I'm confused (again)

So; last year, we cut the payroll tax by 2%, just because it seemed like a cool thing to do. This year, we nearly defaulted on our debt because we couldn't agree on a plan to cut spending (including social security, which the payroll tax funds). Heading into 2012, if we let the payroll tax reduction expire, it will be a tax INCREASE, that the Republicans will use to cut Obama's head off. But, least we feel sorry for our president, his jobs program will likely include a tax CUT. So, in order to get the debt under control, our president proposed a BALANCED plan of tax increases and spending reductions. Now, in order to stimulate job creation, we're going to cut taxes. And not only that, we're going to continue an ill advised tax cut that funds one of the favorite GOP targets. Is this insane or what?????