Sources: Payroll tax cut deal in the works

Rep. Steny Hoyer, D-Md. right, and Rep. Chris Van Hollen, D-Md., speak to reporters on the payroll tax cut on Wednesday, Dec. 21, 2011 in Washington.

/ AP Photo/Evan Vucci

Updated: 4:45 p.m. ET

Congressional leadership has reached a tentative agreement over a deal on language for extending a payroll tax cut extension, multiple sources have confirmed to CBS News.

According to a House GOP aide, the House would accept a new bill reflecting the two-month extension previously passed in the Senate, but would add language protecting small businesses from costly new reporting requirements in the Senate bill. Senate Majority Leader Harry Reid, D-Nev., will appoint conferees to work with Republicans in the coming weeks on a year-long extension of the tax cuts if the deal comes to fruition.

The agreement, however, is pending a House Republican conference call, scheduled to take place at 5 p.m. ET on Thursday. In that call, House members must sign off on the deal.

Obama on payroll tax cut: "Enough is enough"

House Speaker John Boehner met with House conferees and Rep. Eric Cantor, R-Va., Thursday afternoon, and they gave the speaker their blessing for him to reach an immediate resolution with Reid.

This afternoon, Boehner informed House leaders over the phone that he intended to reach out to Reid for a possible deal, and proceeded with steps aimed at setting up the conference call with House Republicans. 

Reid accepted Boehner's proposal, and the House is scheduled to be in pro forma session at 10 a.m. Friday -- which means the House could pass it by unanimous consent if House Republican members don't balk at the proposal.

President Obama on Thursday continued to campaign on behalf of a short-term extension of the tax cut, blasting House Republicans for holding up a Senate-passed bill and wondering, "Has this place become so dysfunctional that even when people agree to things we can't do it?"

"It doesn't make any sense," he told reporters in a press conference. "Enough is enough."

House Republicans had argued that the Senate bill - which was negotiated in a bipartisan effort by leaders Mitch McConnell, R-Ky., and Harry Reid, D-Nev., and which sailed through the chamber last weekend with broad bipartisan support - is a short-term fix for a long-term problem.

As late as Thursday morning, Boehner appeared to be sticking to his guns on the matter, even while fellow Republican McConnell urged House lawmakers to pass the Senate bill.

"Everybody has already agreed that the best policy is a one-year extension," Boehner told reporters on Capitol Hill. The speaker instead called on Democrats to appoint lawmakers to work with the Republicans to hammer out differences between a House bill and the Senate bill.

Mr. Obama, however, pointed to House Republicans' refusal to yield as an exemplification of Washington's problems.

"What's happening right now is exactly why people just get so frustrated with Washington. This is it. This is exactly why people get so frustrated with Washington," he said. "This isn't a typical Democrat versus Republican issue. This is an issue where an overwhelming number of people in both parties agree. How can we not get that done?"

CBS News' Senate producer John Nolen, House producer Jill Jackson and Capitol Hill correspondent Nancy Cordes contributed to this report.

[kevjustice]

no tears this time? you did cry "uncle" though.

[jackpenn]

The way Congress wants to fight and disagree on everything, I really wonder if anybody other then Obama would make any difference? The politicians in Congress, the Senate, and every other high position in Washington has had a free reign for too long, and now that the sh_t has hit the fan, so to speak, and they're not allowed to have a spending spree on anything they want to, they're all going to be real disagreeable on everything. They have all been living on promises they made to campaign supporters and spending tax payer money on earmarks they promised, and now they have caused the country to be broke. Well, the buck stops at the president, and since he is trying to get the spending under control, and since he had to borrow money to keep the country a float, he has to find ways of paying off the debt. It will start by making the politicians stop over spending our tax dollars on nonsense. I think Obama needs another four years to get the country back on track, and so far none of these Republicans have convinced me they will do any better at the helm. Obama said from the very beginning it would take time to get things right again, and the economy is starting to get better now, little by little. Why change horses in the middle of the stream, so to speak? "Obama for 2012"

[skyk801]

These Haters... These people who refuse to even CONSIDER dealing with the Elected President of the United States MUST go and it's up to ALL of us to make sure that happens. I do NOT care if you are a Democrat, Independent or REAL Republican, the Tea Party has NO place in ANY of these Groups. People who come to Washington so full of Hate and Bigotry that they take this nation to the very brink every month or two then proceed to use the economy and the well being of our EVER shrinking middle class as a Hostage to get what they can NOT get any other way. They aren't American and have NO idea what this Nation is all about. I may have MY beliefs and YOU may have yours as well but ALL of us depend on each other... ONLY together can we move this nation out of the Hole it's in.

