House GOP admits defeat on Payroll Tax cut extension

The calculus in this case is all political; don't raise taxes in an election year, and fight the fights that you have a chance of winning. The House GOP has dropped its demand that the payroll tax cut not be extended unless there were spending cuts to offset the lost revenue. It reflects the reality that the Democrats will not agree to any spending cuts, and that it would be political suicide to have the party saddled with a tax increase in an election year. The Hill: Speaker John Boehner (R-Ohio), House Majority Leader Eric Cantor (R-Va.) and House Majority Whip Kevin McCarthy (R-Calif.) also said Monday that the payroll tax measure could get a vote this week, depending on how the Republican rank-and-file reacts to the idea.  "Democrats' refusal to agree to any spending cuts in the conference committee has made it necessary for us to prepare this fallback option to protect small business job creators and ensure taxes don't go up on middle class workers," the three...(Read Full Post)