ya yay democrats. that is interpretation a. republicans caving. interpretation b, democrats look out, it's a trap! so which is it? a victory for democrats or a plot by republicans? the argument for interpretation b goes like this. payroll tax cut negotiations are not just about the payroll tax cut. also about extending unemployment insurance benefits and preventing a massive cut to medicare, that for reasons frankly too inane and complex, the unemployment insurance benefits are hugely important to both the economy and unemployed. economic forecasters say we could lose as half a point of growth if they are allowed to expire. medicare fix is important for seniors. both were tied to the payroll tax cut negotiations. neither is in the clean payroll tax bill republicans are now offering democrats. so that is interpretation b. republicans are not caving.