>> crosby goes down vofling. never had a chance to say what you meant to me. how he got me started in the business. i felt badly about that. you guy his a good laugh. >> you were just making fun of him. >> down goes crosby. >> that story. >> we are sorry, regis. >> regis should run for office. >> america, elect regis. right after christmas. regis. >> be there or be square. >> what did you learn? >> i tried. >> they got this way by regis philbin. it will change your life. it's way too early. what time is it?

>> time for "morning joe." right now time for chuck and the daily run do you. >> today house republicans will reject the plan to extend the payroll tax cut, but procedurally. # speaker boehner said it's not a fix. why is this any different than what was passed this year. we will talk to both sides of this debate. hit after hit from mitt romney's negative ads. they admit the onslaught is taking a toll and calling on republicans to hold their fire. two weeks to go until iowa, please listen. before there was 9-9-9, the man was slowsly associated with a flat tax. he joins us to weigh in on the debate and the former presidential candidate tells us what he thinks.

it's tuesday, december 20th and this is "the daily rundown." let's get back to the first read of the morning and believe it or not, we start on capitol hill. house republicans started after a two-hour meeting that the members will not vote on the payroll tax deal for now. the two-month extension that they call kicking the can down the road. >> our members do not want to just punt and do a two-month short-term fix where we have to do this again. >> we outright reject the attempt to kick the can down for 60 days. >> the senate can pass a bill and the house can pass a bill where you find common ground and the american people need to move forward. >> that's where all the comments were before the senate voted and just this calendar year. congress kicked the can down the road seven times and passed short-term spending or continuing resolutions. they want the senate and the house to work out a deal in

conference, but harry reid made it clear he will not appoint anyone to negotiate saying i will note reopen negotiations until the house follows through and passes this agreement that was negotiated by republican leaders and supported by 90% of the senate. actually 89%. democrats were quick to seize on the politics in this holiday season. >> it's grinch time in washington, mr. speaker. >> another phony crisis courtesy of the extremist ba humbug house republicans. >> when you gather around the kitchen table preparing for the holidays and when you sit down to the holiday dinner, you know come january you will still be able to pay the bills. >> and republicans trying to win reelection in swing or blue states think voting down this extension could be damaging. scott brown said we cannot allow rigid partisan ideology and stay in the way of working together.

from nevada, playing out in washington, d.c. this week is about political leverage and not about what's good for the american people. indiana senator richard luther saying i hope there is a majority who will proceed because this is best for the country. all four of the republican senators all from states barack obama carried and all up in reelection in 2012. the white house changed their countdown clock to read if the house doesn't act, middle class taxes are going to increase. this will be an interesting day here. house republicans are desperate to put this back on the senate democrats and make them look like somehow they are stalling in negotiations by voting this into conference, but after two years of complaining about procedure and different back room deals that congressional democratic leadership had, do they put themselves in a box by

not doing an up or down vote. >> newt gingrich began on the defensive, getting needed about a sluf ads running against him. mostly from the super pack supporters of mitt romney. >> take this junk off the air and don't hide behind bologna of the super pack that had control of the former staff. that's bologna. >> until yesterday, romney and the super pack were up 50-1. he was placing a buy up for the week and cut it down at least this week to about a 3-1 ratio. he is holding steady in the national polls. tied for the lead with romney and two polls. he is hammered by others struggle to catch up. he lumped the front-runners together.

. >> the wall street bailout was the single greatest act in history. newt gingrich and mitt romney were at fault. >> michele bachmann went after ron paul on isolationism. >> i never want to see kids in grundy center ever wake up and turn on the and see a city in the united states wiped out from a nuclear weapon. ron paul would wait until after that horrific tragedy to do anything. >> to hit on paul has to do with the fact that he is doing well in the iowa polls. newt was stuck explaining his work from mortgage giant, fred mac. >> 24 books and seven movies. i didn't try to sit down before running and figure out every question somebody could ask me. it would be like wikipedia. it was a six-year contract of the total amount. i probably got about $35,000 a

