basically said, let's pass the two-month extension and then we can talk about the year that house republicans want. so president obama and the white house have been pushing on twitter and other forms of social media this idea of $40, which would be what your taxes would go up, the average middle class family, your taxes would go up about $40, if the payroll tax cut extension is not extended over the next year. that would go into effect on january 1st. the president expected to push strongly on that message today. and as i said, this is a place where -- this is a place where the white house feels as though they're on very solid, strategic ground. for more on that, let's go to kristen welker, nbc white house correspondent. kristen, can you tell us what we can expect from president obama's remarks today? >> reporter: hi, there, chris. well, we expect president obama to come out and essentially hammer house republicans and to call on them again to pass the senate bill, to extend the payroll tax cuts. as you know, that senate bill passed overwhelmingly last week

in that body, 89-10. so a lot of people were surprised when the house came out, speaker boehner came out and essentially said, we're not going to support the bill here in the house, because we would like to see a one-year extension. as you know, that senate bill would extend the payroll tax cut for only two months. >> and kristen, i'm going to have to cut you off. we've got the president. he has walked in, flanked by a crowd of americans. he's about to speak. >> thank you. thank you. thank you, everybody. please, please have a seat. good afternoon to all of you. merry christmas, happy holidays. we've been doing everything we can over the last few weeks to make sure that 160 million working americans aren't hit with a holiday tax increase on january 1st. we've also been doing everything we can to make sure that millions of people who are out

there looking for work in a very tough environment don't start losing their unemployment insurance on january 1st. now, on saturday, we reached a bipartisan compromise that would do just that. make sure that people aren't seeing a tax cut the first of the year, make sure that they still are unemployment insurance the first of the year. nearly every democrat in the senate voted for that compromise. nearly every republican in the senate voted for that compromise. testimonies and even some republicans in the house voted for that compromise. i am ready to sign that compromise into law the second it lands on my desk. so far, the only reason it hasn't landed on my desk, the only reason, is because a faction of house republicans have refused to support this

compromise. now, if you're a family making about $50,000 a year, this is a tax cut that amounts to about $1,000 a year. that's about 40 bucks out of every paycheck. it may be that there's some folks in the house who refuse to vote for this compromise, because they don't think that 40 bucks is a lot of money. but anyone who knows what it's like to stretch a budget knows that at the end of the week or at the end of the month, $40 can make all the difference in the world. and that's why we thought we'd bring your voices in to this debate. so many of these debates in washington end up being portrayed as which party is winning, which party is losing, but what we have to remind ourselves of is, this is about

people. this is about the american people. and whether they win. it's not about a contest between politicians. so on tuesday, we asked folks to tell us what would it be like to lose $40 out of where are paycheck every week? and i have to tell you that the response has been overwhelming. went seen anything like this before. over 30,000 people have written in so far. as many as 2,000 every hour. we're still hearing from folks. and i want to encourage everybody who's been paying attention to this to keep sending your stories to whitehouse.gov and share them on twitter and share them on facebook. the responses we've gotten so far have come from americans of all ages and americans of all backgrounds, from every corner of the country. some of the folks who responded

are on stage with me here today. and they should remind every single member of congress what's at stake in this debate. let me just give you a few samples. joseph from new jersey talked about how he would have to sacrifice the occasional pizza night with his daughters. he said, and i'm quoting, my 16-year-old twins will be out of the house soon. i'll miss this. richard from rhode island wrote to tell us that having an extra $40 in his check buys enough heating oil to keep his family warm for three nights. in his words, and i'm quoting, "if someone doesn't think that 12 gallons of heating oil is important, i invite them to spend three nights in an unheated home. or you can believe me when i say that it makes a difference." pete from wisconsin told us about driving more than 200

miles each week to keep his father-in-law company in a nursing home. $40 out of his paycheck would mean he'd only be able to make three trips instead of four. we heard from a teacher named claire from here in d.c. who goes to the thrift store every week and uses her own money to buy pencils and books for her fourth grade class. once in a while she splurges on science or art supplies. losing $40, she says, would mean she couldn't do that anymore. for others, $40 means dinner out with a child who's home for christmas, a new pair of shoes, a tank of gas, a charitable donation. these are the things that are at stake for millions of americans. they matter to people. a lot. and keep in mind that those are just the individual stories. that doesn't account for the

overall impact that a failure to extend the payroll tax cut and a failure to extend unemployment insurance would have on the economy as a whole. we've seen the economy do better over the last couple of months, but there's still a lot of sources of uncertainty out there. what's going on in europe, what's going on around the world. and so this is insurance to make sure that our recovery continues. so it's time for the house to listen to the voices who are up here and the voices all across the country. and reconsider. what's happening right now is exactly why people just get so frustrated with washington. this is it. this is exactly why people get so frustrated with washington. this isn't a typical democrat versus republican issue.

