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"outfront" tonight, breaking news on what matters to all americans watching tonight. the payroll tax. democrats and republicans have been fighting for weeks over how to pass an extension. now, if it gets extended, the average american will save about $1,000 in taxes next year, senate rs and ds have been meeting right now. and john thune of south dakota stepped out a moment ago. we're hoping for some good news. what can you tell us? >> right, it's a two-month extension, erin. it has unemployment insurance, it has the payroll tax cut extension, and what we call the doc fix, which deals...

this is important, because it's the last day before the iowa caucuses, just 19 days away. and while newt gingrich remains the national front-runner, he has been losing steam. take a look at the latest poll. this is a gallup poll that shows in the beginning of december, just ten days ago, 37% of republican voters say they will pick newt. 22% picked mitt romney. but here's how it looks now. newt's number has dropped to 29%. romney, as no doubt he's incredibly frustrated by, remains the same. but it doesn't go down, remains around the same, 24%. as we've seen in this race, anything can ...

big move in washington in a major concession the president and leading democrats will drop a surtax on millionaires as the way to pay for the payroll tax cut extension. this is a huge step in breaking the impasse that threatened the tax cut and may have shut the government down again. here is the bottom line. the ds and rs each fought for one big thing in this payroll tax battle and that is a nonstarter for the other side. the surtax for the democrats and the keystone pipeline for the republicans. now whether you love or hate either one of those ideas, the fact was this, both were de...

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Minds. it would be different -- if people were saying gosh, what are we going to do about this issue? i applaud him for talking about poverty and issues that affect poor people. if that's the answer, if he's the nominee, democrats are strengthened and emboldened, and your point, democrats will win back seats in the senate and may even take the house. >> when we come back, talk about mi romney andome of his difficulties on the campaig [ male announcer ] a raw nose can feel really sore. achoo! [ male announcer ] and common tissue can make it burn even more. puffs plus lotion is more soothing tha...