year. that's less than i was making per speech. >> you know what they say in politics? you are still explaining, you are likely losing. he made a lot of explanations on the freddie mac deal since the question was first asked on november 9th. he struggled to get this issue behind him. a word of warning on national polls. this close, they are lagging and not leading indicators anymore. keep this in mind. barack obama trailed at this point in time hillary clinton by 20 points. john mccain was fourth in polls at this point in time just two weeks out from iowa. mitt romney's media blitz continues. these are regular guys on david letterman. >> finally, thank goodness he has a forum here to talk to the american people. top ten things mitt would like to get off his chest. number nine. >> what's up, gangstas, it's the

mi double 'tisle. >> to defend his conservative credentials where he was grilled by bill o'reilly on the health care mandate. >> do you consider yourself a conservative thinker? >> i have become more conservative overtime. >> you were a moderate in massachusetts. >> my record is a conservative record. >> romney care is not conservative. >> the idea came from conservatives at the heritage foundation. newt gingrich. >> he got in a dig on the judges issue. >> sending the capital police to bring in judges is not exactly a practical idea or a constitutional idea. the solution to judges out of control is not to tear up the constitution and say what the congress of the united states becomes the now ultimate power in the country. >> moments ago, "morning joe."

romney put a positive spin on the ceiling he hit in the polls. >> i think if you look over history and say how many people have been able to get to 25% of support this early when there or nine candidates, not many get that high. my objective is about a third of the votes in the first month and 40% in the next month and 55 or 60 in the next month of this process and get the delegates that i need to be nominee. >> i will be joining mitt romney over a couple of days after this show in new hampshire and bring you more details and tell you more. les than two weeks to go before the payroll tax expires. even if it means dragging the senate back to do it. chuck schumer joins me now. i know you are very upset and a lost senate democrats and a few republicans said this. they are upset that the house republicans won't do an up or

down vote. congress does work this way where the senate has a bill and the house has a bill and you go to conference. >> we are calling for an up or down vote on the bipartisan senate middle class tax. we are confident that that will pass the floor of the house. we heard senate republicans say they will be supportive and we are hearing even house republicans encouraged and republicans say they will be supported. there dozens who would vote. instead, what speaker boehner has done after promising an up or down vote yesterday is create an up or down vote with no up. down vote kills the bill and they don't send it to the the senator for signature. we know in washington it's time-honored. you want to kill somebody and not have your own fingerprints on it, send it to a committee. that is exactly what the speaker is doing and it will just end up

killing the bill. have a simple up or down vote on a bill that passed 89-10 with a majority of republicans for it. if it's good enough from mitch mcconnell and john kyle and marco rubio and tom col berg, it should be good enough for house republicans. >> explain how they kill it. they don't necessarily always kill the bills. >> you need good faith. we don't believe speaker boehner has good faith left. we started out with the bill at 3.2% and went down to 2%. we took out the employer tax cut. they didn't want that. we then took out the millionaire's tax cut and said that was no good. they didn't want that. we even said we would accept the pipeline and they didn't want that. here's the ultimate. a few days ago, speaker boehner appointed mitch mcconnell and when he came up with the deal,

he said that's a good deal and rejected it. the same will happen here and one other point about conference committees. they take time. he will never get it done here. the conference committee is a grave yard and the democrats and a good number of republicans won't fall for that. >> speaker boehner's office denied he gave a sign off to senator mcconnell on this two-month deal he was signalling support. do you have evidence to the contrary and the senate republican who is told you speaker boehner said he will get this passed? >> the bottom line is all you have to do is look at what the speaker said. he was positive about the negotiation and even positive on the phone call with republicans when they started out about the deal that was reached. he said we got the pipeline and we gave them the pipeline and we swallowed hard. we know what's happening here. he moves the goal post back and back and back.

these tea party folks who say now it's not long enough, two weeks ago they were saying they were against any littmiddle cla cut. now it's too short. that doesn't even pass the laugh test. >> there was a letter that came out yesterday with the consortium that sent it to you guys. here's what they wrote. many payroll systems are not likely to make such a substantial programming change before january or february. they are highly complex and normally requiring at least 90 days for a change of this magnitude for software testing alone. they can be confused and seeking to collect official taxes for wages paid in january or february. it seems to be po theastential the two-month deal can get past it. >> i will be the first one on the plane to negotiate a year long deal, but we don't believe

