Editors note: Watch for more real time dispatches from the hallways on Capitol Hill as CNN's correspondents and producers cover the machinations of Congress. As always, the CNN Political Ticker is your source for up-to-the-minute political news- now even more so.
1030 a.m. ET: I just ran into Senate GOP leader Mitch McConnell and asked him if he thinks House Minority Leader John Boehner gave up the GOP negotiating position on extending all Bush era tax cuts by admitting that he would vote for an extension only for those making $250,000 and below.
McConnell didn't answer directly, but what he did say was certainly revealing.
"Well you know my position, and I made it clear again yesterday. The effort we are going to make here in the Senate is going to be to extend the current tax rates permanently, and we'll have that debate here in the Senate and hopefully prevail," said McConnell.
Meanwhile, Senate Democrats clearly think they need more time to game out their strategy. CNN is told that in addition to the Democrats weekly caucus lunch where this will be a hot topic, Senate Majority Leader Harry Reid is engaged in a series of meetings trying to gauge exactly where his divided caucus is on this issue, and how to proceed. Senate Democrats have given themselves a bit of time to hash out their strategy by scheduling the Defense Authorization bill for next week, which includes a repeal of the Don't Ask Don't Tell policy on gays in the military.