The cave-in by the House Republicans on the payroll tax is on terms that keeps this conflict going well into the election year--and on terms very favorable to Barack Obama and the Democrats. For the GOP, the two-month extension of the payroll tax cut is the worst possible politics.
First, they look weak (because they are weak); and second, the same drama will be replayed next year with the same outcome. Raising taxes on millionaires rather than cutting Social Security or Medicare, or hiking payroll taxes, wins every time.
As Republicans keep re-fighting this losing battle, the message will be reinforced over and over again that Democrats are for the working person while Republicans defend the richest. The fact that key Republicans in the Senate and House can't get their act together is frosting on the cake. Likewise, the sheer extremism of Tea Party caucus members who'd rather lose their seats than compromise. They are likely to get their wish.
Barack Obama won his Senate seat after his leading Democratic opponent and the most threatening Republican in the race both succumbed to sex scandals. Now he has drawn a feckless John Boehner as the face of an opposition with a knack for being on the losing side of popular issues. Obama may be the luckiest politician in modern times.