Washington (CNN) – Fiscal cliff negotiations between Vice President Joe Biden and Senate Minority Leader Mitch McConnell made significant progress and the two sides are now closer to a deal than they were Sunday, according to sources close to the process.
Thus far the potential agreement includes allowing top tax rates to return to Clinton-era levels, an extension of unemployment insurance and an agreement to increase the estate tax, though there would likely be a compromise to keep it from jumping to pre-bush policy levels, said a source familiar with the negotiations.
The emerging deal would set the top tax bracket at $450,000 for households and $400,000 for individuals.
According to another source, Senate Majority Leader Harry Reid initially proposed a $450,000 income tax threshold to McConnell, a level from which Biden has not moved.
White House staff worked very late Sunday night and early Monday morning on the deal points between the parties, sources told CNN.
McConnell told reporters Monday he last spoke with Biden at 6:30 a.m. He also spoke with the vice president at 12:45 a.m. Monday morning.
Biden and McConnell have taken the lead in trying to reach a deal that could pass through both chambers of Congress and be signed by the president.