there is good faith on the part of speaker barron. every time there has been a deal and every time he negotiated, he had to back off. the headline said he is losing control. the way he set it up is a grave yard. it's an upon or down vote with no up. we are not going to fall for that. we believe in the middle class tax cut and so does the american public. who would have thought that the american public, 50 to 35 would prefer democrats on this issue, but they are seeing through what speaker boehner and the house republicans are doing. >> what do you do? go home? >> no. it's simple. pressure every day is mounting on republicans. that's why boehner yesterday said we will have an up or down vote on the senate bipartisan tax cut. he backed off that. you know why? his members or a good number of

members who want to vote for it. therefore all you have to do is let the pressure mount day in and day out and they will come back and support the two months. enough republicans added to the democrats that would pass the bill by a large majority. the republicans are losing on their signature issue which is tax cuts for the middle class n. a few days, they will fold if no one falls for these without getting them off the hook on producing a little class tax cut. >> you and senator reid. >> it's a joke. it's a way to kill the middle class tax cut and if this was the first thing speaker boehner proposed, we would entertain it. he has lost all good faith. every time he appoints a negotiator, he under cuts that negotiator. every time he asked for a concession and said this will get me to pass the bill, he

backs off. this is another. >> senator check schumer, got to leave it there from new york. any plans of coming back to washington? no plans to come back to washington? we still on the air? i'm sorry. if we pass, if the house passes the two-week bill, the two-month bill, we will come back. of course. we will negotiate a year-long deal. the negotiators were on the deal. here's what's going on. >> i will leave it there. apologies for that. still ahead, the other side in the payroll standoff. congresswoman and member of the leadership and a tea party favorite from south dakota. we will talk a little 2012. a former republican candidate himself. twice he has run and why he is saying no to romney again and the heir-apparent kim jong un,

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>> rick perry is all over iowa attending at least four events and perry said he wants to be the tim tebow of the calks us. can he make a dent against the front-runners. former candidate steve foesh citizen chairman and editor in chief. mr. forbes, thanks for coming on. >> thank you.

>> let me start with what's going on in washington. it's one of the deal where is a lot of people outside of washington are saying here we go again. when you see a united states senate which rarely is able to do anything with 89 votes get behind something even if it's short-term, do you think at this point house republicans ought to just say fine, let's get this done and keep negotiating or do you think they should be what they are doing now? >> the bottom line is if it's good enough for two months, why not do it for 12 months and call it a day and not have this uncertainty into the new year. if you took the senate bill and made it from two months to 12 months, with a couple of tweaks, you would have a deal. you wouldn't even have to sit down for a conference. you would be done. the uncertainty of the 60 day thing in the real world, we have to adjust a payroll and it would be nice to get it out of the

way. >> you think house republicans should push? >> instead of two months, if it's good enough for two, do it for 12. >> there a lot of details and it has to do with the paying and fining the other things and that is why they ended up in a two-month incentive. >> they didn't pay for it in terms of 2011. you are not going to get an agreement in terms of budget entitlements and things like that. realistically until after the elections. let's get realistic and call it a day and extend it for 12 and say the real work will have to be done by real congress. >> looks like it. let's talk about the presidential race. one thing about you endorsing rick perry and where you were, both times you never signed on with mitt romney. what has been your -- what is your hesitance about rom sidney you are both business men and come from the private sector.

i think the two of you would have a lot of common. >> two principal areas or actually three. one is health care and what he did with romney care in massachusetts was a baby obama care as much as he wishes to deny it. he hasn't repudiated that mandate. most people don't see much of a difference between the state and the federal level. if it's not good on the federal level, it's not good on the state level. it the tax area where most of the candidates including rick perry to come up with a radical simplification including a flat tax, governor romney has a messy kind of thing. he has a 59-point plan and has been pointed out that only god had ten points n. terms of change on the taxes and change on health care, they are very, very real questions. as rick perry, there no questions on the tax side or the

health care side. >> what is your assessment of why rick perry has struggled? >> he got off to a poor start in the earlier debates. he improved since then and what's amazing as you and others have reported is how much fluidity there is in iowa and the early contests. still 60% have not really made up their minds. you could have an iowa a half dozen candidates mow more than a half dozen or eight points. i'm not sure you are going to get a result in iowa and i think rick is now moving up and governor perry is moving up and aggressively touring the state. you still have to do that these days. i couldn't count him out at all. not in this situation. >> let's talk about the flat tax. you have been a proponent for years. how do you protect the middle income folks in the mid-levels of income?