[Zann-Zel]

There is a middle to the road - you don't have to be pro-teaparty or OWS! You could be Pro-CommonSense! : )

[skyk801]

FixBayonets, this is what I'm talking about.. the people that demonstrated on Wall Street have a POINT and I mean a REAL point. When you look at the MASSIVE Gap between the Rich and poor.. when you look at the FACT that our ONCE Greatest Middle Class has nearly been wiped out buy the BIGGEST Policy Failure in our modern history.. they have a valid point. When you have seen Supply Side Economics take us to the point where we see 1 in every 2 American's at the Poverty Level, I'd say all of us should consider listening to each other and NOT trying to put them in a box to HATE. It's vile and it's NOT helping this nation.

[Zann-Zel]

Merry Christmas to all my CBS commenting friends! : )

[cordelia33]

Merry Christmas to all commenters.

What happened to stopping unemployment benefits from expiring Dec 31? Are we supposed to believe that the payroll tax agreement is the only victory we can expect for the middle and working(or hoping to work) class?

[retm-w]

Likewise Zann.

[tibu987]

This late, partisan, Republican manuever, finally coming around to vote for something that our President wanted, re-enforces my committment to NOT vote for any incumbent in the next election.
Join me in NOT voting back into office any of the inept, irresponsible, arrogant, self-entitled, politicians of either party, and that call themselves American, when they do not equally support what is good for the entire country and not just their buds, families, cohorts and hangers-on.
I did not create the mess this country is in, nor did I create the "wars", or the economic problems, or the rising taxes and consumers costs, and you didn't either.
I blame all the above on my duly elected officials, city, state, and federal. They do not represent me and, if your smart, they do not represent you either.
Now, vote them out of office when you can.

[skyk801]

tibu987, what we have watched the last 3 plus years are enough to make all of us wonder! The Obstruction.. the Hate... the vile attacks. TODAY these people attacked the President for going shopping.. for his dog... because he went to the Bathroom without asking! It's vile, it's disgusting and this Party needs to get over itself. Their Economic Policies are the REASON we're in this fix! Time for the Rich in this Country to step up and do what is right!

[venusvegasvada]

All this drama for a 2 month extension with no increase on the Rich at all?

No real progress of any kind whatsoever.

What other billion dollar slabs of pork are attached to this earth-moving compromise? You KNOW these guys don't do ANYTHING without getting their wagon greased somehow.

Can we really afford a Congress that wastes so much time and generates so much BS just for so little product output?

If Congress were a factory ran by an American CEO and he was faced with managing these high maintenance, whining, back-stabbing, do-nothing employees, how many of them would have kept their jobs by now? Would an American CEO even bother with them or would he just shut the whole thing down and move it to China?

You Congress people should be ashamed of yourselves.
You're all living in some kind of alternate reality dreamworld where none of the rules apply to you. It's getting extremely embarrassing just to watch your perpetual freak show.

[BobFoolery]

[insert sarcasm thoughout]
But there's still eight more days! Play it out. Then, add the three days for the new year's holiday as well. Why settle when there's time to waste?

[Lindag10]

Crow now being served the House dining room. All Republican representatives are required to come to dinner and eat their portion.

[Zann-Zel]

...served with Peas! : )

LMAO!

[Lindag10]

Hey Zann are you getting some rain now that Perry's on the campaign trail? Seems like it started raining in Texas right after he took off.

[tibu987]

This late partisan, Republican manuever, re-enforces my committment to NOT vote for any incumbent in the next election.
Join me in NOT voting back into office any of the inept, irresponsible, arrogant, self-entitled, politicians of either party, and that call themselves American, when they do not equally support what is good for the entire country and not just their buds, families, cohorts and hangers-on.
I did not create the mess this country is in, nor did I create the "wars", or the economic problems, or the rising taxes and consumers costs, and you didn't either.
I blame all the above on my duly elected officials, city, state, and federal. They do not represent me and, if your smart, they do not represent you either.
Now, vote them out of office when you can.

[tibu987]

This late, Republican faux pas re-enforces my committment to NOT vote for any incumbent in the next election.
Join me in NOT voting back into office any of the inept, irresponsible, arrogant, self-entitled, politicians of either party, and that call themselves American, when they do not equally support what is good for the entire country and not just their buds, families, cohorts and hangers-on.
I did not create the mess this country is in, nor did I create the "wars", or the economic problems, or the rising taxes and consumers costs, and you didn't either.
I blame all the above on my duly elected officials, city, state, and federal. They do not represent me and, if your smart, they do not represent you either.
Now, vote them out of office when you can.