Deal reached on tax, spending package

Associated Press

WASHINGTON

House Speaker Paul Ryan announced late Tuesday an agreement between congressional leaders and the White House on a year-end tax and spending package that would fund the government through the 2016 budget year, raise domestic and defense spending, and increase the deficit by hundreds of billions of dollars by extending numerous popular tax credits without paying for them.

Ryan announced the deal in a closed-door late-night meeting with GOP lawmakers. He urged Republicans to support it even though it’s a compromise containing plenty of wins for Democrats. He said Republican victories are reflected, too, including lifting the four-decade-old ban on exporting U.S. crude oil.

“This is divided government,” Rep. John Kline, R-Minn., said coming out of the meeting. “If you’re going to move forward and follow Speaker Ryan’s notion that we move onto offense next year ... let’s put 2015 behind us and move onto 2016.”

Democratic aides cautioned final language was still being worked out.

Republican leaders predicted the package would come to a vote in the House and Senate on Thursday, allowing lawmakers to head home for the holidays having completed their needed tasks. First they will have to pass yet another short-term government funding extension, since the current one runs out tonight at midnight.