that's always been the knock on versions of this. i know that everybody tries to find protections in here as well as home ownership and having that. how do you make those protections in this plan. >> what you have is generous exemptions for which rick perry does and he went further than i did by keeping the homeowner deduction for charities. if terms of when you work this out, the middle class comes out ahead. in terms of making sure nobody is hurt by a flat tax there numerous ways to do it. rick perry's proposal does it and newt gingrich has a proposal to give people a choice. so no one gets slammed by it. it's win-win all-around if you do it right. 25 countries have done it and it worked everywhere it has been tried. >> how do you avoid the issue? a lot of people who are wealthy

don't pay the upper income. they end up paying 15%. they figure out a way to file as a corporation and i think they are frankly going through the personal disclosure forms and seems clear to me that a few candidates have done that. how do you avoid that in your flat tax so that individuals don't become corporations themselves? >> in terms of individual rates right now, they are not much different from the corporate rate. the nice thing about the flat tax is if you have a business, you file as a business and when you have individual income, you file individual income. with the rates so low, the need for an llc corp which is the same thing goes out the window. simplicity has two advantages. that is you can't play games and number two, the low rate is low enough that it's not worth your while unless you are a pro to

avoid the thing. the deals are with a whole host of issues with the business side where a lot of complexity comes from. >> a lot of favorite poll questions and who is your second choice? do you have a second choice? >> not yet. my first choice can still do it and he's moving up in the polls. again, i think this thing is amazingly fluid at this stage in the game. as you referenced earlier about romney and the gingrich going after each other when two guys go after each other, other candidates can come up in the middle of the field. >> watch out for number three. you found that out the hard way. >> i did. >> yes. mr. forbes, thanks for coming on this morning. >> up next, could europe be responsible for a good day on wall street for a change? that's okay. i think washington will figure it out. can the dow bounce back from the 100 point dive. are republican insiders in a

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poised for a rebound. becky quick joins us to explain. >> it looks like we will bounce back from the losses and then some. it looks like the market will open up about 150 points because things are looking a little better in europe today. there were spanish bond options that came off better than expected and everyone said big sigh of relief. this won't be a problem for the immediate moment. as a result you are seeing all kinds of things. it's up about 1:31 which is high levels from what we have seen recently. all kinds of things are moving

in tandem from this. we have decent economic news. 8:30 a.m. eastern time we have housing starts that were better than expected, 9.3% that made people say things are looking good here. a new day and a new take on what's happening in europe and the united states. >> cnbc's headquarters. coming up, back to the payroll tax hike after kicking the can down the road. why republicans are taking a stand now. we will ask a republican and a tea peter favorite up next. tomorrow, we will be live in new hampshire as we hit the campaign trail with mitt romney for his closing argument for a live interview with republican presidential candidate 9:00 a.m. eastern tomorrow on the daily run down only on msnbc. doing christmas last minute... well, this necklace is awesome. honey, you're getting a necklace! see what i mean? i'll surprise you. please. [ male announcer ] the only place to go for last-minute christmas gifts. walmart.

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rundown," the body of kim jung ilis lying in state in a memorial state. his son and apparent successor paid respects along government officials while mourners filled the public plaza outside. there has been outspoken republican freshmen that are standing firm against the two-month extension of the payroll tax holiday in for a one-year extension and drawing criticism from republicans. their actions were called irresponsible. from south dakota. congresswoman, thanks for coming on. >> thank you, chuck. >> i understand the position and saw the press conference with a lot of house republicans. i guess i have to ask you this. what happened in the communication with senate republicans. there has never been this level of miscommunication between house republican leadership and senate republican leadership so far all this year since the

republicans took over the house. what happened? >> i'm not certain what happened. i know that last week, speaker boehner was clear with senator mcconnell. when the first conversation came up with the two-month extension and said it wasn't workable and the house was going to send it back at that point in time. he turned it over to senator mcconnell and harry reid to come to an agreement. it's not acceptable to the house and a widespread feeling among all of us. they are coming out saying two months doesn't work. we want to fix something that is broken. >> seven continuing resolutions have been passed with the congress. there have been a lot of punting. why take the stand now. where was the stand the last seven times? >> we fought all year and if you saw the house and work we did, we did it earlier in the year and waited for the senate. if there has been a problem, it's in the senate getting their

