Reid warns Senate may have to return after Christmas to finish deal

Senate Majority Leader Harry Reid (D-Nev.) warned lawmakers Monday that the Senate might have to return after Christmas to resume work on a deficit-reduction deal.

"If things don’t change, it appears we’ll be coming back the day after Christmas to finish up work on the 'fiscal cliff' and other items,” Reid said Monday on the floor.

Lawmakers are working on a deficit deal to avoid the expiring Bush-era tax rates and sequestration cuts taking effect in January.

The latest meeting follows reports that Boehner has offered to raise tax rates on the wealthy and extend the debt limit by one year.

Both proposals are major concessions for the GOP leader, whose rank-and-file fear tax increases on any income bracket could harm job growth and seek to condition any debt-limit hike to significant spending cuts. 

Democrats want to extend Bush-era tax rates for only those making less than $250,000, while Republicans want an across-the-board extension and significantly reduced spending.

Reid also said the Senate would need to finish up work on a supplemental bill to fund Hurricane Sandy recovery efforts and on a reauthorization of the Foreign Intelligence Surveillance Act (FISA) this week before leaving for Christmas Day.