What now?

Well the House did not pass the Senate bill to extend the payroll tax cut another two months. They say that they want a deal for a year. Nothing wrong with that, but a bill in the Senate for a year failed, so they comprised on two months. The senators have also said that they don't want to come back to DC. They're home for the holidays and want to stay there. Thus even if the House does pass something, the Senate won't. The only really interesting part of all this is that the disagreement seems to be amongst the Republicans, not between the parties.