this is an issue where an overwhelming number of people in both parties agree. how can we not get that done? i mean, has this place become so dysfunctional that even when people agree to things we can't do it? it doesn't make any sense. so enough is enough. the people standing with me today can't afford to lose $1,000 because of some ridiculous washington standoff. the house needs to pass a short-term version of this compromise and then we should negotiate an agreement as quickly as possible to extend the payroll tax cut and unemployment insurance for the rest of 2012. it's the right thing to do for the economy and it's, most importantly, the right thing to

do for american families all across the country. this is not just my view. just a few hours ago, this is exactly what the republican leader of the senate said we should do. democrats agree with the republican leader of the senate, we should go ahead and get this done. this should not be hard. we all agree it should happen. i believe it's going to happen sooner or later. why not make it sooner rather than later? let's give the american people, the people who sent us here, the kind of leadership they deserve. thank you, everybody. [ applause ] joining me now, nbc news white house correspondent, kristen welker, capitol hill correspondent, kelly o'donnell, and nbc political reporter,

domenico montanaro. all right, kristen, we heard what the president had to say. i was struck by a sort of state of the union feel there, telling stories about average people, really trying to make sure this hits home, middle class voters, middle class citizens. what say you after having heard the president? >> reporter: that's absolutely right, chris. the president certainly trying to turn up the heat on republicans in the house, through some of those stories, saying that some of these individual families will be impacted, won't be able to buy gas, won't be able to pay for heat, won't be able to pay for pizza night. one of the things that really struck me about the president's comments, you heard him say, "enough is enough." this is a president who is very resolute in this moment. as you know, he's been criticized in the past for compromising and giving in in some of these stuff moments to republicans. that's not what is going to happen in this instance, or at least it doesn't appear to be. the white house certainly believes that they have the upper hand here. why? in large part, because republicans have been criticized by members of their own party.

we've heard newt gingrich come out and say, just pass the senate bill. other republicans in the senate, and then today, of course, as you reported at the top of the show, chris, senate minority leader mitch mcconnell came out and said, let's get a deal done here, essentially. one more point, speaker boehner call called president obama today and said, look, since we aren't negotiating with members of the senate, will you send some members of your economic team to the hill so that we can negotiate with them? i spoke to a senior administration official about this and i said, are you considering this in any way, shape, or form? i got a very brief answer, chris, that answer was no. so sort of sets the tone here in the white house, incredibly res lut lute as they wait for this to end. >> kelly, kristen mentioned it, the president mentioned it. i wanted to read what mitch mcconnell, the senate minority leader had to say, because he hadn't said anything for a long time. here's what he said. he said, house republicans sensibly want greater certainty about the duration of these

provisions, while senate democrats want more time to negotiate the terms. these goals are not mutually exclusive, we can and should do both. it seems like we now have mitch mcconnell and barack obama, not that they were ever not on the same page, but certainly on the same page about the way forward, which is pass this two months and we'll talk about a year. is that where this is headed, kelly? >> we can all look to mitch mcconnell on various matters that come up on the hill here. not just this, but all kinds of debates to see, where is the end game? he's astute at knowing where the next steps are. today he's calling for a parallel track, acknowledging what house republicans want, supporting that, but at the same time, acknowledging what the president and senate democrats and many of his own fellow republican senators want, what the white house calls that insurance policy, of knowing that if it takes longer than the next week to sort out how they would pay for a year-long extension, make sure that there isn't an interruption in benefits or an increase in

taxes. this what this all comes down to is not two months versus one year, it's about, how do you pay for it so that it does noted add to the deficit. that's not a part we've talked about as much, but that is really the undercurrent here of where so much of the disagreement lies. >> and is why, kelly, as you rightly point out, is why you have the tea party faction of the republican party still so antsy about this. because it's, we need to pay for these things. we just cannot sign off on more money being spent. kel kelly, i want to ask you another question about dave camp, chairman of the ways and means committee. he has floated the prospect this morning of a three-month extension. some republicans have said, that would allow at least small business people to plan for the first quarter of 2012. still on the table or not? >> well, it wasn't a formal proposal. it came out of conversations about what are some of the issues with a two-mon extension and what are some of the scenarios that might work. and as many members of this sort of group who are arguing for this are talking about small

