[KitJ]

This is about as big as I can get it. I believe that's a hammer, and the 'bag' over his shoulder *might* be a tree?

[little jeremiah]

For sure hammer. Thing over shoulder doesn’t really look like a bag, it’s rough like a tree but floppy.

[amorphous]

Look at Santa's left arm. It's a distorted face of a woman. The bag makes up her hair. Her neck extends all the way to the bottom of the frame. Looks like a black woman. LL?

Also, there is indeed a tree, an elf/witch, hammer, animal, masked person, and other images, all in the bag over his shoulder. I'll try to upload a larger, enhanced image.

[dgbrown]

I think Santa is carrying a wreath, not a bag. He is going to hang it up. That’s the purpose of the hammer.

Is the lady about to get hung?