Daily Tax Update - October 16, 2013: Agreement is Reached to Reopen Government and Raise Debt Ceiling

Agreement is Reached to Reopen Government and Raise Debt Ceiling:  A bipartisan agreement by Senate leaders was reached to reopen the government and raise the debt ceiling.  The government would be funded through January 15 and the debt ceiling would be raised until February 7.  A minor provision on the healthcare law was included in the legislation, requiring those Americans who purchase insurance on the new healthcare exchanges to verify their income.

Senate Majority Leader Harry Reid said, “Our country came to the brink of disaster, but in the end political adversaries set aside . . . their differences.”  Reid said that the agreement would "provide our economy the stability it desperately needs. . . . What we’ve done is sent a message to Americans . . . that the United States lives up to its obligations.

Senate Minority Leader Mitch McConnell said that it has been “a long, challenging few weeks" and vowed that Republicans would continue to fight to repeal the Affordable Care Act.  McConnell said, “Republicans remain determined to repeal this terrible law.”  Boehner said he would meet with Republicans and encourage them to support the Senate deal.

The Senate will likely vote in the early evening and then send the bill to the House.  House Speaker John Boehner said, “There’s no reason for our members to vote ‘no’ today.”  Boehner also said he expects the government will reopen Thursday.