U.S. House Speaker John Boehner and Senate Majority Leader HarryReid are poised for a collision next week of their bids to extendor expand a payroll tax cut for workers.

House Republicans rallied yesterday behind a plan Boehner ispreparing that would pair an extension of the current payroll taxcut with eased restrictions on some industrial emissions andexpedited approval of an oil pipeline from Canada. Reid is focusedon expanding cuts to the worker payroll tax and enacting a surtaxon annual income exceeding $1 million to pay for it.

Both leaders agree on extending the Social Security payroll taxcut in some manner, addressing expanded unemployment benefits thatwill lapse at the end of the year, preventing cuts to physicianreimbursements by Medicare and enacting some spending reductions.Their differences over how to pay for a comprehensive package,along with some of their priorities, present procedural hurdlesthat are tough to clear, said Senate Budget Committee Chairman KentConrad, a North Dakota Democrat.