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House OKs spending bill to keep government operating

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Both parties want to avoid steep defense cuts, but they agreed to the deal last year as a way to force negotiations on a broader budget agreement, often called a “grand bargain,” that could involve new revenues when the lower George W. Bush-era tax rates expire in December.

Obama wants to allow those tax rates to expire for income above $250,000 for couples and $200,000 for singles. Romney and congressional Republicans want to keep the Bush-era tax rates for everyone, and Romney wants to lower them another 20 percent.

The nation’s debt load is about $16 trillion. Analysts say the U.S. bond rating may be lowered if leaders cannot agree on a debt-reduction plan.

The combination of the looming budget cuts and the expiration of the Bush tax rates is the so-called “fiscal cliff,” which is expected to be the top order of business in a lame-duck Congress after the November election.

On Thursday, 70 Republicans voted against the stopgap funding measure, a reminder of the continued difficulty that House Speaker John A. Boehner, R-Ohio, faces in getting his troops in line on key votes. The bill passed only with the help of Democrats.

In early 2011, Republicans nearly shut down the federal government as the House’s new tea-party inspired majority sought to cut government spending and attach policy positions — including elimination of funds for Planned Parenthood — to the annual spending bill.

Conservatives this week had discussed a last-minute effort to halt foreign aid to Libya and Egypt in the aftermath of the violent attacks on the U.S. diplomatic missions in those countries. But with the rules already set for Thursday’s vote, they had no opportunity to amend the legislation.

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