”

Earlier, Ryan assured lawmakers from Northeastern states that legislation extending health benefits and a compensation fund for 9/11 first-responders would be made part of the spending bill. That legislation, which funds the government through the 2016 budget year, has become increasingly intertwined with the tax bill, which could deliver a political victory for both sides.

Uncertainty remained as to whether lawmakers would pull off a major tax bill with permanent extensions benefiting both sides, or simply opt for a two-year extension of existing tax breaks. With Congress’ legislative year drawing to a close, lawmakers were eager to finalize their work and head home for the holidays.

“I’m pessimistic about everything. That’s why I’m not disappointed very much,” Senate Minority Leader Harry Reid of Nevada remarked as he headed into a midafternoon meeting with his Republican counterpart, Majority Leader Mitch McConnell of Kentucky.