businesses. and they plan their books by the quarter. they have their payroll companies put the calculations in the computer by quarter. so two months kind of messes that up in their view. and if you did three months, it would at least be sort of a chunk of time that the accountants are accustomed to dealing with. so it was sort of a practical idea. we aren't hearing other people grabbing that and running with it, but it's the kind of thing where you get a sense that they're looking for some way to make a minor adjustment that could give republicans a sense of, we did something, we made our point. and at the same time, not derail the overall goal that both parties say they want, and that is to prevent a tax increase and a lapse in benefits for those people on unemployment. >> right. very good point. now, domenico, i want to -- now, the president said, i feel like he's talking to people like you and i, he said, this is about people, this is about the american people and whether they win. now, this is not new. this is not a game. this is not high-stakes poker. this doesn't matter -- but, of

course, we're less than two weeks away from the iowa caucus on the republican side, we're less than a year away from the presidential election. there are politics in here too. what message was the president trying to send? >> the fact of the matter is the reason why so many non-house republicans have come out and told the house republicans to just move on, get this thing finished, is because of the politics of this. because speeches like this, when the president, the longer this drags on, the president's able to look like the uniter. he's not engaged in something that looks like, you know, a fight that he can lose. he's on the high ground here. so the more he can do that, the more he looks like he can be anti-washington, you know, the more he can be anti-congress, to talk against the paralysis that exists in the city, when people outside the beltway, you know, don't pay attention to the machinations. when the machinations -- >> the specifics. >> right. when all of that is on, is front and center, and obama can look like he can rise above that,

that's good politics. >> absolutely. and remember, people, he ran on fixing washington, but that's what i wanted to get to, domenico. this clearly looks like a short-term win for the president. the fact that he's out every day talking about it, suggests they think it's a short-term win. is the long-term more dangerous? because it just re-affirms people's sense that washington -- he said, this is exactly why people get so frustrated with washington. clearly, they're using that as a cudgel against house republicans, but couldn't that turn against him if he is ultimately the buck-stopper when it comes to fixing washington come 2012? >> well, it's always a delicate balance. the fact is, if he doesn't look like somebody who's compromising, looks like he's on the reasonable side of things, there's always a problem. in this fight, so far, it seems like democrats have the upper hand. of course, there is this one-year extension that they're all talking about. and not to mention, the economy is till still the biggest issue. those people behind him aren't having the easiest time, there

are a lot of people still out of work. and that's going to fall on the president's desk. >> thank you all for joining us. >> thank you. more on the payroll tax cut fight ahead. i'll be talking to michigan congressman sandy lechin. this is "andrea mitchell reports," it's only on msnbc. >> this isn't a typical democrat-versus-republican issue. this is an issue where an overwhelming number of people in both parties agree. how can we not get that done? i mean, has this place become so dysfunctional that even when people agree to things, we can't do it? it doesn't make any sense. i habe a cohd. yeah, i toog nyguil bud i'm stild stubbed up. [ male announcer ] truth is, nyquil doesn't un-stuff your nose. really? [ male announcer ] alka-seltzer plus liquid gels fights your worst cold symptoms, plus it relieves your stuffy nose. [ deep breath ] thank you! that's the cold truth!

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the u.s. embassy in iraq is condemning a deadly string of bombings in iraq today. the worst violence in months. at least 65 people have been killed in the attacks in baghdad that struck a dozen neighborhoods across the capital. retired army general barry mccaffrey is an msnbc military analyst. general mccaffrey, to the extent that we can, and i know we're still operating on a little bit of an information deficit, what motivated these attacks? is this message-sending? obviously, the u.s. forces have now pulled out. is this sending a message to us, or do we just not know enough yet? >> well, the attacks are undoubtedly planned or rehearsed two weeks ago, undoubtedly timed for the u.s. withdrawal. what we're seeing, most likely, is al qaeda trying to provoke all-out civil war between the shia and the sunni. maliki is playing along with that. there are two steps short of disaster. the sunni arabs aren't going to

