Near Agreement

Congressional leaders expressed optimism Thursday that agreement was near on extending this year's payroll tax cut, renewing unemployment benefits and averting a federal shutdown.

"We can extend payroll tax relief for American workers and create new jobs and keep the government running and, frankly, we can do it in a bipartisan way," House Speaker John Boehner, R-Ohio, told reporters, a turnabout from weeks of partisan sniping from both sides.

"No more show votes," Boehner said after praising earlier remarks by Senate Majority Leader Harry Reid, D-Nev., that lingering disagreements on a mammoth spending bill could be easily resolved. "It's just time to legislate."

Reid opened the Senate's morning session by saying he and the chamber's top Republican have held talks to resolve remaining disputes. With lawmakers itching to return home before the holidays, Reid said he and Senate Minority Leader Mitch McConnell, R-Ky., hope they can reach a deal "that would get us out of here in a reasonable time, in the next few days."

"We're confident, optimistic we'll be able to resolve both on a bipartisan basis," said McConnell, referring to one bill that would renew the payroll tax cut and jobless benefits, and a separate spending measure that would keep federal agencies open.

President Barack Obama applied pressure of his own, saying Congress "should not and cannot" go home until it had resolved the issues. "There's no reason why we shouldn't be able to extend these items, the payroll tax cut, U.I. before holidays." "There's no reason the government should shut down over this, and I expect all of us to do what's necessary in order to do the people's business and make sure that it's done before the end of the year."

In part, the turnabout reflected the calendar: 160 million Americans would get a sudden tax increase on Jan. 1 if the payroll tax cut was not renewed, and most government agencies would close this Saturday without agreement on spending legislation.