Congressional leaders of both parties suggested Sunday that they could reach a deal to extend all Bush-era tax rates as early as this week and that it would include an agreement by Republicans to also extend unemployment benefits for millions of jobless Americans.

"I think that most folks believe that the recipe would include at least an extension of unemployment benefits for those who are unemployed and an extension of all of the tax rates for all Americans for some period of time," said Senate Minority Whip Jon Kyl, Arizona Republican. "I think an agreement could be reached in the relatively near future."

Senate Majority Whip Richard J. Durbin, Illinois Democrat, acknowledged that negotiations are "moving in that direction," though he said this was against his judgment and added that he could not accept a deal in Congress' lame-duck session that failed to include extended jobless benefits...