let a shia-dominated army and police force slaughter the sunni minority. there's a problem there. fortunately, we can care somewhat less, because thank god we've withdrawn militarily. >> i want to read what the u.s. embassy said, just briefly. what the u.s. embassy said in the wake of the attacks. they said, "it is especially important during that critical period that iraq's political leaders work to resolve differences peacefully through dialogue and in accordance with iraq's constitution and laws." you mentioned al maliki. is he a reliable ally of the united states at this point? >> no, of course not. i think he's trying to accommodate the shia faction's, sadr right there in baghdad has a heavily-armed militia, heavily influenced by the the iranians. he's trying to keep his seat of power. and he's doing it in very tenuous circumstances. i think what we're going to see in the coming weeks is a sunni, arab and kurd reliance to try to

survive in the post-u.s. withdrawal environment. >> let me ask you quickly, how far are we, unless we're already there, from iraq redescending into chaos? >> hopefully we're not there yet, but we're two steps short of it. it could happen easily. right now it's al qaeda trying to provoke that. but what if the iranians intervened and in an active way urged maliki to go for the throat. what happens if the kurds declare indepeence and keep their oil? there's a lot at stake, and we have to care what the saudis and gcc states say about this. they're going to be nervous about the persian empire coming to their northern frontier. >> as you said, general barry mccaffrey, stakes high and lots of shifting parts. thanks for joining us and thanks for your expertise. >> good to be with you, chris. up next in the politico briefing, texas governor ron paul gets a taste of what it's like to be the front-runner. time for the "your business" entrepreneur of the week. former rockette amy brunette

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these things are pretty

incendiary, you know? >> that's because of people like you. >> no, no, no, no. come on, some of the stuff was very incendiary, you know, in saying that in 1993 the israelis were responsible for the bombing of the world trade center, that kind of stuff. >> yeah, come on. >> as you saw right there, ron paul walked out of that interview with cnn after getting fed up with questions about newsletters containing racist language that were published under his name back in the 1990s. paul, who has the disavowed the newsletters, is getting a little extra scrutiny these days after his recent surge in iowa. roger simon is politico's chief political columnist. he joins me now for today's politico briefing. i just said the word "political" or "politico" nine times in the last minute. you've seen a lot of these races, a lot of front-runners go up, a lot of front-runners go down in this race. is this ron paul's moment, in a good and bad way, in that he is

up, but going up means you get attention like this. >> you go up, you're the front-runner in some polls, or close to being the front-runner. >> cedar rapids' gazette poll at 28. 28 for paul, 25 for gingrich. >> it ain't bad. >> you'd rather be at 28 than 5. >> it puts a target on your back and your front. and when you run for president, you own everything you ever did. if you don't want to own it -- newt gingrich doesn't want to own part of his past, you say, i'm sorry. you know, i've asked god's forgiveness, whomever's forgiveness, and let's go on. you can't walk away from a reporter. gloria borger's a great reporter, a good friend of mine. >> totally fair. and those questions, by the way, are totally fair. these are things he has to answer for. >> and if ron paul cannot handle the questions of a reporter, how does he deal with world leaders? i know that's a cliche, but it's true. >> it's true. a cliche that happens to be true. i want to ask about, ron -- my

contention is that ron paul is mitt romney's best friend in iowa. if ron paul does win iowa, newt gingrich has no momentum coming out of iowa, iowa will be largely dismissed by laa lot of the republican establishment, and now the race starts in new hampshire where romney is strong. agree or disagree? >> i totally agree. iowa has voted for exotic candidates before, pat robertson is one. his invisible army of christian conservatives. we all rushed to new hampshire after robertson won iowa and robertson, you know, was wiped out. there was no invisible army. >> huckabee, same thing, by the way. wins iowa, nowhere in new hampshire. >> sure. now, ron paul almost won the ames straw poll, which we all made too much of. but it does -- the media is not going to be blown away. >> right. >> they're watching a mitt romney/newt gingrich runoff from here to new hampshire to south carolina to florida, whoever's

next. if ron paul wins iowa, we just take it out. >> roger simon, who will spend christmas in washington, but then will soon be on the road to iowa, always a political reporter at heart. >> new year's eve in des moines. >> what could be better? thank you, roger. >> thank you. up next, it's less than two weeks out from those iowa caucuses. we'll talk expectations with rick perry's campaign. plus, the democrats' take on the payroll tax fight with michigan congressman, sandy levin. a sign of the times in times square. the "2" has arrived to completely that 2012 sign. the new model uses about 78% less energy than last year's. yo g their promises once a year. but we believe in helping people take steps to keep them every single day. that's why every day we help people across the country get into their first homes. prepare for a comfortable retirement and protect the people and things that matter most.

