Reid said it was “imperative” for the Senate to pass a government funding bill and a defense spending measure before adjourning for the year, but that senators would have to wait and see if a tax deal makes it to the floor.
“Everyone knows we have to do a spending bill. Everyone knows we have to do a defense bill,” Reid said on the Senate floor. “Everyone knows that we’re trying to do some tax extenders. We’re trying to do that but we’ll see.”Last month, President Obama killed a bipartisan tax deal Reid was working on with House leaders because he said it favored corporations over middle-class families.
The White House’s veto threat ended the talks of a longer-term deal, prompting the House to pass a retroactive one-year bill without much consultation with the Senate.
Republicans argued it was necessary otherwise there would be a tax hike for 2014 or headaches for the Internal Revenue Service (IRS) if legislation was passed after the 2014 tax season started.
Some lawmakers have complained that the short-term bill could harm the economy because uncertainty for the 2015 tax season would loom until Congress takes long-term action.
Earlier this year, Senate Democrats tried to take up a bipartisan bill that extended nearly 40 tax breaks for two years, but Republicans filibustered that effort.