Allow me to register my total lack of surprise. AP reports:
"The House Tuesday rejected legislation to extend a payroll tax cut and jobless benefits for two months, drawing a swift rebuke from President Barack Obama that Republicans were threatening higher taxes on 160 million American workers on Jan. 1.
Obama said the two-month compromise is the only way to stop payroll taxes from going up by two percentage points.
"Now let's be clear," Obama said in a surprise appearance in theWhite House briefing room after the House vote. "The bipartisan compromise that was reached on Saturday is the only viable way to prevent a tax hike on January 1st. The only one."
First of all, this was a case of hostage taking. It's plain and simple. If the GOP had wanted to keep the payroll rate in place, all they had to do was vote for it. They insisted that it "had to be paid for." How does this square with their 30 year mantra that "tax cuts" pay for themselves by magically expanding growth? It doesn't and an obedient media is largely obliging them by not asking about that. More predictably and repulsively, they not only insisted that the proposed Keystone XL pipeline was somehow related to the payroll tax rate, but they uniformly parroted each and every proven falsehood regarding that project.
What does it mean for you? The chart below shows it clearly.
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| Graphic via CNN |