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we asked him to be part of an experiment to prove that febreze air effects can eliminate tough cooking odors. [ moderator ] take a deep breath and then tell me what you smell. wow. it takes you kinda to like an island. like a paradise. [ sniffs ] vanilla. [ sniffs ] i smell caramel, like a caramel candy. [ moderator ] go ahead and take your blindfold off. ah man. ♪ [ laughs ] wow man! [ laughs ] [ male announcer ] eliminate tough odors with febreze air effects so you can breathe happy guaranteed. ♪ this is not just my view. just a few hours ago, this is exactly what the republican leader of the senate said we should do.

democrats agree with the republican leader of the senate, we should go ahead and get this done. >> that was president obama a short time ago, from the white house. from the conservative pages -- the opinion pages of the "wall street journal" to fellow republicans like arizona republican john mccain, house gopers are getting hit on all side. if the deal isn't done by year's end, 160 million americans are lose about $40 in each paycheck. still, there's no concrete sign that house leaders are about to cave. so is there anything democrats can do, other than wait it out? the nick congressman sandy levin of michigan joins us. he's the ranking member on the ways and means committee. we've heard the president, we've heard mitch mcconnell, there any pressure that senate or house democrats can exert in this debate, or do you have to sit on your hands and wait to see what happens? >> the last thing we're doing is sitting on our hands.

we're speak out. i was at home yesterday and talked about this issue. you know, i was reading a story from michigan about a michigan vet, a marine veteran who has been looking for work, who has had just odd jobs since '08, and he ended up afterwards saying he has to move out of his apartment. it's really touch-and-go. and the republicans in the house are out of touch, and we're speaking up, and insisting that we come back here and pass the bipartisan bill that passed the senate. for the lives of people, it's inexcusable, and we're speaking out on that. >> congressman, i want to ask you, the main pushback from house republicans is that two months doesn't provide any certainty for small business people. lots and lots of small business people in michigan, it's a state where the economy continues to struggle. why do you not buy that argument? >> because the greatest

uncertainty is what the house republicans are creating. whether we'll have payroll tax cut after january 1 and whether unemployment insurance will continue for over a million people, just in january alone. that's the major uncertainty. look, irs has said that the two-month period, the two-month extension, wehile it's not easy is workable. what we need to do is pass the two-month extension and come back here and work on a one-year extension. as you reported, mcconnell, the leader in the senate, has just now spoken out. so who's left to house republicans who arer just in this rigid ideological position, out of touch when this marine said, it's real touch and go. and that's true in terms of the payroll tax for people who need that decrease and for a million plus people who are going to lose their unemployment

benefits. that's about $300 a week on the average. >> congressman, quickly, i just want to -- house republicans, as we mentioned, are not showing any signs yet of backing down on this. if they do not back down, will house democrats, senate democrats in the white house, hold the line? will they insist that the two-month extension is it? that that is the compromise? >> the senate bill needs to be passed. the house republicans need to get off the dime. by the way, it's not only bad for millions of americans, it's bad for the economy that we don't do this. the republicans in the house have to come to their senses. they need to act. period. >> congressman sandy levin of michigan, thank you for joining me. >> glad to be with you. rick perry is in the middle of an exhaustive push to try to get back into the iowa race. now, following a trip home for christmas, the texas governor has 20 more events scheduled

across the hawkeye state. in fact, his last event isn't until january 3rd, which also happens to be the day iowans finally cast their votes. ray sullivan is communications director for the perry campaign. ray, it does not take a political genius, and i'm not professing to be one, to say that you guys are spending lots of time, energy, and money in iowa. given that, if rick perry doesn't finish in the top three, does he have to drop out of the race? >> i don't think there's any definitive answers right now, chris, in this wild republican primary race. the governor's doing what he likes to do best. he's talking one on one with iowa voters. he's taking that faith, jobs, and freedom message to those citizens all around the state. it's an exciting bus tour. we're getting great crowds, a great response. and keep in mind that rick perry has never lost an election and he is always underestimated. so we're optimistic for a strong finish. there's a lot of fluidity in this race. the polls are bouncing around. we feel like we're in good

