Updated

As early as Friday, the Senate could start debate and hold votes on extending the Bush-era tax cuts, this according to senior Dem and GOP sources.

Here is the scenario that exists right now -- but note, this is not yet in stone, GOP leaders have not yet signed off:

Votes on tax cuts for families making less than $250k and on the proposal by Sen. Chuck Schumer, D-Ny, that raises taxes only on families making $1 million or more.

Republicans would get a vote on Senate GOP Leader Mitch McConnell's bill to extend all of the Bush tax cuts permanently.

And at that point, when all of those measures fail, as they are expected to, the bipartisan, bicameral negotiating group meeting with Secretary Geithner and OMB Director Lew would come forward with a bill that temporarily extends all of the cuts for two or three years, according to sources.