Democratic and Republican leaders appeared close to agreement with the White House today on emergency tax cuts and benefit increases to jolt the US economy out of its slump.

Republicans and Democrats alike are claiming victory as Congress moves this week toward passing a final Iraq spending bill that does not order US troops home.

The Democratic-controlled House of Representatives failed to override President George Bush’s veto of an Iraqi war spending Bill with timetables for US troop withdrawals.

Ignoring a presidential veto threat, Democrats in the US House of Representatives predict they have enough votes today to pass legislation requiring American troops to begin leaving Iraq by October 1.

Tired of waiting for an opportunity to try to stop the war in Iraq, some US Democrats say they want to use legislation approving billions of dollars in war spending to insist that President George Bush not send more troops.

Democrats in the House of Representatives defied newly elected Speaker-to-be Nancy Pelosi today by ignoring her recommendation and selecting Rep Steny Hoyer as Pelosi’s top lieutenant.

George Bush and the House of Representatives’ Speaker-in waiting Nancy Pelosi pledged over lunch to stop squabbling and cooperate.