position and this retail campaigning, taking that outsider washington message, taking that conservative fiscal and social record directly to those voters we think is really paying off. >> ray, you mentioned the outsider message. this is a super pac, not affiliated with the governor, but a super pac that is supporting him. here's an ad that they are running in iowa. let's watch it. i want to come back and get your reaction. >> decades ago, gingrich goes to washington, romney runs pro-choice campaign for senate, gingrich found guilty of ethics violations. mitt creates romney care. >> rick perry, creates a million new jobs, cuts taxes, reduces regulations. the proven conservative. >> first of all, let me say, i love the ipad usage in that ad, but, ray, the question i have for you is who is governor perry's main rival here? who does he -- the race started out, we thought it was going to be romney versus perry. but then newt gingrich has risen.

is it mitt romney, is it newt gingrich, is it ron paul? is it a little bit of all three? >> chris, it's washington, d.c. and the establishment who has gotten this country in the mess that we're in. governor perry's running against former members of congress and a darling of the establishment has been running for president for years. these are folks who have supported bailouts, who have supported government-mandated health care, and have been part and parcel with the mess that we're watching unfold now and that we've seen in the past in washington. so we view our opponent as the d.c. insiders, the public establishment, and we're making the case that rick perry has never been part of washington, d.c., never been part of the establishment, and has that jobs and conservative record to change that city and do what needs to be done up there. >> and ray, quickly, is the back and forth between newt and mitt a good thing for rick perry? >> it's hard to say. i mean, we are sticking with our

bus tour, with our message, and are talking directly to those citizens in iowa. we have a new ad on featuring the first lady of texas, mrs. perry, talking about their christian faith and their rural upbringing, which we feel will really connect with those voters in iowa. the governor's really focused on his own work, his own message, on taking that outsider record and vision to the citizens of iowa. and we feel good about where we are. our momentum is growing and we're optimistic about a good finish on january the 3rd, chris. >> ray sullivan, communications director with the perry campaign. thank you. >> yes, sir. thanks. up next, the politics of the payroll tax fight. after a year of high-stakes law ma making, did republicans overplay their hand? this is "andrea mitchell reports," and it's only on msnbc. see? he's taking his vitamins. new one a day vitacraves plus omega-3 dha is a complete multivitamin for adults. plus an excellent source of omega-3 dha

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president obama warns house republicans that a payroll tax cut is about the people. it is the latest push from the president, who just within the hour came out again to strongly urge republicans to pass the payroll tax extension. if this is a game of tennis, the ball is now in the court of the house republicans. we'll get the latest from capitol hill. then, the latest on bank of america's record settlement over claims that its countrywide mortgage unit discriminated against black and hispanic borrowers, by giving them high-interest loans while offering better deals to white customers. and just days before christmas, this is a stunner, best buy says it will not fill some online customer orders. so where does this leave the customer? back on capitol hill, will pressure from senate republicans persuade speaker john boehner to back down and make that deal with the white house? democratic strategist john summers is former communications director for senate majority leader harry reid and david winston is a former adviser to house speaker john boehner and now a senior strategist with

newt gingrich's presidential campaign. david, i want to start with you. which is, we have, in some ways, a rare thing in washington, which is an almost entirely united front. the white house, senate and house democrats, and senate republicans all essentially saying, vote for the two-month extension. have house republicans backed themselves, whether wittingly or unwittingly into a pretty bad political corner here? >> well, i mean, i think you'd need to take a look at the issue from this perspective. what house republicans are saying is actually where the president and the senate democrats and senate republicans want to go, as well as house democrats, and that is, how do we get to a full-year extension? so the question here isn't, how do we get to two months, it's how do we get to a full year. and watching the legislation occur and watching the legislations go on, it's not always the most pleasant thing to watch, but ultimately, both sides are going to get to that full-year extension. >> and john, you know harry reid quite well.

