Despite public confidence in the U.S. Congress plunging to record lows, Democrats and Republicans have shown little inclination to end the political brinkmanship that has gridlocked Congress and alarmed investors.
Furthermore Republicans have been split over extending the payroll tax cut, with many rank-and-file members skeptical that it has created jobs. Republican leaders, however, fear a backlash from voters in 2012 if the tax cut is allowed to expire.
Additional FYI: Without an extension, the payroll tax would revert to 6.2 percent from its current rate of 4.2 percent, resulting in an average increase of $1,000 per family for 160 million Americans.
