US congressional negotiators reach payroll tax deal House and Senate leaders have reached a tentative deal to extend a payroll tax cut, unemployment benefits and a "doc fix" for Medicare reimbursements, paving the way for an agreement that would avoid yet another round of bitter negotiations between warring Republicans and Democrats on Capitol Hill. The Associated Press reported that the agreed plan could be passed and sent to the president later this week. The surprising level of co-operation came after the Republican leadership in the House of Representatives on Monday dropped its objections to President Barack Obama's proposed payroll tax cut extension, saying they would support it without demanding offsetting spending cuts. The White House had previously portrayed Republicans as obstructionist for refusing to extend the payroll tax cuts - worth $40 a week for the average middle class family - without commensurate spending cuts. Republicans on Monday night said Democrats had been forced to negotiate after losing the "hostage" of the payroll tax extension. Under the proposed deal, the two-percentage point payroll tax cut would be extended until the end of the year and the $100bn cost would be added to the deficit, the Politico news website reported. Unemployment benefits would be extended for the next 10 months, at a cost of $30bn, and doctors who treat Medicare patients would continue being reimbursed at the current rate, costing $20bn. Earlier on Tuesday, Mr Obama sought to pressure Congressional Republicans to pass the extension of the payroll tax cut and unemployment insurance, saying it was "make or break for the middle class." Mr Obama, highlighting themes that are emerging as a major plank of his re-election campaign, said on Tuesday that failure to pass the extensions would cost the average US family another $1,000 a year in taxes. Public pressure in December helped secure a two-month extension of the measures, after Congress failed to agree on the year-long extension the White House and Democrats had proposed. Mr Obama called the Republican leadership's decision to drop its objections to the proposed tax cut extension without demanding spending cuts "good news" but added: "You can't take anything for granted in Washington until my signature is actually on it." Without the extension of the 2 per cent tax cut, which affects more than 160m middle-class Americans earning less than $50,000 a year, the average American family would pay $1,000 more in taxes, or take home $40 less per biweekly pay cheque, Mr Obama said.