work done. >> when it comes to the payroll tax, from your home state in south dakota, this is what was said, one of the 89 senator who is voted yes, this was a big victory in the sense that the keystone pipeline is important and the real jobs in this pill and i feel good considering the fact that the senate democrats were not comfortable with the pays that were being proposed. he would like it to be more than the two months. it was good enough for him. did you guys communicate before the vote? >> no, we didn't. he's right though. that keystone project is a huge boom for the economy. it's 20,000 jobs off the bat. up to 100,000 as it is construct and helps to make us more energy-efficient to drive down the costs that which is so hard on everyday families. think of what people are spending on fuel and utilities. he is right. the keystone is a big win, but the fact is it's still broken

and that's what the house is trying to fix. >> why not have an up or down vote? >> well, there is not a senate bill, but a house bill. they passed a bill and the senate amended it. at this point in time is when they don't agree. the regular order is to go to conference. i know it looks strange out here in washington, d.c., it's not often you get to see somebody trying to do things through the right process, but when i came out and ran for congress, we said we would restore the institution of government to try to do things correctly. i have seen senator schumer trying to spin this and put all different things on it. this is not for spin. the time is to fix it and do it through regular order where the person people can see we are trying to do what's best for them. >> yesterday it did seem that speaker boehner said he would go ahead and have an up or down vote. what changed? >> he talked to the conference and a lot of times you have leaders who are doing the best

thing they know how to do to represent members. we had a two-hour conference last night and came to a resolution on the best path forward. that's what's great is we are a republic and people elect us to speak for them and we make a decision together. speaker boehner does a great job leading the conference because he listens. >> you confident in his leadership and that he had been passing on the information where you guys stood to senate republicans? i can't imagine that mcconnell and these guys would have done this had they known it could not get through the house. >> i really feel like speaker boehner has been palms up with us in his answers to all of our questions. i have no reason to doubt that and i believe we are on the right path today. >> do you not worry if you push this through, it kills it and there is not even a payroll tax holiday extension for a day let alone two months?

>> that would be a tragedy. it would be. it goes squarely on harry reid's lap. if he doesn't do work because it's christmas and the holidays, he has lost touch of the american people. everybody is struggling and this is a tax increase we could make happen and stop for the american families out there. if harry reid is not willing to travel back and set forth to do that, that is wrong. >> all right, kristi noem in leadership in south dakota. up next the tuesday political panel and first the soup of the day. they didn't think they would be serving much staff so it's good to have a left over soup like minestrone. [ laughing ]

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>> newt gingrich asked about who is behind the onslaught that voters are seeing. >> you are restoring the future. you asked me a question. which one is that? okay. that makes my point. if you see them, ask them to take it off the air. >> i'm not allowed to communicate with them in any way, shape, or form. if we coordinate, we go to the big house. >> in our panel, politico to martin. i will get to that in a minute, but since i got fred yang here. they showed upside down ratings for congressional democrats and republicans. 75% said they will blowout or one of the worst i imagine the numbers will get worse. >> they are getting worse and

"the washington post" poll show the republicans are like winning the race to the bottom. >> that's what this is. let's not pretend the democrats are the high ground. high or low ground. >> and the winner of all this is the president. >> he is going to end up because he gets to be separate from the mess that is going on here. how fearful of some republicans that the tea party is making john boehner do? >> we have seen them before. it's happening all over here again. you have the tea party rank and file who are taking over the house and running the house. i was talking to one before and driving in. what are they doing? they are hurting us and they make us look bad. >> the great bill. they are from the poll about six months ago. he said why did the person jump

off a cliff? because he had to find out he was being chased bia tiger and the tiger is the tea party and leaders are struggling. let's go to the presidential race. i will play an interesting exchange on gingrich and ron paul defending himself on foreign policy. >> the other thing reminds us of the caucus. everybody should think deeply before they vote about national security. those who woulding is isolationism or hiding or it's not a big deal if i ran against nuclear weapons, we saw what happened on 9/11. n imagine that being a nuclear weapon. i happen to think it's one of the reasons why i'm rising in the polls. the american people are tired of the wars and spending. i'm being positive. >> who is right?