i keep asking this question, which is, if house republicans stand firm, will harry reid, the white house, will they stand firm? what we've seen in the past, especially from the white house is, they're more willing to compromise. they'll meet republicans 70% of the way. is that where we're headed here, or do you think harry reid and president obama stick to their guns on this one? >> i think you've seen senator reid and president obama stick to their guns on this one. it's interesting that the house republicans are ending this year much in the way we started. which is obstructing just about anything good, any positive solutions that could help struggling families in nevada and across the country. so for them to block this is obviously an incredible disappointment, and it's also a disappointment that many families across the country are going to feel right away. we're talking about a $1,000 a year tax increase that will strike at the heart of families all across this country, right in the middle of the holidays. so this is thing is that i think democrats and you've seen --

you've seen the president, you've seen senator reid, and you've seen senator mcconnell all standing by saying, it's time for the house republicans to take up the senate passed bill. 90% of the senate agreed to this. it's time for the house to take action now. >> david, may i -- >> sure, go ahead, of course. >> the frustration in terms of house republicans and in terms of where the country's going. what's better for the country? a two-month extension or a full-year extension -- >> i think everyone agrees the full-year extension is the way to go, but the republicans wouldn't allow us to do that, so the agreement that was made -- >> we voted for it. you have a bill in the senate ready to go. >> we have a bill in the senate -- >> david and john, i want to go to a clip. i think it's important, because, david, i want to ask you about the long-term impact this could have on the republican brand. i want to play you something that bob corker, not a moderate, a conservative senator from tennessee, a republican, had to say yesterday on cnbc about how this is impacting the republican brand.

>> are republicans getting killed right now in public opinion? no question. are we on a bad path related to public policy? no question. >> the reality is this issue is hurting republicans. democrats are exploiting it. >> i think when republicans have a grade that some type of payroll tax holiday is going to happen, i think that the "wall street journal" is right, let's get it behind us and move on. >> david, the question, the short-term politics we are and will continue to debate. the long-term politics, does this look like republicans are simply an impediment? are you fighting a war that's basically over with in the sense that we are almost certain we're going to get some kind of extension? >> well, i mean, again, it comes back to, what is the outcome that people are focused on. if you're looking at getting to that full year, that's where everybody wants to get to. there can be disagreements, certainly, within the republican party on what's the the best way to get there, but i don't think there's anybody, and democrats

are in the same place as well, everybody wants this full year. having said that, you're in the midst of capitol hill negotiations, which sometimes are not the most pleasant things to watch. >> sausage being made. john summers, i know you know well the negotiations in the senate. thank you senate. thank you for joining us. >> pleasure. >> what are political story will make headlines in the next 24 hours. that's next on "andrea mitchell reports." everyone believes in keeping their promises once a year. but we believe in helping people take steps to keep them every single day. that's why every day we help people across the country get into their first homes.

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which political stories are making headlines in the next 24 hours. jonathan, you explicitly ignored my desire for you to wear a bow tie. that's fine. >> i defy you at every opportunity. >> it's the full windsor and i don't have a problem with that. i have a feeling we will talk payroll tax cuts still. >> yes, we will. particularly the last segment. senate minority leader mitch mcconnell told the house to pass

the senate bill and do a one-year extension. you have the president saying i agree with the senate minority leader. let's get this done and help save the american people an average of $40 as the president and the white house was making an issue out of all this. we will be looking to see what other kinds of reactions we will get from john boehner who after senator mcconnell put out the statement pushed back and said no, we want an immediate one-year deal. all of us who have been following this, the idea that you will get an idea one-year deal to cover the tax cut unemployment insurance benefits and the dock fix is not going to happen. >> is this then what amounts to a find a way to save face for house republicans? how do they vote for something

they voted against 48 hours ago? is that what we are looking at? >> yes, absolutely. i don't see how speaker boehner's comments after senator mcconnell's comments help in this endeavor. the house republicans are in a heap of trouble. they are in a world of hurt right now and they are getting hit from the "wall street journal" editorial page to senator who is went out on a limit and vote and now are left out there hanging. the house speaker boehner gets out of this jam will be one of the great spectacles. >> thank you for joining us. >> that are does it for this edition of andrea mitchell reports. tamron hall has a look at what's next on the "news nation." >> it is the great holiday expect cal. after president obama's newest push to pass the payroll tax

extension, he warns it is about the people. we valentine latest. the republican congressman apologizes for insulting the first lady's figure. is his apology enough? it's our "news nation" gut check. days before christmas, best buy said it won't be able to fill online orders. where does this leave the customer? "news nation" is next. just one phillips' colon health probiotic cap a day helps defends against occasional constipation, diarrhea, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health.

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>> right now on "news nation," developing news or is it. a flurry of words from all sides. >> is this place so dysfunctional that even when people agree to things we can't do it? >> we need people to sit down and work with them. we will not negotiate with themselves. >> we want to solve the problem. let us not hold hostage 2.3 million american who is don't have a job and are looking for a job and want to work. >> plenty