...A senior GOP source tells me that Democrats have agreed to a two-month extension of the temporary payroll tax cuts -- plus unemployment benefits and the "doc fix" -- with some extra Christmas goodies for conservatives. Quote: "Two-month extension, PLUS Keystone. Fully paid for; no tax hikes. Hallelujah." Rumors are flying that the president is preparing to retreat from his ill-advised veto threat over Keystone, as conservatives, Democrats, and labor unions have rallied around it:
White House spokesman Jay Carney declined several opportunities to say that President Barack Obama would veto the tax cut if it contained language aimed at expediting the Canada-to-Texas Keystone XL pipeline project. Obama last week said he would reject efforts to tie the pipeline to the payroll tax…Carney told reporters he would not comment on what language regarding the pipeline would be acceptable to the president.