The Payroll Tax Cut - What Really Happened:

As everyone knows the GOP caved and there will be a 2 month extension (instead of the 12 month extension the Republicans wanted) in the Payroll Tax which supports Social Security.  As always IBD Editorials hit it out of the park!

Politics: Browbeaten by the polls and a pro-Obama press, the House of Representatives Thursday caved in to the White House on the payroll tax "cut." Result: cash for pizza now — and smaller Social Security checks later.
Dubbed "a compromise" in Congress, GOP House Speaker John Boehner and Democratic Senate Majority Leader Harry Reid announced an agreement to extend the year's payroll tax cut by another two months and continue hashing out an extension for another year.
"Sen. Reid and I have reached an agreement that will ensure taxes do not increase for working families on Jan. 1 while ensuring that a complex new reporting burden is not unintentionally imposed on small business job creators," Boehner said, adding that "a new bill will be approved by the House that reflects the bipartisan agreement in the Senate along with new language that allows job creators to process and withhold payroll taxation under the same accounting structure that is currently in place."
Sounds great on paper. And now House Republicans can happily claim to retain their title of tax-cutters.
But this wasn't really a tax cut.
Real tax cuts are offset by lower government spending, fewer bureaucrats and smaller government — and result in economic growth as capital is redirected into investment. This so-called "tax cut" for pizza money was nothing but a fresh raid on Social Security.
The effect will be yet another $200 billion drain on the so-called "trust fund," which is nothing but an accounting fiction given the bad shape it's in.
The 12.4% payroll tax from today's workers — which will now be lowered to 8.4% — goes into the Social Security pot and, like a Ponzi scheme, gets paid out to today's retirees until the money runs out. Anything extra is the "trust fund" that politicians use as a political slush fund for pet projects like this "tax cut." That's why the "trust fund" will go completely dry by 2036. This "cut" will only make it happen sooner.
President Obama sold this "tax cut" as money for "Friday pizza nights" for "working families" — but it comes at the expense of the young, who face the prospect of paying all their lives into Social Security, only to be told "no" by the government when they retire.
But Congress, both Democrats and Republicans, aren't thinking about that. They're both thinking about the next election. The empty-coffer problem — and the smaller checks — has just been kicked to the next guy.