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is the candidate still making money from layoffs? we're checking the facts. i'm wolf blitzer. i'm wolf blitzer. you're in "the situation room". -- captions by vitac -- www.vitac.com let's get right to the breaking news. a possible deal in the stalemate over extending the payroll tax cut for at least another two months, but potentially for the entire year. the year of 2012. we have all of our reporters standing by. let's go to our chief congressional correspondent, dana bash, he's up on capitol hill hill. for viewers just tuniing in, wht was just happened? >> what we expect is that th...

are going to be making some statements i suspect as well. at least the president will talk about what's at stake for them. john, you and i have covered these games of chicken for a long time. president will be walking out in a moment. can't believe personally that they won't work out a deal between now and december 31st, because the stakes are too enormous. >> the stakes are enormous. i think you're right they'll try to work out a deal. if republicans this morning didn't think they'd wake up and make a deal, the president of the united states is winning the optics of the political wa...

>> well, i think what we wanted to do, michael, we were working with the white house, and again, the president laid down the gauntlet. he said we need to have a one-year solution to this. and through the negotiations of the fall, we took him for his word. we put in other issues. some of the reforms on unemployment insurance. we put in the medicare so-called doc fix, and we put in the keystone pipeline, and so one of the epa rules on boiler regulation that we thought was onerous, we had it removed. now, we are willing to compromise on those things. but we felt like the line in the sand was a on...

Are saying, not only do we want it extended, it's not being extended long enough in the scenario that's been proposed. >> well, i think what we wanted to do, michael, we were working with the white house, and again, the president laid down the gauntlet. he said we need to have a one-year solution to this. and through the negotiations of the fall, we took him for his word. we put in other issues. some of the reforms on unemployment insurance. we put in the medicare so-called doc fix, and we put in the keystone pipeline, and so one of the epa rules on boiler regulation that we thought was onerou...

Road. how is anybody supposed to know where the can really is if speaker boehner and the rest of the republican caucus keep moving the can? >> we haven't moved the can. our vote was loud and clear. maybe you didn't hear it the first time. the american people did. we voted by a one-year extension. that's what the president asked for. we delivered. we stat down. we thought up a thoughtful bill that makes sense. it's a reasonable pragmatic bill. that's what the american people want. they don't want more band-aids and they don't want us to push things off. for this to be effective. the people in b...