Obama and Congress seek deal on economic stimulus

Meanwhile, U.S. stocks fell in early trading on Thursday following other bleak economic news, including rising unemployment figures and a continued decline in new orders for manufactured goods and new home sales.

Beyond calling for more tax cuts, McConnell said a jobs-creating economic stimulus bill should be devoid of questionable spending. "Are these projects necessary? Will they stimulate the economy? Will they create jobs?" he asked.

During Wednesday's House debate, Republicans mocked some of the spending items in the Democratic bill, such as expanded funding for the arts.

House Appropriations Committee Chairman David Obey countered that community arts organizations have suffered job losses, like other sectors, during the deep recession and he accused Republicans of focusing on the trivial in the bill and behaving "like a 1,000 mosquitoes to harass the majority."

(Additional reporting by Tabassum Zakaria and Thomas Ferraro, editing by Patricia Zengerle and David Wiessler