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Boehner, Reid reach tentative deal to avoid government shutdown
 
House Speaker John Boehner's caucus rejected the Senate's two-month extension of the payroll tax break: Without congressional action, taxes on working Americans will climb two percentage points on Jan. 1.
House Speaker John Boehner's caucus rejected the Senate's two-month extension of the payroll tax break: Without congressional action, taxes on working Americans will climb two percentage points on Jan. 1.
Alex Wong/Getty Images

House Speaker John Boehner (R-Ohio), pictured, and Senate Majority Leader Harry Reid (D-Nev.) have reached a short-term spending deal that "would remove the possibility of a government shutdown from the politically sensitive fall campaign season." Under the accord Congress would fund the government for six months when the fiscal year ends on Sept. 30, setting spending for the year at $1.047 trillion. Democrats and the White House have insisted on that level of spending for months, while Republicans initially bristled before finally settling. The deal was reached "nearly two months early, an especially quick resolution that demonstrated that neither party savored a major budget showdown weeks before the November elections."

 

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