Payroll Tax Cut: Extended!!

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House Republican leaders agreed Thursday to accept a temporary extension of the existing payroll tax cut, bowing to political pressure after a lengthy standoff.

Under a deal reached between House and Senate leaders, the House will now approve as early as Friday the two-month extension of a payroll tax holiday.

The extension, which also includes unemployment benefits, was approved by the Senate Saturday. A committee will work on legislation to extend both through 2012.

Obama-Boehner Pic

House Republicans - who rejected an almost identical deal on Tuesday - collapsed under the political rubble that has accumulated, much of it from their own party.

With the bill set to keep the payroll tax at 4.2% instead of rising to 6.2%, the GOP, who abhors tax hikes, was dead set on killing the bill because ... who knows honestly.

Worried that the blockade would do serious damage to their appeal to voters, House Speaker John Boehner was determined to put the issue behind Republicans.

After his conversation with lawmakers, the speaker conceded it might not have been “politically the smartest thing in the world” for House Republicans. The reason?

Putting themselves between a tax cut and the 160 million American workers who would benefit from it, and to allowing President Obama to seize momentum.

Makes sense. Might as well actually govern.

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