Aides to participants in House-Senate talks on renewing President Barack Obama's signature payroll tax cut say negotiators have made significant progress and that an agreement could come as early as Tuesday.

House lawmakers are returning to Capitol Hill to weigh a proposal by GOP leaders to extend the 2-percentage-point cut in the payroll tax through the end of the year and add the roughly $100 billion cost to the nation's $15 trillion-plus debt instead of scrounging around the budget for ways...

In an abrupt about-face, House GOP leaders announced Monday they're willing to extend the two percentage point cut in the payroll tax through the end of the year and add the roughly $100 billion cost to the nation's $15 trillion-plus debt.

The White House on Friday confirmed a report that President Barack Obama's new budget predicts a $1.3 trillion deficit for the ongoing fiscal year. The deficit would drop to $901 billion next year under the administration's tax and spending policies.

Congressional Democrats are urging a modest six-week cut in the number of weeks that unemployed workers can receive jobless benefits as House-Senate talks on a payroll tax cut slowly inch along.

Negotiators on Capitol Hill agreed Wednesday to try to extend a payroll tax cut worth about $1,000 this year for a typical worker through the end of the year.

Once pension and health benefits are factored in, the average federal worker reaps 16 percent more in total compensation than do private sector workers.

Republicans would cut federal employee benefits. President Barack Obama would raise fees for airline passengers and eliminate Saturday mail delivery. Democrats in Congress would charge employers higher premiums for federal pension guarantees.