Word coming out this morning that Senator Harry Reid (D-NV) will offer a compromise proposal to extend the payroll tax cut. Details have not been released but it is likely the compromise would be a mix of the two failed proposals from last week.

Now whether the GOP will accept the compromise or not remains to be seen though in the end neither party wants to be seen as preventing a tax cut extension. Like many ‘temporary’ tax cuts this one is likely to remain for a while.