Fotiman - 5:21 pm on Jun 18, 2013 (gmt 0)
You are setting padding on an inline element.
The vertical padding, border and margin of an inline, non-replaced box start at the top and bottom of the content area, and has nothing to do with the 'line-height'. But only the 'line-height' is used when calculating the height of the line box.
In other words, your vertical padding is ignored because it's an inline element.