A source tells CNN that Democrats are working on a new proposal that drops their demand for a tax hike on millionaires.
And that has the two parties talking. House Speaker John Boehner, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell met privately for about an hour in the Capitol last night.
There was no immediate sign that a deal was near, but the meeting is a good sign.
The dispute that threatens to shutter the government at the end of the week and raise the payroll tax rate on working Americans at the end of the month.