McConnell (R-Ky.) said that a deal would prevent any disruption of the payroll tax holiday and “ allows Congress to work on a solution for the longer extensions.”

The compromise came as something of a surprise in Washington; Sen. McConnell has repeatedly clashed with President Barack Obama.

The deal is similar to the two-month extension passed by the Senate and supported by President. If an extension deal is not reached, 160 million Americans would be affected next year. The average worker would lose about $1,000.

House Speaker John Boehner (R-Ohio), who has imbued a conciliatory tone continued to show contempt for such a deal, saying, “The fact is, we can do better.”

A two-month extension only perpetuates the uncertainty too many employers already have in dealing with the economy and what’s coming out of Washington,” Boehner said.

The White House says President Obama called both John Boehner and Senate Majority Leader Harry Reid Wednesday, urging them to avoid an even longer standoff. On Thursday he urged the House GOP to reconsider their stance, but didn’t mask his frustration.

“"This is exactly why people get so frustrated with Washington,” he said.