USA: Why Obama might compromise on Bush tax cuts for the rich

President Obama and Congressional Republicans are close to a big economic compromise: Obama would agree to extend Bush-era tax cuts at all income levels, while GOP leaders would relent and allow passage of extended benefits for the long-term unemployed.
"They are making progress," said White House spokesman Bill Burton on negotiations surrounding the deal on Monday on negotiations surrounding the deal.
Such a deal would mark a profound turnabout for Obama, who campaigned hard on the idea that extending tax cuts for the wealthy would be wrong. What caused him to change his mind?
After all, Democrats still control both chambers of Congress. Republicans made big gains in midterm elections, but most of the GOP reinforcements won’t be seated until next session, after the Bush tax cuts are set to expire.
Many liberal Democrats want to take a stand on this issue. If Republicans persist in blocking efforts to extend the cuts only for those making less than $250,000 a year, let them, goes the liberals’ argument. Sure, everyone’s taxes would then rise – but it would be on the GOP’s head.

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