Extending the two percent payroll tax holiday is bad policy. The Republican House's rejection of the Senate bill was the right thing to do. Now, for purely political reasons, they are reversing course. Big mistake.
If, at the end of the day, Republicans can't show more backbone than this, then the future is not bright. Obama, even with no constructive policies (he has lots of destructive one) will coast to re-election if the public sees Republicans as lacking principles. Capitulating on the two month payroll tax holiday is not a good sign.