Any agreement is likely to result in less than the $1.6 trillion in new taxes over the next decade that Obama requested in his initial offer to House Republicans, and White House aides are signaling to allies that any new money from taxes would be used almost entirely for deficit reduction — not for ambitious, new spending programs or government expansions…

[A]ny new spending programs will, by necessity, be small and narrow in scope: repairs to roads and bridges, airport renovations and other infrastructure upgrades, for example, or modest grants to help blighted city neighborhoods.

Allies expect Obama to harness the combined political capital of his reelection and the outcome of the tax fight for an aggressive push to legalize millions of illegal immigrants in what could be a signature domestic achievement.