Katie Pavlich
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It looks like Senate Majority Leader Harry Reid has dropped his grinch role and is willing to compromise on payroll tax extensions in order to keep the government open for business past Christmas. After all, Washington politicians have vacations to attend to, specifically President Obama who is leaving for a 17-Hawaii getaway.

Republicans and Democrats in Congress found a compromise way Thursday night out of a deeply partisan standoff that threatened millions of Americans with a big New Year's tax increase, the unemployed with loss of government benefits and the whole federal government with a shutdown.

Senate Majority Leader Harry Reid said congressional bargainers were preparing a two-month extension of the payroll tax cut and expiring jobless benefits as a fallback plan in case negotiations on a yearlong package do not succeed.

The logjam was broken one day before the government would have been forced to close its doors because of a lack of money, the result of a tangled dispute over taxes and spending. The issues have become a kind of holy grail among politicians facing elections in less than 11 months.

At issue are the extension of a reduced tax Americans automatically pay into the Social Security pension plan, extended federal government payments to the unemployed and funding to keep the government working.

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Katie Pavlich

Katie Pavlich is the News Editor at Townhall.com. Follow her on Twitter @katiepavlich. She is also the author of Fast and Furious: Barack Obama's Bloodiest Scandal and the Shameless Cover-Up.

“ABSOLUTELY DEVASTATING! Intrepid investigative journalist Katie Pavlich rips the lid off Team Obama’s murderous corruption and anti-Second Amendment zealotry" says Michelle Malkin.

"Katie Pavlich draws back the curtain on a radical administration that put Mexican and American lives at risk for no discernible reason other than to advance an ideological agenda." - David Limbaugh

Buy Katie's book today and help us keep the pressure on Obama and his attorney general Eric Holder and expose the cover-up.

Author Photo credit: Jensen Sutta Photography