Stand off

Stand-off

by digby

So the payroll tax standoff continues with everyone, including the Wall Street Journal, telling the House Tea Partiers they need to give in on the two month tax cut and UI extension and come back and fight another day. The conventional wisdom is that the Democrats are in the drivers seat and are unlikely to blink.

It certainly looks that way. But the Republican wrecking crew has shown that they are not only willing to kill hostages but that they positively enjoy it. Moreover, their followers are the types to run primaries against them and win if they don't toe the line.

You have to believe that the likelihood is that the Republicans will sign on at the last minute if they can get something juicy in return. It is Christmas, after all. Maybe a promise from the president that he won't kill Keystone on the basis of the State department recommendation. Perhaps a tacit agreement that further Unemployment Insurance "reforms" will contain their desired Dickensian measures. Dday thinks it could be something as simple as changing the extension to three months.

Whatever happens, Boehner's so far out on a limb that I think they're going to have to find some face saving way out for him if they want to make an agreement. The question is how real it's going to be and whether there are some side deals that don't get any publicity. The Tea Partiers are willing to take a hit with the Village, and even the Wall Street Journal if it advances their prospects. They just don't care what the cognoscenti thinks. That's powerful.

Update: Looks like they did it:

House Republicans on Thursday crumpled under the weight of White House and public pressure and have agreed to pass a two-month extension of the 2 percent payroll-tax cut, Republican and Democratic sources told National Journal.

The House made the move after Senate Majority Leader Harry Reid, D-Nev., agreed to appoint conferees to a committee to resolve differences between the Senate's two-month payroll-tax cut and the House's one-year alternative.

The House will pass the two-month extension with a technical correction to the language designed to minimize difficulties businesses might experience implementing the short-term, two-month tax cut extension.

Hats off to dday who predicted this might be the way out.

Update II: Mr Killjoy is probably right about this, but then that was always the case with the two month punt to begin with...



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