>> i think ron paul. this is a real problem for him. she so far astray. people love ron paul because he is unconventional, but he goes too far if are i let of folks. a lot of people think he hit a ceiling. >> a as far as getting off after iowa, but he can register new voters and that's how he can maybe have a false higher ceiling in warks than anyone. >> if you are a democrat or independent and you show up on caucus night and you change your affiliation, you can vote for ron paul. they are increasingly panicked for ron paul will hijack the caucuses. if he does that, the long-term implications they say would be in jeopardy and he would do it with a combination of libertarian leading republicans

and the coalition of democrats and independent who is would change that party to vote for him. that could give him a boost. they told me if paul is the winner. that will be the balance. >> we are already hearing the ground being laid. >> how to make iowa. let's not forget ron paul tapping into something. what is it that you have seen in the polling that he is tapping into that maybe republicans ought to be careful. >> she the one candidate who was not like the others. it's not arguable, but a fact. he is speaking among the voice that what are they doing in washington and they are not like us. the question is ron paul a messenger, i'm not sure he makes it. >> the paul supporters tweet me and e-mail all of us. you don't give him enough

coverage i would say. do they really want a lot of coverage? look at the which goes about ro paul's controversial comments and statements he's made particularly on issues about race. >> a pew study found he was one of the least covered. >> we will come back. talk about gingrich's struggle to get on the virginia ballot. suddenly the guy has to have virginia rallies tomorrow. trivia time. we ask, which president gave the president's residence the official name the white house. the answer, teddy roosevelt, according to the white house historical association in one of his earliest acts as president white house issued an executive order establishing the white house as the previous name of the residence. we'll be right back. you're watching "the daily you're watching "the daily rundown" only on msnbc. through diet and exercise, alli can help you lose one more

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let's bring back our panel. all right. i have to play for you newt gingrich unapologetic about his struggles to get on the virginia ballot. here's what he said. >> we hope to -- we're scramling to get -- look, there's no question. some candidates have been running for five and six years and have raised millions and millions of dollars and they're wetter organized than i am. on the other hand, as the most recent poll that came out today indicates i'm clearly one of the two front runners. the challenge for us is to get the popular support organized fast enough. we barely made it in ohio. we may barely make it on thursday in virginia. >> he's unapologetic. here's the weird -- the virginia primary is supertuesday this year. but the filing deadline is december 22nd. to do petition signatures and make sure 400 are in each congressional district.

he is holding a rally at the key bring marriott in arlington, virginia, for petition signatures. >> look, newt is very candid about a lot of things including his own campaign. you see him right there in his words he's scrambling to get on the ballot. there's a chance he might not make that ballot. that's why he's coming back from new hampshire tomorrow night. s a you said, the problem is you can get folks in rosiland and get a lot of signatures in the eighth district, guess what? the commonwealth is a big place. if he's downstate how's he going to pull this thing out? illinois -- >> indiana's is complicated one that comes in between iowa and new hampshire. i talked to veterans of the reagan campaign. that's why gerald ford was the nominee in 1976. jing rich could be in a similar situation. >> his challenge over the next two or three years is to capitalize on the surge in the

polls and it's unclear if he has enough time to do it. he may not make it to virginia if he doesn't ramp up his organization in iowa. >> give us the reminder about national polls this close to iowa and new hampshire and whether that mean anything? >> i think they're good for the big picture in terms of who's got momentum and who hasn't. if you can't get on the ballot, it doesn't matter. >> that's true. they can be lagging indicators. shameless plug time, fred. >> three daughters, grace, olivia, natalie, we start march madness in january. >> beth. >> i'm going to plug my cover story "hispanic panic" the republicans party problem with his tannics. >> some republicans have written off the west. >> if you still need a last minute hanukkah or christmas present, the email -- >> kindle fire. >> you can get it on amazon

easily for any of your devices. "on the campaign." >> that's it for this edition of "the daily rundown." we're spending the day on the road with mitt romney in new hampshire. we'll have a live interview and i'll get ten minutes with him later. coming up next steve israel joins chris jansing. joins chris jansing. and then at 1:00 eric cantor . country vegetables soup over it... you can do dinner. four minutes, around four bucks. campbell's chunky. it's amazing what soup can do. gives you a 50% annual bonus! so you earn 50% more cash. according to research, everybody likes more cash. well, almost everybody... ♪ would you like 50% more cash? no! but it's more money.

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