It looks like there may not be a major showdown over renewing the payroll-tax cut after all. Late Tuesday lawmakers reportedly reached a tentative deal on the payroll tax and jobless benefits. Earlier, House Republican leaders announced they will support an extension of the tax holiday through the end of the year without demanding that it be paid for by cuts elsewhere in the budget, as they had during the fight at the end of last year. The plan came as a surprise to many Republicans, several of whom vocally attacked the deal. Democrats appear warily optimistic, though some, including Nancy Pelosi, say they want to press for the inclusion of benefits, such as unemployment insurance, which the GOP leadership has separated from the tax-cut extension.
